ALJ/MCK/avs Mailed 8/25/2006
Decision 06-08-024 August 24, 2006
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Sierra Pacific Power Company for General Rate Relief and for Authority to Increase its Electric Rates and Charges for Electric Service. |
Application 05-06-018 (Filed June 3, 2005) |
(See Appendix A for list of Appearances.)
OPINION APPROVING SETTLEMENT
Summary
Today, we approve a comprehensive settlement agreement (Settlement Agreement) entered into by Sierra Pacific Power Company (Sierra), the Division of Ratepayer Advocates1 (DRA), The Utility Reform Network (TURN), the A-3 Customer Coalition (A-3CC), and the Western Manufactured Housing Community Association (WMA), the active parties to this General Rate Case (GRC) proceeding. The Settlement Agreement2 establishes a revenue requirement, allocates the revenue requirement responsibility among customer classes, designs a rate structure, and resolves all issues in Sierra's application for general rate relief and for authority to increase its electric rates and charges for electric service.
The Settlement Agreement increases base rates3 by $3,916,000,4 or approximately 6.94% of total revenues. The rate increase is effective today. Sierra was last authorized to increase base rates in January 2004. Today's adopted revenue increase represents approximately 50.1% of Sierra's total requested increase, and results from increasing costs for both labor and non-labor expenses and from increased plant investment.
1 DRA was formerly the Office of Ratepayer Advocates.
2 The Settlement Agreement and the accompanying motion and tables are Attachment A to today's decision.
3 Base rates exclude surcharge revenues such as public purpose programs and Energy Cost Adjustment Clause balancing revenues.
4 In addition to the $3,916,000 increase in base rates, the Settlement Agreement includes an increase of $182,000 related to the Energy Efficiency component of Public Purpose programs, or a total increase of $4,098,000.
