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Figure 1-A: Revenue vs. Consumption 1

2
3
Although ORA is not making any adjustments to Cal Ams proposed rate design 4
in this GRC based on this analysis, ORA recommends that the Commission monitor this 5
issue in future GRCs by requiring Cal Am to provide workpapers showing the 6
comparison described above and any similar metrics which would explain this. 7
5) Meter charges from General Metered Revenues 8
ORA also compared the percentage of total revenues forecasted to be collected 9
from meter charges under Cal Ams proposed rate designs with the percentage of 10
revenues forecasted to be collected from meter charges under present rate design. 11
Cal Ams proposed rate design consists of a meter charge and a volumetric charge. 12
The meter charge in all Districts covers 25% of total fixed costs. Fixed costs are costs 13
that do not change with the volume of water produced, such as large infrastructure 14
investments. Only revenues derived from volumetric sales are protected by Cal Ams 15
WRAM decoupling mechanism. If volumetric revenue derived from consumption varies 16
from the forecasted amounts, the WRAM mechanism will track the difference. However, 17
Cal Ams decoupling mechanism does not track variances in revenue derived from meter 18