Motion for GRC Memorandum Account Recognizing that the above history will preclude the Commission from issuing a final decision before January 1, 2018, GSWC/BVES filed a motion on September 8, 2017, for authority to establish a General Rate Case Revenue Requirement memorandum account (GRC memorandum account) to track the change in the revenue requirement adopted in this GRC for the period of January 1, 2018 to the effective date of the final decision (Motion). In its Motion, GSWC/BVES also requested authority to accrue interest on any balance beginning January 1, 2018, based on the Federal Reserve three-month commercial paper rate. In support of its Motion, GSWC/BVES referenced numerous Commission decisions and rulings, issued since at least 2003, that authorized a GRC memorandum account for an energy utility filing a GRC application. According to GSWC/BVES, the Commission has found in the prior cases that authorizing a memorandum account advances the Commission’s previously-stated policy objectives of holding ratepayers and utility shareholders harmless from adverse consequences resulting from potential procedural delays and allowing sufficient time to review and analyze the record. Responses to Motion and Reply to Responses No opposition to the Motion was received. Discussion In the past the Commission has established memorandum accounts to allow GRC decisions delayed past the start of the test year to be effective as if the decisions had not been delayed. Such memorandum accounts were implemented in the last GSWC/BVES’s GRC, and for each of the major California energy utilities. For example, in SCE’s A.10-11-015, the assigned Commissioner found that “the public interest is best served by adopting a
Motion for GRC Memorandum Account Recognizing that the above history will preclude the Commission from issuing a final decision before January 1, 2018, GSWC/BVES filed a motion on September 8, 2017, for authority to establish a General Rate Case Revenue Requirement memorandum account (GRC memorandum account) to track the change in the revenue requirement adopted in this GRC for the period of January 1, 2018 to the effective date of the final decision (Motion). In its Motion, GSWC/BVES also requested authority to accrue interest on any balance beginning January 1, 2018, based on the Federal Reserve three-month commercial paper rate. In support of its Motion, GSWC/BVES referenced numerous Commission decisions and rulings, issued since at least 2003, that authorized a GRC memorandum account for an energy utility filing a GRC application. According to GSWC/BVES, the Commission has found in the prior cases that authorizing a memorandum account advances the Commission’s previously-stated policy objectives of holding ratepayers and utility shareholders harmless from adverse consequences resulting from potential procedural delays and allowing sufficient time to review and analyze the record. Responses to Motion and Reply to Responses No opposition to the Motion was received. Discussion In the past the Commission has established memorandum accounts to allow GRC decisions delayed past the start of the test year to be effective as if the decisions had not been delayed. Such memorandum accounts were implemented in the last GSWC/BVES’s GRC, and for each of the major California energy utilities. For example, in SCE’s A.10-11-015, the assigned Commissioner found that “the public interest is best served by adopting a