Before The Public Utilities Commission of The State of California

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BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF CALIFORNIA
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In the Matter of the Application of

California-American Water Company (U
210 W) for a Certificate of Public
Convenience and Necessity to Construct
and Operate its Monterey Water Supply
Project to Resolve the Long-Term Water
Supply Deficit in its Monterey District and
to Recover All Present and Future Costs in
Connection Therewith in Rates
Application No. 12-04-019

(Filed April 23, 2012)
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SUPPLEMENTAL TESTIMONY OF JEFFREY T. LINAM

ERRATA
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Sarah E. Leeper
Javier E. Naranjo
Nicholas A. Subias
California-American Water Company
333 Hayes Street, Suite 202
San Francisco, CA 94102
Telephone: 415.863.2470
Email: sarah.leeper@amwater.com
Email: javier.naranjo@amwater.com
Email: nicholas.subias@amwater.com
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Attorneys for Applicant

California-American Water Company
Originally Served: January 11, 2013
Revised Served: February 15, 2013
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California-American Water Company (California American Water) has updated Attachment 2
to the Supplemental Testimony of Jeffrey T. Linam, originally served on January 11, 2013, for
the following reasons. First, there was a change to the take-out of short-term debt. Previously the
short-term debt was replaced with California American Water debt and equity when the plant
went into service in all scenarios. Now, when state revolving funds (SRF) financing is
included, the short-term debt is replaced with California American Water equity and SRF debt.
This results in a lower rate base and revenue requirement. Second, all net impacts of allowances
for funds used during construction (AFUDC) are included in the utility plant line. Previously
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negative AFUDC was included for Surcharge 2 and SRF funds. This change has no net impact
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on rate base. Third, the amounts shown for project annual capital expenditures for 2017 and 2018
12
incorrectly referenced the 2018 and 2019 amounts in the model, respectively. California
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American Water has corrected this issue and the model now shows the correct amount for each
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year. In summary, the three adjustments improve the financial accuracy of the model but have no
15
impact on rate base or revenue requirement calculations.
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1
Attachment 2
Monterey Peninsula Water Supply Project

9.6 MGD Plant, 53% Equity / 47% CAW Debt / 0% SRF Debt
$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Revenue from Surcharge 2
Revenue From Project
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.68
33.82
0.00
34.20
34.20
Plant Operating Expenses

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Depreciation & Amortization
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.00
12.88
12.99
0.00
0.00
0.00
0.00
0.20
0.00
29.17
29.38
0.00
0.00
0.00
0.00
0.63
0.01
32.78
33.43
1.72
(0.39)
0.00
0.02
1.72
0.47
28.14
31.68
10.50
(2.35)
0.00
0.09
1.86
4.65
0.00
14.75
AFUDC
0.00
0.00
0.10
0.30
4.37
12.78
0.00
EBITDA
0.00
(0.00)
(0.01)
0.10
3.72
14.92
19.45
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.11
(0.05)
0.20
(0.04)
1.03
1.10
3.22
4.77
3.24
4.76
3.68
6.43
Net Income
0.00
(0.00)
(0.07)
(0.06)
1.59
6.93
6.92
9.35
Rate Base
0.00
0.00
0.00
0.00
0.00
179.54
174.54
Return
0.0%
0.0%
0.0%
0.0%
0.0%
3.9%
5.4%
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.10)
(13 10)
0.10
(0.12)
(0.05)
(0.07)
29.17
(29.58)
(29 58)
0.30
(0.10)
(0.04)
(0.06)
32.78
(34.46)
(34 46)
4.37
2.69
1.10
1.59
33.82
(34.90)
(34 90)
12.78
11.69
4.77
6.93
Projected Annual Expenditures

