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San Jose
Water
Company
110 W. Taylor Street
San Jose, CA 95110-2131
September 29, 2017
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Advice Letter No. 512
The San Jose Water Company (U-168-W) (SJWC) hereby transmits for filing the
following changes in tariff schedules applicable to its service area and which are
attached hereto:
Cal. P.U.C
Sheet No.
Title of Sheet Cancelling Cal.
P.U.C. Sheet No.
1859-W Schedule No. 1
General Metered Service (Continued)
1841-W
1860-W Schedule No. 1B
General Metered Service with
Automatic Fire Sprinkler System
(Continued)
1842-W
1861-W Schedule No. 1C
General Metered Service
Mountain District (Continued)
1789-W
1862-W Schedule RW
Raw Water Metered Service
(Continued)
1846-W
1863-W Table of Contents 1858-W
These tariffs are submitted pursuant to General Orders (GO) No. 96-B Water Industry
Rules 7.3.1(3) and pursuant to the authority established by the California Public
Utilities Commission (Commission) Decision (D.) 14-08-006 dated August 15, 2014.
This advice letter is designated as a Tier II Advice Letter.
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 512
Page 2
With this advice letter SJWC requests authorization to re-implement the 2013
General Rate Case Interim Rate True-up Surcharge. SJWC requests that the
surcharge reimplementation become effective on October 29, 2017.
The present rates for SJWC became effective July 1, 2017, by Advice Letter No.
(AL) 509A. Currently SJWC has AL No. 511 pending before the Commission.
Background
SJWC filed Application (A.) 12-01-003 on January 3, 2012. The Application sought,
amongst other items, CPUC authorization to increase rates for the Test Year 2013 and
Escalation Years 2014 and 2015. On September 26, 2012, SJWC filed the Motion of
San Jose Water Company for Interim Rate Relief. On October 24, 2012, the assigned
Administrative Law Judge (ALJ) issued a Ruling Granting Interim Rates. This
Ruling authorized SJWC to file a tariff implementing interim rates and to establish a
Memorandum Account to track the difference between the interim rates and the final
rates adopted in A.12-01-003. SJWC received CPUC approval of the submitted AL
446A implementing the interim rates and establishing the Memorandum Account
effective January 1, 2013.
On August 14, 2014, the Commission issued D.14-08-006 authorizing rate increases
for the years outlined above. This Decision was issued more than 19 months after the
interim rates and the Test Year went into effect. Due to this delay increases were
staggered to bring rates to a level consistent with present day levels. This staggered
rate implementation was executed in conformance with the procedures outlined in
D.14-08-006, as well as in the Revised Rate Case Plan (RRCP) adopted in D.04-06-
018 and in the Commission’s Standard Practice U-27-W.
On August 15, 2014, SJWC filed AL 463 (and subsequently supplemental AL 463A)
to implement the 2013 rate increase, and to revise existing purchased water and
groundwater extraction charges to reflect changes to source of supply mix and
forecasted sales as adopted in D.14-08-006. These rates became effective pending
disposition on August 15, 2014. Concurrent with the filing of AL 463 SJWC filed
AL 464 (and subsequently supplemental AL 464A) to implement authorized rates for
Escalation Year 2014. In accordance with D.14-08-006, SJWC requested that the
2014 rates become effective after 45 days, on September 29, 2014, as required by the
RRCP.
On September 15, 2014, SJWC filed AL 465B in combination with AL 465 and AL
465A, seeking to recover and refund the balances in SJWC’s 2013 GRC Interim
Rates Memorandum Account. The balances included:
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 512
Page 3
 the recovery of $46,697,399 of uncollected revenue tracked in the Base
Interim True-Up over a 3-year period via a $0.2888 per 100 cubic feet
surcharge applied to all customer usage;
 the refund of $39,177 of over collected revenue tracked in the Schedule 1C
Elevation Surcharge True-Up to non-mutual Schedule 1C customers via a
one-time refund of $105.03 to each non-mutual customer; and,
 the refund $202,091 of over collected revenue tracked in the Schedule 1C
Mutuals Revenue True-Up to Schedule 1C mutual water companies.
In compliance with D.14-08-006, Ordering Paragraph 2, SJWC prepared all
recoveries and refunds of under-collected and over-collected revenues in compliance
with Standard Practice U-27-W.1
All under and over collections were tracked in
SJWC’s 2013 Interim Rates True-Up Memorandum Account over the true-up period
of January 1, 2013 to August 14, 2014. The Commission approved AL 465B on
September 26, 2014, and the tariffs became effective on September 29, 2014.
In accordance with AL 465B, SJWC refunded the over collected revenue in Schedule
1C to both mutual and non-mutual water companies as described above and
implemented the approved surcharge to recover the $46,697,399 of uncollected
revenue tracked in the Base Interim True-Up beginning on September 29, 2014. The
surcharge was collected for a period of 36 months and was expired on September 29,
2017, in accordance with AL 465B. At the time of expiration, there is a remaining
under-collected balance of $11,474,350 (ATTACHMENT A). This under-collection
is due primarily to actual sales being substantially lower than the Commission-
authorized sales estimate used to calculate the surcharge amount.
Therefore, with this Advice Letter, SJWC seeks to reinstate the $0.2888 per 100 cubic
feet surcharge to recover the remaining $11,474,350 balance from the 2013 Interim
Rates True-Up Memorandum Account. Further delay in the amortization would
create additional intergenerational inequity brought about by new customers paying
for a customer benefit resulting from the Commission’s delay in authorizing rates for
SJWC from January 1, 2013, through August 14, 2014. SJWC recommends
maintaining the surcharges at $0.2888 per 100 cubic feet (ccf) to avoid customer
confusion that would be caused by fluctuating surcharge levels.
