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APPENDIX A1
2
QUALIFICATIONS3
4
California-American Water Company5
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QUALIFICATIONS AND PREPARED TESTIMONY OF RYNINTA1ANATRYA2
Q.1. Please state your name, business address, and position with the California3
Public Utilities Commission (Commission).4
A1. My name is Ryninta Anatrya and my business address is 505 Van Ness Avenue,5
San Francisco, California 94102. I am a Utilities Engineer in the Water Branch of6
the Division of Ratepayer Advocates.7
Q2. Please summarize your educational background and professional experience.8
A2. I received a Bachelor of Science Degree in Civil and Environmental Engineering9
from the University of California, Berkeley as well as my Engineer-in-Training10
certificate in 2011. Prior to joining DRA in March 2012, I was employed as a11
Staff Engineer at Cornerstone Environmental Group, where I was involved with12
designs of landfill gas collection and control system. My experience in the water13
industry includes an internship position in the area of water quality engineering at14
the Menlo Park Department of Public Works and a position with Generation15
Water, a non-profit water conservation organization.16
Q4. What is your responsibility in this proceeding?17
A4. I am responsible for the Intake Facilities section of Chapter 3 Capital Costs of18
Desalination Plant Facilities and the following two sections of Chapter 5 Cost19
Recommendations for Cal Am Only Facilities:20
1. Transfer Pipeline, Seaside Pipeline, Monterey Pipeline, and Terminal21
Reservoir22
2. Escalation Factor and Cost Markups23
I also serve as one of the two DRA project coordinators in this proceeding.24
Q5. Does this conclude your prepared direct testimony?25
A5. Yes, it does.26
27
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QUALIFICATIONS AND PREPARED TESTIMONY OF TERENCE SHIA1
2
Q.1. Please state your name, business address, and position with the California3
Public Utilities Commission (Commission).4
A1. My name is Terence Shia and my business address is 505 Van Ness Avenue, San5
Francisco, CA. 94102. I am a Senior Utilities Engineer in the Water Branch of the6
Division of Ratepayer Advocates (DRA).7
Q2. Please summarize your educational background and professional experience.8
A2. I received a Bachelor of Science Degree in Mechanical Engineering from the9
University of California, Davis in 2007. I received my Professional Engineer10License in Mechanical Engineering in the State of California in 2011, License #11
M35352. In March of 2008, I joined the Commission, where I worked as a12
Utilities Engineer on a variety of assignments ranging from assisting13
Administrative Law Judges (ALJ) on General Rate Case (GRC) proceedings,14
conservation rate proceedings, small water company GRC filings, updating15
General Order 103, and Water Revenue Adjustment Mechanism/Modified Cost16
Balancing Account (WRAM/MCBA) filings. In June of 2012, I joined DRA as a17
Senior Utilities Engineer and assisted our consultant, Overland, on the Direct Joint18
Testimony for the Monterey Rate Design and WRAM/MCBA in A.10-07-007. I19
also testified on the proposed Sacramento WRAM in this same proceeding.20
Q4. What is your responsibility in this proceeding?21
A4. I am responsible for Chapter 2 Cost Markups and co-sponsor for Chapter 7 -22
Ratemaking. I also serve as one of the two DRA project coordinators in this23proceeding.24
Q5. Does this conclude your prepared direct testimony?25
A5. Yes, it does.26
27
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QUALIFICATIONS AND PREPARED TESTIMONY OF J USTIN MENDA1
2
Q1. Please state your name, business address, and position with the California Public3
Utilities Commission (Commission).4
A1. My name is Justin Menda and my business address is 505 Van Ness Avenue, San5
Francisco, California 94102. I am a Utilities Engineer in the Water Branch of the6
Division of Ratepayer Advocates.7
Q2. Please summarize your educational background and professional experience.8
A2. I received my Bachelors of Science and Masters of Science in Civil Engineering9
with a concentration in water resources from the University of California Irvine. I10have passed the Fundamentals of Engineering exam (E.I.T) in 2009. I joined the11
Division of Ratepayer Advocates - Water Branch as a Utilities Engineer in June12
2012. Since that time, I worked on testimony for California Water Service13
Companys 2012 GRC regarding the plant in service and water quality chapters14
for the Chico, Marysville, Oroville, Redwood Valley, and Willows districts.15
Q3. What is your responsibility in this proceeding?16
A3. I am responsible for Chapter 3, Section XVI regarding the Desalination Return17
Facilities and Chapter 4 Operations and Maintenance.18
Q4. Does this conclude your prepared direct testimony?19
A4. Yes, it does.20
21
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QUALIFICATIONS AND PREPARED TESTIMONY OF SUZIE ROSE1
2
Q1. Please state your name, business address, and position with the California Public3
Utilities Commission (Commission).4
A1. My name is Suzie Rose and my business address is 505 Van Ness Avenue, San5
Francisco, CA. 94102. I am a Public Utilities Regulatory Analyst IV in the Water6
Branch of the Division of Ratepayer Advocates (DRA).7
Q2. Please summarize your educational background and professional experience.8
A2. I received a Bachelor of Science Degree in Civil and Environmental Engineering9
from the Duke University in 1995. I joined the Division of Ratepayer Advocates -10Water Branch as a Utilities Engineer in July 2012. My previous relevant11
professional experience includes working as an Assistant Engineer at East Bay12
Municipal Utilities District in Oakland, CA where I worked from 2001 to 2003 in13
the Division of Water Recycling and Wastewater Planning, and working as a14
Consulting Engineer for OBrien & Gere Engineers in Landover Maryland where I15
worked from 1995 to 1997 in water treatment and distribution.16
Q3. What is your responsibility in this proceeding?17
A3. I am responsible for Chapter 1 Plant Sizing and GWR. I am co-sponsor of18
Chapter 3 Capital Costs of Desalination Plant Facilities, and of Chapter 5 Cal19
Am Only Facilities.20
Q4. Does this conclude your prepared direct testimony?21
A4. Yes, it does.22
23
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QUALIFICATIONS AND PREPARED TESTIMONY OF INDERDEEP S.1ATWAL2
3
Q.1. Please state your name, business address, and position with the California4
Public Utilities Commission (Commission).5
A1. My name is Inderdeep S. Atwal and my business address is 505 Van Ness Avenue,6
San Francisco, CA. 94102. I am a Public Utilities Regulatory Analyst II in the7
Water Branch of the Division of Ratepayer Advocates (DRA).8
Q2. Please summarize your educational background and professional experience.9
A2. I received a Bachelor of Science Degree in Microbiology, Immunology, and10
Molecular Genetics from the University of California, Los Angeles in 2004, a11
Juris Doctorate from the University of Pacific, McGeorge School of Law, a Master12
