Figure 1
Figure 1 is a flow chart that identifies an estimated timeline of key steps of a general rate case proceeding for a Class A single-district water utility. In total, the CPUC estimates that a proceeding for such a water utility should take 340 days; proceedings for Class A water utilities with multiple districts are approximately six months longer due to their additional complexity. The process begins when the water utility submits a proposed application. The Public Advocates reviews the proposed application for deficiencies and returns the application to the utility 30 days later. Within 30 days of the Public Advocates’ review—or 60 days of the utility’s initial submission of the proposed application, the utility formally submits its application to the CPUC. Between day 70 to day 135, the ALJ sets the schedule for the proceeding. During nearly the same time period—day 70 to 150—after the utility’s submission of the proposed application, The ALJ may also schedule a public participation hearing. Afterwards, Public Advocates and the other parties to the proceeding serve prepared testimony. If necessary, the ALJ can also preside over an evidentiary hearing on day 186. Then, on day 235, Public Advocates and other parties may file responses to issues raised by other parties. In addition, on day 300, the ALJ issues a proposed decision. Finally, 340 days after the initial submission of the proposed application, the commissioners deliver a final decision on the issues in the general rate case.
Figure 2
Figure 2 is a bar chart that demonstrates the compounding of annual rate increases in a utility’s bill amount over the course of three years. The bar charts for each year demonstrate how the percentage increase builds upon the previously enacted rate increase, to increase the bill amount cumulatively from the base year. In this hypothetical example, the utility’s base year is 2015 with a bill amount of $10. In 2016, the bill amount increases by 10% to $11. The next year, 2017, the bill increased by an additional 5%, leading to a bill amount of $11.55. The bar chart demonstrates that this 5% in 2017 is an increase on top of the 10% from 2016. Finally, in 2018, the bill increases by another 2% to an $11.78 bill amount. Overall, this rate increase in 2018 represents a number 17.8% higher than the original bill amount in 2015.