Common use of Uncollectibles Clause in Contracts

Uncollectibles. ISSUE: San Xxxxxxx estimated the Uncollectibles rate for the Test Year by using a five-year average divided by Total Billed Revenue less Miscellaneous Revenue. XXX agreed with Xxx Xxxxxxx’x method of calculating Uncollectibles, but identified an error in San Gabriel’s rate calculation. San Gabriel acknowledged and corrected the error in rebuttal testimony. RESOLUTION: San Xxxxxxx corrected its estimate of the Uncollectibles rate for the Test Year from 0.4732% to 0.4648%. San Xxxxxxx and DRA agree that the corrected Uncollectibles rate of 0.4648% should be applied to adopted Operating Revenues less Miscellaneous Revenues to arrive at the adopted Uncollectibles expense. The lower Settlement Uncollectibles amount shown in the table below reflects the lower Operating Revenues that would result from the terms of the Settlement Agreement. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Uncollectibles Rate 0.4732% 0.4648% 0.4648% none 0.4648% Uncollectibles (at present rates) $272,700 $271,500 $266,000 $5,500 $264,900 REFERENCES: Exhibit SG-1, Table 5B; Exhibit SG-9 (Xxxxx), p. 11; Exhibit DRA-1 (Xxxxxxxxxx), pp. 3-10 to 3-11; Exhibit SG-22 (Xxxxx), p. 2.