of Business Administration and a Master of Arts in Biological Science from13
California State University, Sacramento. In November 2010, I joined the14
Commission, where I worked as a Graduate Student Intern in the Consumer15
Services and Information Division. In September 2011, I joined Commission staff16
as an Associate Governmental Program Analyst. In May 2012, I joined the DRA17as a Public Utility Regulatory Analyst II where I have worked on California-18
Americans application for Approval of the Monterey Peninsula Water Supply19
Project and the California Water Company 2012 GRC analyzing rate design and20
sales and forecasting issues.21
Q4. What is your responsibility in this proceeding?22
A4. I am responsible for Chapter 6 Financing and co-sponsor for Chapter 7 -23
Ratemaking.24
Q5. Does this conclude your prepared direct testimony?25
A5. Yes, it does.26
27
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APPENDIX B1
2
ATTACHMENTS3
4
California-American Water Company5
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Appendix B-1: DRAs Plant Capacity Analysis1
2
Plant Capacity Analysis Based on RBF Technical Memorandum(MPWSP) Desalination Plant"Recommended Capacity for the Monterey Peninsula Water Supply Project"
(A.12-04-019 Supplemental Testimony of Richard Svindland, Attachment 1)
acre-ft
conversion
factor MGD Source
SystemDemand 15296 1,120 13.66 Supplemental Testimony of Richard Svindland, p. 5
Salinas Valley Recharge 8% Supplemental Testimony of Richard Svindland, Attachment 1, p. 5
Other Supply 5544 1,120 4.95 Supplemental Testimony of Richard Svindland, Attachment 1, p. 5
GWR Purchased Water 3500 1,120 3.13 Supplemental Testimony of Richard Svindland, Attachment 1, p. 5
Unmet Demand without GWR 10532 1,120 9.40
Unmet Demand with GWR 7032 1,120 6.28
Plant
Capacity
(MGD)
Unmet
Demand
(MGD)
Running
Capacity
9.0 MGD plant size 9.0 9.40 104%
9.6 MGD plant size 9.6 9.40 98%
5.4 MGD plant size (with GWR) 5.4 6.28 116%
6.4 MGD plant size (with GWR) 6.4 6.28 98% 3
4
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Appendix B-2: Cal Ams Slant Well Details*1
2
Description Unit Price Cost
CONSTRUCTION COSTS
Slant Test Well Installation,
Slant Test Well Installation, 1 EA 700 LF 12-inch Slant Well 2,000,000$ $2,000,000
Slant Well Vaults with Manifolding 1 EA Concrete Vault 200,000$ $200,000
Slant Well Equipping 1 EA Pump & Motor 300,000$ $300,000
Well Electrical and I&C 1 LS Combination Buried and OH Service 100,000$ $100,000
Pump-to Waste Pipeline HDD 2,400 LF 16-inch diam HDPE HDD (See Note 1) 600$ $1,440,000
Pump-to Waste Pipeline 1,200 LF 16-inch diam HDPE Open Trench (See Note 250$ $300,000
Brine Connection to Outfall (Temp MH at Cemex) 1 LS Metering Structure & Outfall Connection 100,000$ $100,000
Engineering, Permitting, Misc 1 LS Cost to Implement Test Well 600,000$ $600,000
Subtotal Test Well (Rounded) $5,000,000
Description Unit Price Cost
CONSTRUCTION COSTS
Slant Test Well Installation,
Slant Test Well Installation, 1 EA 800 LF 20-inch Slant Well 3,000,000$ $3,000,000
Slant Well Vaults with Manifolding 1 EA Concrete Vault 200,000$ $200,000
Slant Well Equipping 1 EA Pump & Motor 300,000$ $300,000
Well Electrical and I&C 1 LS Combination Buried and OH Service 100,000$ $100,000
Below Grade Diffuser 100 LF 16-inch diffuser located on beach 1,000$ $100,000
Disposal Pipe 200 LF 16-inch diam. HDPE Trenched 250$ $50,000
Engineering, Permitting, Misc 1 LS Cost to Implement Test Well 700,000$ $700,000
Subtotal Test Well (Rounded) $4,500,000
Notes:
1. This pipes will be reused for the permanent slant well, but may be configured differently.
2. Cost for Monitoring wells are included in Engineering, Permitting, Misc. category.
3. Slant Test Wells costs differ due to length and diameter.
Size/Quantity
Slant Test Well
Option 1 - Estimate
Size/Quantity
Slant Test Well
Option 2 - Estimate
3
*As detailed in Cal Ams Response to Data Request DRA-A.12-04-019-CAL AM 002,4attached hereto as Exhibit 8.5
6
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Appendix B-3: Slant Well L ayout (DRAs estimate of temporary sheet piling1area for the 6.4 MGD plant)*2
3
*Original figure is taken from Attachment 11 of the Supplemental Testimony of Richard4
C. Svindland, Figure 6.5
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Appendix B-4: ASR Well Details*1
Phase 2 ASR - Estimated Budget Summary for Wells #3 and #4Seaside M iddle School Site
Budgeted Item Budgeted $ Comments
ASR Well #3 Construction $2,166,628 completed, used all $ except contingency
ASR Well #4 Construction $2,429,091
currently under construction, expected to be on
budget w/o contingency
General Site Improvements $1,531,836
partially completed, expected to be higher than
budgeted but still within total including
contingency
Total without Contingency (Base
Construction Cost) $6,127,555
ASR Well #3 Construction Contingency $216,663 10%
ASR Well #4 Construction Contingency $220,826 10%
General Site Improvements Contingency $255,306 20%
Total Contingency $692,795
Average Contingency % 11% Total Contingency/Base Construction Cost
Comparable Construction Costs for Wells #5 and #6 based on Phase 2
Item Amount Comments
Base Construction Costs of Wells #3 & #4 $6,127,555
Backflush percolation pit $240,250
Listed as a separate line itemin CAW Only Cost
Estimates for 12-09-019; not necessary for
Wells #5 & #6
Comparable Construction Cost of ASR
Wells #3 & #4 $5,887,305
Subtracted Backflush line itemfromBase
Construction Costs
Phase 1 ASR - Construction Costs for Wells #1 and #2Santa Margarita Site
Total Comparable Construction Cost of ASR
Wells #1 and #2 in 2009 $ $5,722,625 Per MPWMD completed construction costs
Escalation rate for 2009 - 2012 3.0%
Comparable Construction Cost in 2012 $ $6,253,267
Comparable Construction Costs for Wells #5 and #6 based on Wells #1 - #4Fitch Park Site
Average Comparable Construction Costs for
Wells #1 - #4 $6,070,286
Avg of Phase 1 ASR and Phase 2 ASR
Comparable Costs
Contingency for Wells #5 & #6 $667,731 11%
Total with Contingency $6,738,017
Costs recovered by Cal-Amfor Wells #5 &
#6 $1,538,601 AL 895, AL 932, AL 944
Remaining Budget for Wells #5 & #6 $5,199,416 Total DRA with Contingency - Costs Recovered
DRA Estimate for ASR Wells #5 & #6Based on Costs for ASR Wells #1 - #4; Budgets and Costs supplied by MPWMD
2
*Budget and Costs for this Appendix were sourced from MPWMDs response to Data3RequestDRA-A.12-04-019-MPWMD 001.4
5
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APPENDIX C1
2
MODEL SNAPSHOTS3
4
California-American Water Company5
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Summary of Tables in Appendix C1
All scenarios use DRA recommended capital costs, operating and maintenance2
estimates, and DRA financing assumptions as shown. SRF scenarios assume the SRF3
loan is not part of the Cal Am capital structure and are reflected in the model as Public4
Agency Debt as a workaround to the model which hardcodes SRF financing into the Cal5
Am capital structure, increasing costs to ratepayers.6
Appendix DRA Scenarios 1st Year AnnualRevenueRequirement
9.6 MGD Model Scenarios: Financing Options
Appendix C-1 Proposed 9.6 MGD Plant UsingSRF andSurcharge 2Financing. $13 million
Appendix C-2 Proposed 9.6 MGD Plant UsingSRF andNo Surcharge 2Financing.
$23.5 million
Appendix C-3 Proposed 9.6 MGD Plant UsingNo SRFandSurcharge 2Financing.
$21.1 million
Appendix C-4 Proposed 9.6 MGD Plant UsingNo SRF
andNo Surcharge 2Financing.
$32 million
6.4 MGD Model Scenarios: Financing Option
Appendix C-5 Proposed 6.4 MGD Plant UsingSRF andSurcharge 2Financing.
$16.3 million
Appendix C-6 Proposed 6.4 MGD Plant UsingSRF andNo Surcharge 2Financing.
$26.7 million
Appendix C-7 Proposed 6.4 MGD Plant UsingNo SRFandSurcharge 2Financing.
