20260317Decision 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: MARCH 17, 2026
SUBJECT: IN THE MATTER OF CAPITOL WATER CORPORATION'S
APPLICATION TO CHANGE ITS SCHEDULE NO. 3 —PURCHASED
POWER ADJUSTMENT; 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 ("Application"). 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. On December 23,
2026, the Commission issued ordered Order No. 36884 approving the new PPCA rate of 4.61%.
The Commission also ordered the Company to update the PPCA rate within 30 days of the
conclusion of Case No. CAP-W-25-02 using the base rate revenue approved in that case.
On March 3, 2026, the Company filed an updated Schedule No. 3 reflecting an updated
PPCA rate of 4.41%with an effective date of February 26,2026,based on the authorized base rate
revenue approved in Case No. CAP-W-25-02. The proposed February 26, 2026, effective date is
consistent with the service date of Final Order No. 36948 that approved the base rate revenue in
Case No. CAP-W-25-02.
STAFF REVIEW
Staff reviewed the updated Schedule No. 3 and Staff believes the updated PPCA rate of
4.41% was calculated correctly using the base rate revenue approved by the Commission in Case
No. CAP-W-25-02.
DECISION MEMORANDUM - 1 - MARCH 17, 2026

STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company's Schedule No. 3, as filed,
effective February 26, 2026.
COMMISSION DECISION
Does the Commission wish to approve the Company's Schedule No. 3 reflecting a 4.41%
PPCA rate, effective as of February 26, 2026?
/,W, e
Michael Eldred
Commission Staff
I:\Uti1ity\UDMEM0S\CAP-W-25-03 Decision Memo.docx
DECISION MEMORANDUM - 2 - MARCH 17, 2026