ALJ/MAB/eap DRAFT Agenda ID #5107
Ratesetting
Decision PROPOSED DECISION OF ALJ BUSHEY (Mailed 11/14/05)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of the Southern California Water Company (U 133 W) for an order authorizing it to increase rates for water service by $18,972,300 or 24.17% in 2006; by $1,534,500 or 1.57% in 2007; and by $1,493,900 or 1.50% in 2008 in its Region III Service Area. |
Application 05-02-004 |
(See Appendix A for List of Appearances)
OPINION AUTHORIZING RATE INCREASES
TABLE OF CONTENTS
Title Page
OPINION AUTHORIZING RATE INCREASES 1
1. Summary 1
2. Background 1
2.1. Procedural History 1
2.2. Public Participation Hearings and Written Comment
Submitted to the Commission 1
3. Rate Case Plan 1
4. Recommendations of the City of Claremont 1
5. Discussion 1
5.1. Burden of Proof Under Statutes and Rate Case Plan 1
5.2. Calipatria Plant 1
5.2.1. Summary and Background 1
5.2.2. Total Plant Cost 1
5.2.3. Grading, Paving, SCADA 1
5.2.4. Electrical and Instrumentation and Chemical Feeding Equipment 1
5.2.5. Pump Station (Calipatria) 1
5.2.6. Two 1.1 MG Reservoirs (Calipatria) 1
5.2.7. In-line Pump Station 1
5.2.8. 32,000 Foot 12-inch Water Transmission Main 1
5.2.9. Engineering and Other Professional Services 1
5.2.10. Office/Lab/Electrical Building 1
5.2.11. Backwash Decant Basins 1
5.2.12. Summary of Calipatria Niland Upgrade Project 1
5.3. Capital Overheads 1
5.4. Ten Percent Contingency Adder on Capital Budget 1
5.5. Construction Work in Progress 2005 1
5.6. Adder for Design of Water Supply and Distribution Plant 1
5.7. Urban Water Management Plan 1
5.8. Replacement Vehicles 1
5.9. Well Replacements 1
5.10. Main Replacements 1
5.11. Demolition of No Longer Used Wells 1
5.12. Permanent Electrical Generators at Via Blanca (San Dimas)
and Jefferies (San Gabriel) 1
5.13. Relocating Pressure Regulating Valve in San Dimas 1
5.14. Outside Service Expense and Other Operation - Orange County 1
5.15. Tool Clearing 1
5.16. Labor Expenses 1
5.17. Other Maintenance Expenses 1
5.18. Working Cash 1
5.19. Contract to Serve the Calipatria Prison 1
5.20. Cost of Capital 1
5.21. General Office Stipulation 1
5.22. Overall Stipulation 1
5.23. Rate and Efficiency Comparison Metrics 1
6. Categorization and Need for Hearings 1
7. Comments on Proposed Decision 1
8. Assignment of Proceeding 1
Findings of Fact 1
Conclusions of Law 1
ORDER 1
Appendix A - Appearances
Appendix B - General Office Stipulation
Appendix C - Overall Stipulation
Appendix D - Summary of Earnings
Appendix E - Tariff Schedules
Appendix F - Adopted Quantities - Purchased Power and Water
Appendix G - Adopted Quantities - Rate Base, Customer Count, Consumption
Appendix H - Bill Comparison
Appendix I - Income Taxes
1. Summary
Southern California Water Company (SCWC)1 is authorized to increase its Region III service area rates as follows:
Amount |
Percentage | |
2006 |
$4,753,000 |
5.94 |
2007 (estimated) |
$2,598,400 |
3.06 |
2008 (estimated) |
$2,678,000 |
3.06 |
As we discuss in more detail below, SCWC and our Office of Ratepayer Advocates (ORA) were able to reach agreements that resolve some issues in this proceeding. The bulk of the requested rate increase remains in dispute. This decision addresses each of the disputed issues.
On some issues, we find that SCWC has demonstrated that its costs are reasonable. On many issues, however, we find that SCWC inadequately documented its position. As noted below, we have accepted SCWC's inadequate documentation, in one instance locating record evidence on our own initiative, in furtherance of long-term customer interests. On other issues, we must disallow costs where SCWC presented superseded, inconsistent, or no documentation.
1 Effective October 1, 2005, SCWC changed its name to Golden State Water Company. As the record was developed before the name change, we will continue to use SCWC.
