| SJW Corp. reported that on November 20, the California Public Utilities Commission issued its decision in the 2009 general rate case for San Jose Water Company, SJW Corp.'s wholly owned subsidiary, establishing rates for 2010, 2011 and 2012. In summary, the decision authorizes a rate increase designed to increase revenue by approximately $18.6M or 9.24% for 2010. Increases for the escalation years 2011 and 2012 will be calculated using the consumer price indices as forecasted in October of the preceding year. Current estimates of these increases are approximately $7.2M or about3.3% in 2011, and approximately $13.2M or about 5.8% in 2012. The decision authorizes asignificant increase in the infrastructure replacement program for San Jose Water Company as well asnew investments in recycled water projects. The decision also establishes a balancing account forfuture pension expenses. The stated revenue increases do not include additional revenue increasesassociated with authorized advice letter rate base offset filings for the 2010-2012 period, investmentsassociated with the upgrades to the Montevina Treatment Plant to be recovered through a separateregulatory filing, and additional supplemental filings for inclusion of planned green energy projects intorates. The rate increase for 2010 will become effective on January 1, 2010. :theflyonthewall.com |
