ALJ/UNC/avs Date of Issuance 6/12/2012

Decision 12-06-006 June 7, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Golden State Water Company on Behalf of its Bear Valley Electric Service Division (U913E), for Approval of Booked CEMA Costs and Recovery of Costs in Rates.

Application 11-06-001 (Filed June 1, 2011)

PROPOSED DECISION ADOPTING ALL-PARTY SETTLEMENT AGREEMENT REGARDING COSTS BOOKED INTO BEAR VALLEY ELECTRIC SERVICE DIVISION'S CATASTROPHIC EVENT MEMORANDUM ACCOUNT

1. Summary

In this decision, we adopt an all-party Settlement Agreement and approve recovery of costs booked in the Catastrophic Event Memorandum Account (CEMA) of Bear Valley Electric Service, a division of Golden State Water Company. Bear Valley Electric Service is authorized to recover $796,080 in costs, accrued interest, and carrying charges booked into the CEMA related to a bark beetle infestation for the period June 30, 2005 through December 31, 2010 and the January 2010 winter storms. Cost recovery shall be implemented through a kilowatt-hour surcharge in ratepayer bills over a 12-month period. Any over- or under-collection shall be accounted for in the Base Rate Revenue Adjustment Mechanism.