ALJ/GW2/jyc Date of Issuance 5/8/2009
Decision 09-05-005 May 7, 2009
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Golden State Water Company |
Application 08-09-010 (Filed September 15, 2008) |
DECISION APPROVING SETTLEMENT AGREEMENT AND AUTHORIZING CHANGES IN RATE DESIGN AND RATESETTING MECHANISMS
1. Summary
This decision adopts a two-party settlement between Golden State Water Company (Golden State) and the Commission's Division of Ratepayer Advocates over the opposition of one protestant. The settlement, documented in the Settlement Agreement as modified by the signatories, resolves all issues in this proceeding. Golden State is authorized to implement a rate design that establishes different rates based on levels of consumption in order to promote conservation and that decouples sales from revenues in several of its ratemaking areas within Region I.
Customers in the Bay Point, Los Osos, Santa Maria and Simi Valley
ratemaking areas will be classified as residential and non-residential customers. Residential customers will see a reduced monthly or bi-monthly service charge with a consumption rate (also called the quantity rate) that increases based on quantity consumed (commonly called increasing block rate) and that is broken into three tiers. (See Table 1 below.) The non-residential customers will see a reduced monthly or bi-monthly service charge and a single rate regardless of the quantity of water consumed. The reduced service charge for both classes of customers will mean that a higher proportion of Golden State's fixed costs will be recovered based on the water consumed.
The Ojai ratemaking area, which already has a three-tiered conservation rate design, will have a reduction in the service charge and increases in the current three-tiered quantity rate. (See Table 2 below.) For the Arden Cordova area a reduction of the service charge and an increase in the current single quantity rate will comprise an interim rate design, with a provision for the later filing of a conservation rate design that is to be consistent with the Settlement Agreement. Clearlake, an area with few customers and low consumption on the average, is excluded from the settlement.
For each of the six relevant ratemaking areas water sales and revenue collection will be decoupled through a water revenue adjustment mechanism and a modified cost balancing account.