1
D.14-08-006, Ordering Paragraph #2: “San Jose Water Company (SJWC) is authorized
to file by Tier 1 Advice Letter for a surcharge to true-up the difference between
interim rates and adopted rates. The surcharge must comply with Standard Practice
U-27-W. The Tariff implementing the surcharge may be included in the filing
authorized in Ordering Paragraph 2 or filed after SJWC calculated the revenue
difference between interim rates and adopted rates. As the effective date of this
order is after the beginning of the 2014 escalation year, the surcharge shall include
differences between interim rates and adopted rates through the 2014 escalation
year up to the effective date of this order.”
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 512
Page 4
SJWC estimates that, with an effective date of October 29, 2017, the under-collected
balance would be recovered within 12 to 18 months. SJWC’s billing system allows
the company to monitor the account balance and terminate the surcharges when the
balance has been collected. At such time, we will inform the Water Division via a
Tier 1 Advice Letter filing to revise the tariff sheets and to remove the surcharge.
Current Rates and Average Bill Comparison
Current rates became effective July 1, 2017, via AL 509A.
As discussed above, SJWC proposes to reinstate the $0.2888 per ccf surcharge
authorized in D.14-08-006. There is no change to the customers’ bills as this is a
reimplementation of a recently terminated surcharge.
Protests and Responses
Anyone may respond to or protest this advice letter. A response does not oppose the
filing but presents information that may prove useful to the Commission in evaluating
the advice letter. A protest objects to the advice letter in whole or in part and must set
forth the specific grounds on which it is based. These grounds may include the
following:
(1) The utility did not properly serve or give notice of the advice letter;
(2) The relief requested in the advice letter would violate statute or
Commission order, or is not authorized by statute or Commission
order on which the utility relies;
(3) The analysis, calculations, or data in the advice letter contain material
error or omissions;
(4) The relief requested in the advice letter is pending before the
Commission in a formal proceeding;
(5) The relief requested in the advice letter requires consideration in a
formal hearing, or is otherwise inappropriate for the advice letter
process; or
(6) The relief requested in the advice letter is unjust, unreasonable, or
discriminatory (provided that such a protest may not be made where it
would require relitigating a prior order of the Commission).
A response or protest must be made in writing or by electronic mail and must be
received by the Water Division within 20 days of the date this advice letter is filed.
The address for mailing or delivering a protest is:
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 512
Page 5
Tariff Unit, Water Division, 3rd
floor
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
water_division@cpuc.ca.gov
On the same date the response or protest is submitted to the Water Division, the
respondent or protestant shall send a copy of the protest by mail to us, addressed to:
Regulatory Affairs
San Jose Water Company
110 West Taylor Street
San Jose, California 95110
Fax 408.279.7934
regulatoryaffairs@sjwater.com
The advice letter process does not provide for any responses, protests or comments,
except for the utility’s reply, after the 20-day comment period. Public notice is not
required per GO 96B, Water Industry Rule 7.3.1, and since notice was completed at
the time of SJWC’s General Rate Case proceeding A.12-01-003. In compliance with
Paragraph 4.3 of General Order 96-B, a copy of this advice letter has been mailed to
all interested and affected parties as detailed in ATTACHMENT C.
This filing will not cause the withdrawal of service, nor conflict with other schedules
or rules.
Very truly yours,
/S/ JOHN B. TANG
JOHN B. TANG, P.E.
Vice President of Regulatory Affairs
& Government Relations
Enclosures
SAN JOSE WATER COMPANY (U-168-W) Attachment C
Advice Letter No. 512 Page 1 of 2
A copy of Advice Letter No. 512 has been sent to the following municipalities, water
companies and interested parties:
City of San Jose
Municipal Water Dept.
Attn: Jeffrey Provenzano
3025 Tuers Road
San Jose, CA 95121
San Jose Mercury News
Attn: Paul Rogers
4 N. Second Street, Suite 800
San Jose, CA 95113
California Water Service Co.
Attn: Regulatory Affairs
1720 North First Street
San Jose, CA 95112
Town of Los Gatos
Attn: Director of Public Works
110 E. Main Street
Los Gatos, CA 95032
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
City of Monte Sereno
Attn: Director of Public Works
18014 Saratoga-Los Gatos Road
Monte Sereno, CA 95030
City of Campbell
70 North First Street
Campbell, CA 95008
City of Saratoga
Attn: Director of Public Works
13777 Fruitvale Avenue
Saratoga, CA 95070
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
County of Santa Clara
70 W. Hedding Street
San Jose, CA 95110
Great Oaks Water Company
P.O. Box 23490
San Jose, CA 95153
Department of Water Resources
Safe Drinking Water Office,
Room 804
1416 9TH
Street
Sacramento, CA 95814
City of Milpitas
Attn: Utilities Engineering
455 East Calaveras Blvd.
Milpitas, CA 95035
James M. Fiedler P.E., D.WRE
Chief Operating Officer
Santa Clara Valley Water District
5750 Almaden Expressway
San Jose, CA 95118
Santa Clara Valley Water District
5750 Almaden Expressway
San Jose, CA 95118
Gillette Mutual Water Company
21976 Gillette Drive
Los Gatos, CA 95033
SAN JOSE WATER COMPANY (U-168-W) Attachment C
Advice Letter No. 512 Page 2 of 2
Bob Burke
Regulatory Liaison For The Six
Mutual Water Companies
420 Alberto Way, Unit 49
Los Gatos, Ca 95032
Big Redwood Park Water
& Improvement Assoc.
