Common use of NON-TARIFFED PRODUCTS AND SERVICES Clause in Contracts

NON-TARIFFED PRODUCTS AND SERVICES. 3 Consistent with the Commission’s rules regarding the provision of “non-tariffed” 4 or unregulated products and services (“NTP&S”) by water companies, formerly referred 5 to as activities conducted using regulated “excess capacity,” Cal Water has developed a 6 methodology for allocating costs to unregulated activities and sharing 10% of gross 7 revenues with ratepayers. The detailed methodology is provided in Cal Water’s Report 8 on Unregulated Activities. 9 In its direct testimony (Company-Wide Report, Chapter 3), ORA recommended 10 several adjustments to Cal Water’s estimates for the Account 8120. ORA’s 11 recommendations and the Parties’ resolutions are summarized below. 12 • ORA recommended that Cal Water update its calculations to the 13 Administrative Charges Transferred Account 8120 to reflect the new NTP&S 14 rules, which in the case of certain contracts resulted in increased amounts of 15 revenue sharing credited to the Account 8120. In settlement discussions, Cal 18 • ORA recommended that Cal Water include revenue sharing forecasts for two 19 new antenna lease contracts entered into in 2012 in the Bakersfield District.