Proposed Water and Sewer Infrastructure Projects and System Improvement Rate

Below is the required customer notice for Great Basin Water Co. 2024 Integrated Resource Plan. As part of the resource plan, Great Basin has requested authorization from the Public Utilities Commission of Nevada to recover certain projects via a System Improvement Rate charge. These charges are related to projects that will be completing between 2025 and 2026 and will not go into effect until after project completion and a Commission ruling to establish an appropriate SIR rate for each project.

On March 1, 2024, Great Basin Water Co. (“GBWC” or “the Company”) filed an application (the “Application”) with the Public Utilities Commission of Nevada (the “Commission”) requesting approval of its 2024 Integrated Resource Plan (“2024 IRP”). In the Application, GBWC is seeking approval of the Action Plan projects described in the 2024 IRP, designation of certain system improvement projects as eligible projects for which a system improvement rate (“SIR”) may be established, and other related matters.

In the Application, GBWC is requesting approval to designate the following projects as being eligible for an SIR:
Action Plan Projects from Volume II – GBWC-Pahrump Division:
 New Well in High Zone at Well 13 Property
 Pipeline via Mesquite Booster Station (Avenue of the Stars) to Calvada Meadows Alternative – Pipeline Tie-In from CV North to Calvada Meadows
 Wastewater Treatment Plant 3 – Influent Pre EQ-Building and Tank Rehabilitation
 Wastewater Treatment Plant 3 – Sand Filter Rehabilitation  

Action Plan Projects from Volume III – GBWC-Spring Creek Division:
 New Production Well (Well 12 Replacement)
 Pipe Replacement (All Tracts)
 High Tank Rehabilitation
Alternative – High Tank Replacement
Alternative – Booster Pump (Tract 200)
 WWTP Reconditioning (De-Ragging & Lift Station Rehabilitation)  

Action Plan Projects from Volume IV – GBWC-Cold Springs Division:
 Tank 2 Factory Rehabilitation
Alternative – Tank 2 Replacement

Action Plan Projects from Volume V – GBWC-Spanish Springs Division:
 Rehabilitation of Suki Well (Well 2)  

The SIR request is based on NRS 704.663, and the implementing regulation adopted by the Commission in NAC 704.633 through NAC 704.63435.

The SIR request is necessary because GBWC will be funding and implementing the above referenced projects during a period between rate cases, and SIR will allow GBWC to implement these necessary projects without consideration for the timing of recovery. If approved, the SIR would only be in effect for the period of time starting when the plant asset goes into service and the Commission approves the Company’s SIR application for that asset and until the Company’s next filed rate change as approved by the Commission. At that time, these SIRs would cease being charged and the remaining un-depreciated plant would be included in general rates. 

Should the Commission approve the preferred alternative for all requested SIR projects for the Pahrump division, the resulting impact to Pahrump division rates is estimated to be as follows: 

SIR – Pahrump: Approval of the preferred alternative for all projects related to water for which the Company is requesting SIR would result in an estimated total revenue impact of $652,998 for the Pahrump Division. Broken out by customer class, this would yield a total estimated SIR impact for water service as follows:  
-For the Residential customer class, a monthly charge of $0.84 per 1,000 gallons
-For the Multi-Family customer class, a monthly charge of $0.84 per 1,000 gallons
-For the Non-Residential customer class, a monthly charge of $0.84 per 1,000 gallons
 For the Irrigation customer class, a monthly charge of $0.84 per 1,000 gallons 

Approval of all projects related to wastewater for which the Company is requesting SIR would result in an estimated total revenue impact of $430,640 for the Pahrump Division. Broken out by customer class, this would yield a total estimated SIR impact for wastewater service as follows:

-For the 5/8”, 3/4”, and 1” customer classes, a monthly charge of $5.34
-For the 1.5” customer class, a monthly charge of $32.55
-For the 2” customer class, a monthly charge of $47.00
-For the 3” customer class, a monthly charge of $123.36
-For the 4” customer class, a monthly charge of $176.38
-For the 6” customer class, a monthly charge of $222.03
-For the 8” customer class, a monthly charge of $322.63
-For the 10” customer class, a monthly charge of $2,491.29 or $2.32 per bed

SIR-Spring Creek: Approval of the preferred alternative for all projects related to water for which the Company is requesting SIR would result in an estimated total revenue impact of $795,783 for the Spring Creek Division. Broken out by customer class, this would yield a total estimated SIR impact for water service as follows:  

-For the Residential customer class, a monthly charge of $1.05 per 1,000 gallons
-For the Multi-Family customer class, a monthly charge of $1.05 per 1,000 gallons
-For the Non-Residential customer class, a monthly charge of $1.05 per 1,000 gallons
-For the Irrigation customer class, a monthly charge of $1.05 per 1,000 gallons 

Approval of all projects related to wastewater for which the Company is requesting SIR would result in an estimated total revenue impact of $80,508 for the Spring Creek Division. Broken out by customer class, this would yield a total estimated SIR impact for wastewater service as follows: 

-For the Single-Family Residential customer class, all meter sizes, a monthly charge of $21.04 3
-For the Multi-Family and Non-Residential 3/4" customer classes, a monthly charge of $36.20
-For the Multi-Family and Non-Residential 1" customer classes, a monthly charge of $61.03
-For the Multi-Family and Non-Residential 1.5" customer classes, a monthly charge of $101.01
-For the Multi-Family and Non-Residential 2" customer classes, a monthly charge of $168.36
-For the Non-Residential 3” customer class, a monthly charge of $378.80  

SIR – Cold Springs Approval of the preferred alternative for all projects for which the Company is requesting SIR would result in an estimated total revenue impact of $88,777 for the Cold Springs Division. Broken out by customer class, this would yield a total estimated SIR impact for water service as follows:
-For the Residential customer class, a monthly charge of $0.20 per 1,000 gallons
-For the Multi-Family customer class, a monthly charge of $0.20 per 1,000 gallons
-For the Non-Residential customer class, a monthly charge of $0.20 per 1,000 gallons
-For the Irrigation customer class, a monthly charge of $0.20 per 1,000 gallons  

SIR-Spanish Springs Approval of all projects for which the Company is requesting SIR would result in an estimated total revenue impact of $65,805 for the Spanish Springs Division. Broken out by customer class, this would yield a total estimated SIR impact for water service as follows:
-For the Residential customer class, a monthly charge of $0.38 per 1,000 gallons
-For the Multi-Family customer class, a monthly charge of $0.38 per 1,000 gallons
-For the Non-Residential customer class, a monthly charge of $0.38 per 1,000 gallons
-For the Irrigation customer class, a monthly charge of $0.38 per 1,000 gallons

The Application has been assigned docket number 24-03002, and it is available for public viewing on the Commission’s website at: https://puc.nv.gov/, and at the offices of the Commission located at: 1150 East William Street, Carson City, Nevada 89701 and 9075 West Diablo Drive, Suite 250, Las Vegas, Nevada 89148.

The Application is also available for viewing at GWBC’s division offices in Reno, Pahrump and Spring Creek:  
Cold Springs Office 1005 Terminal Way, Ste. 294 Reno, NV 89502  
Spanish Springs Office 1005 Terminal Way, Ste. 294 Reno, NV 89502
Pahrump Office 1240 E. State St., #115 Pahrump, NV 89048  
Spring Creek Office 14891 Lamoille Hwy. Spring Creek, NV 89815