7. Comments on Proposed Decision

The proposed decision of the ALJ in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. No comments were filed.

1. All parties agree to the terms of the proposed settlement agreement, so there are assurances in the finality of litigation.

2. The parties submitted the proposed settlement agreement to DRA for review.

3. The ratepayers' interests were represented by DRA's review of the proposed settlement agreement.

4. DRA does not object to the treatment of $20,000 to Nelson as a refundable developer advance.

5. Existing and future development of the parcels , enabled by Nelson's payment, will generate revenue for Cal Water.

1. The Moving Parties have met their burden of demonstrating by a preponderance of the evidence that the proposed settlement agreement is reasonable in light of the record, consistent with the law, and in the public interest.

2. The Commission's approval of this settlement agreement will have no precedential value.

3. It is reasonable to treat $20,000 of the amount Nelson paid towards the purchase price as a refundable developer's advance, because like a refundable developer's advance this payment has resulted in increased revenues for Cal Water.

4. The uncontested all-party settlement agreement should be approved.

ORDER

Therefore, IT IS ORDERED that:

1. The Joint Motion of California Water Service Company, Dwight Nelson, and the Emmetts for Adoption of All-Party Settlement is granted.

2. The uncontested settlement agreement attached hereto as Attachment A is approved and the parties shall comply with the terms of the agreement.

3. Within ten calendar days of the effective date of this Order, John and Lucretia Emmett shall pay $10,000 to California Water Service Company. California Water Service Company shall promptly pass this payment to Dwight Nelson.

4. California Water Service Company is authorized to treat $20,000 of Nelson's prior payment as a refundable developer's advance and refund it to Dwight Nelson over 10 years without interest.

5. Application 08-11-009 is closed.

This order is effective today.

Dated July 28 2011, at San Francisco, California.

D1107037 Attachment A

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