Assignment of Proceeding

Geoffrey F. Brown is the Assigned Commissioner and Maribeth A. Bushey is the assigned ALJ in this proceeding.

Findings of Fact

1. San Gabriel filed this application in response to the order contained
D.02-10-058.

2. San Gabriel proposed for its Los Angeles district a low-income rate relief program known as "California Alternative rates for Water," or CARW.

3. The CARW program meets the directives contained in Pub. Util. Code § 739.8, as well as the ordering paragraphs contained in D.02-10-058.

4. The parties have thoroughly reviewed numerous proposals to extend low-income relief beyond San Gabriel's ratepayers, but all of these proposals have been shown to be deficient and/or inequitable.

5. No hearing is necessary.

Conclusions of Law

1. The Legislature directed the Commission to "consider" programs that would provide rate relief to low-income water utility customers in Pub. Util. Code § 739.8.

2. San Gabriel submitted a low-income rate relief program known as CARW. San Gabriel's CARW proposal is just and reasonable and it meets the requirements of § 739.8.

3. This proceeding should be closed.

4. Today's decision should be effective immediately.

ORDER

IT IS ORDERED that

1. San Gabriel Valley Water Company (San Gabriel) is authorized to file in accordance with General Order 96-A an advice letter with tariff schedules implementing its "California Alternative Rates for Water," or CARW, low-income rate relief proposal for both its Los Angeles and Fontana Districts, based on the current tariff rates in effect on the date of this order. The CARW tariff schedules shall apply to service rendered on and after their effective date.

2. The advice letter filing for CARW rates shall be made within 60 days of the date of this order and shall include appropriate workpapers. The advice letter shall be reviewed by the Water Division for conformity with this decision. CARW rates shall go into effect upon Water Division's determination of compliance, reasonableness, and the Commission's approval. The Water division shall take notice of San Gabriel's pending general rate case Application No. (A.) 04-09-005 and coordinate San Gabriels's CARW filing with its new rates for 2005. The Water Division shall inform the Commission if it finds the proposed increase does not comply with this decision or other Commission requirements.

3. San Gabriel is authorized to implement a CARW memorandum account as detailed in today's decision for both its Los Angeles and Fontana districts. This memorandum account will be audited for reasonableness at the next general rate case proceeding for each district. At that time, we will determine the appropriate amortization schedule of this account.

4. The Executive Director shall serve this decision to the service lists for A.01-10-028, A.03-04-025, A.02-11-044 and A.04-09-005.

5. This proceeding is closed.

This order is effective today.

Dated May 5, 2005, at San Francisco, California.

I dissent.

/s/ GEOFFREY F. BROWN

I abstain.

/s/ JOHN A. BOHN

Commissioner

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