Del Oro Water Company

On behalf of the Del Oro Water Company, our regulatory attorneys sought and obtained authority for Del Oro to finance and construct a two mile pipeline from lake Oroville service areas to the north and west of the lake. The matter involved the balancing of ratepayer concerns, advanced by the CPUC’s Division of Ratepayer Advocates, as well as the appropriate allocation of funds obtained through the state’s Safe Drinking Water Bond Act.

Decision 08-05-032 May 29, 2008
Before the Public Utilities Commission of the State of California

Application of Del Oro Water Company, Inc. (U-61-W) for a Certificate of Public Convenience and Necessity to Construct and Operate its Regional Intertie Project to Resolve the Long-Term Water Supply Deficit In Its Paradise Pines, Magalia and Lime Saddle Districts and to Recover All Present and Future Costs in Connection Therewith in Rates.
Application 06-05-023 (Filed May 19, 2006)

Application of Del Oro Water Company, Inc.(U-61-W) for Authority to Borrow Approximately $3,500,000 (and to Issue Evidence of Indebtedness in Connection Herewith) in Order to Make Certain Capital Improvements and for Authority to Recover all Such Costs and Advances by Increases in the Respective Water Rates of Customers in its Paradise Pines, Magalia and Lime Saddle Districts in the vicinity of Magalia and Paradise, Butte County, California.
Application 06-05-024 (Filed May 19, 2006)

Decision Summary
Today, we approve a comprehensive settlement agreement (Settlement Agreement) entered into by the Del Oro Water Company, Inc. (Del Oro) and the Division of Ratepayer Advocates (DRA), the parties to this proceeding.

Our approval of the Settlement Agreement means that Del Oro will receive a Certificate of Public Convenience and Necessity to construct Phase I of its regional intertie project (Water Project) financed through: 1) a Safe Drinking Water State Revolving Fund (SRF) construction loan, and 2) equity financing provided by Del Oro. The Settlement Agreement also provides that Del Oro will file an advice letter which implements rate surcharges to ratepayers to repay the SRF loan, and recover equity financing costs through a general rate case filing. The allocation of the SRF debt service obligation will be fairly allocated to the three Del Oro districts served by the Water Project, which are Lime Saddle, Paradise Pines, and Magalia. Within each of these districts, the SRF debt service obligation will be recovered through monthly service charges and connection fees from previously un-served premises. Ratepayers who have previously paid a connection fee will not be subject to the SRF surcharge; however, all customers will pay their proportionate share of the equity portion of the Water Project funding.