6. Assignment of Proceeding
John A. Bohn is the assigned Commissioner and Gary Weatherford is the assigned ALJ in this proceeding.
1. The settlement resolves all of the issues between two of the parties, Golden State and the DRA.
2. The overall result of the settlement lies between the initial positions of the settling parties.
3. The settling parties, although they do not comprise all of the active parties, fairly represent the affected interests.
4. The settlement results in rates that are sufficient for Golden State to provide its customers with adequate reliable service at reasonable rates.
5. The settlement provides the Commission with sufficient information to carry out its future regulatory obligations with respect to the parties and their interests.
6. The decision resolves protestant Gerald Trimble's contentions that the settlement disregards the directives of D.08-08-030, subjects customers to overbilling and fails to address adjustments to recorded revenue levels.
1. Evidentiary hearings are not needed.
2. The settlement does not violate any statute or Commission decision or rule.
3. The settlement is reasonable in light of the whole record, consistent with law and in the public interest.
4. The settlement should be approved.
5. In the company-wide General Rate Case to be filed in July 2011, Golden State Water Company should provide conservation rate and mechanism information gained in the implementation of the settlement.
IT IS ORDERED that:
1. The Settlement Agreement, as modified by the updated conservation rates set forth in Table 1 and Table 2 herein, is approved and adopted.
2. Golden State Water Company shall provide the following information in the company-wide General Rate Case filing in July 2011:
· Monthly or bi-monthly per customer or service connection changes in consumption by ratemaking area, separated by meter size and customer class, following the implementation of the conservation rate design pilot program;
· surcredits and surcharges by ratemaking area and customer class implemented in amortizing water revenue adjustment mechanisms and modified cost balancing accounts;
· meter-reading errors (due to manual reading errors, substitute estimate errors, and early and late meter reads) that cause an unjustified crossing of tiers or retention within tiers;
· increase or decrease in disconnecting low-income program participants for nonpayment by ratemaking area after adoption of conservation rate designs;
· increase or decrease in residential disconnections for nonpayment by ratemaking area after adoption of the conservation rate designs;
· identification of any weather or supply interruption that might contribute to consumption changes in ratemaking areas; and
· any other ratemaking area-specific factor that might contribute to consumption changes.
3. Golden State Water Company shall submit to the Division of Water and Audits a written report on the revenue over-collected or under-collected relative to actual water sales in each of the six relevant ratemaking areas during the preceding calendar year by March 31 of the following year, beginning March 31, 2010. The report also shall show the differences between the authorized revenues and the actual revenues that are to accrue interest at the 90-day commercial rate. If the combined water revenue adjustment mechanisms and modified cost balancing accounts' over-collection or under-collection for any ratemaking area exceeds 2.5% of that area's total authorized revenue requirement for the preceding calendar year, an advice letter is to be filed within 30 days by Golden State Water Company that amortizes the balance in both accounts. If the percentage is 2.5% or less, the balancing accounts are to be amortized in the next General Rate Case.
4. Golden State Water Company shall track significant changes in the cost of purchased water and make a showing in its next Region I General Rate Case filing that it has exercised due diligence in ensuring the least-cost mix for its water sources and that any significant change in water purchases was reasonable.
5. Any remaining unresolved motions or requests are denied.
6. Application 08-09-010 is closed.
This order is effective today.
Dated May 7, 2009, at San Francisco, California.
