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CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER AND AUDITS
Advice Letter Cover Sheet
[ ] APPROVED [ ] WITHDRAWN [ ] REJECTED
Signature: Comments:
Date:
Utility Name: California Water Service Company Date Mailed to Service List: 10/31/18
District: All districts except for Grand Oaks
CPUC Utility #: U-60-W Protest Deadline (20th Day): 11/20/18
Advice Letter #: 2318 Review Deadline (30th Day): 11/30/18
Tier: ☐1 X2 ☐3 X Compliance Requested Effective Date: 1/1/19 Authorization: D.16-12-042
Description: RSF Surcharge Recalculation for 2019 Rate Impact: 0.384% RSF Surcharge
The protest or response deadline for this advice letter is 20 days from the date that this advice letter was mailed to the service list. Please see the “Response or Protest” section in the advice letter for more information.
Utility Contact: Todd Pray Utility Contact: Natalie Wales
Phone: 408-367-8250 Phone: 408-367-8566
Email: [email protected] Email: [email protected]
DWA Contact: Tariff Unit
Phone: (415) 703-1133
Email: [email protected]
DWA USE ONLY DATE STAFF COMMENTS
CALIFORNIA WATER SERVICE COMPANY 1720 NORTH FIRST STREET
SAN JOSE, CA 95112 (408) 367-8200 F (408) 367-8428
October 31, 2018
Advice Letter No. 2318
To the California Public Utilities Commission:
California Water Service Company (“Cal Water”) respectfully submits this Tier 2 advice letter requesting authority to make the following changes to tariffs applicable to multiple ratemaking areas.
New/Revised Cancelling
CPUC CPUC
Sheet No. Title of Sheet Schedule No. Sheet No.
xxxxx-W Rate Support Fund RSF xxxxx-W
xxxxx-W Table of Contents (Page 1) TOC xxxxx-W
xxxxx-W Table of Contents (Page 5) TOC xxxxx-W
Summary
This advice letter is filed in compliance with Decision 16-12-042, adopted on December 15, 2016, and Preliminary Statement AM (Rate Support Fund Balancing Account). Under Preliminary Statement AM, Cal Water must file a report on the status of the RSF surcharge by October 31st of each year, and may adjust the RSF surcharge effective January 1 of the following year.
Cal Water submits the required report, and requests that RSF surcharges become effective on January 1, 2019. Cal Water submits this as a Tier 2 advice letter.
Background
The current RSF surcharge was approved in AL 2283 pursuant to D.16-12-042, Ordering Paragraphs 6 and 15. In Preliminary Statement AM, Cal Water is authorized to:
1. File an advice letter to report on the status of the RSF surcharge by October 31st of each year. The accounting procedure required for RSF BA are:
a. A debit entry equal to the recorded RSF credits (subsidies) given to customers for service provided under Schedule No. RSF;
b. A debit entry of $993,015 for each of the three years in the 2017-2019 rate case cycle to reflect the subsidies that offset the revenue requirements of the former Redwood Valley District service areas of Coast Springs, Lucerne, and Unified;
c. A credit entry equal to the recorded RSF surcharges collected from all customers (except for LIRA customers in RSF Districts) as provided under Schedule No. RSF;
CALIFORNIA WATER SERVICE COMPANY Advice Letter 2318 RSF Surcharge Recalculation for 2019 Page 3
d. A monthly debit or credit entry equal to the average balance in each segment of the account multiplied by 1/12th of the most recent month’s interest rate on Commercial Paper (prime, 90-day) published in the Federal Reserve Statistical Release H-15.
2. Adjust the annual surcharge to zero out the forecasted balance anticipated to be in the account at the end of the following year.
Discussion The RSF Surcharge is calculated as a ratio: the numerator is the total forecasted RSF program cost; the denominator is the sum of all quantity and services revenue in 2018,1 minus the service revenue discount given to LIRA customers in 2018. Whereas,
For the numerator, the RSF program cost equals to the sum of:
• (Number of subsidized units for 2017) x (the Tier 1 quantity rate for 2018 minus RSF Index), plus;
• The annual subsidy of $993,015 for the Redwood Valley District, plus;
• The forecasted under-collected RSF account balance as of 12/31/2018, as specified in paragraph 3 of Preliminary Statement AM.
For the denominator, the sum of all quantity and services revenue in 2018 is based upon the values from Advice Letter 2310 (updated corporate tax and rate of return rates) given the assumption that the new surcharge will be in similar proportion.
The service revenue discount given to LIRA customers in 2019 is based on the number of LIRA customers enrolled in the program in September 2018.
Starting January 1, 2019, the RSF surcharge will be decreased from 0.420% to 0.384%. The rate will be applied to the basic water charges2 on the bills of all customers, except for LIRA customers in Kern River Valley, the only RSF district at this time (per Schedule No. RSF).