Amount for Surcharge 2
AFUDC Amount
0.00
0.00
0.00
(0.20)
0.00
(0.00)
(32.59)
12.88
(0.10)
(20.18)
29.17
(0.26)
(137.08)
32.78
(2.97)
0.00
28.14
(8.59)
(81.25)
(81.25)
0.00
0.00
(0.31)
Total Annual Cost
0.00
(0.20)
(19.81)
8.74
(107.27)
19.55
(61.70)
(81.25)
(0.31)
Ending Balance in memo account
0.00
(0.20)
(20.02)
(11.28)
(118.55)
0.00
1.00
0.00
Plant in Service
Surcharge 2 Funded Plant in Service
SRF Funded Plant in Service
Depreciation Reserve
Depreciation Reserve - Surcharge 2 Funded
Depreciation Reserve - SRF Funded
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
291.49
(111.24)
0.00
(0.61)
0.23
0.00
(0.34)
292.10
(111.24)
0.00
(7.90)
3.01
0.00
(1.44)
283.84
(102.97)
Rate Base
0.00
0.00
0.00
0.00
0.00
179.54
174.54
Labor
Fuel & Power
Chemicals
Repairs & Maintenance
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.57
0.93
0.15
0.08
3.42
5.60
0.91
0.58
Total Plant Operating Expenses
0.00
0.00
0.00
0.00
0.00
1.72
10.50
(34 92)
(34.92)
11.68
4.76
6.92
34.20
(18
(18.43)
43)
0.00
15.78
6.43
9.35
Rate Base Calculation
283.22
(102.97)

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.42
33.56

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.00
12.88
12.99
0.00
0.00
0.00
0.00
0.20
0.00
29.17
29.38
0.00
0.00
0.00
0.00
0.63
0.01
32.78
33.43
1.72
(0.39)
0.00
0.01
1.57
0.47
28.14
31.52
AFUDC
0.00
0.00
0.10
0.29
4.03
11.74
EBITDA
0.00
(0.00)
(0.01)
0.09
3.39
13.78
13.58
18.80
17.59
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.11
(0.05)
0.19
(0.04)
0.68
1.10
1.96
4.82
1.94
4.74
2.30
6.72
2.13
6.30
Net Income
0.00
(0.00)
(0.07)
(0.06)
1.61
7.00
6.90
9.77
9.16
Rate Base
0.00
0.00
0.00
0.00
0.00
95.72
86.33
92.83
83.68
Return
0.0%
0.0%
0.0%
0.0%
0.0%
7.3%
8.0%
10.5%
32.64
(16
(16.14)
14)
0.00
16.50
6.72
9.77
31.33
(15.88)
(15
88)
5.21
33.35
1.55
31.51
0.00
32.64
32.64
10.50
(2.35)
0.00
0.09
1.00
4.62
0.00
13.84
31.33
31.33
0.08
0.90
13.74
0.00
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.10)
(13 10)
0.10
(0.12)
(0.05)
(0.07)
29.17
(29.57)
(29 57)
0.29
(0.10)
(0.04)
(0.06)
32.78
(34.11)
(34 11)
4.03
2.71
1.10
1.61
33.56
(33.48)
(33 48)
11.74
11.82
4.82
7.00
33.35
(33.44)
(33
44)

AFUDC Amount
0.00
0.00
0.00
(0.20)
0.00
(0.00)
(32.59)
12.88
(0.10)
(20.18)
29.17
(0.25)
(137.08)
32.78
(2.64)
0.00
28.14
(7.57)
(81.25)
(81.25)
0.00
0.00
(0.31)
Total Annual Cost
0.00
(0.20)
(19.81)
8.75
(106.94)
20.57
(60.69)
(81.25)
(0.31)
0.00
(0.20)
(20.02)
(11.27)
(118.21)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
289.22
(110.32)
(82.82)
(0.60)
0.23
0.35
(0.33)
276.29
(102.97)
(86.67)
289.83
(110.32)
(82.82)
(7.84)
2.99
2.42
(1.43)
276.91
(102.97)
(86.67)
Rate Base
0.00
0.00
0.00
0.00
0.00
95.72
86.33
92.83
83.68
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.57
0.93
0.15
0.08
3.42
5.60
0.91
0.58
0.00
0.00
0.00
0.00
0.00
1.72
10.50
11.64
4.74
6.90
15.46
6.30
9.16
0.38
2.69