18522 Mt. View Avenue
Los Gatos, CA 95033
Brush & Old Well Mutual
Water Company
21105 Brush Road
Los Gatos, CA 95033
Redwood Estates Services Association
PO Box 591
Redwood Estates, CA 95044-0591
Oakmount Mutual Water Company
P.O. Box 31536
Stockton, CA 95213
Stagecoach Mutual Water Co
21825 Stagecoach Road
Los Gatos, CA 95033
Summit West Mutual Water Company
P.O. Box 974
Los Gatos, CA 95031
Mt. Summit Mutual Water Co
P.O. Box 3416
Saratoga, CA 95070
Ridge Mutual Water Company
22316 Citation Drive
Los Gatos, CA 95033
Mountain Springs Mutual Water Co.
17956 Greenwood Road
Los Gatos, CA 95033
Villa Del Monte Mutual Water Company
P.O. Box 862
Los Gatos, CA 95031
Raineri Mutual Water Company
P.O. Box 11
Los Gatos, CA 95031
Saratoga Heights Mutual Water Company
P.O. Box 337
Saratoga, CA 95071
James Hunter
6475 Dwyer Street
San Jose, CA 95120
Saratoga City Council Member
Rishi Kumar
13777 Fruitvale Avenue
Saratoga, CA 95070
WRATES
Rita Benton
18555 Ravenwood Drive
Saratoga, CA 95070
(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice No. 512
Dec. No.
PALLE JENSEN
Executive Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1859-W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1841-W
Schedule No. 1
GENERAL METERED SERVICE
(Continued)
6. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge
of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected beginning (T)
with the effective date of Advice Letter 512. (T)
7. To amortize the under-collection in the Mandatory Conservation Revenue Adjustment Memorandum
Account, a surcharge of $0.08 per 100 cu.ft. is to be added to the Quantity Rate shown until
collected beginning with the effective date of Advice Letter 508B.
8. To amortize the under-collection in the Water Conservation Memorandum Account from 2015,
a surcharge of $0.1441 per 100 cu.ft. is to be added to the Quantity Rate shown until
collected beginning with the effective date of Advice Letter 508B.
9. To offset the July 2016 increase in Purchased Water from the Santa Clara Valley Water District,
as required by Section 792.5 of the Public Utilities Code, an increase in purchased water costs
of $178.00 /acre-foot, relative to the purchase water costs adopted by D.16-06-004, and associated
revenue increase of $0.2530 per 100 cu.ft.
10. To offset the July 2016 increase in Ground Water Charges from the Santa Clara Valley Water District,
as required by Section 792.5 of the Public Utilities Code, an increase in ground water charges of
$178.00 /acre-foot, relative to the purchase water costs adopted by D.16-06-004, and associated
revenue increase of $0.1699 per 100 cu.ft.
11. To amortize the under-collection in the 2016 GRC Interim Rates Memorandum Account and the
remaining balance of the under-collection in the 2013 GRC Interim Rates Memorandum Account
(Rehearing), a surcharge of $0.1832 per 100 cu.ft is to be added to the Quantity rate shown over the
balance of the rate case cycle beginning with the effective date of Advice Letter 492A
12. To offset the July 2017 increase in Purchased Water from the Santa Clara Valley Water District,
as required by Section 792.5 of the Public Utilities Code, an incremental increase in purchased water
costs of $103.00 /acre-foot, relative to the purchase water costs authorized by Advice Letter 490
and associated revenue increase of $0.1464 per 100 cu.ft.
13. To offset the July 2017 increase in Ground Water Charges from the Santa Clara Valley Water District,
as required by Section 792.5 of the Public Utilities Code, an incremental increase in ground water
charges of $103.00 /acre-foot, relative to the purchase water costs authorized by Advice Letter 490
and associated revenue increase of $0.0983 per 100 cu.ft.
(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice No. 512
Dec. No.
PALLE JENSEN
Executive Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1860-W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1842-W
Schedule No. 1B
GENERAL METERED SERVICE WITH
AUTOMATIC FIRE SPRINKLER SYSTEM
(Continued)
6. To fund the repayment of a Safe Drinking Water State Revolving Fund loan, pursuant
To D.05-01-048 dated January 27, 2005, a monthly surcharge will be added to the bill
as follows:
Year 1-10 Year 11-20
Surcharge: Per Meter Per Month
For 5/8 x 3/4-inch meter …………………….. $0.02 $0.02
For 3/4-inch meter …………………….. 0.02 0.02
For 1-inch meter …………………….. 0.04 0.02
For 1-1/2-inch meter …………………….. 0.08 0.06
For 2-inch meter …………………….. 0.13 0.09
For 3-inch meter …………………….. 0.23 0.18
For 4-inch meter …………………….. 0.38 0.32
For 6-inch meter …………………….. 0.74 0.67
For 8-inch meter …………………….. 1.19 1.08
For 10-inch meter …………………….. 1.71 1.55
7. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge
of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected (T)
with the effective date of Advice Letter 512. (T)
8. To amortize the under-collection in the Mandatory Conservation Revenue Adjustment Memorandum
Account, a surcharge of $0.08 per 100 cu.ft. is to be added to the Quantity Rate shown until
collected beginning with the effective date of Advice Letter 508B.
9. To amortize the under-collection in the Water Conservation Memorandum Account from 2015,
a surcharge of $0.1441 per 100 cu.ft. is to be added to the Quantity Rate shown until
collected beginning with the effective date of Advice Letter 508B.
(Continued)
(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice No. 512
Dec. No.
