Common use of WORKING CASH ALLOWANCE Clause in Contracts

WORKING CASH ALLOWANCE. ISSUE: Xxx Xxxxxxx’x forecast for Working Cash was $3,284,225 for Test Year 2012-2013 and $3,626,467 for Test Year 2013-2014, based on the same methodology that San Xxxxxxx has used in past rate cases in accordance with Standard Practice U-16. (This forecast did not include San Gabriel’s separate calculation of Operational Cash Requirements totaling $28,000, which DRA did not dispute.) DRA’s Working Cash forecast was $718,690 for both test years, based on a five-year average. The City’s forecast was $1,670,379, which was calculated by dividing the net lead-lag days in the test year by 365 days and multiplying the result by the test year expenses. RESOLUTION: San Gabriel and DRA agree that an estimate of Working Cash of $1,600,000 for the Test Year and Escalation Years would be reasonable in the context of a broader resolution of capital investment forecasts. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Working Cash Allowance – TY 2012-2013 $3,284,225 $3,284,225 $718,690 $2,565,535 $1,600,000 TY 2013-2014 $3,626,467 $3,626,467 $718,690 $2,907,777 $1,600,000 REFERENCES: Exhibit SG-3 (Batt), pp. 7-12; Exhibit DRA-1 (Merida), pp. 9-1 to 9- 2; Exhibit CF-1 (Ramas), pp. 32-36; Exhibit SG-16 (Batt), pp. 1-3; Exhibit SG-28 (Lead/Lag Workpapers).