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.46
33.60
0.00
32.87
32.87

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.00
12.88
12.99
0.00
0.00
0.00
0.00
0.19
0.00
29.17
29.36
0.00
0.00
0.00
0.00
0.45
0.01
32.78
33.24
1.42
(0.39)
1.46
0.01
1.19
0.32
28.14
32.15
8.65
(2.35)
8.80
0.09
1.27
3.16
0.00
19.61
AFUDC
0.00
0.00
0.10
0.23
2.66
8.38
0.00
EBITDA
0.00
(0.00)
(0.01)
0.04
2.20
9.83
13.25
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.11
(0.05)
0.18
(0.06)
0.68
0.62
2.17
3.12
2.19
3.11
2.50
4.38
Net Income
0.00
(0.00)
(0.07)
(0.08)
0.90
4.54
4.53
6.37
Rate Base
0.00
0.00
0.00
0.00
0.00
122.33
118.99
Return
0.0%
0.0%
0.0%
0.0%
0.0%
3.7%
5.4%
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.09)
(13 09)
0.10
(0.12)
(0.05)
(0.07)
29.17
(29.55)
(29 55)
0.23
(0.14)
(0.06)
(0.08)
32.78
(33.92)
(33 92)
2.66
1.52
0.62
0.90
33.60
(34.32)
(34 32)
8.38
7.66
3.12
4.54

AFUDC Amount
0.00
0.00
0.00
(0.20)
0.00
(0.00)
(31.75)
12.88
(0.10)
(19.48)
29.17
(0.21)
(104.58)
32.78
(1.83)
0.00
28.14
(5.65)
(61.99)
(61.99)
0.00
0.00
(0.24)
Total Annual Cost
0.00
(0.20)
(18.97)
9.49
(73.63)
22.49
(39.50)
(61.99)
(0.24)
0.00
(0.20)
(19.17)
(9.69)
(83.32)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
233.28
(110.46)
0.00
(0.49)
0.23
0.00
(0.23)
233.76
(110.46)
0.00
(6.32)
2.99
0.00
(0.98)
226.27
(102.97)
Rate Base
0.00
0.00
0.00
0.00
0.00
122.33
118.99
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
0.73
0.12
0.06
3.02
4.42
0.74
0.47
0.00
0.00
0.00
0.00
0.00
1.42
8.65
(34 33)
(34.33)
7.64
3.11
4.53
32.87
(22
(22.11)
11)
0.00
10.75
4.38
6.37
225.79
(102.97)

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.37
33.50

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.00
12.88
12.99
0.00
0.00
0.00
0.00
0.19
0.00
29.17
29.36
0.00
0.00
0.00
0.00
0.45
0.01
32.78
33.24
1.42
(0.39)
1.46
0.01
1.09
0.32
28.14
32.05
AFUDC
0.00
0.00
0.10
0.22
2.46
7.70
EBITDA
0.00
(0.00)
(0.01)
0.04
2.01
9.16
8.96
13.26
12.06
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.11
(0.05)
0.18
(0.06)
0.47
0.62
1.35
3.18
1.33
3.11
1.62
4.75
1.45
4.32
Net Income
0.00
(0.00)
(0.07)
(0.08)
0.91
4.63
4.52
6.90
6.28
Rate Base
0.00
0.00
0.00
0.00
0.00
68.63
59.24
66.64
57.49
Return
0.0%
0.0%
0.0%
0.0%
0.0%
6.7%
7.6%
10.4%
10.9%
32.30
(20
(20.65)
65)
0.00
11.65
4.75
6.90
30.99
(20.38)
(20
38)
5.15
33.29
1.07
32.03
0.00
32.30
32.30
8.65
(2.35)
8.80
0.09
0.71
3.14
0.00
19.03
30.99
30.99
0.08
0.62
18.93
0.00
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.09)
(13 09)
0.10
(0.12)
(0.05)
(0.07)
29.17
(29.54)
(29 54)
0.22
(0.14)
(0.06)
(0.08)
32.78
(33.71)
(33 71)
2.46
1.53
0.62
0.91
33.50
(33.40)
(33 40)
7.70
7.81
3.18
4.63
33.29
(33.36)
(33
36)

AFUDC Amount
0.00
0.00
0.00
(0.20)
0.00
(0.00)
(31.75)
12.88
(0.10)
(19.48)
29.17
(0.21)
(104.58)
32.78
(1.63)
0.00
28.14
(4.99)
(61.99)
(61.99)
0.00
0.00
(0.24)
Total Annual Cost
0.00
(0.20)
(18.97)
9.49
(73.43)
23.15
(38.84)
(61.99)
(0.24)
0.00
(0.20)
(19.17)
(9.68)
(83.12)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
231.61
(109.66)
(53.07)
(0.48)
0.23
0.22
(0.23)
221.40
(102.97)
(58.97)
232.10
(109.66)
(53.07)
(6.28)
2.97
1.55
(0.97)
221.88
(102.97)
(58.97)
Rate Base
0.00
0.00
0.00
0.00
0.00
68.63
59.24
66.64
57.49
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.50
0.73
0.12
0.06
3.02
4.42
0.74
0.47
0.00
0.00
0.00
0.00
0.00
1.42
8.65
7.64
3.11
4.52
10.61
4.32
6.28
0.26
1.82