$24.2 million
Appendix C-8 Proposed 6.4 MGD Plant UsingNo SRFandNo Surcharge 2Financing.
$35.1 million
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Appendix DRA Scenarios 1st Year AnnualRevenueRequirement
Cal Am Only Facilities Financing ScenarioAppendix C-9 Cal Am Only Facilities First Year
Revenue Requirement Using DRAsRecommendations
$10.2 million
Surcharge 2 Detail
Appendix C-10
Detail for Effect of Surcharge 2 on theCost of the Project to Ratepayers
Appendix Desalination Plant and Cal Am Only
Facilities
DRA Recommended
Costs
Capital Plant Costs (used in above financing Scenarios)
Appendix C-11 DRA Recommendations on9.6 MGDDesalination Plant Capital Costs
Most probable cost(Capital Cost Cap):$173.3 million
Absolute Capital CostCeiling: $216.6 million
Appendix C-12 DRA Recommendations on6.4 MGDDesalination Plant Capital Costs
Most probable cost(Capital Cost Cap):$146.2 million
Absolute Capital CostCeiling: $182.7 million
Appendix C-13 DRA Recommendations on Cal Am OnlyFacilities Capital Costs
Capital Cost Cap:$58.8 million
Operations and Maintenance (O&M) Annual Cost Estimates
Appendix C-14 DRA Recommendations on O&M Costsfor 9.6 MGD Plant
$8.82 million
Appendix C-15 DRA Recommendations on O&M Costsfor 6.4 MGD Plant
$7.19 million
1
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DRA Proposed Financing Scenarios1
2
The following Appendices C-1 through C-9 detail the various scenarios regarding3
financing of the MPWSP. The results used in this Appendix are the product of the 20134Monterey Desalination Model v6.2-Public (Model) submitted by Cal-Am in a filing to5
this proceeding. This model was developed by Cal-Am with input from DRA and6
MPWMD and is used to project the Revenue Requirement resulting from various inputs7
and scenarios. DRA modified the capital costs for the MPWSP excluding the Cal Am8
Only Facilities and financing assumptions to reflect its recommendations as detailed in9
its report to run this model and present various scenarios in this Appendix C.10
The model as constructed by Cal Am assumes that SRF should be treated as a11
long-term debt substitute. DRA disagrees with this treatment. As a result, under the12
DRA proposals where SRF would be available, the model was run with SRF equaling13
$100 Million and inputted into the Public Contribution tab of the model which reflects14
DRAs proposal for how SRF loan money should be used in the financing of the project.15
Additionally, the model was limited in its ability to modify the ratemaking treatment of16
the Cal Am Only Facilities for this reason DRA has created an additional calculation to17
approximate the First Year Revenue Requirement impact of these facilities which is18
detailed in Appendix C-9. Also, DRA ran the model excluding the test slant well19
because costs for this portion of the project are currently being tracked in the Surcharge 120
Memorandum Account, but DRA does not oppose including the test slant well with the21
entirety of the MPWSP if this portion of the project is found to be used and useful after22
a reasonableness review.23
DRA proposes using SRF Loans as a public contribution consistent with past24
Commission Decisions. For this reason, the estimated $100 Million (based on the25
amount Cal Am estimates getting in SRF debt) is added to the Public Agency field in the26
Public Contribution Tab in the Financial Model. If this is not done, then the model treats27
SRF debt as if it were Cal Ams debt for purposes of the debt/equity ratio. This results in28
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Cal Am investing a disproportionate amount of equity in the project, increasing the cost1
to ratepayers. See Chapter 6 for further discussion on this. Therefore, DRAs proposed2
scenarios for SRF/Public Agency financing scenarios would yield the same result.3
4
5
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Appendix C-1: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING3
4
5
6
7
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Appendix C-1 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-1 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-1 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING*3
4
5* DRA proposes using SRF Loans as a public contribution consistent with past6Commission Decisions. For this reason, the estimated $100 Million (based on the7amount Cal Am estimates getting in SRF debt) is added to the Public Agency field in the8Financial Model.9
10
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Appendix C-2: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING3
4
5
6
7
8
9