PALLE JENSEN
Executive Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1861-W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1789-W
Schedule No. 1C
GENERAL METERED SERVICE
Mountain District
(Continued)
Year 8-20
Surcharge: Per Meter Per Month
For 5/8 x 3/4-inch meter ……………………… $0.04
For 3/4-inch meter ……………………….. 0.04
For 1-inch meter ……………………….. 0.05
For 1-1/2-inch meter ……………………….. 0.10
For 2-inch meter …………………….…. 0.14
For 3-inch meter ……………………….. 0.28
For 4-inch meter ……………………….. 0.39
For 6-inch meter ……………………….. 0.98
For 8-inch meter ……………………….. 1.59
For 10-inch meter ……………………….. 2.32
7. To fund the repayment of a Safe Drinking Water State Revolving Fund loan, pursuant to D.05-01-048
dated January 27, 2005, a monthly surcharge will be added to the bill as follows:
Year 1-10 Year 11-20
Surcharge: Per Meter Per Month
For 5/8 x 3/4-inch meter………………………. $0.02 $0.02
For 3/4-inch meter………………………. 0.02 0.02
For 1-inch meter………………………. 0.04 0.02
For 1-1/2-inch meter………………………. 0.08 0.06
For 2-inch meter………………………. 0.13 0.09
For 3-inch meter………………………. 0.23 0.18
For 4-inch meter………………………. 0.38 0.32
For 6-inch meter………………………. 0.74 0.67
For 8-inch meter ………………………. 1.19 1.08
For 10-inch meter………………………. 1.71 1.55
8. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge
of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected (T)
with the effective date of Advice Letter 512. (T)
(Continued)
(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice No. 512
Dec. No.
PALLE JENSEN
Executive Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1862-W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No.1846-W
Schedule No. RW
RAW WATER METERED SERVICE
(Continued)
3. The utility will supply at the point of connection only such raw water at such pressures as may
be available from time to time from the Santa Clara Valley Water District. The customer shall
indemnify the utility and save it harmless from any and all claims arising out of service under
this schedule and shall further agree to make no claims against the utility for any loss, damage
or injury resulting from service under this schedule.
4. As a condition for service under this schedule, all customers are required to comply with all
San Jose Water Company’s tariffs, except for those identified in the Commission’s General
Order 103 regarding supply of water not intended or claimed to be potable.
5. Customers who receive water deliveries for agricultural purposes under this schedule, and
who present evidence to the utility that such deliveries qualify for the lower pump tax rates
levied by the Santa Clara Valley Water District for agricultural water, shall receive a refund
of $2.4068 cents per 100 cubic feet for the quantities of water used. In accordance with
Santa Clara Valley Water District procedures customers will be refunded every six months.
6. All bills are subject to the reimbursement fee set forth on Schedule No. UF.
7. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge
of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected (T)
with the effective date of Advice Letter 512. (T)
8. To amortize the under-collection in the Mandatory Conservation Revenue Adjustment Memorandum
Account, a surcharge of $0.08 per 100 cu.ft. is to be added to the Quantity Rate shown until
collected beginning with the effective date of Advice Letter 508B.
9. To amortize the under-collection in the Water Conservation Memorandum Account from 2015,
a surcharge of $0.1441 per 100 cu.ft. is to be added to the Quantity Rate shown until
collected beginning with the effective date of Advice Letter 508B.
(continued)
(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice No. 512
Dec. No.
PALLE JENSEN
Executive Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1863-W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1858-W
TABLE OF CONTENTS
The following listed tariff sheets contain all effective rates, rules and regulations affecting the rates and service of
the Utility, together with information relating thereto:
C.P.U.C.
Subject Matter of Sheet Sheet No.
Title 1495-W
Table of Contents 1863-W, 1795-W, 848-W and 1831-W (T)
Preliminary Statement 919-W, 1303-W, 1699-W, 1700-W, 1552-W, 1420-W,
1423-W, 1427-W, 1469-W, 1492-W, 1508-W, 1702-W, 1799-W and 1818-W
Service Area Map Locator 1266-W
Service Area Map Locator, Index 1589-W
Map of Areas With Special Pressure and Fire Flow Conditions 1590-W
Index to Map of Areas With
Special Pressure and Fire Flow Conditions 1079-W, 1591-W
1082-W, 1087-W and 1404-W
Rate Schedules:
Schedule No. 1, General Metered Service 1822-W, 1840-W and 1859-W (C)
Schedule No. 1B, General Metered Service
With Automatic Fire Sprinkler System 1823-W, 1741-W, 1860-W and 1843-W (C)
Schedule No. 1C, General Metered Service
Mountain District 1844-W, 1744-W, 1861-W and 1845-W (C)
Schedule No. 4, Private Fire Service 1825-W and 1621-W
Schedule No. 9C, Construction and Other
Temporary Metered Service 1118-W and 1094-W
Schedule No. 10R, Service to Employees 152-W
Schedule No. 14.1 Water Shortage Contingency Plan With 1668-W,1669-W,1780-W,1671-W,
1672-W,1673-W,1766-W,1767-W and 1820-W
Staged Mandatory Reductions And Drought Surcharges
Schedule No. RW, Raw Water Metered Service 1826-W, 1862-W and 1847-W (C)
Schedule No. RCW, Recycled Water Metered Service 1827-W, and 1848-W
Schedule No. UF, Surcharge to Fund Public
Utilities Commission, Reimbursement Fee 1811-W
Schedule No. WRAP, Water Rate Assistance Program 1829-W and 1211-W
List of Contracts and Deviations 1857-W
Rules:
No. 1 - Definitions 764-W and 976-W
No. 2 - Description of Service 525-W
No. 3 - Application for Service 351-W and 903-W
No. 4 - Contracts 352-W
No. 5 - Special Information Required on Forms 821-W thru 823-W
No. 6 - Establishment and Re-establishment of Credit 354-W
No. 7 - Deposits 355-W and 356-W
No. 8 - Notices 1054-W and 825-W
No. 9 - Rendering and Payment of Bills 996-W, 997-W and 1146-W
(Continued)

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SJWC AL 512 Rate increase

  • 1. San Jose Water Company 110 W. Taylor Street San Jose, CA 95110-2131 September 29, 2017 California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 Advice Letter No. 512 The San Jose Water Company (U-168-W) (SJWC) hereby transmits for filing the following changes in tariff schedules applicable to its service area and which are attached hereto: Cal. P.U.C Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. 1859-W Schedule No. 1 General Metered Service (Continued) 1841-W 1860-W Schedule No. 1B General Metered Service with Automatic Fire Sprinkler System (Continued) 1842-W 1861-W Schedule No. 1C General Metered Service Mountain District (Continued) 1789-W 1862-W Schedule RW Raw Water Metered Service (Continued) 1846-W 1863-W Table of Contents 1858-W These tariffs are submitted pursuant to General Orders (GO) No. 96-B Water Industry Rules 7.3.1(3) and pursuant to the authority established by the California Public Utilities Commission (Commission) Decision (D.) 14-08-006 dated August 15, 2014. This advice letter is designated as a Tier II Advice Letter.
