ALJ/MAB/eam/acr/ms6 Date of Issuance 6/26/2012

Decision 12-06-020 June 21, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California-American Water Company (U210W) for an Order Authorizing the Collection and Remittance of the Monterey Peninsula Water Management District User Fee.

Application 10-01-012 (Filed January 5, 2010)

INTERIM DECISION AUTHORIZING AQUIFER STORAGE AND
RECOVERY PROJECT PHASE 2 AND CARMEL
RIVER MITIGATION AGREEMENT

Summary

This decision authorizes California-American Water Company (Cal-Am) to create the Aquifer Storage and Recovery Project Phase 2 memorandum account in which to record the reasonable costs for adding Well 4 to the Project on an expedited basis and, when completed, to move the costs so recorded to rate base with a Tier 2 advice letter. Cal-Am is also authorized to enter into an agreement with the Monterey Peninsula Water Management District (District) to fund Carmel River mitigation measures required by the State Water Resources Control Board Order 95-10, where Cal-Am is responsible for the measures, should the District cease to perform them. A surcharge is authorized to recover these costs on an on going basis.