West Coast Gas Company
2017 General Rate Case

 

Background

On July 29, 2016 West Coast Gas (WCG) filed an Application with the CPUC requesting to increase its revenue requirement for the years 2017 - 2020. WCG is a small gas-only distribution utility which serves the areas of Mather in Sacramento County, Castle in Merced County and a Federal Prison at Herlong.    

In November 2016, the CPUC issued a Ruling with the scope and schedule of the proceeding.

On January 11, 2017, WCG served a Second Supplemental Testimony, updating its Workpapers, requesting CPUC approval to increase its current revenue requirement:    

  • 2017: $314,790.93 (or 17.16%)    

WCG asserts that this revenue increase is necessary due to a reduction in therm sales. The request represents a total decrease of $26,882.48, since WCG first submitted its initial rate case application in July 2016. WCG is also requesting no productivity adjustment.

WCG is requesting CPUC approval to submit an annual request for additional changes for years 2018 - 2020.
 

Utility Bill Impacts:   

Approval of WCG’s increase request would increase residential customers’ current monthly gas bill by approximately $1.31

Evidentiary Hearings are scheduled for March 13, 14, and 15, 2017.

 

ORA Position

ORA performed an in-depth analysis of WCG's request and finds that WCG has over-estimated its revenue requirement needs in the areas of equipment purchase, executive salaries, safety audit hours and training, and outside services. ORA recommends that WCG be authorized a revenue increase of:

2017:  $221,186 (or a 12.06% increase)

ORA's recommends consistency across utilities, and WCG should maintain its current Return on Equity from its previous GRC. ORA recommends WCG be authorized an 8.5% return on common equity (ROE).

ORA does not oppose WCG's request to propose changes for years 2018 - 2020. However, ORA recommends adjustments based on CPI less a productivity adjustment of 0.5%.

ORA's recommendation would not increase residential customers' monthly bills. However, other classifications such as commercial customers would increase.

 

See ORA's:

January 27, 2017 Testimony:

·Exhibit 1: Executive Summary

·Exhibit 2: Operating Expenses, Uncollectibles, Cost of Capital, and Attrition.

·Exhibit 3: Results of Operations, Sales & Revenues, Plant Additions, Depreciation Expense & Reserve, Rate Base, Tax Expenses, and Rate Design.  

 

CPUC Proceeding Docket

See the CPUC Proceeding docket for a record of the case.   

Visit the docket to subscribe to updates to the proceeding.    


 

Other Resources

ORA's West Coast Gas GRC Archive: