Bear Valley Electric Services (BVES)
Catastrophic Event Memorandum Account

Background

BVES, a division of Golden State Water Company, requested CPUC approval to recover $859 thousand in expenses for catastrophic events in its service areas:

  • Bark Beetle Infestation: Trees close to power lines killed by bark beetles had to be removed in 2005 and 2006 to guard against fires.  The costs of removing those trees that were not included in BVES' rates were considered to be incremental and qualified for cost recovery under CPUC rules, along with reasonable interest between the time the costs were incurred and the time the costs are recovered.  January 2010 Storm that damaged BVES infrastructure.

A Settlement was reached between ORA and BVES which reduced BVES’ request by $63 thousand to $796 thousand.  The Settlement was approved by CPUC Decision in June  2012. 

ORA Position

Based on its examination, ORA found BVES' requested costs to be reasonable, but recommended a disallowance of $128 thousand due to the lag in recovering those costs:

  • $32,000 in costs as not incremental, required by the CPUC (agreed to in Settlement).
  • $12,000 in interest on the Bark Beetle costs as not reasonable due to the delay in recovery (agreed to in Settlement).
  • $84,000 related to undercollection from an earlier Bark Beetle decision (Settlement agreed to $66,000 in under-collected costs).

Current Proceeding Status

See Proceeding docket.