ALJ Initial Proposal for Decision (PFD) to CLWSC Rate Increase

CLWSC Request

ALJ
Recommendation

Savings to Ratepayers!

Increase in water tariff rates (costs) to the ratepayers from October 10 rates. Net rate base CLWSC earns revenue from return on amount of capital it has invested and put at risk. Revenue requirement Revenue from ratepayers to support CLWSC earning a fair and reasonable profit as defined by the Texas Water Statute.

68%

33%

35%

$41,483,112

$38,003,533

$3,479,579

$11,603,435

$9,180,677

$2,422,758 Yearly

Major Exceptions (Challenges) to ALJs PDF

CEWR recommended a reduction of $13.7 million in rate base to remove the CIAC (Contributions in Aid of Construction) from CLWSC rate base. CIAC is donated property and the Texas Water Statute prohibits water utilities earning a profit on donated property.

These contributions of $13.7 million have already been paid for and that the current ALJ proposal would result in ratepayers unfairly paying a second time if these contributions at included in CLWSCs rate base. The ALJ is recommending including in rate base even though CLWSC failed to justify including in rate base.

TCEQ Staff - recommended a Negative Acquisition Adjustment of $3,945,585 to reduce rate base to reflect the amount CLWSC actually paid WSC for the assets acquired compared to the fair value of those assets. The challenge is CLWSC did not have capital at risk so it should not be able to earn return on the difference in purchase price.
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ALJs response to Exceptions and Final Recommendations to the TCEQ Commissioners:

Not accept CEWR position on CIAC Not accept ED staff position on negative acquisition adjustment. Reject all CLWSC exceptions Deny $846K in rate case costs to CLWSC Approve 33.1% increase from Oct 10 rates.

Challenges to be ruled on by the TCEQ Commissioners in March 13

Exceptions to ALJs PDF

- TCEQ Staff - CEWR

Recommended increase from Oct 10 water rates.

ALJ Final Recommendation to Commissioners

TCEQ Staff Challenge

(Negative Acquisition) - $ 3.9M

CEWR Challenge (CIAC) - $ 13.7M

33.1%

27%

16%

Rebate to Ratepayers from Oct 10

Net rate base Revenue requirement

~5.8 %
$38,003,533 $9,180,677

~11%
$34,057,948 $8,788,549

~ 22%
$24,317,142 $ 8,007,235

Attend the TCEQ Commissioners hearing in late March 2013 in Austin. We will send you a notice of the final date!
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How you can help win the protest!

Express your concern now by sending an e-mail ( sample attached) to the Senator Donna Campbell and Rep. Doug Miller regarding the issue of removing the CIAC from Canyon Lake Water Service Companys rate base before determining the final rate order in the protest case.
Attend the TCEQ Commissioners hearing tentatively scheduled for March 27th in Austin to demonstrate support for ratepayers receiving a just decision.