GREAT OAKS WATER COMPANY

Transcription

1 GREAT OAKS WATER COMPANY California Public Utilities Commission Division of Water and Audits Room Van Ness Avenue San Francisco, CA March 31, 2015 Advice Letter 244-W-A Great Oaks Water Company (U-162-W) To the California Public Utilities Commission P.O. Box San Jose, CA (408) Great Oaks Water Company (Great Oaks) submits this Tier 3 advice letter filing requesting authority to implement a surcharge to amortize the balance in Great Oaks authorized balancing accounts. The following tariff sheets implementing this surcharge are attached to this advice letter: CPUC Sheet Number Title Canceling 768-W Schedule No W GENERAL METERED SERVICE SPECIAL CONDITIONS 769-W Schedule No 3M 761-W IRRIGATION SERVICE SPECIAL CONDITIONS 770-W Schedule No W CONTRACT RESALE SERVICE CONDITIONS 771-W TABLE OF CONTENTS 765-W Great Oaks Water Company Advice Letter 244-W-A 1

2 Summary This is a supplemental advice letter to amortize balancing accounts under Public Utilities Code and General Order 96-B, Industry Rule 8.5. The advice letter requests the same relief requested in Advice Letter 244-W, with the only difference being that this supplemental Advice Letter 244-W-A is submitted as a Tier 3 advice letter and requests a Commission Resolution authorizing the requested relief. Following the submission of Advice Letter 244-W, and after a discussion with the Commission s Division of Water and Audits, the decision was made to request a Commission Resolution that will both grant the requested relief, while at the same time clarifying the appropriate procedure to follow when requesting amortization of the combined balances in authorized balancing accounts and memorandum accounts. Advice Letter 244-W followed the procedure Great Oaks employed for its Advice Letter 224-W, which was filed as a Tier 1 advice letter requesting the amortization of the combined balances in a series of authorized accounts that included both balancing accounts and at least one memorandum account. The Division of Water and Audits processed Advice Letter 224-W as a Tier 1 advice letter and approved the requested amortization after thorough review. Advice Letter 244-W included a balance in the exact same memorandum account as was included in Advice Letter 224-W (the Low Income Program memorandum account authorized by the Commission in Resolution W The methodology for amortizing the combined balances utilized in Advice Letter 244-W is the same as used in Advice Letters 224-W (Tier 1 filing) and 234-W (Tier 3 filing). Now, both the Division of Water and Audits and Great Oaks seek Commission clarification on the appropriate procedure to utilize when combining balances in authorized balancing and memorandum accounts, when the combined balance exceeds two percent of the most recent annual revenue for the Utility (per General Order 96-B, Water Industry Rule 8.5). Authorized Balancing and Memorandum Accounts Included in this Advice Letter The balancing accounts being amortized, Commission authority, and the amount of each balancing account is shown in the table below. The workpapers attached as Exhibit A include account details. Balancing Account AL 225-W-A Audit Cost (2009 and 2010 Audits) Commission Authority Amount (-)under/over collection ($) D ,176 Purchased Power Public Util. Code ,075 Great Oaks Water Company Advice Letter 244-W-A 2

3 Pump Tax, Non-Ag Public Util. Code ,199 Pump Tax, Ag Public Util. Code Low Income Program Resolution W ,830 AL 236-W Recovery of GRC D ,932 Rehearing Settlement Total -363,756 The accounts listed in the table above are described more fully in the following paragraphs. 1. AL 225-W-A Audit Cost (2009 and 2010 Audits). In Decision , issued December 21, 2010, the Commission ordered Great Oaks to engage the services of an independent Certified Public Accountant (CPA), with utility client experience, to perform a full and complete audit of the company beginning with all transactions as of January 1, Advice Letter 225-W-A was a Tier 3 advice letter approved by Commission Resolution W-4928, issued August 3, Resolution W-4928 authorized a 12-month surcharge to collect the balance in the Audit Cost Memorandum Account. The amount to be amortized in this advice letter is the over-collection of that balance. 2. Purchased Power Balancing Account. This account tracks increasing recorded power costs using a calculated composite rate based on four different electric rate schedules with various seasonal, times of day, and surcharge rates, all as authorized under Public Utilities Code Groundwater Charges Other Than Agricultural Irrigation Balancing Account. This account tracks costs related to groundwater charges other than agricultural irrigation, as authorized under Public Utilities Code Groundwater Charges, Agricultural Irrigation Balancing Account. This account tracks costs related to agricultural irrigation, as authorized under Public Utilities Code Low Income Lost Revenue Memorandum Account. This account lost revenues and expenses associated with the Company s Low Income Customer Assistance Program, all as authorized by Commission Resolution W AL 236-W Limited Rehearing Under-Collection Balancing Account. This account tracks the recovery of an under-collection resulting from the Company s 2009 general rate case, as authorized by Commission Decision Great Oaks last amortized memorandum and balancing accounts in Advice Letter 234-W, effective March 5, The balances in the accounts being amortized in this Advice Letter 244-W-A are for the time period beginning January 1, 2014 and ending on the 1 D , Ordering Paragraph 5. Great Oaks Water Company Advice Letter 244-W-A 3

