Conclusions of Law
1. The guidelines set criteria for district consolidation that, when met, establish prima facie reasonableness. When the guidelines are not met, there is no prima facie reasonableness, and the burden of showing that the advantages of consolidation outweigh the disadvantages falls on the applicant.
2. Consolidating Felton and Monterey Districts for ratemaking as proposed by Cal Am is not in the public interest.
3. CalAm's request to restructure and consolidate its Felton District and Monterey District rates should be denied
4. CalAm should be ordered to increase its Felton District rates by 30% immediately, and to continue to accumulate in its existing D.04-05-023, Ordering Paragraph 6, balancing account the difference between revenues produced by the rates authorized in this decision and the revenues that would have been produced had the Felton District rates in Appendices B and C of D.04-05-023 taken effect.
5. This decision should be made effective immediately.
IT IS ORDERED that:
1. California American Water Company's (CalAm) request to restructure and consolidate its Felton District and Monterey District rates is denied.
2. Not later than 30 days after the effective date of this order, CalAm shall file in accordance with General Order 96, and make effective on five days' notice, revised tariff schedules for Felton District implementing an overall 30% revenue increase. The revenue increase shall be achieved by implementing the full quantity charge found reasonable but suspended in Decision (D.) 04-05-023 for test years 2003 and 2004 taken together, and then the necessary percentage of the D.04-05-023 adopted 2003 and 2004 general metered service charge increases (Schedule No. FE-1) and private fire protection service rate increases (Schedule No. FE-4) sufficient to bring the overall increase up to 30%.
3. CalAm shall continue to accumulate in its existing D.04-05-023, Ordering Paragraph 6, balancing account the difference between revenues produced by the rates authorized in this decision and the revenues that would have been produced had the Felton District rates in Appendices B and C of D.04-05-023 taken effect.
4. The rates and balancing account entries in Ordering Paragraphs 2 and 3 shall continue until further order of the Commission.
5. Application 04-08-012 is closed.
This order is effective today.
Dated __________________, at San Francisco, California.
