STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
June 8, 2004
TO: PARTIES OF RECORD IN APPLICATION 01-09-071
Enclosed is the proposed decision of Administrative Law Judge (ALJ) Maribeth A. Bushey, previously designated as the principal hearing officer in this proceeding. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. This matter was categorized as ratesetting and is subject to Pub. Util. Code § 1701.3(c). Pursuant to Resolution ALJ-180 a Ratesetting Deliberative Meeting to consider this matter may be held upon the request of any Commissioner. If that occurs, the Commission will prepare and mail an agenda for the Ratesetting Deliberative Meeting 10 days before hand. When an RDM is held, there is a related ex parte communications prohibition period.
The Commission may act at the regular meeting, or it may postpone action until later. If action is postponed, the Commission will announce whether and when there will be a further prohibition on communications.
When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Parties to the proceeding may file comments on the proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.
ANGELA K. MINKIN by Carol A. Brown
Angela K. Minkin, Chief
Administrative Law Judge
ANG:jva
ALJ/MAB/jva DRAFT Agenda ID #3643
Ratesetting
Decision PROPOSED DECISION OF ALJ BUSHEY (Mailed 6/8/2004)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of CALIFORNIA WATER SERVICE COMPANY (U 60 W), a corporation, for an order authorizing it to increase rates charged for water service in the Salinas District by $1,353,600 or 12.4% in 200; by $1,112,300 or 9.1% in 2003; by $745,100 or 4.5% in 2004; and by $756,800 or 4.5% in 2005. |
Application 01-09-071 (Filed September 10, 2001) |
(See Appendix I for List of Appearances)
FINAL OPINION APPROVING RATE INCREASE
AND IMPOSING FINE
I. Summary
In this decision, the Commission finds that California Water Service Company (Cal Water) has justified a total rate increase of $1,120,6000 or 10.10% over the two test years for water service in its Salinas District. The Commission also finds that Cal Water acquired three water systems without authorization, and in two of the water systems charged unapproved rates, in violation of the Public Utilities Code and Commission decisions. The Commission orders a fine of $75,000 for the violations, and adopts a reduced return on equity (ROE) for the Salinas District.