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.20
33.34
0.00
31.31
31.31

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.00
12.88
12.99
0.00
0.00
0.00
0.00
0.20
0.00
29.17
29.37
0.00
0.00
0.00
0.00
0.58
0.01
32.78
33.37
1.67
(0.39)
0.00
0.01
1.56
0.42
28.14
31.41
10.19
(2.35)
0.00
0.08
1.68
4.19
0.00
13.79
AFUDC
0.00
0.00
0.10
0.27
3.82
11.41
0.00
EBITDA
0.00
(0.00)
(0.01)
0.07
3.24
13.33
17.52
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.11
(0.05)
0.19
(0.05)
0.92
0.94
2.89
4.25
2.91
3.31
5.79
Net Income
0.00
(0.00)
(0.07)
(0.07)
1.37
6.19
6.18
8.42
Rate Base
0.00
0.00
0.00
0.00
0.00
161.74
157.29
Return
0.0%
0.0%
0.0%
0.0%
0.0%
3.8%
5.4%
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.10)
(13 10)
0.10
(0.12)
(0.05)
(0.07)
29.17
(29.57)
(29 57)
0.27
(0.12)
(0.05)
(0.07)
32.78
(34.29)
(34 29)
3.82
2.32
0.94
1.37
33.34
(34.31)
(34 31)
11.41
10.44
4.25
6.19

AFUDC Amount
0.00
0.00
0.00
(0.20)
0.00
(0.00)
(32.25)
12.88
(0.10)
(19.91)
29.17
(0.24)
(127.06)
32.78
(2.61)
0.00
28.14
(7.67)
(75.32)
(75.32)
0.00
0.00
(0.30)
Total Annual Cost
0.00
(0.20)
(19.47)
9.02
(96.89)
20.47
(54.85)
(75.32)
(0.30)
0.00
(0.20)
(19.67)
(10.65)
(107.54)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
273.41
(111.03)
0.00
(0.57)
0.23
0.00
(0.30)
274.01
(111.03)
0.00
(7.41)
3.01
0.00
(1.30)
265.96
(102.97)
Rate Base
0.00
0.00
0.00
0.00
0.00
161.74
157.29
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.56
0.89
0.14
0.08
3.40
5.37
0.85
0.58
0.00
0.00
0.00
0.00
0.00
1.67
10.19
(34 33)
(34.33)
10.42
6.18
31.31
(17
(17.10)
10)
0.00
14.21
5.79
8.42
265.36
(102.97)

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.00
33.13

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.11
0.00
12.88
12.99
0.00
0.00
0.00
0.00
0.20
0.00
29.17
29.37
0.00
0.00
0.00
0.00
0.57
0.01
32.78
33.37
1.67
(0.39)
0.00
0.01
1.42
0.42
28.14
31.27
AFUDC
0.00
0.00
0.10
0.26
3.53
10.48
EBITDA
0.00
(0.00)
(0.01)
0.07
2.95
12.34
12.14
17.07
15.87
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.11
(0.05)
0.19
(0.05)
0.61
0.95
1.77
4.31
1.75
4.24
2.09
6.11
1.92
5.68
Net Income
0.00
(0.00)
(0.07)
(0.07)
1.38
6.26
6.16
8.88
8.26
Rate Base
0.00
0.00
0.00
0.00
0.00
87.31
77.92
84.73
75.57
Return
0.0%
0.0%
0.0%
0.0%
0.0%
7.2%
7.9%
10.5%
10.9%
30.06
(15
(15.07)
07)
0.00
14.99
6.11
8.88
28.75
(14.81)
(14
81)
4.78
32.92
1.40
31.26
0.00
30.06
30.06
10.19
(2.35)
0.00
0.08
0.91
4.16
0.00
12.98
28.75
28.75
0.81
12.88
0.00
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.10)
(13 10)
0.10
(0.12)
(0.05)
(0.07)
29.17
(29.56)
(29 56)
0.26
(0.12)
(0.05)
(0.07)
32.78
(33.98)
(33 98)
3.53
2.33
0.95
1.38
33.13
(33.05)
(33 05)
10.48
10.57
4.31
6.26
32.92
(33.00)
(33
00)

