In July 2011, Golden State Water Company (GSWC) filed an Application requesting to increase its rates for water service in 2013, 2014, and 2015 in its Region I, II, and III customer service areas by $58.05 million, or 21.4%. In In April 2012, the CPUC required a more vigorous review of the revenue decoupling mechanism pilot programs that allow GSWC, regardless of how much water it sells to 1) recover its investment for fixed costs (such as infrastructure); 2) return any savings back to customers for variable costs (such as electricity costs).
In June 2012, DRA signed on to a Settlement for all three regions that would benefit GSWC customers, by reducing GSWC’s rate increases by:
On May 9, 2013 the CPUC issued a Final Decision approving the Settlement Agreement.
While DRA generally supports the CPUC's May 9 Decision, the Decision did not adopt DRA's recommendations that GSWC’s revenue decoupling pilot program should be:
Until the CPUC ensures that revenue decoupling programs demonstrate they work, Water companies should not be allowed to permanently implement these programs. Otherwise, such decoupling programs will not achieve their intended purpose: to conserve water.
See DRA’s February 2012 Testimony.
See the Proceeding docket.