ALJ/CMW/gd2 Date of Issuance 4/30/2012

Decision 12-04-048 April 19, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American Water Company (U210W), California Water Service Company (U60W), Golden State Water Company (U133W), Park Water Company (U314W) and Apple Valley Ranchos Water Company (U346W) to Modify D.08-02-036, D.08-06-002, D.08-08-030, D.08-09-026, D.08-11-023, D.09-05-005, D.09-07-021, and D.10-06-038 regarding the Amortization of WRAM-related Accounts.

Application 10-09-017 (Filed September 20, 2010)

DECISION ADDRESSING AMORTIZATION OF WATER REVENUE
ADJUSTMENT MECHANISM RELATED ACCOUNTS AND GRANTING IN
PART MODIFICATION TO DECISION (D.) 08-02-036,
D.08-08-030, D.08-09-026, AND D.09-05-005

TABLE OF CONTENTS

Title Page

DECISION ADDRESSING AMORTIZATION OF WATER REVENUE
ADJUSTMENT MECHANISM RELATED ACCOUNTS AND
GRANTING IN PART MODIFICATION TO DECISION (D.) 08-02-036,
D.08-08-030, D.08-09-026, AND D.09-05-005 11

1. Summary 22

2. Background 55

3. WRAM/MCBA Requested Relief 88

3.1. Amortization of WRAM/MCBA Related Accounts 99

3.1.1. Quantifying the WRAM/MCBA Under-collections 1010

3.1.2. Identifying the Causes of High WRAM/MCBA
Under-collections 1313

3.1.3. Selecting an Amortization Schedule for Collection of
WRAM/MCBA Balances 1717

3.2. Deadlines for Annual Report and for Requesting Amortization 2525

3.3. Procedure for Requesting Amortization 2626

3.4. The "Trigger" for WRAM/MCBA Balance Amortization 2727

3.5. How Surcharge/Surcredit should be Applied to Customer's Bill 2828

3.6. Accounting Method for Amortized Amounts 2929

3.7. Treatment for Under-Amortized or Over-Amortized Amounts 2929

3.8. Additional Amortization of Outstanding WRAM/MCBA Balances 3030

4. Comments on Proposed Decision 3333

5. Assignment of Proceeding 3535

Findings of Fact 3535

Conclusions of Law 3737

ORDER 4141

APPENDIX A - Comparison of Existing and Proposed WRAM/MCBA Amortization Schedules

APPENDIX B - Estimated 2012 WRAM/MCBA Surcharges Under Existing and Proposed Amortization Schedules

APPENDIX C - Advice Letter Filings for 2008, 2009, and 2010 Net WRAM/MCBA Account Balances

APPENDIX D - DRA Table Showing Applicants' Districts in Order of Greatest 2010 Under-collections (as a Percentage of Last Authorized Revenue Requirement)

APPENDIX E - Modifications to Decision 08-02-036

APPENDIX F - Modifications to Decision 08-08-030

APPENDIX G - Modifications to Decision 08-09-026

APPENDIX H - Modifications to Decision 09-05-005

DECISION ADDRESSING AMORTIZATION OF WATER REVENUE
ADJUSTMENT MECHANISM RELATED ACCOUNTS AND GRANTING IN
PART MODIFICATION TO DECISION (D.) 08-02-036,
D.08-08-030, D.08-09-026, AND D.09-05-005