The benefits of the Settlement Agreement to the public outweigh the benefits and/or burden and uncertainties of continued litigation. The agreed-to intrastate revenue requirement of $6,200,000 (inclusive of $2,932,899 in CHCF-A subsidy draw), based on the currently approved 8.91 percent cost of capital in D.16-12-035 for the TY 2018, is reasonable and supported by the record in this proceeding, and should therefore be approved. The agree-to intrastate revenue requirement for the TY 2018 reflected needed adjustments (deductions) to Calaveras’s requested intrastate revenue requirement. Calaveras’ rate design as proposed in the Settlement Agreement and based on the following forecasted revenues should be approved: $1,431,708 in Local Network Services revenues; $1,613,488 in Interstate Universal Service Fund support for intrastate revenue requirement; $135,094 in intrastate access revenues; $86,811 in miscellaneous and uncollectible revenues; and The remainder necessary to fulfill revenue requirement from the CHCF-A, based on the $6,200,000 revenue requirement. Under the current approved 8.91 percent cost of capital, a CHCF-A draw of $2,932,899. Calaveras should be required to abide by the requirements relating to its affiliates as set forth in the Settlement Agreement. Calaveras should be required to abide by the requirements relating to service quality, safety and project reporting as set forth in the Settlement Agreement. Calaveras should be authorized to adopt new end-user rates for its residential and business customers as set forth in the Settlement Agreement; and revise its rates for other services as set forth in the Settlement Agreement.
The benefits of the Settlement Agreement to the public outweigh the benefits and/or burden and uncertainties of continued litigation. The agreed-to intrastate revenue requirement of $6,200,000 (inclusive of $2,932,899 in CHCF-A subsidy draw), based on the currently approved 8.91 percent cost of capital in D.16-12-035 for the TY 2018, is reasonable and supported by the record in this proceeding, and should therefore be approved. The agree-to intrastate revenue requirement for the TY 2018 reflected needed adjustments (deductions) to Calaveras’s requested intrastate revenue requirement. Calaveras’ rate design as proposed in the Settlement Agreement and based on the following forecasted revenues should be approved: $1,431,708 in Local Network Services revenues; $1,613,488 in Interstate Universal Service Fund support for intrastate revenue requirement; $135,094 in intrastate access revenues; $86,811 in miscellaneous and uncollectible revenues; and The remainder necessary to fulfill revenue requirement from the CHCF-A, based on the $6,200,000 revenue requirement. Under the current approved 8.91 percent cost of capital, a CHCF-A draw of $2,932,899. Calaveras should be required to abide by the requirements relating to its affiliates as set forth in the Settlement Agreement. Calaveras should be required to abide by the requirements relating to service quality, safety and project reporting as set forth in the Settlement Agreement. Calaveras should be authorized to adopt new end-user rates for its residential and business customers as set forth in the Settlement Agreement; and revise its rates for other services as set forth in the Settlement Agreement.
213328689.docx