Neither Preliminary Statement AM nor D.16-12-042 identify the appropriate tier level for this filing. Cal Water is therefore submitting this as a Tier 2 advice letter consistent with Cal Water’s Direct Testimony (Exhibit CWS-2 at page 183) in A.15-07-015, which proposes that the annual RSF update mechanism be modeled on the annual LIRA recalculation. In Ordering Paragraph 4 of D.12-09-020, the Commission ordered Cal Water to file annual LIRA surcharge updates via a Tier 2 advice letter.
1 All revenue associated with LIRA customers in the remaining RSF district, Kern River Valley, is also excluded.
2 Basic water charges consist of the service charge and quantity charges for a metered customer, and the flat charge for flat rate customers, after RSF credits are applied; they do not include any other fees, surcharges, or credits.
CALIFORNIA WATER SERVICE COMPANY Advice Letter 2318 RSF Surcharge Recalculation for 2019 Page 4
Requested Effective Date Pursuant to Preliminary Statement AM, Cal Water requests that the new RSF surcharge become effective on January 1, 2019.
Notice
Customer Notice: This is a Compliance Advice Letter that does not require customer notice, as provided in under Water Industry Rule 3.2 of General Order 96-B.
Service List: In accordance with General Order 96-B, General Rules 4.3 and 7.2, and Water Industry Rule 4.1, a copy of this advice letter will be mailed or electronically transmitted on October 31, 2018 to competing and adjacent utilities and other utilities or interested parties having requested such notification.
Response or Protest
Anyone may respond to or protest this advice letter. When submitting a response or protest, please include the utility name and advice letter number in the subject line. A response supports the filing and may contain information that proves useful to the Commission in evaluating the advice letter. A protest objects to the advice letter in whole or in part and must set forth the specific grounds on which it is based. These grounds are:
(1) The utility did not properly serve or give notice of the advice letter; (2) The relief requested in the advice letter would violate statute or Commission order, or is not authorized by statute or Commission order on which the utility relies; (3) The analysis, calculations, or data in the advice letter contain material error or omissions; (4) The relief requested in the advice letter is pending before the Commission in a formal proceeding; or (5) The relief requested in the advice letter requires consideration in a formal hearing, or is otherwise inappropriate for the advice letter process; or (6) The relief requested in the advice letter is unjust, unreasonable, or discriminatory (provided such a protest may not be made where it would require relitigating a prior order of the Commission.)
A protest shall provide citations or proofs where available to allow staff to properly consider the protest. A response or protest must be made in writing or by electronic mail and must be received by the Division of Water and Audits within 20 days of the date this advice letter is filed. The address for mailing or delivering a protest is:
Tariff Unit, Division of Water and Audits, 3rd floor California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102 [email protected]
CALIFORNIA WATER SERVICE COMPANY Advice Letter 2318 RSF Surcharge Recalculation for 2019 Page 5
On the same date the response or protest is submitted to the Division of Water and Audits, the respondent or protestant shall send a copy by mail (or e-mail) to Cal Water at the following address:
Natalie Wales California Water Service Company 1720 North First Street, San Jose, California 95112 Fax 408/367-8430 or E-mail [email protected]
Cities and counties requiring Board of Supervisors or Board of Commissioners approval to protest should inform the Division of Water and Audits within the 20-day protest period so a late-filed protest can be entertained. The informing document should include an estimate of the date the proposed protest might be voted on. The advice letter process does not provide for any responses, protests or comments, except for the utility’s reply, after the 20-day comment period.
Replies: The utility shall reply to each protest and may reply to any response. Each reply must be received by the Division of Water and Audits within 5 business days after the end of the protest period and shall be served on the same day to the person who filed the protest or response. If you have not received a reply to your protest within 10 business days, contact California Water Service Company at (408) 367-8200.
CALIFORNIA WATER SERVICE COMPANY
/s/ ____________________________ Todd Pray, Regulatory Program Manager
cc: Ting-Pong Yuen, ORA
CALIFORNIA WATER SERVICE COMPANY
1720 North First Street, San Jose, CA 95112 Revised CPUC Sheet No. XXXX-W
(408) 367-8200 Canceling CPUC Sheet No. XXXX-W
Table of Contents - Page 1
The following listed tariff sheets contain all effective rates and rules affecting the rates and service of the Utility together with information relating thereto:
Sheet Subject Matter Service Area Schedule No. CPUC Sheet No.
Title Page 5613-WTable of Contents
Page 1 Table of Contents XXXXX-W (C)Page 2 Preliminary Statements 11615-WPage 3 Preliminary Statements 11614-WPage 4 Preliminary Statements 11627-WPage 5 Rate Schedules - All Districts XXXXX-W (C)Page 6 Rate Schedules - District Specific 11635-WPage 7 Rate Schedules - District Specific 11634-WPage 8 Rate Schedules - District Specific 11633-WPage 9 Rate Schedules - District Specific 11632-WPage 10 Rate Schedules - District Specific 11631-WPage 11 Service Area Maps 11618-WPage 12 Rules 11621-WPage 13 Rules 11304-WPage 14 Sample Forms 11409-WPage 15 Sample Forms 2926-W
(continued)
(To be inserted by utility) Issued by (To be inserted by CPUC)
Advice Letter No. PAUL G. TOWNSLEY Date Filed
Decision No. Name Effective
Vice President Resolution No.
