19. Reasonableness Review-Job No. 4761-Plant F16-Install Electrical Panel

SGV installed an electrical panel and two 12-inch check valves at Plant F16. The electrical panel was originally sized for four booster pumps. However, SGV increased its size to accommodate the two additional pumps planned to be installed. The project was placed in service in 2003 at a recorded cost of $396,669.

19.1. Positions of Parties

COF argues that since the proposed booster pumps at Plant F16 are not needed, the increased size of the electrical panel to accommodate the additional pumps should be disallowed. COF proposes to limit the amount in ratebase to SGV's original proposed cost of $200,000.

FUSD joins in COF's argument.

SGV states that the electrical panel was constructed at the same time as the two additional booster pumps at Plant F16. With the additional pumps, there are six booster pumps at Plant F16 and the electrical panel is sized to serve all six. SGV states that the electrical panel has been used to operate the booster pumps since 2003, including frequent running of all booster pumps.

19.2. Discussion

The reasonableness issue for this project is whether the additional panel capacity was needed. The increase in the size of the electrical panel was due to the installation of two new booster pumps at Plant F16. The fact that the panel has been used to operate the booster pumps since 2003, including frequent running of all booster pumps, shows the full capacity of the panel has been frequently used. This supports the need for the extra panel capacity. The recorded cost is reasonable.