  • 2. CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER NO. 512 Page 2 With this advice letter SJWC requests authorization to re-implement the 2013 General Rate Case Interim Rate True-up Surcharge. SJWC requests that the surcharge reimplementation become effective on October 29, 2017. The present rates for SJWC became effective July 1, 2017, by Advice Letter No. (AL) 509A. Currently SJWC has AL No. 511 pending before the Commission. Background SJWC filed Application (A.) 12-01-003 on January 3, 2012. The Application sought, amongst other items, CPUC authorization to increase rates for the Test Year 2013 and Escalation Years 2014 and 2015. On September 26, 2012, SJWC filed the Motion of San Jose Water Company for Interim Rate Relief. On October 24, 2012, the assigned Administrative Law Judge (ALJ) issued a Ruling Granting Interim Rates. This Ruling authorized SJWC to file a tariff implementing interim rates and to establish a Memorandum Account to track the difference between the interim rates and the final rates adopted in A.12-01-003. SJWC received CPUC approval of the submitted AL 446A implementing the interim rates and establishing the Memorandum Account effective January 1, 2013. On August 14, 2014, the Commission issued D.14-08-006 authorizing rate increases for the years outlined above. This Decision was issued more than 19 months after the interim rates and the Test Year went into effect. Due to this delay increases were staggered to bring rates to a level consistent with present day levels. This staggered rate implementation was executed in conformance with the procedures outlined in D.14-08-006, as well as in the Revised Rate Case Plan (RRCP) adopted in D.04-06- 018 and in the Commission’s Standard Practice U-27-W. On August 15, 2014, SJWC filed AL 463 (and subsequently supplemental AL 463A) to implement the 2013 rate increase, and to revise existing purchased water and groundwater extraction charges to reflect changes to source of supply mix and forecasted sales as adopted in D.14-08-006. These rates became effective pending disposition on August 15, 2014. Concurrent with the filing of AL 463 SJWC filed AL 464 (and subsequently supplemental AL 464A) to implement authorized rates for Escalation Year 2014. In accordance with D.14-08-006, SJWC requested that the 2014 rates become effective after 45 days, on September 29, 2014, as required by the RRCP. On September 15, 2014, SJWC filed AL 465B in combination with AL 465 and AL 465A, seeking to recover and refund the balances in SJWC’s 2013 GRC Interim Rates Memorandum Account. The balances included:
  • 3. CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER NO. 512 Page 3  the recovery of $46,697,399 of uncollected revenue tracked in the Base Interim True-Up over a 3-year period via a $0.2888 per 100 cubic feet surcharge applied to all customer usage;  the refund of $39,177 of over collected revenue tracked in the Schedule 1C Elevation Surcharge True-Up to non-mutual Schedule 1C customers via a one-time refund of $105.03 to each non-mutual customer; and,  the refund $202,091 of over collected revenue tracked in the Schedule 1C Mutuals Revenue True-Up to Schedule 1C mutual water companies. In compliance with D.14-08-006, Ordering Paragraph 2, SJWC prepared all recoveries and refunds of under-collected and over-collected revenues in compliance with Standard Practice U-27-W.1 All under and over collections were tracked in SJWC’s 2013 Interim Rates True-Up Memorandum Account over the true-up period of January 1, 2013 to August 14, 2014. The Commission approved AL 465B on September 26, 2014, and the tariffs became effective on September 29, 2014. In accordance with AL 465B, SJWC refunded the over collected revenue in Schedule 1C to both mutual and non-mutual water companies as described above and implemented the approved surcharge to recover the $46,697,399 of uncollected revenue tracked in the Base Interim True-Up beginning on September 29, 2014. The surcharge was collected for a period of 36 months and was expired on September 29, 2017, in accordance with AL 465B. At the time of expiration, there is a remaining under-collected balance of $11,474,350 (ATTACHMENT A). This under-collection is due primarily to actual sales being substantially lower than the Commission- authorized sales estimate used to calculate the surcharge amount. Therefore, with this Advice Letter, SJWC seeks to reinstate the $0.2888 per 100 cubic feet surcharge to recover the remaining $11,474,350 balance from the 2013 Interim Rates True-Up Memorandum Account. Further delay in the amortization would create additional intergenerational inequity brought about by new customers paying for a customer benefit resulting from the Commission’s delay in authorizing rates for SJWC from January 1, 2013, through August 14, 2014. SJWC recommends maintaining the surcharges at $0.2888 per 100 cubic feet (ccf) to avoid customer confusion that would be caused by fluctuating surcharge levels. 1 D.14-08-006, Ordering Paragraph #2: “San Jose Water Company (SJWC) is authorized to file by Tier 1 Advice Letter for a surcharge to true-up the difference between interim rates and adopted rates. The surcharge must comply with Standard Practice U-27-W. The Tariff implementing the surcharge may be included in the filing authorized in Ordering Paragraph 2 or filed after SJWC calculated the revenue difference between interim rates and adopted rates. As the effective date of this order is after the beginning of the 2014 escalation year, the surcharge shall include differences between interim rates and adopted rates through the 2014 escalation year up to the effective date of this order.”
