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CALIFORNIA PUBLIC UTILITIES COMMISSION WATER DIVISION
Advice Letter Cover Sheet
[ ] APPROVED [ ] WITHDRAWN [ ] REJECTED
Signature: Comments:
Date:
Utility Name: California Water Service Company Date Mailed to Service List: 12/29/17
District: All Tariffed Areas
CPUC Utility #: U-60-W Protest Deadline (20th Day): 1/18/18
Advice Letter #: 2292 Review Deadline (30th Day): 1/28/18
Tier: X 1 2 3 Compliance Requested Effective Date: 1/1/18
Authorization: 12/22/17 Letter from Water Division to All Class A and B Water and Sewer Utilities
Rate Impact: none
Description: New memo account to track impacts of the 2018 Tax Cuts and Jobs Act
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: Natalie Wales Utility Contact: James Polanco
Phone: 408-367-8566 Phone: (408) 367-8239
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
December 29, 2017
Advice Letter No. 2292
CALIFORNIA WATER SERVICE COMPANY (U 60 W)
To The Public Utilities Commission of the State of California:
California Water Service Company (“Cal Water”) hereby transmits for filing Preliminary Statement AU for a new memorandum account, the “2018 Tax Accounting Memorandum Account,” applicable to all tariffed areas. Hard copies of this filing will follow.
Canceling C.P.U.C. C.P.U.C. Sheet No. Title of Sheet Sheet No.
XXXXX-W Preliminary Statement AU (2018 Tax Accounting Memorandum [none] Account (TAMA))
XXXXX-W Table of Contents (Page 4) XXXXX-W XXXXX-W Table of Contents (Page 1) XXXXX-W
Summary
Cal Water requests approval to add Preliminary Statement AU to implement a new memorandum account to capture the impacts of the federal “Tax Cuts and Jobs Act” on the revenue requirements of all of Cal Water’s tariffed areas.
This advice letter is submitted as a Tier 1 filing consistent with the Water Division’s Letter regarding “Changes in Federal Tax Rates for 2018” (December 22, 2017), with an effective date of January 1, 2018.
Background
On December 22, 2017, the Water Division sent a letter to All Class A and B Water and Sewer Utilities on the subject of “Changes in Federal Tax Rates for 2018.” (“WD’s Letter”). WD’s Letter requires Cal Water to file a Tier 1 advice letter to establish a memo account to track the impact of the 2018 Tax Cuts and Jobs Act (“TJCA”) on the revenue requirements of Cal Water’s regulated ratemaking areas. See Attachment A.
CALIFORNIA WATER SERVICE COMPANY Advice Letter 2292 – 2018 Tax Accounting Memo Account Page 3
Discussion
As required by the WD Letter, Cal Water requests approval to add the attached Preliminary Statement AU, entitled “2018 Tax Accounting Memorandum Account” or “TAMA,” in order to track the impacts of the TJCA.
Requested Effective Date
This advice letter is submitted as a Tier 1 submission consistent with Water Industry Rule 7.3.1(3). Cal Water requests an effective date of January 1, 2018.
Notice
Customer Notice: This is a Tier 1 compliance filing as ordered by the December 22, 2017 Letter of the Water Division. Water Industry Rule 3.2 of General Order 96-B indicates that this kind of Tier 1 filing does not require customer notice.
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 29, 2017 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. 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 Water Division within 20 days of the date this advice letter is filed. The address for mailing or delivering a protest is:
CALIFORNIA WATER SERVICE COMPANY Advice Letter 2292 – 2018 Tax Accounting Memo Account Page 4
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 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 received a reply to your protest within 10 business days, contact California Water Service Company at 408/367-8200.
CALIFORNIA WATER SERVICE COMPANY
/s/ ____________________________
Natalie Wales Director of Regulatory Policy & Compliance
Enclosures
cc: Ting-Pong Yuen, ORA
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 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 11462-WPage 3 Preliminary Statements 11405-WPage 4 Preliminary Statements XXXXX-W (C)Page 5 Rate Schedules - All Districts 11461-WPage 6 Rate Schedules - District Specific XXXXX-WPage 7 Rate Schedules - District Specific 11441-WPage 8 Rate Schedules - District Specific 11457-WPage 9 Rate Schedules - District Specific 11307-WPage 10 Rate Schedules - District Specific 11404-WPage 11 Service Area Maps 11399-WPage 12 Rules 11451-WPage 13 Rules 11304-WPage 14 Sample Forms 11409-WPage 15 Sample Forms XXXXX-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
2292
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. 11360-W
Table of Contents - Page 4
Preliminary Statements
Sheet Subject Matter Service Area CPUC Sheet No.
Preliminary Statements (continued)
AI Chromium 6 Memorandum Account (CHROMIUM-6 MA) 11317-WAJ Low-Income Ratepayer Assistance Balancing Account (LIRA BA) 9671-WAK 2012 GRC Interim Rate Memorandum Account (2012 IRMA) 10101-WAL Drought Memorandum Account (DRMA) 10208-WAM Rate Support Fund Balancing Account (RSF BA) 11316-WAN Infrastructure Memorandum Account (IMA) 10447-WAO Memorandum Account Water Contamination (WCL MA) 10448-W
Litigation AP General District Balancing Accounts (District BAs) 10449-WAQ East Los Angeles Memorandum Account (ELA MA) 10450-WAR Sales Reconciliation Mechanism Balancing Account (SRM BA) 10467-WAS Asbestos Remediation Memorandum Account
Page 1 10868-WPage 2 10869-W
AT School Lead Testing Memorandum Account (SLTMA) 11359-WAU 2018 Tax Accounting Memorandum Account (TAMA) XXXXX-W (N)
(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
2292
CALIFORNIA WATER SERVICE COMPANY
1720 North First Street, San Jose, CA 95112 New CPUC Sheet No. XXXXX-W
(408) 367-8200 Canceling CPUC Sheet No.
Preliminary Statement ( N )
(continued) |
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AU. 2018 Tax Accounting Memorandum Account (TAMA) |
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3. Territory: All tariffed service areas of California Water Service Company. |
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Memo Account Entries: The entries in the Memo Account may include the following: ||
a. |
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b. |
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c. |
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4. |
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|(End) ( N )
(To be inserted by utility) Issued by (To be inserted by CPUC)
Advice Letter No. 2292 PAUL G. TOWNSLEY Date Filed
Decision No. Name Effective
Vice President Resolution No.Title
Disposition of Memo Account Balance: In Cal Water's next general rate case, or at such
other time as ordered by the Commission, the balance in the Memo Account shall be
addressed and rates shall be adjusted accordingly, as appropriate.
General Information: Cal Water shall record in the TAMA realized increases or decreases
in its CPUC-jurisdictional revenue requirement resulting from the TJCA. The Memo
Account shall be used in determining whether any rate adjustment is necessary to reflect
impacts of the TJCA during the Memo Account Period.
Realized increases in revenue requirement resulting from the TCJA during the
Memo Account Period.
Realized decreases in revenue requirement resulting from the TCJA during the
Memo Account Period.
Balances in the Memo Account will accrue interest at the 90-day commercial
paper rate.
Purpose: The purpose of the 2018 Tax Accounting Memorandum Account (TAMA) is to
track on a CPUC-jurisdictional revenue requirement basis the impacts of the "2018 Tax
Cuts and Jobs Act" (TJCA) not otherwise reflected in rates from January 1, 2018 until the
effective date of revenue requirement changes adopted in Cal Water's next general rate
case (Memo Account Period).
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