4 dates shown in the Workpapers attached to this advice letter as Exhibit A. The balances in the accounts being amortized have been calculated utilizing the same methodology previously approved by the Commission in Great Oaks Advice Letters 224-W and 234- W. Authority for Requested Surcharge This advice letter is filed pursuant to Rule 8.5 of General Order 96-B which authorizes the filing of advice letter seeking to amortize an over- or under-collected balancing account when the balance exceeds two percent of the most recent annual report revenue for the Utility. The most recent annual report revenue of Great Oaks is $15,771,934 (from Great Oaks 2013 Annual Report, Schedule B Income Account). Two percent (2%) of that revenue amount is $315,439. The amount to be amortized ($363,756) exceeds the two percent threshold for the filing of this type of advice letter. Request to Impose Surcharge This Advice Letter 244-W-A requests authorization to impose a surcharge of $0.0758/ccf on the quantity charge of its active service connections for a twelve-month period. The accompanying workpapers provide detail for each of the balancing accounts being amortized. Rate Impact The $363,756 under-collection balance being amortized represents 2.3% of Great Oaks most recent annual report revenue of $15,771,934. For the average single-family customer with a 5/8 x3/4 meter using 13 ccf of water per month, the surcharge will increase a bi-monthly bill by $2.10 (2.23%) from $94.37 to $96.47(including the CPUC surcharge and local utility taxes), as shown in the table below. All water users will be subject to the surcharge for a twelve-month period. Bill Comparison Before and After Advice Letter 244-W Surcharge Current Rates With AL 244-W Surcharge 2-month Meter Charge 5/8 x 3/4" $ month Meter Charge 5/8 x 3/4" $19.82 Water Usage 13 $ Water Usage 13 $ Water Usage 13 $ Water Usage 13 $ Pump Tax Surcharge 26 $ Pump Tax Surcharge 26 $ AL 234-W Amortization Surcharge 26 $ AL 242-W Monterey WRAM Surcharge 26 $ Pump Tax Surcharge 26 $ Pump Tax Surcharge 26 $ AL 234-W Amortization Surcharge 26 $ AL 242-W Monterey WRAM Surcharge 26 $ AL 244-W Amortization Surcharge 26 $ Sub-Total Sub-Total Great Oaks Water Company Advice Letter 244-W-A

5 California PUC 1.5% 1.33 California PUC 1.5% 1.36 Sub-Total Sub-Total San Jose City Utility 5% 4.50 San Jose City Utility 5% 4.60 Total $94.37 Total $96.47 Note: Actual increase depends upon meter size and water usage. The table above is for comparison purposes only and may not reflect actual customer costs. Tier Designation As discussed above, this Advice Letter 244-W-A is submitted as a Tier 3 advice letter and requests the issuance of a Commission Resolution authorizing the requested amortization and surcharge. Requested Effective Date Great Oaks requests that the effective date of the tariff sheets be determined in the requested Commission Resolution. Notice Great Oaks is publishing notice of this Advice Letter 244-W-A in the San Jose Mercury News, a newspaper of local circulation, pursuant to General Order 96-B, Water Industry Rule 3.1. A copy of the published notice will be provided to the Division of Water and Audits after receipt from the newspaper. Great Oaks is also posting this Advice Letter 244-W-A on its website pursuant to General Rule of General Order 96-B. Response or Protest Anyone may protest and respond to this advice letter. 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 specific grounds on which it is based. These grounds may be based upon the following: (1) The utility did not properly serve or give notice of the advice letter; or (2) The relief requested in the advice letter would violate a statute or Commission order, or is not authorized by statute or Commission order on which the utility relies; or (3) The analysis, calculations, or data in the advice letter contain material error or omissions; or (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 that such a protest may not be made where it would require re-litigating a prior order of the Commission). Great Oaks Water Company Advice Letter 244-W-A 5

6 Any protest or response must be made in writing or by electronic mail and must be received by the Commission s Division of Water and Audits within 20 days of the date this advice letter is filed. The advice letter process does not provide for any protests, responses or other comments, except for a reply by Great Oaks, after the 20-day comment period expires. The address for mailing or delivering a protest or response is: Tariff Unit, Division of Water and Audits, 3 rd floor California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA water_division@cpuc.ca.gov On the same date any protest or response is submitted to the Water Division, the protesting or responding person, entity or party must serve a copy of the protest or response on Great Oaks addressed to: Timothy S. Guster Great Oaks Water Co. PO Box San Jose, CA Telephone: (408) Facsimile: (408) tguster@greatoakswater.com Great Oaks Water Company /s/ cc: Ting-Pong Yuen, DRA Kerrie Evans, DRA Ravi Kumra, DWA Timothy S. Guster General Counsel Legal and Regulatory Affairs Great Oaks Water Company Advice Letter 244-W-A 6

