• California Water Service
    2017 General Rate Case

     

    Background

    On July 9, 2015, Cal Water filed its General Rate Case Application for its General Office and 23 districts, requesting approval to increase rates by:    

    • 2017:  $94.8 million or 16.5% 
    • 2018:  $23.0 million or 3.4% 
    • 2019:  $22.6 million or 3.3%  

    Specifically, Cal Water proposes increases for each of its districts as summarized in this Table from Cal Water’s Application. 

     

    CPUC Public Participation Hearings

    The CPUC held Public Participation Hearings throughout its service districts: 

    Chico:  Manzanita Place • 1705 Manzanita Avenue • Chico, CA -- April 26, 2016, 6:00pm 

    Oroville: Manzanita Place • 1705 Manzanita Avenue • Chico, CA -- April 26, 2016, 6:00pm  

    Willows:  Manzanita Place • 1705 Manzanita Avenue • Chico, CA -- April 26, 2016, 6:00pm    

    Marysville:  CalTrans District 3 Building • Sierra Nevada Room • 703 B Street • Marysville, CA -- April 27, 2016, 6:30pm     

    Dixon:  Dixon City Council Chambers • 600 East A Street • Dixon, CA -- April 28, 2016, 6:00pm (Spanish Version)  

    Unified, Coast Springs, and Lucerne districts in the following locations: 

    Guerneville Manzanita Place • Guerneville Veterans Memorial Building – Auditorium,16255 First & Church Street Guerneville, CA • Guerneville, CA -- August 23, 2016, 6:00pm 

    Lucerne: Manzanita Place • Lucerne Alpine Senior Center – Barnes Hall Room, 3985 Country Club Drive • Lucerne, CA -- August 25, 2016, 1:00pm & 6:00pm    

     

    PROPOSED SETTLEMENT

    On September 2, 2016 ORA, Cal Water, and several other parties jointly filed a partial Settlement Agreement requesting CPUC approval to increase revenue requirement by $44.97 million or 7.5% on January 1, 2017.

    Highlights of the Joint Settlement include reductions in Cal Water initial request:  

    • $294 million decrease in Capital Additions
    • $79 million decrease in Main Replacement
    • $89 million decrease in Rate Base
    • $1.9 million decrease in Executive Incentive Compensation

    The proposed Settlement also resolves most issues, including:  

    • Number of customers and sales per customer
    • Operation & Maintenance and Administrative & General expenses
    • Allocated Customer Support Services expenses
    • Utility plant additions
    • Depreciation expense and reserve
    • Various taxes
    • Rate design
    • Bayshore and Redwood, Salinas and King City, and Palos Verdes and Antelope Valley districts Consolidation
    • All of Cal Water’s special requests


    There is one unresolved issue regarding Escalation / Attrition filings for 2018 and 2019.
     

    CPUC Decision

    A final CPUC Decision is expected by the end of 2016.    

     

     

    ORA Position

    ORA supports the partial Settlement because it allows Cal Water to provide safe and reliable service to its customers while reducing costs.  

    ORA's Analysis

    ORA performed an in-depth analysis of Cal Water’s general rate case proposal to ensure its requests are accurate, reasonable, and justified. ORA estimates Cal Water company-wide revenue increases / decreases of:    

    • 2017: $20.3 million (or 3.54%)
       
    • 2018: -$ 32,400 (or -0.01%); estimated, subject to change 
       
    • 2019: -$ 69,900 (or -0.01%); estimated, subject to change      

    ORA’s Table shows a comparison of its estimated revenue increases / decreases by district, compared with Cal Water’s proposal. 

     

    ORA finds that Cal Water has over-estimated its revenue needs, including in these key areas:  

    • Plant Investment:  ORA recommends an annual average of $55 million, compared with Cal Water’s company-wide proposal to construct an average of $238.1 million of capital projects per year.
       
    • Expenses:  ORA estimates lower total Operating & Maintenance and Administrative & General expenses, reflecting reductions in purchased services, enhanced maintenance, and employee pensions.
       

    See ORA's:

    March 2, 2016 Testimony with its full analysis and report.

    August 13, 2015 Protest to Cal Water’s rate case Application.    

     

     

    Proceeding Docket

    See the CPUC's Proceeding docket. 

    Visit the docket to subscribe to updates in this proceeding.  

     

     

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