San Jose Water Company
2016 General Rate Case (GRC)
Jose Water Company serves over 1 million people and is responsible for
the supply and distribution of water for domestic and industrial purposes for
portions of the Cities of San Jose and Cupertino, as well as the cities of
Campbell, Los Gatos, Monte Sereno, Saratoga, and unincorporated Santa Clara
On January 5, 2015, the San Jose Water Company
filed an Application
requesting CPUC approval to increase rates for water service over present
$ 34,031,000 (11.88%)
$ 10,111,000 (3.06%)
$ 16,590,000 (4.78%)
- 3-Year Cumulative Total = $60.7 million (20.7% increase)
Specifically, the proposed rate increase is
driven by these key areas:
- $94 million in Capital Budgets
- $ 7.6 million in Conservation Expenses
- $ 7.3 million in Taxes
- $ 7.1 million in Capital Investment Recovery
- $ 4.8 million in Purchased Services
- $ 4.4 million in Staffing, including 33 new positions
On August 13, 2015, ORA and San Jose Water Company filed a joint motion requesting CPUC approval of a partial Settlement Agreement.
CPUC Proposed Decision
On April 22, 2016, the CPUC issued a Proposed Decision on San Jose Water's rate case.
ORA Policy Position
ORA performed an in-depth review of San Jose
Water's Application and makes the following recommendations for revenue
$23,468,000 or 8.54%
$13,803,000 or 4.42%
$16,261,000 or 4.95%
- 3-Year Cumulative Total = $53.5 million
ORA's analysis shows that San Jose Water has
over-estimated its revenue needs in the areas of Capital Improvement Projects,
Cost of Labor, and Conservation.
ORA’s recommendation for a smaller increase in
service rates is offset by ORA’s recommendation that San Jose Water should use
a lower water consumption forecast, given the Governor’s Order
to significantly increase water conservation. Lower water consumption will
result in the collection of less revenue from customers, which means that San
Jose Water will need additional revenue to cover its fixed costs required to run
its utility operations and reliably serve customers' water needs.
Additionally, ORA is recommending that the cost
of San Jose Water’s Recycled Water retrofit program be spread across 2016-2018
in order to decrease the burden on customers.
While ORA’s overall recommendation is $7.2
million (11.86%) lower than San Jose Water’s request, the impact of the
conservation mandate and the more even distribution of Recycled Water costs
would result in slightly higher increases for 2017 and 2018.
See ORA's April 24, 2015 Testimony
in response to San Jose Water's GRC Application.
See ORA’s February 2, 2014 Protest to
San Jose Water’s GRC Application.
See the CPUC Proceedingdocket.
San Jose Water Company GRC