ALJ/DUG/tcg Date of Issuance 11/12/2008

Decision 08-11-025 November 6, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American Water Company (U 210 W) (1) to issue, sell and deliver to an affiliate entity not exceeding in the aggregate $35,000,000 of debt securities consisting of long term notes; and (2) exempting the issuance, sale and delivery of such debt securities from the Commission's competitive bidding rule.

Application 08-08-025 (Filed August 22, 2008)

DECISION GRANTING CALIFORNIA-AMERICAN WATER COMPANY AUTHORITY TO ISSUE UP TO $35,000,000 IN LONG
TERM NOTES TO ITS AFFILIATE, AMERICAN WATER CAPITAL CORPORATION, TO FINANCE ITS LONG-TERM BORROWING NEEDS

1. Summary

This decision grants California-American Water Company (California American) authority to issue long-term notes to an affiliate, American Water Capital Corporation (Capital Corp.), for up to $35,000,000 in cash. Capital Corp. will fund these notes under the terms of an existing Financial Services Agreement between the two companies, dated June 15, 2000. This authority is granted pursuant to authority under Cal. Pub. Util. Code (Code) Sections 816-830. Notes issued under the authority granted herein are exempt from the Commission's competitive bidding rule. The proceeding is closed.