8. Assignment of Proceeding

John A. Bohn is the assigned Commissioner, and Kenneth Koss is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Valencia's LIRA program is consistent with the low-income programs of other water companies found to satisfy the directives in § 739.8.

2. The proposed program discounts and related surcharges are reasonable and do not conflict with the policies outlined in our Water Action Plan.

3. The subject application, as amended, is unopposed and this decision grants the relief requested.

Conclusions of Law

4. The Commission should authorize Valencia's proposed LIRA program.

5. The Commission should authorize the LIRA discounts of 50% from the monthly service charge for qualified low-income customers, as described herein.

6. The LIRA program should be funded by monthly surcharges of $0.04 on the bills of non-qualifying customers.

7. Valencia's Schedule No. LIRA tariff, reflecting the LIRA discounts and surcharges, should be authorized.

8. A public hearing is unnecessary.

9. Pursuant to Rule 14.6(c)(2), the 30-day comment period may be waived.

10. This proceeding should be closed.

11. Today's decision should be effective immediately.

ORDER

IT IS ORDERED that:

12. Valencia Water Company (Valencia) is authorized to implement its Low-Income Ratepayer Assistance (LIRA) program.

13. Valencia is directed to file in accordance with General Order 96-A, or its successor, an advice letter with tariff schedules, implementing the monthly subsidy amount of a 50% discount from the service charge to qualified customers, and the monthly surcharge of $0.04 to fund the program assessed on non-qualifying customers and modifying its Preliminary Statement to describe its LIRA memorandum account. The advice letter filing for LIRA rates shall be made within 30 days of the date of this order.

14. The advice letter shall be reviewed by the Commission's Water Division for conformity with this decision. The Water Division shall reject the advice letter if it finds the proposed increase does not comply with this decision or other Commission requirements.

15. Valencia is authorized to implement a memorandum account to record the initial and ongoing expenses of the low-income assistance program. This memorandum account will be audited for reasonableness at the next general rate case proceeding.

16. A public hearing is unnecessary.

17. The 30-day comment period is waived

18. Application 05-10-028 is closed.

This order is effective today.

Dated November 30, 2006, at San Francisco, California.

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