ALJ/MFG/jt2 Date of Issuance 9/22/2008

Decision 08-09-030 September 18, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of PARK WATER COMPANY (314W) for authority to issue evidence of indebtedness (First Mortgage Bonds).

Application 08-07-003 (Filed July 3, 2008)

DECISION AUTHORIZING PARK WATER COMPANY

TO ISSUE UP TO $20 MILLION OF FIRST MORTGAGE BONDS

1. Summary

This decision grants Park Water Company (Park) authority to issue up to $20 million of First Mortgage Bonds, as requested in Application (A.) 08-07-003. It also requires Park to make a showing of reasonableness for ratemaking purposes of the capital structure and cost of debt resulting from the transactions approved by this decision, including early retirement of debt and prepayment penalties, as part of its scheduled May 1, 2009 Class A Water Company Cost of Capital Application.

Park shall also continue to adhere to the conditions pertaining to affiliate transactions enumerated in Decision (D.) 04-06-018 and Section 8 of D.06-01-019. Park may report on a quarterly basis all the information required by General Order 24-B with respect to debt issued pursuant to this decision. The authority granted by this decision does not become effective until Park remits $3,000 to the Commission's Fiscal Office.