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ALJ/RMD/rbg Date of Issuance 2/1/2008
Decision 08-01-043 January 31, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the matter of the Application of the GOLDEN STATE WATER COMPANY (U133W) for an order authorizing it to increase rates for water service by $2,812,100 or 32.61% in 2008; by -$178,700 or -1.51% in 2009; and by $109,900 or 0.92% in 2010 in its Arden Cordova Customer Service Area. |
Application 07-01-009 (Filed January 5, 2007) |
And Related Matters. |
Application 07-01-010 Application 07-01-011 Application 07-01-012 Application 07-01-013 Application 07-01-014 Application 07-01-015 (Filed January 5, 2007) |
OPINION GRANTING RATE INCREASES FOR SEVEN DISTRICTS IN THE REGION I SERVICE AREA OF GOLDEN STATE WATER COMPANY
OPINION GRANTING RATE INCREASES FOR SEVEN
DISTRICTS IN THE REGION I SERVICE AREA OF
GOLDEN STATE WATER COMPANY 22
5. DRA/Golden State Stipulation & Standard of Review 99
6. Summary of Rate Increase for Region I 1212
7. Common Issues for All Seven Districts 1313
7.1. Water Usage/Consumption 1313
7.2. Water Loss and Unaccounted for Water 1414
7.5. Administrative and General Expenses 1616
7.6. Operation and Maintenance Expenses 1717
7.7.2. Request for New Positions 2121
7.7.3. Northern District Water Conservation Coordinator 2121
7.7.4. Coastal District Engineering Technician III 2222
7.7.5. Los Osos Water Supply Operator II & Simi Valley
Water Supply Operator II 2222
7.8. General Office Allocation A.06-02-023 2424
7.10. Property, Payroll and Local Taxes 2626
7.13. Depreciation and Amortization 2929
7.14. Construction Work in Progress 3030
7.15. Capital Budget Overhead 3131
7.16. Overhead Pool Account 3232
7.17. Capital Budget Contingency Rate 3434
7.19. Cost of Capital & Capital Structure 3636
7.20. Low-Income Rates for Region I 3838
7.22. Escalation Year 2009 and Escalation Year 2010 3939
8. District Specific Issues 4141
8.1. Rates for the Seven Districts 4141
8.5.1. Lewis Lane Electrical Improvements 4949
8.5.2. Cuesta-by-the-Sea Loop Closures 5050
8.5.3. Interconnection with LOCSD 5151
8.5.4. Rosina Plant and Pipelines for Nitrate Treatment 5252
ATTACHMENTS
Attachment A |
DRA/Golden State Stipulation - August 17, 2007 |
Attachment B |
Summary of Earnings for Test Year 2008 |
Attachment C |
Test Year 2008 Rate Schedule |
Attachment D |
Adopted Quantities |
Attachment E |
Bill Comparisons |
Attachment F |
Adopted Rate Base |
Attachment G |
Income Tax Calculation |
OPINION GRANTING RATE INCREASES
FOR SEVEN DISTRICTS IN THE REGION I SERVICE
AREA OF GOLDEN STATE WATER COMPANY
This decision approves various general rate increases for the years 2008, 2009, and 2010 for seven Golden State Water Company (Golden State) customer service areas (CSAs). These seven CSAs are Arden Cordova, Bay Point, Clearlake, Los Osos, Ojai, Santa Maria, and Simi Valley. Together, these CSAs are referred to as Region I of Golden State's service area. While the rates for year 2008, the test year, are set by this decision, the rate adjustments for the second and third years, 2009 and 2010, will be specifically determined when advice letters for those two years are filed prior to years 2009 and 2010. Golden State's requested rate increases and our adopted rates for 2008 are set forth below in Table 1.
Table 1
Adopted Rate Increases
Requested Rate Increase |
Adopted Increase | ||||||||
2008 |
2009 |
2010 |
2008 | ||||||
Application |
District |
$ |
% |
$ |
% |
$ |
% |
$ |
% |
A.07-01-009 |
Arden Cordova |
2,812,100 |
32.61 |
178,700 |
1.51 |
109,900 |
.92 |
1,928.0 |
22.05 |
A.07-01-010 |
Bay Point |
492,400 |
8.57 |
122,500 |
1.94 |
160,000 |
2.47 |
355.2 |
6.18 |
A.07-01-011 |
Clearlake |
214,200 |
12.99 |
20,500 |
1.10 |
32,800 |
1.72 |
151.6 |
9.09 |
A.07-01-012 |
Los Osos |
1,107,00 |
52.69 |
69,900 |
2.17 |
145,400 |
4.43 |
909.8 |
43.24 |
A.07-01-013 |
Ojai |
1,432,900 |
43.95 |
-$89,500 |
-1.89 |
33,000 |
0.71 |
1,138.9 |
34.92 |
A.07-01-014 |
Santa Maria |
2,937,400 |
36.15 |
455,100 |
4.09 |
310,900 |
2.67 |
1,119.4 |
13.65 |
A.07-01-015 |
Simi Valley |
1,605,100 |
16.96 |
113,300 |
1.02 |
222,000 |
1.97 |
767.5 |
7.69 |
In today's decision, we also approve low-income rates for each of the seven districts.
In addition, this decision finds the Stipulation filed by DRA and Golden State on August 17, 2007 (Stipulation) consistent with Rule 12.1 of the Commission's Rules of Practice and Procedure (Rules) and we adopt it.
Where DRA and Golden State failed to agree, we adopt Golden State's requests for rate recovery for a number of capital projects and additional new positions. Overall, these capital projects and new positions will result in customers experiencing rate increases. However, the approved capital projects and new positions are needed to achieve the goals set forth in the Water Action Plan 2005 to improve water quality, service reliability, and upgrade aging infrastructure.
On several issues, we reject Golden State's request. Golden State's request for a higher contingency rate is not adopted and, instead, we adopted a lesser amount. Regarding overhead rate, we also adopt different amounts than requested by Golden State.
On the issue of water quality and customer service, consistent with the goals of the Water Action Plan 2005, we find that Golden State's performance has been sufficient. However, we expect Golden State to make certain improvements, as noted below. Golden State is also specifically directed to file an advice letter to inform the Commission of the costs of fluoridating the water delivered to the Bay Point CSA.
In response to concerns raised by numerous city officials from the City of Ojai, we also impose a specific meet and confer requirement on Golden State to meet with the City Manager of Ojai to resolve any outstanding disagreement on water quality and reliability.
This proceeding is closed.