THEREFORE IT IS ORDERED THAT:

1. San Jose Water Company is authorized, five days after the effective date of this resolution, to make effective the increased rates in rate schedules Nos.: 1, General Metered Service; 1BA, General Metered Service with Automatic Fire Sprinkler System; and RW, Raw Water Service, which are shown in Appendix A of this Resolution.

2. Expenditures for the completed project totaling $2,379,500 are allowed into the rate base of San Jose Water Company.

3. The revenue requirement of San Jose Water Company is allowed to increase annually by $469,619 or 0.25% to provide a return for the increase in rate base.

4. This resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California on

September 18, 2008, with the following Commissioners voting favorably thereon:

_______________________________

PAUL CLANON

Executive Director

Appendix A

Sheet 1

Schedule No. 1

GENERAL METERED SERVICE

APPLICABILITY

Applicable to general metered water service.

TERRITORY

Portions of Cupertino, San Jose, and Santa Clara, and in Campbell,

Los Gatos, Monte Sereno, and Saratoga and in contiguous territory

in the County of Santa Clara.

RATES

Quantity Rate:

Per 100 cu. ft . . . . . . . . . . . . . . . . . . . . . . . .$ 2.2318 (I)

Service Charges: Per Meter Per Month

For 5/8 x 3/4-inch meter . . . . . . . . . .. . . . $ 14.20 (I)

For 3/4-inch meter . . . . . . . .. . . . . . . . 14.20 |

For 1-inch meter . . . . . . . . . . . . . . . . 23.66 |

For 1-1/2-inch meter . . . . . . . . . . . . . . . .. 47.34 |

For 2-inch meter . . . . . . . . . . . . . . . 75.73 |

For 3-inch meter . . . . . . . . . . . . . . . .141.99 |

For 4-inch meter . . . . . . . . . . . . .. 236.65 |

For 6-inch meter . . . . . . . . . . . . . . .. 473.31 |

For 8-inch meter . . . . . . . . . . . . . . . 757.30 |

For 10-inch meter . . . . . . . . . . . . . . 1088.61 (I)

The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rate.

(Continued)

APPENDIX A

Sheet 2

Schedule No. 1B

GENERAL METERED SERVICE WITH

AUTOMATIC FIRE SPRINKLER SYSTEM

APPLICABILITY

Applicable to all detached single family structures whose automatic fire

sprinkler system is served through the meter providing residential water

service.

TERRITORY

Portions of Cupertino, San Jose, and Santa Clara, and in Campbell, Los

Gatos, Monte Sereno, and Saratoga and in contiguous territory in the

County of Santa Clara.

RATES

Quantity Rate:

Per 100 cu. ft. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.2318 (I)

Service Charges: Per Meter Per Month

For 5/8 x 3/4-inch meter . . . . . . . . . . . . . . . . . . . $ 14.20 (I)

For 3/4-inch meter . . . . . . . . . . . . . . . . . . . 14.20 |

For 1-inch meter . . . . . . . . . . . . . . . . . . . 23.66 |

For 1-1/2-inch meter . . . . . . . . . . . . . . . . . . . 47.34 |

For 2-inch meter . . . . . . . . . . . . . . . . . . . 75.73 (I)

Upsize Charges:

For 1/4-inch meter upsize . . . . . . . . . . . . . . . . . . $ 1.39

or 1/2-inch meter upsize . . . . . . . . . . . . . . . . . . 2.77

For 3/4-inch meter upsize . . . . . . . . . . . . . . . . . . 4.16

For 1-inch meter upsize . . . . . . . . . . . . . . . . . . 5.55

SPECIAL CONDITIONS

1. Any service to a residential customer who requires a larger meter because of fire flow

requirement to a fire sprinkler system will be billed (i) a meter service charge, for the

appropriate meter size determined based on the normal water use of the customer excluding the fire flow requirement; and (ii) an upsize charge, determined by the difference between the actual meter size required including the fire flow requirement and the appropriate meter size required without the fire flow requirement; and (iii) the quantity

rate based on the quantity of water used.

(continued)

APPENDIX A

Sheet 3

Schedule No. RW

RAW WATER SERVICE

APPLICABILITY

Applicable to raw water metered service.

TERRITORY

Portions of Cupertino, San Jose, and Santa Clara, and in Campbell,

Los Gatos, Monte Sereno, and Saratoga and in contiguous territory

in the County of Santa Clara.

RATES

Quantity Rate:

Per 100 cu. ft. . . . . . . . . . . . . . . . . . . . . . . . . . $2.0252 (I)

Service Charges: Per Meter Per Month

For 5/8 x 3/4-inch meter . . . . . . . . . . . . . . .$ 14.20 (I)

For 3/4-inch meter . . . . . . . . . . . . . . . 14.20 l

For 1-inch meter . . . . . . . . . . . . . .. 23.66 l

For 1-1/2-inch meter . . . . . . . . . . . . . . . 47.34 l

For 2-inch meter . . . . . . . . . . . . . . 75.73 l

For 3-inch meter . . . . . . . . . . .. . . . 141.99 l

For 4-inch meter . .. . . . . . . . . .. . . . 236.65 l

For 6-inch meter . . . . .. .. . . . . . . . . 473.31 l

For 8-inch meter . . . . . . . .. . . . . . . 757.30 l

For 10-inch meter . . . . . . . .. . . . . . 1088.61 (I)

The service charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rate.

SPECIAL CONDITIONS

1. The customer is responsible for notice of and compliance with all local, state, and federal

rules and regulations that apply from time to time to the use of raw water, as defined in San

Jose Water Company's Rule 1.

2. The customer must provide and/or contribute all facilities needed to transport the water from its source to the customer's point of service in accordance with the utility's Rule 15.

(END OF APPENDIX A)