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CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER AND AUDITS Advice Letter Cover · PDF file 2019/1/1  · advice letter. A protest objects to the advice letter in whole or

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    Advice Letter Cover Sheet


    Signature: Comments:


    Utility Name: California Water Service Company Date Mailed to Service List: 12/18/18

    District: All Class A Regulated Service Areas (not Grand Oaks)

    CPUC Utility #: U-60-W Protest Deadline (20th Day): 1/7/19

    Advice Letter #: 2332 Review Deadline (30th Day): 1/17/19

    Tier: X 1 ☐2 ☐3 X Compliance Requested Effective Date: 1/1/19 Authorization:

    Description: New January 1, 2019 rates based upon a consolidation of the requested revenue changes in Advice Letter filings 2319 through 2324 (PWOs + Steps)

    Rate Impact: Various

    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: Tess Cayas Utility Contact: Natalie Wales

    Phone: 408-367-8229 Phone: 408-367-8566

    Email: [email protected] Email: [email protected]

    DWA Contact: Tariff Unit

    Phone: (415) 703-1133

    Email: [email protected]


    mailto:[email protected] mailto:[email protected] mailto:[email protected]


     

    December 18, 2018

    Advice Letter No. 2332

    To the California Public Utilities Commission:

    California Water Service Company (“Cal Water”) respectfully submits this Tier 1 advice letter requesting authority to make the following changes to tariffs applicable to all of the company’s Class A ratemaking areas (does not apply to Grand Oaks).

    New/Revised Cancelling


    Sheet No. Title of Sheet Schedule No. Sheet No.

    See Appendix A


    With this advice letter, Cal Water requests authorization from the California Public Utilities Commission (CPUC) to implement new rates for its 20 Class A ratemaking areas beginning January 1, 2019. The new rates reflect a consolidation of the changes requested in six pending Tier 1 advice letters for purchased water/pump tax offsets, and the 2019 steps and Sales Reconciliation Mechanism (“SRM”), all of which request revenue increases.


    Cal Water filed Tier 1 advice letters on November 2, 2018 for two purchased water/pump tax offsets in the East Los Angeles District (“ELA”) (AL 2319) and the Westlake District (“WLK”) (AL 2320). Three more were filed on November 5, 2018 for the Dominguez District (“DOM”) (AL 2321), the Hermosa-Redondo District (“HR”) (AL 2322), and the Los Angeles County Region (“LAR”) (AL 2323).

    On November 14, 2018, Cal Water submitted its 2019 steps and SRM filing (“Steps/SRM”) (AL 2324) requesting approval of Cal Water’s escalation increases and SRM adjustments that were approved in Decision (D.) 16-12-042, dated December 20, 2016, for Escalation Year 2019.


    This Tier 1 filing proposes new rates for all 20 of Cal Water’s Class A ratemaking areas to reflect the revenues increases requested in advice letters identified below. As the following advice letters are also Tier 1, Cal Water may put the requested rates into effect pending Commission review.

    1) AL 2319 for an East Los Angeles District purchased water offset (filed 11/2/18; approved) 2) AL 2320 for a Westlake District purchased water/pump tax offset (filed 11/2/18; approved)

  • CALIFORNIA WATER SERVICE COMPANY Advice Letter 2332 Compliance Filing to Consolidate Rate Changes Page 3

    3) AL 2321 for a Dominguez District purchased water offset (filed 11/5/18; approved) 4) AL 2322 for a Hermosa-Redonda District purchased water offset (filed 11/5/18; approved) 5) AL 2323 for a Los Angeles County Region purchased water offset (filed 11/5/18; pending) 6) AL 2324 for a 2019 escalation revenue increase, and for some districts an additional SRM

    rate adjustment, applicable to all Class A ratemaking areas (filed 11/14/18; pending)

    While the above advice letters result in revenue increases, for some districts the cumulative effect is a decrease in some rate components. These rate decreases are the result of the impact of growth in some areas, and changes in water usage that triggered the Sales Reconciliation Mechanism in other areas. Impacts of the Sales Reconciliation Mechanism Over Two Years

    The SRM trigger is based upon a comparison of recent actual sales in 2017-2018 to the sales adopted for 2019 in Cal Water’s last GRC.1 The change in the quantity rate component between December 2018 and January 2019, however, is based upon a different data set.

    Please note that, in a district in which the SRM was triggered for 2018 rates, and has now been triggered for 2019 rates, a comparison between a December 2018 quantity rate and a January 2019 quantity rate reflects the difference between using 2018 SRM-adjusted water sales vs. 2019 SRM-adjusted water sales in calculating rates. Requested Effective Date

    This advice letter is submitted with a Tier 1 designation because the underlying advice letters are designated as Tier 1 pursuant to Water Industry Rules 7.3.1(6) (escalation) and 7.3.1(7) (offsets) of General Order 96-B. Cal Water requests that the rates become effective on January 1, 2019. Notice

    Customer Notice: The rate decreases requested in this advice letter do not require notice pursuant to General Order 96-B, General Rule 4.2 and Water Industry Rule 7.3.1. The revenue increases reflected in the calculations were properly requested and noticed in previous advice letters.

    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 December 18, 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

    1 For those districts in which the SRM is triggered, quantity rates are then calculated using a water sales quantity that is adjusted according to the rules of the Sales Reconciliation Mechanism.

  • CALIFORNIA WATER SERVICE COMPANY Advice Letter 2332 Compliance Filing to Consolidate Rate Changes Page 4

    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 Water Division within 20 days of the date this advice letter is filed. The address for mailing or delivering a protest is:

    Tariff Unit, Water Division, 3rd floor California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102 [email protected]

    On the same date the response or protest is submitted to the Water Division, 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 Water Division 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 Water Division 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

    mailto:[email protected] mailto:[email protected]

  • CALIFORNIA WATER SERVICE COMPANY Advice Letter 2332 Compliance Filing to Consolidate Rate Changes Page 5


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