7 VERIFICATION I am an officer of the Great Oaks Water Company, and am authorized to make this verification on its behalf. The statements in the foregoing document, Great Oaks Water Co. s Advice Letter 244-W-A, are true of my own knowledge, except as to matters which are therein stated on information and belief, and as to those matters I believe them to be true. I declare under penalty of perjury that the foregoing is true and correct. Executed on March 31, 2015 at San Jose, California. /s/ Timothy S. Guster Great Oaks Water Company Advice Letter 244-W-A 7

8 Certificate of Service I hereby certify that I have this day served a copy of Great Oaks Water Co. s Advice Letter 244-W-A (without Workpapers) on the parties listed on the following Distribution List by mailing a properly addressed copy by first class mail with postage prepaid. Workpapers are available upon request. Executed on March 31, 2015 at San Jose, California. Great Oaks Water Co. Distribution List /s/ Timothy S. Guster Municipal Water System County Clerk City of San Jose County of Santa Clara 3025 Tuers Road 70 W. Hedding Street San Jose, CA San Jose, CA Safe Drinking Water Office Office of Regulatory Affairs Department of Water Resources California Water Service Company th Street, Room North First Street Sacramento, CA San Jose, CA Santa Clara Valley Water District Raminder Kahlon 5750 Almaden Expressway Division of Water and Audits San Jose, CA California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA Danilo E. Sanchez Ting-Pong Yuen Division of Ratepayer Advocates Division of Ratepayer Advocates California Public Utilities Commission California Public Utilities Commission 505 Van Ness Avenue 505 Van Ness Avenue San Francisco, CA San Francisco, CA Legal Division Regulatory Affairs California Public Utilities Commission San Jose Water Company 505 Van Ness Avenue 110 West Taylor Street San Francisco, CA San Jose, CA Great Oaks Water Company Advice Letter 244-W-A 8

9 Great Oaks Water Company Advice Letter 244-W Proposed Tariff Sheets Great Oaks Water Company Advice Letter 244-W 8

10 GREAT OAKS WATER COMPANY Revised Cal. P.U.C. Sheet No. 768-W San Jose, California Canceling Revised _ Cal. P.U.C. Sheet No. 764-W Schedule No. 1 GENERAL METERED SERVICE (Continued) SPECIAL CONDITIONS 1. All bills are subject to the reimbursement fee set forth in Schedule No. UF. 2. To offset the higher Pump Tax imposed by the Santa Clara Valley Water District, effective July 1, 2013, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered on and after July 1, (D) 3. To amortize the combined balance in Commission-authorized memorandum and balancing (L) accounts, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered for a twelve-month period pursuant to Commission Resolution. 4. To offset the higher Pump Tax imposed by the Santa Clara Valley Water District, effective July 1, 2014, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered on and after July 1, To amortize the balance in the Monterey-style Water Revenue Adjustment Mechanism Account, a surcharge of $ per 100 cu.ft. will be added to the quantity rate for Single-Family Residential Customers for a twelve-month period beginning September 2, (L) 6. To amortize the combined balance in Commission-authorized memorandum and balancing (N) accounts, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered for a twelve-month period beginning April 14, (N) (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 244-W-A Timothy S. Guster NAME Date Filed Decision No General Counsel Effective TITLE Resolution No.

11 GREAT OAKS WATER COMPANY Revised Cal. P.U.C. Sheet No. 769-W San Jose, California Canceling Revised_ Cal. P.U.C. Sheet No. 761-W Schedule No. 3M IRRIGATION SERVICE (Continued) SPECIAL CONDITIONS 1. The Santa Clara Valley Water District requires the customer to certify the water is used to irrigate commercial agricultural crops for sale to qualify for this rate. It is an express condition of this Irrigation Service that the customer cooperates in making the necessary certification to the Water District. 2. The Santa Clara Valley Water District has surcharges or discounts applicable to water used to irrigate commercial agricultural crops if the customer/farmer participates in the Water District s special programs. These surcharges or discounts are applied per Acre Ft., are granted or imposed by the Water District each month based on the customer/farmer s level of participation, and will be passed through by the Company each month to the customer/farmer. 3. All bills are subject to the reimbursement fee set forth in Schedule No. UF. 4. Customers who receive water deliveries for agricultural purposes under this schedule, and who present evidence to the Utility that such deliveries qualify for the lower pump tax rates levied by the Santa Clara Valley Water District for agricultural water, shall receive a credit of $ per 100 cu.ft. used during the period covered by that bill. 5. To offset the higher Pump Tax imposed by the Santa Clara Valley Water District, effective July 1, 2013, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered on and after July 1, (D) 6. To amortize the combined balance in Commission-authorized memorandum and balancing (L) accounts, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered for a twelve-month period pursuant to Commission Resolution. 7. To offset the higher Pump Tax imposed by the Santa Clara Valley Water District, effective July 1, 2014, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered on and after July 1, (L) 8. To amortize the combined balance in Commission-authorized memorandum and balancing (N) accounts, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered for a twelve-month period beginning April 14, (N) (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 244-W-A Timothy S. Guster Date Filed NAME Decision No. General Counsel Effective TITLE Resolution No.

