• California Water Service
    2014 General Rate Case

    Background

    On July 5, 2012, Cal Water filed its General Rate Case Application for its General Office and 23 water districts, requesting approval to increase revenues. The increases total to:

      • $92.7 million or 19.4% in 2014
      • $17.2 million or 3.0% in 2015
      • $16.9 million or 2.9% in 2016

    Public Hearings were held by the CPUC in April and May in several communities across California.

    On October 30, 2013, ORA, Cal Water and other Intervenors filed a Settlement with the CPUC, coming to consensus on all issues except two.

    The Settlement resolved the following issues with parties agreeing to:

    • Forecasted Sales:  Use ORA’s sales estimates per customer as they aligns with sales trends and to use Cal Water’s estimated number of customers in most districts, which . determines the settled sales by customer class for the first year.
    • Expenses including Conservation, Taxes, and Capital Budgets:  Reduce estimates for these categories.
    • Rate Support Fund:  Increase the Fund discount structure, which will result in higher credits to eligible districts.
    •  Low Income Rate Assistance Programs:  Set LIRA benefit (credit) equal to 50% of the monthly service charge; however, the current $12.00 cap to this benefit was increased to $18.00 for non-RSF Districts and $30.00 for RSF Districts. .

    Issues resolved in the settlement are expected to result in a rate increase of 9.2% in 2014.

    The two outstanding issues to be litigated are:

    • Request for a Sales Reconciliation Mechanism
    • Rate Design 


    ORA’s Policy Position

    ORA supports the Settlement because it reduced Cal Water’s 2014 GRC revenue requirement increase by over $36 million, which saved Cal Water’s ratepayers approximately $6.00 per month.  

    See summary Table comparing Cal Water's request with DRA's recommendations, by water district.

    See full listing of DRA’s March 1, 2013 Testimony of Results of Operations, by district.

    See ORA’s November 27, 2013  Opening Brief.

    See ORA’s January 6, 2014 Reply Brief filed.

    See ORA’s November 27, 2013 Comments.

     

    Proceeding Status

    A final CPUC Decision is expected in 2014.

    See the proceeding docket.