D0801043 Attachments A-G
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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

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

1. Summary

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.

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