AFUDC Amount
0.00
0.00
0.00
(0.20)
0.00
(0.00)
(32.25)
12.88
(0.10)
(19.91)
29.17
(0.23)
(127.06)
32.78
(2.32)
0.00
28.14
(6.77)
(75.32)
(75.32)
0.00
0.00
(0.30)
Total Annual Cost
0.00
(0.20)
(19.47)
9.03
(96.60)
21.37
(53.95)
(75.32)
(0.30)
0.00
(0.20)
(19.67)
(10.64)
(107.24)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
271.33
(110.14)
(73.55)
(0.57)
0.23
0.31
(0.30)
259.23
(102.97)
(78.05)
271.93
(110.14)
(73.55)
(7.35)
2.98
2.15
(1.29)
259.83
(102.97)
(78.05)
Rate Base
0.00
0.00
0.00
0.00
0.00
87.31
77.92
84.73
75.57
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.56
0.89
0.14
0.08
3.40
5.37
0.85
0.58
0.00
0.00
0.00
0.00
0.00
1.67
10.19
10.40
4.24
6.16
13.94
5.68
8.26
0.35
2.42

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.05
33.19
0.00
30.41
30.41

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.10
0.00
12.88
12.97
0.00
0.00
0.00
0.00
0.15
0.00
29.17
29.32
0.00
0.00
0.00
0.00
0.38
0.00
32.78
33.17
1.28
(0.39)
1.46
0.01
1.08
0.28
28.14
31.87
7.83
(2.35)
8.80
0.08
1.15
2.87
0.00
18.38
AFUDC
0.00
0.00
0.08
0.14
2.12
7.45
0.00
EBITDA
0.00
(0.00)
(0.01)
(0.00)
1.74
8.77
12.03
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.09
(0.04)
0.14
(0.06)
0.56
0.48
1.95
2.78
1.97
2.77
2.27
3.98
Net Income
0.00
(0.00)
(0.06)
(0.08)
0.70
4.04
4.03
5.78
Rate Base
0.00
0.00
0.00
0.00
0.00
111.07
108.06
Return
0.0%
0.0%
0.0%
0.0%
0.0%
3.6%
5.4%
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.06)
(13 06)
0.08
(0.10)
(0.04)
(0.06)
29.17
(29.46)
(29 46)
0.14
(0.14)
(0.06)
(0.08)
32.78
(33.73)
(33 73)
2.12
1.17
0.48
0.70
33.19
(33.82)
(33 82)
7.45
6.82
2.78
4.04

AFUDC Amount
0.00
0.00
0.00
(0.18)
0.00
(0.00)
(28.98)
12.88
(0.08)
(17.81)
29.17
(0.14)
(100.94)
32.78
(1.47)
0.00
28.14
(5.03)
(59.84)
(59.84)
0.00
0.00
(0.23)
Total Annual Cost
0.00
(0.18)
(16.19)
11.22
(69.63)
23.11
(36.73)
(59.84)
(0.23)
0.00
(0.18)
(16.37)
(5.15)
(74.78)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
221.62
(110.11)
0.00
(0.46)
0.23
0.00
(0.21)
222.08
(110.11)
0.00
(6.00)
2.98
0.00
(0.89)
214.94
(102.97)
Rate Base
0.00
0.00
0.00
0.00
0.00
111.07
108.06
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.49
0.62
0.11
0.06
2.96
3.74
0.66
0.47
0.00
0.00
0.00
0.00
0.00
1.28
7.83
(33 84)
(33.84)
6.81
2.77
4.03
30.41
(20
(20.65)
65)
0.00
9.76
3.98
5.78
214.48
(102.97)

$ Millions
2012
2013
2014
2015
2016
2017
2018
Income Statement
Total Revenue
0.00
0.00
0.00
0.00
0.00
0.00
12.88
0.00
12.88
29.17
0.00
29.17
32.78
0.00
32.78
28.14
5.00
33.13