  • 4. CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER NO. 512 Page 4 SJWC estimates that, with an effective date of October 29, 2017, the under-collected balance would be recovered within 12 to 18 months. SJWC’s billing system allows the company to monitor the account balance and terminate the surcharges when the balance has been collected. At such time, we will inform the Water Division via a Tier 1 Advice Letter filing to revise the tariff sheets and to remove the surcharge. Current Rates and Average Bill Comparison Current rates became effective July 1, 2017, via AL 509A. As discussed above, SJWC proposes to reinstate the $0.2888 per ccf surcharge authorized in D.14-08-006. There is no change to the customers’ bills as this is a reimplementation of a recently terminated surcharge. Protests and Responses Anyone may respond to or protest this advice letter. A response does not oppose the filing but presents information that may prove useful to the Commission in evaluating the advice letter. A protest objects to the advice letter in whole or in part and must set forth the specific grounds on which it is based. These grounds may include the following: (1) The utility did not properly serve or give notice of the advice letter; (2) The relief requested in the advice letter would violate statute or Commission order, or is not authorized by statute or Commission order on which the utility relies; (3) The analysis, calculations, or data in the advice letter contain material error or omissions; (4) The relief requested in the advice letter is pending before the Commission in a formal proceeding; (5) The relief requested in the advice letter requires consideration in a formal hearing, or is otherwise inappropriate for the advice letter process; or (6) The relief requested in the advice letter is unjust, unreasonable, or discriminatory (provided that such a protest may not be made where it would require relitigating a prior order of the Commission). A response or protest must be made in writing or by electronic mail and must be received by the Water Division within 20 days of the date this advice letter is filed. The address for mailing or delivering a protest is:
  • 5. CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER NO. 512 Page 5 Tariff Unit, Water Division, 3rd floor California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 water_division@cpuc.ca.gov On the same date the response or protest is submitted to the Water Division, the respondent or protestant shall send a copy of the protest by mail to us, addressed to: Regulatory Affairs San Jose Water Company 110 West Taylor Street San Jose, California 95110 Fax 408.279.7934 regulatoryaffairs@sjwater.com The advice letter process does not provide for any responses, protests or comments, except for the utility’s reply, after the 20-day comment period. Public notice is not required per GO 96B, Water Industry Rule 7.3.1, and since notice was completed at the time of SJWC’s General Rate Case proceeding A.12-01-003. In compliance with Paragraph 4.3 of General Order 96-B, a copy of this advice letter has been mailed to all interested and affected parties as detailed in ATTACHMENT C. This filing will not cause the withdrawal of service, nor conflict with other schedules or rules. Very truly yours, /S/ JOHN B. TANG JOHN B. TANG, P.E. Vice President of Regulatory Affairs & Government Relations Enclosures
  • 6. SAN JOSE WATER COMPANY (U-168-W) Attachment C Advice Letter No. 512 Page 1 of 2 A copy of Advice Letter No. 512 has been sent to the following municipalities, water companies and interested parties: City of San Jose Municipal Water Dept. Attn: Jeffrey Provenzano 3025 Tuers Road San Jose, CA 95121 San Jose Mercury News Attn: Paul Rogers 4 N. Second Street, Suite 800 San Jose, CA 95113 California Water Service Co. Attn: Regulatory Affairs 1720 North First Street San Jose, CA 95112 Town of Los Gatos Attn: Director of Public Works 110 E. Main Street Los Gatos, CA 95032 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 City of Monte Sereno Attn: Director of Public Works 18014 Saratoga-Los Gatos Road Monte Sereno, CA 95030 City of Campbell 70 North First Street Campbell, CA 95008 City of Saratoga Attn: Director of Public Works 13777 Fruitvale Avenue Saratoga, CA 95070 City of Santa Clara 1500 Warburton Avenue Santa Clara, CA 95050 County of Santa Clara 70 W. Hedding Street San Jose, CA 95110 Great Oaks Water Company P.O. Box 23490 San Jose, CA 95153 Department of Water Resources Safe Drinking Water Office, Room 804 1416 9TH Street Sacramento, CA 95814 City of Milpitas Attn: Utilities Engineering 455 East Calaveras Blvd. Milpitas, CA 95035 James M. Fiedler P.E., D.WRE Chief Operating Officer Santa Clara Valley Water District 5750 Almaden Expressway San Jose, CA 95118 Santa Clara Valley Water District 5750 Almaden Expressway San Jose, CA 95118 Gillette Mutual Water Company 21976 Gillette Drive Los Gatos, CA 95033
  • 7. SAN JOSE WATER COMPANY (U-168-W) Attachment C Advice Letter No. 512 Page 2 of 2 Bob Burke Regulatory Liaison For The Six Mutual Water Companies 420 Alberto Way, Unit 49 Los Gatos, Ca 95032 Big Redwood Park Water & Improvement Assoc. 18522 Mt. View Avenue Los Gatos, CA 95033 Brush & Old Well Mutual Water Company 21105 Brush Road Los Gatos, CA 95033 Redwood Estates Services Association PO Box 591 Redwood Estates, CA 95044-0591 Oakmount Mutual Water Company P.O. Box 31536 Stockton, CA 95213 Stagecoach Mutual Water Co 21825 Stagecoach Road Los Gatos, CA 95033 Summit West Mutual Water Company P.O. Box 974 Los Gatos, CA 95031 Mt. Summit Mutual Water Co P.O. Box 3416 Saratoga, CA 95070 Ridge Mutual Water Company 22316 Citation Drive Los Gatos, CA 95033 Mountain Springs Mutual Water Co. 17956 Greenwood Road Los Gatos, CA 95033 Villa Del Monte Mutual Water Company P.O. Box 862 Los Gatos, CA 95031 Raineri Mutual Water Company P.O. Box 11 Los Gatos, CA 95031 Saratoga Heights Mutual Water Company P.O. Box 337 Saratoga, CA 95071 James Hunter 6475 Dwyer Street San Jose, CA 95120 Saratoga City Council Member Rishi Kumar 13777 Fruitvale Avenue Saratoga, CA 95070 WRATES Rita Benton 18555 Ravenwood Drive Saratoga, CA 95070