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Appendix C-2 cont: PROPOSED 9.6 MGD PL ANT USING USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING3
4
5
6
7
8
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Appendix C-2 cont: PROPOSED 9.6 MGD PL ANT USING SRF AND NO1SURCHARGE 2 FINANCING2
3
4
5
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Appendix C-2 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING*3
4
5*DRA proposes using SRF Loans as a public contribution consistent with past6Commission Decisions. For this reason, the estimated $100 Million (based on the7amount Cal Am estimates getting in SRF debt) is added to the Public Agency field in the8Financial Model.9
10
11
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Appendix C-3: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-3 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-3 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-3 cont: PROPOSED 9.6 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
56
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Appendix C-4: PROPOSED 9.6 MGD USING DRAs RECOMMENDED1CAPITAL COST ASSUMPTIONS WITH NO SRF AND NO SURCHARGE22 FINANCING3
4
5
6
7
8
9
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Appendix C-4 cont: PROPOSED 9.6 MGD USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-4 cont: PROPOSED 9.6 MGD USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-4 cont: PROPOSED 9.6 MGD USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
56
7
8
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Appendix C-5: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-5 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-5 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING3
4
5
67
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Appendix C-5 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND2SURCHARGE 2 FINANCING*3
4
5* DRA proposes using SRF Loans as a public contribution consistent with past6Commission Decisions. For this reason, the estimated $100 Million (based on the7amount Cal Am estimates getting in SRF debt) is added to the Public Agency field in the8Financial Model.9
10
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Appendix C-6: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-6 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-6 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-6 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH SRF AND NO2SURCHARGE 2 FINANCING*3
4
5* DRA proposes using SRF Loans as a public contribution consistent with past6Commission Decisions. For this reason, the estimated $100 Million (based on the7amount Cal Am estimates getting in SRF debt) is added to the Public Agency field in the8Financial Model.9
10
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155
Appendix C-7: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-7 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-7 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-7 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF BUT2INCLUDING SURCHARGE 2 FINANCING3
4
56
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Appendix C-8: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-8 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-8 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
5
6
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Appendix C-8 cont: PROPOSED 6.4 MGD PL ANT USING DRAs1RECOMMENDED CAPITAL COST ASSUMPTIONS WITH NO SRF AND2NO SURCHARGE 2 FINANCING3
4
56
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Appendix C-9: Cal Am Only Facilities First Year Revenue Requirement1Using DRAs Recommendations2
3
4
DRA Recommendations
Cal Am Only Facilities $58,800,000
Capitalized Interest Approximation* $4,000,000
Cal Am Only Facilities IncludingCapitalized Interest
$62,800,000
Cal Am Currently Authorized Rate of
Return (ROR)
8.04%
ROR on Facilities $5,049,120
Depreciation @ 2.5% $1,570,000
Net to Gross Multiplier @ 1.7 $8,583,504
First Year Revenue Requirement Impact $10,153,504
5
*Capitalized Interest assumes 4% annual carrying cost.6
7
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Appendix C-10: Detail for the Effect of Surcharge 2 on the Cost of the Project1to Ratepayers2
3
The following numbers were generated using the 2013 Monterey Desalination Model4v6.2-Public (The model is generated using no SRF funding and including DRAs5assumptions about financing similar to Appendix C-3 and C-7, recommended capital cost6caps, O&M estimates, and without Cal Am Only Facilities).7
8
a. DRAs Proposed Schedule for Collection of Surcharge 29
10
11
b. First Year Annual Revenue Requirement for Projects with and without Surcharge 212