Avoided Costs
Purchased Water
Uncollectibles
Ad Valorem Taxes
Surcharge 2 Expense
Total Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.10
0.00
12.88
12.97
0.00
0.00
0.00
0.00
0.15
0.00
29.17
29.32
0.00
0.00
0.00
0.00
0.38
0.00
32.78
33.17
1.28
(0.39)
1.46
0.01
0.99
0.28
28.14
31.78
AFUDC
0.00
0.00
0.08
0.14
1.97
6.86
EBITDA
0.00
(0.00)
(0.01)
(0.00)
1.58
8.21
8.01
12.20
10.99
Interest
Taxes
0.00
0.00
0.00
(0.00)
0.09
(0.04)
0.14
(0.06)
0.40
0.48
1.23
2.85
1.20
2.78
1.48
4.37
1.32
3.94
Net Income
0.00
(0.00)
(0.06)
(0.08)
0.70
4.14
4.04
6.35
5.73
Rate Base
0.00
0.00
0.00
0.00
0.00
63.44
54.06
61.64
52.49
Return
0.0%
0.0%
0.0%
0.0%
0.0%
10.3%
10.9%
30.06
(19
(19.35)
35)
0.00
10.72
4.37
6.35
28.76
(19.08)
(19
08)
4.78
32.92
0.98
31.76
0.00
30.06
30.06
7.83
(2.35)
8.80
0.08
0.66
2.85
0.00
17.87
28.76
28.76
0.56
17.77
0.00
6.5%
.
Tax Calculation
Revenues
E
Expenses
AFUDC
Taxable Income
Taxes
Net Income
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0 00)
0.00
(0.00)
(0.00)
(0.00)
12.88
(13.06)
(13 06)
0.08
(0.10)
(0.04)
(0.06)
29.17
(29.46)
(29 46)
0.14
(0.14)
(0.06)
(0.08)
32.78
(33.57)
(33 57)
1.97
1.18
0.48
0.70
33.13
(33.00)
(33 00)
6.86
6.99
2.85
4.14
32.92
(32.96)
(32
96)

AFUDC Amount
0.00
0.00
0.00
(0.18)
0.00
(0.00)
(28.98)
12.88
(0.08)
(17.81)
29.17
(0.14)
(100.94)
32.78
(1.31)
0.00
28.14
(4.45)
(59.84)
(59.84)
0.00
0.00
(0.23)
Total Annual Cost
0.00
(0.18)
(16.19)
11.22
(69.48)
23.69
(36.14)
(59.84)
(0.23)
0.00
(0.18)
(16.37)
(5.15)
(74.62)
0.00
1.00
0.00
Plant in Service
Deferred Taxes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
220.12
(109.35)
(47.08)
(0.46)
0.23
0.20
(0.21)
210.71
(102.97)
(53.48)
220.59
(109.35)
(47.08)
(5.96)
2.96
1.37
(0.88)
211.17
(102.97)
(53.48)
Rate Base
0.00
0.00
0.00
0.00
0.00
63.44
54.06
61.64
52.49
Labor
Fuel & Power
Chemicals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.49
0.62
0.11
0.06
2.96
3.74
0.66
0.47
0.00
0.00
0.00
0.00
0.00
1.28
7.83
6.81
2.78
4.04
9.67
3.94
5.73
0.24
1.65

Before The Public Utilities Commission of The State of California

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Copyright:

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Before The Public Utilities Commission of The State of California

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Copyright:

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1

BEFORE THE PUBLIC UTILITIES COMMISSION

In the Matter of the Application of

Application No. 12-04-019

SUPPLEMENTAL TESTIMONY OF JEFFREY T. LINAM

Attorneys for Applicant

California-American Water Company (California American Water) has updated Attachment 2

impact on rate base or revenue requirement calculations.

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation

Plant Operating Expenses

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation

Plant Operating Expenses

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation

Plant Operating Expenses

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation

Plant Operating Expenses

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation

Plant Operating Expenses

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation

Plant Operating Expenses

Monterey Peninsula Water Supply Project

Plant Operating Expenses

Projected Annual Expenditures

Total Annual Cost

Ending Balance in memo account

Total Plant Operating Expenses

Rate Base Calculation