ALJ/CMW/lil Date of Issuance 11/7/08

Decision 08-11-026 November 6, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California-American Water Company (U210W) for an order authorizing it to increase its rates for water service in its Los Angeles District to increase revenues by $2,020,466 or 10.88% in the year 2007; by $634,659 or 3.08% in the year 2008; and by $666,422 or 3.14% in the year 2009.

Application 06-01-005 (Filed January 9, 2006)

ORDER MODIFYING DECISION 08-06-002

Summary

This decision grants the September 22, 2008 joint petition of California-American Water Company and the Division of Ratepayer Advocates to modify Decision 08-06-002 to include a conservation memorandum account with a budget capped at $100,000 for 2008 and $260,000 for 2009 and to allow the account to be expanded to include one additional staff person to conduct customer audits of water usage.