12 GREAT OAKS WATER COMPANY Revised Cal. P.U.C. Sheet No. 770-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 762-W Schedule No. 6 CONTRACT RESALE SERVICE CONDITIONS 1. Resale water service is provided under this tariff only if deemed available, in the sole judgment of the Company. The Company may interrupt service from time to time to protect continuous service to its own retail customers. 2. The Company is not providing fire protection supply as it does for its own retail customers. 3. The retailer receiving service under this tariff shall defend and hold the Company harmless from any failure of service or any other claim of damage or injury once the water passes through the Company s meter into the sole possession of the retailer. 4. All bills are subject to the reimbursement fee set forth in Schedule No. UF. 5. To offset the higher Pump Tax imposed by the Santa Clara Valley Water District, effective July 1, 2013, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered on and after July 1, (D) 6. To amortize the combined balance in Commission-authorized memorandum and balancing (L) accounts, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered for a twelve-month period pursuant to Commission Resolution. 7. To offset the higher Pump Tax imposed by the Santa Clara Valley Water District, effective July 1, 2014, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered on and after July 1, (L) 8. To amortize the combined balance in Commission-authorized memorandum and balancing (N) accounts, a surcharge of $ per 100 cu.ft. will be added to the Quantity Rate for each customer for all water delivered for a twelve-month period beginning April 14, (N) (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 244-W-A Timothy S. Guster NAME Date Filed Decision No. General Counsel Effective TITLE Resolution No.

13 GREAT OAKS WATER COMPANY Revised Cal. P.U.C. Sheet No. 771-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 767-W TABLE OF CONTENTS The following listed tariff sheets contain all effective rates and rules affecting the charges and service of the utility, together with other pertinent information. Cal. P.U.C. Subject Matter of Sheet Sheet No. Title Page 346-W Table of Contents 771-W, 354-W (C) Preliminary Statement 347-W, 348-W, 465-W, 466-W, 491-W, 690-W, 708-W, 628-W, 629-W, 702-W, 709-W, 726-W, 742-W, 743-W, 744-W, 746-W Service Area Map 644-W to 670-W Rate Schedules: Schedule No. 1, General Metered Service 752-W, 753-W, 768-W (C) Schedule No. 3M, Irrigation Service 755-W, 769-W (C) Schedule No. 4, Private Fire Protection Service 714-W Schedule No. 5, Public Fire Hydrant Service 3-W Schedule No. 6, Contract Resale Service 757-W, 770-W (C) Schedule No. 9C, Construction Flat Rate Service 438-W Schedule UF, Surcharge to Fund Public Utilities Commission Reimbursement Fee 253-W Summary List of Contracts & Deviations 477-W Rules: No. 1 Definitions 254-W, 255-W No. 2 Description of Services 191-W No. 3 Application for Service 10-W, 503-W, 600-W No. 4 Contracts 11-W No. 5 Special Information Required on Forms W No. 6 Establishment and Re-establishment of Credit 14-W No. 7 Deposits 601-W, 602-W No. 8 Notices 368-W, 369-W No. 9 Rendering and Payment of Bills 18-W, 19-W, 598-W, 732-W No. 10 Disputed Bills 260-W, 261-W No. 11 Discontinuance and Restoration of Service W, 596-W, 377-W No. 12 Information Available to Public 25-W, 26-W No. 13 Temporary Service 27-W, 28-W No. 14 Continuity of Service 29-W No Water Conservation and Rationing Plan W No. 15 Main Extensions W, 349-W, W No. 16 Service Connections, Meters and Customers Facilities 324-W, 350-W, 351-W, W No. 17 Standards for Measurement of Service 352-W No. 18 Meter Tests and Adjustment of Bills for Meter Error W No. 19 Service to Separate Premises and Multiple Units, Resale of Water 279-W, 280-W No. 20 Water Conservation 538-W No. 21 Fire Protection 537-W No. 22 Low Income Customer Assistance Program 490-W No. 23 Military and Family Relief Program 479-W, 480-W (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 244-W-A Timothy S. Guster NAME Date Filed Decision No. _ General Counsel Effective TITLE Resolution No.