6. Affiliate Transaction Rules

In addition to those rules referenced in Section 5 of this decision, Cal Am represents that it will continue to follow the affiliate transaction rules and business practices relating to intercompany debt and equity financing authorized in D.02-12-068 and D.00-01-067. We support Cal Am's continued adherence to the affiliate transaction rules authorized in these two decisions, unless and until they are replaced by new affiliate transaction rules applicable to Cal Am. The Commission has opened Rulemaking (R.) 09-04-012 on its own motion to, in part, develop standardized affiliate transaction rules for water and sewer utilities. If the Commission authorizes a new set of affiliate transaction rules and requires Class A water utilities to comply with them, we require Cal Am to note such new rules in its next request for new financing, and state how these new rules would affect its issuance of debt or equity through an affiliate.