BALANCING AND MEMORANDUM ACCOUNTS. ISSUE: In its Application, San Xxxxxxx sought authority to amortize over an appropriate period, the balances in the following balancing and memorandum accounts as of the date of the decision in this proceeding: Water Supply Cost Balancing Account, Power Supply Cost Balancing Account, Water Quality Litigation Memorandum Account (“WQLMA”), Water Revenue Adjustment Mechanism (“WRAM”), and California Alternative Rates for Water (“CARW”) Balancing Account. San Xxxxxxx also sought authority to continue to maintain its existing Water Quality Memorandum Account (“WQMA”) which currently has a zero balance. DRA reviewed Xxx Xxxxxxx’x supporting workpapers for the recorded March 2011 balances in the Water Supply Cost, Power Supply Cost, CARW, and WRAM accounts and found those balances to be reasonable. DRA did not agree, however, to Xxx Xxxxxxx’x request to amortize balances in these accounts as of a more recent date because information about such balances was not yet available to review. At the time DRA submitted its report on November 3, 2011, it had not yet completed its audit of the recorded March 2011 balance in the WQLMA, which was the subject of San Gabriel’s Advice Letter 398. XXX objected to certain payments to ZENVIRONMENT that had been recorded therein. XXX also recommended that the Preliminary Statement of San Gabriel’s tariffs be supplemented to describe the WQLMA. A further issue concerned San Gabriel’s Facilities Fees Memorandum Account, which was established pursuant to D.00-00-000 to accrue facilities fee revenues for application, through an annual advice letter filing, to reduce the amount of investment in the Sandhill Water Treatment Plant that is included in rate base. DRA asserted that between advice letter filings, the Facilities Fee account should accrue interest at the 90-day commercial paper rate, like other balancing and memorandum accounts. In rebuttal testimony, San Gabriel noted that deposits taken from developers and customers pursuant to Tariff Rule No. 15 do not accrue interest and are adjusted to actual costs when those are determined, at which time the known facilities fees are placed in the memorandum account. San Gabriel was concerned that accrual of interest would not comply with Rule 15, and that any accrued interest on deposits would belong to the developer or customer who made the deposit. RESOLUTION: The Parties agree that the following recorded March 2011 adjusted balances (excluding the ZENVIRONMENT payments from the WQLMA) should be amortized through a 12-month $0.0330/Ccf net surcredit based on Test Year sales: Account March 2011 Balance Surcharge(Surcredit) Water Cost ($2,384,755) ($0.1500) Power Cost $143,796 $0.0090 WQLMA $1,244,598 $0.0783 WRAM $193,439 $0.0122 CARW $278,437 $0.0175 Total ($524,285) ($0.0330) To address DRA’s concerns about potential confusion as to which account San Gabriel should use to record certain expenses and proceeds, San Gabriel agrees to file a new advice letter to combine its WQMA and WQLMA into a single memorandum account. Attachment B provides the language that the advice letter would propose to insert into the Preliminary Statement. Further, given the Parties’ settlement on the amortization of the March 2011 balance in the WQLMA as noted above, San Gabriel agrees to withdraw, and has withdrawn, pending Advice Letter 398. Finally, for settlement purposes, San Xxxxxxx agrees with DRA to accrue interest at the commercial paper rate on the balance in the Facilities Fees Memorandum Account in that such accrued interest will be applied as part of that balance as a credit against rate base through an annual advice letter filing.
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Samples: Settlement Agreement, docs.cpuc.ca.gov, docs.cpuc.ca.gov
BALANCING AND MEMORANDUM ACCOUNTS. ISSUE: In its Application, San Xxxxxxx sought authority to amortize over an appropriate period, the balances in the following balancing and memorandum accounts as of the date of the decision in this proceeding: Water Supply Cost Balancing Account, Power Supply Cost Balancing Account, Water Quality Litigation Memorandum Account (“WQLMA”), Water Revenue Adjustment Mechanism (“WRAM”), and California Alternative Rates for Water (“CARW”) Balancing Account. San Xxxxxxx also sought authority to continue to maintain its existing Water Quality Memorandum Account (“WQMA”) which currently has a zero balance. DRA reviewed Xxx Xxxxxxx’x supporting workpapers for the recorded March 2011 balances in the Water Supply Cost, Power Supply Cost, CARW, and WRAM accounts and found those balances to be reasonable. DRA did not agree, however, to Xxx Xxxxxxx’x request to amortize balances in these accounts as of a more recent date because information about such balances was not yet available to review. At the time DRA submitted its report on November 3, 2011, it had not yet completed its audit of the recorded March 2011 balance in the WQLMA, which was the subject of San Gabriel’s Advice Letter 398. XXX objected to certain payments to ZENVIRONMENT that had been recorded therein. XXX also recommended that the Preliminary Statement of San Gabriel’s tariffs be supplemented to describe the WQLMA. A further issue concerned San Gabriel’s Facilities Fees Memorandum Account, which was established pursuant to D.00-00-000 to accrue facilities fee revenues for application, through an annual advice letter filing, to reduce the amount of investment in the Sandhill Water Treatment Plant that is included in rate base. DRA asserted that between advice letter filings, the Facilities Fee account should accrue interest at the 90-day commercial paper rate, like other balancing and memorandum accounts. In rebuttal testimony, San Gabriel noted that deposits taken from developers and customers pursuant to Tariff Rule No. 15 do not accrue interest and are adjusted to actual costs when those are determined, at which time the known facilities fees are placed in the memorandum account. San Gabriel was concerned that accrual of interest would not comply with Rule 15, and that any accrued interest on deposits would belong to the developer or customer who made the deposit. RESOLUTION: The Parties agree that the following recorded March 2011 adjusted balances (excluding the ZENVIRONMENT payments from the WQLMA) should be amortized through a 12-month $0.0330/Ccf net surcredit based on Test Year sales: Account March 2011 Balance Surcharge(Surcredit) Water Cost ($2,384,755) ($0.1500) Power Cost $143,796 $0.0090 WQLMA $1,244,598 $0.0783 WRAM $193,439 $0.0122 CARW $278,437 $0.0175 Total ($524,285) ($0.0330) To address DRA’s concerns about potential confusion as to which account San Gabriel should use to record certain expenses and proceeds, San Gabriel agrees to file a new advice letter to combine its WQMA and WQLMA into a single memorandum account. Attachment B provides the language that the advice letter would propose to insert into the Preliminary Statement. Further, given the Parties’ settlement on the amortization of the March 2011 balance in the WQLMA as noted above, San Gabriel agrees to withdraw, and has withdrawn, pending Advice Letter 398. Finally, for settlement purposes, San Xxxxxxx agrees with DRA to accrue interest at the commercial paper rate on the balance in the Facilities Fees Memorandum Account in that such accrued interest will be applied as part of that balance as a credit against rate base through an annual advice letter filing.. A.00-00-000 ALJ/DUG/gd2 ATTACHMENT A CONSERVATION PROGRAM
Appears in 3 contracts
Samples: Settlement Agreement, Settlement Agreement, docs.cpuc.ca.gov
