Golden State Water Company:
2016 General Rate Case (GRC)
July 2014, Golden State Water Company filed its Application
requesting CPUC approval to increase its customers' rates for water service in
1, 2, and 3 customer service
($1.62) million or -0.50% =
$319 million total Revenue Requirement
$10.28 million or 3.21%
$10.30 million or 3.12%
CPUC held Public Participation Hearings in Golden State's service
territory from November 13 - December 9, 2014.
Proposed Settlement Agreement
July 6, 2015, ORA and Golden State Water Company filed a partial Settlement
Agreement with the CPUC agreeing on:
- 2016: Golden
State’s proposed revenue requirement at the partial settlement is $300
million while ORA’s proposed revenue requirement at the partial settlement
is $285 million, with a difference of $15 million in unresolved revenue
requirement issues remaining.
proposed Settlement also resolves a number of other issues, including:
of customers and sales per customer
& maintenance expenses
& general expenses
general office expenses
utility plant additions
expense and reserve
of Golden State’s special requests.
proposed Settlement is pending a CPUC decision.
Gardena Water Quality Issues
April 13, 2015, the CPUC issued a Ruling
approving ORA's Motion
to open a separate phase to address customer concerns regarding water quality in
ORA's Policy Position
Partial Settlement Agreement
supports the partial settlement because it will allow Golden State to operate
its systems safely and reliably yet appropriately reduces cost, and is
consistent with the Governor’s
Executive Order mandating water consumption reductions in response to the
drought. ORA also supports Golden State’s agreement to develop internal
procedures that will increase transparency and accuracy in its balancing and
memorandum account records.
will continue to litigate unresolved issues, including $15 million in revenue
requirement for 2016:
million in capital expenditures for General Office and service areas for
million per year in employee compensation expenses
of chemical expenses in Golden State’s Modified Cost Balancing Account as
requested by Golden State
ORA recommends that Golden State should submit attrition / escalation requests
to the CPUC whenever there is a revenue decrease or increase.
ORA's Report & Testimony
performed in-depth analysis of Golden State’s general rate case requests,
and issued its full Report.
Below are highlights of ORA’s findings and recommendations.
Summary for a more detailed summary of ORA's findings.
CPUC should decrease customers' rates for water service in Golden
1, 2, and 3 by:
($30.877) million or -9.6% = $291 million total Revenue
Requirement, $28 million less than Golden State's request
allow inflationary increases in 2017 and 2018 of:
$ 4.478 million or 1.53%
$ 2.762 million or 0.93%
ORA's March 6, 2015 Testimony.
Gardena Water Quality Issues
recommends that the CPUC should require Golden State Water to provide reports to
the CPUC that will:
the CPUC’s monitoring of Golden State's compliance with State Water
Resource Control Board directives.
Golden State’s related actions to resolve water quality issues
in Gardena are adequate and cost-effective.
ORA’s August 24, 2015 Rebuttal
Testimony on Gardena Water Quality Issues.
State Water Rates Assistance Program
- 2015 GSWC General Rate Case