  • 8. (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice No. 512 Dec. No. PALLE JENSEN Executive Vice President, Regulatory Affairs TITLE Date Filed Effective Resolution No. SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1859-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1841-W Schedule No. 1 GENERAL METERED SERVICE (Continued) 6. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected beginning (T) with the effective date of Advice Letter 512. (T) 7. To amortize the under-collection in the Mandatory Conservation Revenue Adjustment Memorandum Account, a surcharge of $0.08 per 100 cu.ft. is to be added to the Quantity Rate shown until collected beginning with the effective date of Advice Letter 508B. 8. To amortize the under-collection in the Water Conservation Memorandum Account from 2015, a surcharge of $0.1441 per 100 cu.ft. is to be added to the Quantity Rate shown until collected beginning with the effective date of Advice Letter 508B. 9. To offset the July 2016 increase in Purchased Water from the Santa Clara Valley Water District, as required by Section 792.5 of the Public Utilities Code, an increase in purchased water costs of $178.00 /acre-foot, relative to the purchase water costs adopted by D.16-06-004, and associated revenue increase of $0.2530 per 100 cu.ft. 10. To offset the July 2016 increase in Ground Water Charges from the Santa Clara Valley Water District, as required by Section 792.5 of the Public Utilities Code, an increase in ground water charges of $178.00 /acre-foot, relative to the purchase water costs adopted by D.16-06-004, and associated revenue increase of $0.1699 per 100 cu.ft. 11. To amortize the under-collection in the 2016 GRC Interim Rates Memorandum Account and the remaining balance of the under-collection in the 2013 GRC Interim Rates Memorandum Account (Rehearing), a surcharge of $0.1832 per 100 cu.ft is to be added to the Quantity rate shown over the balance of the rate case cycle beginning with the effective date of Advice Letter 492A 12. To offset the July 2017 increase in Purchased Water from the Santa Clara Valley Water District, as required by Section 792.5 of the Public Utilities Code, an incremental increase in purchased water costs of $103.00 /acre-foot, relative to the purchase water costs authorized by Advice Letter 490 and associated revenue increase of $0.1464 per 100 cu.ft. 13. To offset the July 2017 increase in Ground Water Charges from the Santa Clara Valley Water District, as required by Section 792.5 of the Public Utilities Code, an incremental increase in ground water charges of $103.00 /acre-foot, relative to the purchase water costs authorized by Advice Letter 490 and associated revenue increase of $0.0983 per 100 cu.ft.
  • 9. (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice No. 512 Dec. No. PALLE JENSEN Executive Vice President, Regulatory Affairs TITLE Date Filed Effective Resolution No. SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1860-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1842-W Schedule No. 1B GENERAL METERED SERVICE WITH AUTOMATIC FIRE SPRINKLER SYSTEM (Continued) 6. To fund the repayment of a Safe Drinking Water State Revolving Fund loan, pursuant To D.05-01-048 dated January 27, 2005, a monthly surcharge will be added to the bill as follows: Year 1-10 Year 11-20 Surcharge: Per Meter Per Month For 5/8 x 3/4-inch meter …………………….. $0.02 $0.02 For 3/4-inch meter …………………….. 0.02 0.02 For 1-inch meter …………………….. 0.04 0.02 For 1-1/2-inch meter …………………….. 0.08 0.06 For 2-inch meter …………………….. 0.13 0.09 For 3-inch meter …………………….. 0.23 0.18 For 4-inch meter …………………….. 0.38 0.32 For 6-inch meter …………………….. 0.74 0.67 For 8-inch meter …………………….. 1.19 1.08 For 10-inch meter …………………….. 1.71 1.55 7. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected (T) with the effective date of Advice Letter 512. (T) 8. To amortize the under-collection in the Mandatory Conservation Revenue Adjustment Memorandum Account, a surcharge of $0.08 per 100 cu.ft. is to be added to the Quantity Rate shown until collected beginning with the effective date of Advice Letter 508B. 9. To amortize the under-collection in the Water Conservation Memorandum Account from 2015, a surcharge of $0.1441 per 100 cu.ft. is to be added to the Quantity Rate shown until collected beginning with the effective date of Advice Letter 508B. (Continued)
