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PUCNV approves phased consolidation and rate changes for Great Basin Water Company
Summary
The commission accepted a partial stipulation in Great Basin Water Company’s rate case, approving consolidated revenue requirements and a six-year phase-in of rate consolidation to reduce rate shock for customers.
The Public Utilities Commission of Nevada approved, in part, Great Basin Water Company’s application to consolidate and adjust annual revenue requirements for its water and sewer services across Pahrump, Spring Creek, Cold Springs and Spanish Springs.
The commission accepted a partial stipulation and adopted a phased consolidation over six years for water service to reduce customer rate shock, while approving immediate consolidation of wastewater rate design for the Pahrump and Spring Creek divisions. Commissioner Brown presented the item and highlighted key figures in the order.
Key decisions and figures: the commission adopted a consolidated water revenue requirement of $15,930,134 and a wastewater service revenue requirement for Pahrump and Spring Creek of $5,073,747. The commission set an equity/debt capital structure at 49.31% equity and 50.69% debt, a total weighted cost of capital of 7.859%, and a return on equity of 9.8948% as calculated by regulatory operations staff.
The commission found that a six-year phase-in—rather than the three-year timeline proposed by Great Basin Water Company—better adheres to gradualism in rate making and reduces the risk of rate shock for customers. The order also directs the company to include in future filings individual class cost-of-service studies for each of the four divisions, a consolidated class cost-of-service study, and individual cost-of-service studies for any additional systems or services included in future consolidation filings. The company must meet with Regulatory Operations staff and the Nevada Bureau of Consumer Protection at least 60 days before its next general rate case filing to discuss depreciation and plant accounts.
Commissioner Cordova thanked Commissioner Brown and the parties for working through “these difficult issues.” The motion to accept the stipulation and issue the order carried on a voice vote recorded as “Aye.”
The commission did not list specific customer bill impacts in the hearing record; it emphasized the phased approach and required future cost-of-service work to inform detailed rate design in later proceedings.