TITLE
2318
CALIFORNIA WATER SERVICE COMPANY
1720 North First Street, San Jose, CA 95112 Revised CPUC Sheet No. XXXXX-W
(408) 367-8200 Canceling CPUC Sheet No. XXXXX-W
Table of Contents - Page 5
Rate Schedules
Sheet Subject Matter Service Area Schedule No. CPUC Sheet No.
Rate Schedules:
ALL DISTRICTSService to Company Employees ED-1 5168-WSurcharge to Fund Public Utilities Commission UF 11632-W
Reimbursement FeeRate Support Fund RSF XXXXX-W (C)Low Income Ratepayer Assistance
Page 1 LIRA 11325-WPage 2 LIRA 10371-WPage 3 LIRA 11517-W
PBOP Surcharge PB 7049-WAdditional Surcharges/Surcredits
Page 1 AS 11676-WPage 2 AS 11675-WPage 3 AS 11664-WPage 4 AS 11125-WPage 5 AS 11460-WPage 6 AS 11394-W
Fire Flow Testing Charge FFConstruction and Temporary Metered Service
Page 1 9-CMPage 2 9-CM
Schedule 14.1Page 1 14.1 11052-WPage 2 14.1 10760-WPage 3 14.1 11051-WPage 4 14.1 10758-WPage 5 14.1 10757-WPage 6 14.1 10756-WPage 7 14.1 11050-WPage 8 14.1 11049-WPage 9 14.1 11048-WPage 10 14.1 11047-WPage 11 14.1 11046-WPage 12 14.1 11045-WPage 13 14.1 11044-WPage 14 14.1 11043-WPage 15 14.1 11122-WPage 16 14.1 11041-W
Private Fire Protection ServicePage 1 AA-4 11629-WPage 2 AA-4 11630-W
(continued)
(To be inserted by utility) Issued by (To be inserted by CPUC)
Advice Letter No. PAUL G. TOWNSLEY Date Filed
Decision No. Name Effective
Vice President Resolution No.
TITLE
8597-W
2318
11514-W11513-W
CALIFORNIA WATER SERVICE COMPANY
1720 North First Street, San Jose, CA 95112 Revised CPUC Sheet No. XXXX-W
(408) 367-8200 Cancelling CPUC Sheet No. XXXX-W
Schedule No. RSF
All Tariff Areas
RATE SUPPORT FUND
The Rate Support Fund (RSF) Program provides credits on the bills of customers in the Kern River Valley District.
It also provides a subsidy of $993,015 to reduce the revenue requirements of the service areas in the Redwood
Valley District for each of the three years in this rate case cycle (2017-2019).
The RSF Program is funded through surcharges on other customers as specified below.
RSF SURCHARGE
APPLICABILITY:
Applicable to all water service except that provided for:
(1) public and private fire protection services
(2) under Schedules OR-3M, OR-3M-I, and OR-2UL for raw water delivery along the Powers Canal and
(3) LIRA customers located in an RSF District (see Schedule LIRA).
TERRITORY:
All territories served.
SURCHARGE:
An RSF surcharge rate of 0.384% will be applied to the basic water charges (identified below) on ( R )
a customer's bill.
"Basic water charges" as referenced in this Schedule consist of the service charge and quantity charges for
a metered customer, and the flat charge for flat-rate customers, after RSF credits are applied; they do not
include any other fees, surcharges, or credits.
RSF CREDIT
APPLICABILITY:
Applicable to all water service in the Kern River Valley District (the "RSF District"), except
that provided for public and private fire protection services.
CREDIT AMOUNTS:
A discounted quantity rate on the first units of water consumption per month up to the "RSF Usage Limit."
Discounted RSF quantity rate………………………………$5.28 per 100 cubic feet (CCF)
The Discounted RSF Quantity Rates apply to monthly water consumption up to the following RSF Usage Limits:
Kern River Valley District First 10 CCF
Additional units will be charged at the quantity rates described on the rate schedules for those service areas.
Kern River Valley District Schedule KRV-1
SPECIAL CONDITIONS
1. The RSF Credits and Surcharges on this tariff shall be separately identified on customer bills.
2. Customer bills in the former Redwood Valley District service areas (Coast Springs, Lucerne, and Unified) shall have
a message indicating that their basic water rates (service charge and quantity rates) are lower due to a subsidy from
the RSF program. This bill message will continue as long as the RSF subsidy continues.
3. In no instance should the total amount of the combined RSF Credit and and LIRA discount received by a
customer in any month exceeds that customer's water bill for service in that month.
(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice Letter No. 2318 PAUL G. TOWNSLEY Date Filed
Decision No. NAME Effective
Vice President Resolution No.
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ater.co
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ater.co
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ater.co
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ater.co
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ater P
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ater.ca.go
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.O.B
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ater C
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94
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94
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ater C
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95
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Santa C
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