To demonstrate to water customers how they are working to keep rates reasonable, the four water utilities should document their cost-saving efforts and quantify, to the extent possible, any specific cost savings achieved from their respective efforts.
We are awaiting a final decision from the California Public Utilities Commission that will establish rates for the three year window: 2016, 2017, and 2018.
Undeer the terms of the settlement in that proceeding, GSWC has reduced its annual O&M costs $7 million. These costs reductions were widespread within the organization. The largest individual reduction was in annual depreciation expense which was achieved by updating our depreciation study.
Golden State Water Company indicates its status as not fully implemented as its rate case, which establishes rates, is still pending final approval.
The recommendation is document cost savings and quantify if possible.
Golden State views this recommendation as an on-going task, not necessarily one that has a finish line
We look forward to Golden State providing some examples of its efforts to document its cost savings in its one-year response.
Golden State will collect data as recommended data for its next appropriate rate filing.
Golden State has indicated that it is in the process of documenting and quantifying cost saving measures in anticipation of filing its next general rate case in March 2016.
Agency responses received are posted verbatim.