  • 10. (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice No. 512 Dec. No. PALLE JENSEN Executive Vice President, Regulatory Affairs TITLE Date Filed Effective Resolution No. SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1861-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1789-W Schedule No. 1C GENERAL METERED SERVICE Mountain District (Continued) Year 8-20 Surcharge: Per Meter Per Month For 5/8 x 3/4-inch meter ……………………… $0.04 For 3/4-inch meter ……………………….. 0.04 For 1-inch meter ……………………….. 0.05 For 1-1/2-inch meter ……………………….. 0.10 For 2-inch meter …………………….…. 0.14 For 3-inch meter ……………………….. 0.28 For 4-inch meter ……………………….. 0.39 For 6-inch meter ……………………….. 0.98 For 8-inch meter ……………………….. 1.59 For 10-inch meter ……………………….. 2.32 7. To fund the repayment of a Safe Drinking Water State Revolving Fund loan, pursuant to D.05-01-048 dated January 27, 2005, a monthly surcharge will be added to the bill as follows: Year 1-10 Year 11-20 Surcharge: Per Meter Per Month For 5/8 x 3/4-inch meter………………………. $0.02 $0.02 For 3/4-inch meter………………………. 0.02 0.02 For 1-inch meter………………………. 0.04 0.02 For 1-1/2-inch meter………………………. 0.08 0.06 For 2-inch meter………………………. 0.13 0.09 For 3-inch meter………………………. 0.23 0.18 For 4-inch meter………………………. 0.38 0.32 For 6-inch meter………………………. 0.74 0.67 For 8-inch meter ………………………. 1.19 1.08 For 10-inch meter………………………. 1.71 1.55 8. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected (T) with the effective date of Advice Letter 512. (T) (Continued)
  • 11. (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice No. 512 Dec. No. PALLE JENSEN Executive Vice President, Regulatory Affairs TITLE Date Filed Effective Resolution No. SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1862-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No.1846-W Schedule No. RW RAW WATER METERED SERVICE (Continued) 3. The utility will supply at the point of connection only such raw water at such pressures as may be available from time to time from the Santa Clara Valley Water District. The customer shall indemnify the utility and save it harmless from any and all claims arising out of service under this schedule and shall further agree to make no claims against the utility for any loss, damage or injury resulting from service under this schedule. 4. As a condition for service under this schedule, all customers are required to comply with all San Jose Water Company’s tariffs, except for those identified in the Commission’s General Order 103 regarding supply of water not intended or claimed to be potable. 5. Customers who receive water deliveries for agricultural purposes under this schedule, and who present evidence to the utility that such deliveries qualify for the lower pump tax rates levied by the Santa Clara Valley Water District for agricultural water, shall receive a refund of $2.4068 cents per 100 cubic feet for the quantities of water used. In accordance with Santa Clara Valley Water District procedures customers will be refunded every six months. 6. All bills are subject to the reimbursement fee set forth on Schedule No. UF. 7. To amortize the under-collection in the 2013 GRC Interim Rates Memorandum Account, a surcharge of $0.2888 per 100 cu.ft is to be added to the Quantity rate shown until collected (T) with the effective date of Advice Letter 512. (T) 8. To amortize the under-collection in the Mandatory Conservation Revenue Adjustment Memorandum Account, a surcharge of $0.08 per 100 cu.ft. is to be added to the Quantity Rate shown until collected beginning with the effective date of Advice Letter 508B. 9. To amortize the under-collection in the Water Conservation Memorandum Account from 2015, a surcharge of $0.1441 per 100 cu.ft. is to be added to the Quantity Rate shown until collected beginning with the effective date of Advice Letter 508B. (continued)
  • 12. (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice No. 512 Dec. No. PALLE JENSEN Executive Vice President, Regulatory Affairs TITLE Date Filed Effective Resolution No. SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1863-W San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1858-W TABLE OF CONTENTS The following listed tariff sheets contain all effective rates, rules and regulations affecting the rates and service of the Utility, together with information relating thereto: C.P.U.C. Subject Matter of Sheet Sheet No. Title 1495-W Table of Contents 1863-W, 1795-W, 848-W and 1831-W (T) Preliminary Statement 919-W, 1303-W, 1699-W, 1700-W, 1552-W, 1420-W, 1423-W, 1427-W, 1469-W, 1492-W, 1508-W, 1702-W, 1799-W and 1818-W Service Area Map Locator 1266-W Service Area Map Locator, Index 1589-W Map of Areas With Special Pressure and Fire Flow Conditions 1590-W Index to Map of Areas With Special Pressure and Fire Flow Conditions 1079-W, 1591-W 1082-W, 1087-W and 1404-W Rate Schedules: Schedule No. 1, General Metered Service 1822-W, 1840-W and 1859-W (C) Schedule No. 1B, General Metered Service With Automatic Fire Sprinkler System 1823-W, 1741-W, 1860-W and 1843-W (C) Schedule No. 1C, General Metered Service Mountain District 1844-W, 1744-W, 1861-W and 1845-W (C) Schedule No. 4, Private Fire Service 1825-W and 1621-W Schedule No. 9C, Construction and Other Temporary Metered Service 1118-W and 1094-W Schedule No. 10R, Service to Employees 152-W Schedule No. 14.1 Water Shortage Contingency Plan With 1668-W,1669-W,1780-W,1671-W, 1672-W,1673-W,1766-W,1767-W and 1820-W Staged Mandatory Reductions And Drought Surcharges Schedule No. RW, Raw Water Metered Service 1826-W, 1862-W and 1847-W (C) Schedule No. RCW, Recycled Water Metered Service 1827-W, and 1848-W Schedule No. UF, Surcharge to Fund Public Utilities Commission, Reimbursement Fee 1811-W Schedule No. WRAP, Water Rate Assistance Program 1829-W and 1211-W List of Contracts and Deviations 1857-W Rules: No. 1 - Definitions 764-W and 976-W No. 2 - Description of Service 525-W No. 3 - Application for Service 351-W and 903-W No. 4 - Contracts 352-W No. 5 - Special Information Required on Forms 821-W thru 823-W No. 6 - Establishment and Re-establishment of Credit 354-W No. 7 - Deposits 355-W and 356-W No. 8 - Notices 1054-W and 825-W No. 9 - Rendering and Payment of Bills 996-W, 997-W and 1146-W (Continued)