ALJ/JLG/gd2 Date of Issuance 4/14/2010

Decision 10-04-001 April 8, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation to Consider Policies to Achieve the Commission's Conservation Objectives for Class A Water Utilities.

Investigation 07-01-022
(Filed January 11, 2007)

And Related Matters.

Application 06-09-006
Application 06-10-026
Application 06-11-009
Application 06-11-010
Application 07-03-019

DECISION AUTHORIZING MEMORANDUM ACCOUNTS TO TRACK LEGAL AND REGULATORY EXPENSES INCURRED IN THIS PROCEEDING

Table of Contents

Title Page

DECISION AUTHORIZING MEMORANDUM ACCOUNTS
TO TRACK LEGAL AND REGULATORY EXPENSES INCURRED
IN THIS PROCEEDING 1 1

Summary 2 2

1. Background 2 2

2. Commission Authorization of Memorandum Accounts 4 4

2.1. Precedent for Authorizing Memorandum Accounts 4 4

2.1.1. Parties' Positions 6 6

2.1.2. Discussion 9 9

2.2. Timeliness of requests for memorandum accounts and applicable precedent 12 12

2.2.1. Parties' Positions 12 12

2.2.2. Discussion 15 15

3. Comments on Proposed Decision 18 18

4. Assignment of Proceeding 18 18

Findings of Fact 18 18

Conclusions of Law 20 20

ORDER 21 21

DECISION AUTHORIZING MEMORANDUM ACCOUNTS TO TRACK LEGAL AND REGULATORY EXPENSES INCURRED IN THIS PROCEEDING

Summary

This decision affirms Decision 08-02-036's approval of a memorandum account to track legal and related expenses incurred in this proceeding for all Class A water utilities. The Class A water utilities,¹ other than Suburban Water Systems, may establish memorandum accounts to track legal and related expenses for participating in this proceeding from the date of issuance of this Order Instituting Investigation. Legal and related expenses incurred in preparing applications consolidated with this proceeding, whether incurred prior or subsequent to the issuance of this Order Instituting Investigation, are excluded from these memorandum accounts.

¹ Apple Valley Ranchos Water Company (Apple Valley), California-American Water Company (CalAm), California Water Service Company (Cal Water), Golden State Water Company (GSWC), Great Oaks Water Company, Park Water Company (Park), San Gabriel Valley Water Company (San Gabriel), San Jose Water Company, and Valencia Water Company.