General Rate Case
A General Rate Case (GRC) is a regulatory proceeding conducted by the California Public Utilities Commission (CPUC) to determine rates for regulated utilities. Every three years, the CPUC conducts an open and transparent review of Golden State Water’s rate proposal to ensure customers receive a fair rate for reliable, quality water service.
The GRC process is very thorough and generally lasts 18 months with oversight from the Office of Ratepayer Advocates, a division of the CPUC that scrutinizes the filing on behalf of customers. The utility’s customers have an opportunity to participate in the GRC process by attending Public Participation Hearings and/or testifying in a public proceeding before an Administrative Law Judge.
Golden State Water Company 2016-2018 GRC Update
On March 2, 2017 the California Public Utilities Commission (CPUC) announced its final decision for Golden State Water’s General Rate Case (GRC) that determines water rates for 2016-18. Golden State Water has filed Advice Letters for the new rates with a 45-day review period before the rates are implemented. The new water rates will be implemented effective April 20, 2017.
This GRC decision is regarding rates in 2016, 2017 and 2018. Because this GRC was delayed more than a year, interim rates took effect on January 1, 2016 and will remain until the new approved rates are implemented on April 20, 2017. In June 2017, Golden State Water will implement surcredits/surcharges through the 2016 Interim Rates Memorandum Account to settle the balance between the GRC revenue adjustment that has been approved for 2016 and the revenue that was actually recovered through interim rates. Any over-collected revenue will be refunded, and any under-collected revenue will be recovered via a surcharge.
Also, because of the delayed approval of the GRC, the CPUC instructed Golden State Water to implement 2017 rates, which includes the approved 2016 rate increase from the GRC plus an escalation year adjustment for 2017 that accounts for the impact of inflation on approved operating expenses and additional infrastructure investments planned in 2017.
Additionally, for the Bay Point, Los Osos and Simi Valley ratemaking areas, new rates include an adjustment for the Sales Adjustment Mechanism (SAM), which adjusts rates and projected revenue requirements to reflect more recent sales levels. The SAM is expected to reduce amounts needed to be tracked in the Water Revenue Adjustment Mechanism for future recovery or disbursement.
Please select your community from the list below to learn more about the 2016-2018 GRC filing and how it will affect your service area.
Click here to read the Final Decision.