Procedural History

On June 3, 2005, Sierra applied for authority to increase base rates by $8.1 million in the eastern California counties that it serves.5 Sierra requested that rates be effective January 1, 2006. The request represented an overall increase of 12.7% for Sierra's retail customers.

On July 8, 2005, DRA protested the Application. DRA asserted that Sierra did not sufficiently explain or support increases in various plant additions, and depreciation and operating expenses. Sierra replied to DRA's protest on July 21, 2005.

Assigned Administrative Law Judge (ALJ) A. Kirk McKenzie conducted a prehearing conference (PHC) on September 7, 2005. During the PHC, TURN6 and A-3CC7 intervened. On October 7, 2005, Assigned Commissioner John A. Bohn and the assigned ALJ issued a Ruling and Scoping Memo, which confirmed the categorization and need for hearing, defined the issues, established a schedule, and directed the parties to meet and confer in a settlement conference, to determine which issues, if any, would have to be adjudicated through hearing.

5 Sierra serves California customers in Nevada, Placer, Sierra, Plumas, Mono, Alpine, and El Dorado Counties.

6 TURN represents residential customers.

7 A-3CC represents Barton Health Care System, Embassy Suites Lake Tahoe Resort, Heavenly Valley Limited Partnership, Lake Tahoe Unified School District, Marriot Vacation Club and Trimont Land Company d/b/a North Star Lake Tahoe.

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