13
No Surcharge 2 Surcharge 2 Savings fromSurcharge 2 in termsof Year 1 RevenueRequirement
6.4 MGD Plant $35.1 Million $24.2 Million $10.9 Million
9.6 MGD Plant $32.0 Million $21.1 Million $10.9 Million
14
15
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Appendix C-11: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on 9.6 MGD Plant Capital Costs2
3
4
5
6
7
8
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Appendix C-11: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on 9.6 MGD Plant Capital Costs2
3
4
5
6
7
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Appendix C-12: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on 6.4 MGD Plant Capital Costs2
3
4
56
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Appendix C-12: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on 6.4 MGD Plant Capital Costs2
3
4
5
6
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Appendix C-12: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on 6.4 MGD Plant Capital Costs2
3
4
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Appendix C-13: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on CAW Only Facilities Capital Costs2
3
4
5
6
7
8
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Appendix C-13: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on CAW Only Facilities Capital Costs2
3
4
5
6
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Appendix C-14: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 9.6 MGD Plant2
3
4
5
6
7
8
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Appendix C-14: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 9.6 MGD Plant2
3
4
5
6
7
8
9
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Appendix C-14: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 9.6 MGD Plant2
3
4
5
6
7
8
910
11
12
13
14
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Appendix C-14: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 9.6 MGD Plant2
3
4
5
6
7
8
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Appendix C-14: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 9.6 MGD Plant2
3
4
5
6
7
8
9
10
11
12
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Appendix C-14: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 9.6 MGD Plant2
2012
Power $2,890,000
Chemicals $730,000Membrane/MediaReplacement $480,000
R&R $1,650,000
Purchased Recharge Water $0
Labor&Misc $3,070,000Total $8,820,000 3
4
5
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant2
3
4
5
6
7
8
9
10
11
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant2
3
4
5
6
7
8
9
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant2
3
4
5
6
7
8
9
10
11
12
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant2
3
4
5
6
7
8
9
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant2
3
4
5
6
7
8
9
10
11
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant excluding Purchased2Recharge Water*3
TOTAL O & M COSTS $5,860,000
REPAIR & REPLACEMENT (R & R) COSTS = MECHANICAL, ELECTRICAL, I&C, ETC.
Intake Wells Base Constr uction Costs $14,960,400 1.5% $224,406
Desalination Plant Base Construction Costs $57,346,138 1.5% $860,192
Southern Non-Pipeline Facilities $16,349,435 1.5% $245,242
TOTAL R & R COSTS $1,330,000
$0
$0
TOTAL ANNUAL (with GWR @ $2,500/AF) $7,190,000
TOTAL ANNUAL (with GWR @ $3,000/AF) $7,190,000
Purchase Recharge Water From MRWPCA ($2,500/AF)
Purchase Recharge Water From MRWPCA ($3,000/AF)
4
2012 Costs
Power $2,270,000
Chemicals $530,000
Membrane/MediaReplacement $350,000R&R $1,330,000
Purchased Recharge Water $0Labor&Misc $2,710,000
Total $7,190,000
* These cost estimates do not include the cost of purchased recharged water from the5
Monterey Regional Water Pollution Control Agency. DRA has captured the price of the6
purchased recharge water in the calculation of the revenue requirement, rather than O&M7
costs.8
9
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Appendix C-15: 2013 Monterey Desalination Model v6.2-Public DRA1Recommendations on O&M Costs for 6.4 MGD Plant with Cal Ams2Proposal Including Purchased Recharge Water*3
4
2012 Costs
Power $2,270,000
Chemicals $530,000
Membrane/Media Replacement $350,000R&R $1,330,000
Purchased Recharge Water $6,630,000
Labor&Misc $2,710,000Total $13,820,000 5
6*Assuming $3,000 per acre foot for purchase recharge water, the model gives an output7
of $13.8 million for the total O&M costs.8
9
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APPENDIX D1
(omitted from the public version of DRA report)2
3
CONFIDENTIAL OUTFALL AGREEMENT4
5
California-American Water Company6
MPWSP A.12-04-01978
910
11
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