SK1/JCM/jva 9/30/2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California-American Water Company for Authority Pursuant to Public Utilities Code Section 454 to Restructure and Consolidate its Rates for its Monterey and Felton Districts.

Application 04-08-012 (Filed August 11, 2004)

SCOPING MEMO AND RULING OF ASSIGNED COMMISSIONER

Summary

The Commission in Decision (D.) 04-05-023 directed California-American Water Company (CalAm) to file an application for authority to consolidate rates for its Monterey and Felton districts. It has done so, and included in its application related requests to increase Felton District rates by use of a surcharge for the next five years to recover a shortfall between rates currently being charged in Felton and those authorized but deferred in D.04-05-023, to establish a new balancing account to accumulate any ongoing revenue shortfall in Felton should consolidated rates be granted, and to collect that shortfall later from both Felton and Monterey district customers. A prehearing conference was held on September 20, 2004. Pursuant to Rules 6(a)(3) and 6.3 of the Commission's Rules of Practice and Procedure, I am issuing this Scoping Memo and Ruling to confirm the proceeding category and need for hearing, establish the issues and timetable, and designate the principal hearing officer.