• Apple Valley Ranchos Water Company GRC

  • Background

    On January 3, 2011 Apple Valley Ranchos Water Company (AVR) filed a General Rate Case application proposing a revenue increase for 2012 of more than $3.8 million (a 20% increase).

  • DRA's Policy Position

    DRA filed its Opening Brief on September 29, 2011 addressing remaining disputed rate case issues after reaching a partial settlement. DRA's arguments include:

    • AVR has failed to justify budget increases related to three new employees, merit increases, bonuses, and employee benefits. 
    • CPUC should not approve AVR's requested Pressure Reducing Valve Memorandum Account because the costs are undefined and due to the absence of specific proposed project plans.
    • CPUC should deny AVR's requested office expansion because AVR did not adequately justify the need for additional space and has not provided a well-defined plan and a valid cost estimate. 
    • No CPUC action is needed to address the contingency that the Carlyle transaction will not be completed by January 1, 2012 because there is no evidence that this transaction will not be completed.

    DRA relied on its independent investigation and analysis to develop its forecasts of AVR’s revenues, expenses, and capital expenditures. On May 10, 2011, DRA issued its Results of Operations Report recommending a revenue increase of only $1.1 million (a 5.7% increase).

  • Current Proceeding

    DRA is awaiting a proposed decision from the CPUC.

    See the proceeding docket