8. Comments on Alternate Proposed Decision

The alternate proposed decision of Commissioner Catherine J.K. Sandoval 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. Comments were filed on May 2, 2012 by PCLF and on May 14, 2012 by Cal-Am and DRA. Reply comments were filed on May 15, 2012 by Water Plus. Reply Comments were filed on May 21, 2012 by DRA and Cal-Am.

This decision adopts certain revisions that we make in response to comments including, but not limited to the following:

· The method of calculating the surcharge is changed from volumetric to percentage of bill with no surcharge on the first tier of residential usage, as proposed by Cal-Am.

· Cal-Am is authorized to file an application, rather than a Tier-3 advice letter should the cost of the project exceed the $49 million cap.

· Instead of a separate regulatory asset and balancing account, both are tracked in a combined account.

· The offset to the revenues recovered based on the interim period revenue requirement is to be calculated based on the actual costs incurred as authorized in the regulatory asset/balancing account.