Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: MICHAEL ELDRED, COMMISSION STAFF
CHRIS BURDIN,DEPUTY ATTORNEY GENERAL
DATE: JANUARY 27, 2026
SUBJECT: IN THE MATTER OF CAPITOL WATER CORPORATION'S
APPLICATION TO CHANGE ITS SCHEDULE NO. 3 —PURCHASED
POWER ADJUSTMENT RATE; CASE NO. CAP-W-25-03.
BACKGROUND
On October 23, 2025, Capitol Water Corporation ("Company") applied for authority to
change its Schedule No. 3 -Purchased Power Cost Adjustment("Schedule No. 3"or"PPCA")rate
to recover the electricity costs that exceeded what it collected in rates. The Company requested a
new PPCA rate of 4.61%,with the final rate to be determined at the conclusion of Case No. CAP-
W-25- 02, effective on or after January 1, 2026. The Commission ordered the Company to file
updated tariffs within 15 days of the service date of Order No. 36884.
On January 13, 2026, the Company filed an updated Schedule No. 3 reflecting the
authorized PPCA rate approved in Order No. 36884.
STAFF REVIEW
Staff reviewed the updated Schedule No. 3 and believes that it accurately represents the
rate approved by the Commission as approved in Order No. 36884.
STAFF RECOMMENDATION
Staff recommends that the Commission approve Schedule No. 3,as filed, effective January
1, 2026.
DECISION MEMORANDUM - 1 - JANUARY 27, 2026

COMMISSION DECISION
Does the Commission wish to approve the Company's Schedule No. 3 reflecting a 4.61%
PPCA rate, effective as of January 1, 2026?
Michael Eldred
Commission Staff
I:\Uti1ity\UDMEM0S\CAP-W-25-03 Decision Memo.docx
DECISION MEMORANDUM - 2 - JANUARY 27, 2026