Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Linda A. Rochester is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. A.09-01-013, Cal Am's general rate case filing for the Larkfield, Los Angeles and Sacramento districts was Cal Am's final general rate case filing prior to transitioning all districts to the single-date statewide general rate case filing schedule, in compliance with the revised Rate Case Plan.

2. D.10-06-038, the decision in A.09-01-013, should have aligned the effective dates of rates in the Larkfield, Los Angeles and Sacramento districts with the effective dates of rates in all Cal Am's other districts, allowing the rates adopted in Cal Am's first statewide general rate case to become effective for all Cal Am districts on January 1, 2012.

3. D.10-06-038 adopted test year rates that became effective on July 1, 2010 and escalation year rates that are scheduled to become effective July 1, 2011 and July 1, 2012.

4. The effective dates of the escalation year rates are incorrect.

5. Tier 1 Advice Letters may be used for Escalation year filings.

Conclusions of Law

1. Cal Am's request to modify D.10-06-038 to allow the 2011 escalation year increase to go into effect before July 1, 2011, should be approved.

2. Cal Am's request to eliminate the requirement that an advice letter be filed to implement the 2012 escalation year increase should be approved.

3. Cal Am should file a Tier 1 Advice Letter for its Escalation year filing.

ORDER

IT IS ORDERED that:

1. Ordering Paragraph 4 of Decision 10-06-038 is modified to read:

For escalation year 2011, California American Water Company shall file a Tier 1 advice letter in conformance with General Order 96-B proposing new revenue requirements and corresponding revised tariff schedules for each district and rate procedures set forth in the Commission's Rate Case Plan (Decision 07-05-062) for Class A Water Utilities and shall include appropriate supporting workpapers. The revised tariff schedules shall take effect upon filing with the Commission's Division of Water and Audits and shall apply to service rendered on and after their effective dates. The revenue requirements and rates shall be reviewed by the Commission's Division of Water and Audits. The Division of Water and Audits shall inform the Commission if it finds that the revised rates do not conform to the Rate Case Plan, this order, or other Commission decisions.

2. Application (A.) 09-01-013, A.09-05-008, and A.09-07-002 are closed.

This order is effective today.

Dated April 14, 2011, at San Francisco, California.

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