TAXES OTHER THAN INCOME. 1. Ad Valorem Tax ISSUE: San Xxxxxxx estimated this expense based on a 2010 effective tax rate of 1.322% with a 2% annual escalation. DRA based its estimate on a 2010 effective tax rate of 1.314% without any escalation. In rebuttal testimony, San Xxxxxxx defended its assumption of a 2% annual escalation in the effective tax rate but applied an updated formula that reduced the 2010 effective rate to 1.182%. RESOLUTION: DRA and San Xxxxxxx agree that applying San Gabriel’s updated formula to the adopted forecast of utility plant based on the 2010 effective tax rate of 1.182% with a 1% annual escalation will provide a reasonable estimate of Ad Valorem Taxes for the Test Year. Issue SGV Direct SGV Rebuttal DRA Report Difference Settlement Ad Valorem Tax Tax rate of 1.322% with 2% annual escalation Tax rate of 1.182% with 2% annual escalation Tax rate of 1.314% with no annual escalation 0.008% plus 2% annual escalation Tax rate of 1.182% with 1% annual escalation REFERENCES: Exhibit SG-1, Chapter 7, pp. 7-2 to 7-3; Exhibit DRA-1 (Xxxxxxxxxx), pp. 5-1 to 5-2; Exhibit SG-17 (Dell’Osa), pp. 1-2.
Appears in 6 contracts
Samples: Settlement Agreement, Settlement Agreement, Settlement Agreement
