• Golden State Water Company (GSWC)
    General Rate Case

    Background

    In July 2011 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:

    • 15.0% from a requested 21.4% for 2013
    • 2.6% from a requested 2.7% for 2014
    • 2.0% from a requested 3.2% for 2015

    On May 9, 2013 the CPUC issued a Final Decision approving the Settlement Agreement.

     

    DRA’s Policy Position

    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:

    • Extended to allow for additional data collection and detailed evaluation.
    • Required to collect and provided further analysis of several areas of data, including unaccounted-for-water, in GSWC’s next Rate Case to be filed in July 2014.

    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.

     

    Current Proceeding

    See the Proceeding docket.