Comments on Draft Decision

The draft decision of the ALJ in this matter was mailed to the parties in accordance with Section 311(g)(1) of the Public Utilities Code and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed by _________________.

Findings of Fact

1. The 39-day delay in filing the formal application was not a CalWater-caused source of delay in issuing a final decision.

2. CalWater and DRA's late filing of a proposed settlement that addressed most of the summary of earnings and related issues and provided the Rate Case Plan-mandated comparison exhibit did not significantly delay the proceeding.

3. The earliest date the Commission could have acted to grant CalWater's motion for interim rate relief was July 20, 2006.

4. CalWater's showing does not support rate increases that are at least equal to the rate of inflation for four of the eight districts in this proceeding.

5. The interim rate level we set affects the timing of CalWater's revenues but not their overall amount.

6. An interim rate increase based on the rate of inflation would be inappropriate in some districts, and confusing to ratepayers in all districts to the extent that interim and final rate adjustments would follow in rapid succession.

Conclusions of Law

1. CalWater is eligible to seek interim rate relief under Public Utilities Code Section 455.2 for the eight districts in this general rate case proceeding.

2. CalWater should not be held responsible for any delay related to the late-filed and incomplete WRAM stipulation or our subsequent deliberations pertaining to it.

3. It is in the public interest to adopt CalWater's current rates as interim rates, subject to refund, and to adjust them upward or downward back to their effective date consistent with the final rates adopted by the Commission in this proceeding.

4. CalWater's interim rates should be made effective July 20, 2006.

5. To establish interim rates as promptly as possible, this decision should be made effective today.

6. This proceeding should remain open pending resolution of CalWater's general rate case applications.

ORDER

IT IS ORDERED that:

1. California Water Service Company's (CalWater) current rates for the eight districts subject to this general rate case proceeding are designated as interim rates pursuant to Public Utilities Code Section 455.2. The interim rates shall be effective as of July 20, 2006, shall be subject to refund, and shall be adjusted upward or downward, back to their effective date, consistent with the final rates adopted by the Commission in this proceeding.

2. When final rates for test year 2006/2007 have been approved in these eight general rate case districts, CalWater is authorized to file an advice letter to recover or refund in each district the difference between the interim rates authorized in this order and the test year 2006/2007 rates adopted in the general rate case proceeding order. The period over which those differences are recovered or refunded shall be one year, or such shorter period(s) as CalWater and the Commission's Water Division may jointly agree is appropriate in any district. If a Rate Support Fund is approved, any related retroactive adjustments to interim rates shall be as described in the discussion section of this order. CalWater shall include with its advice letter(s) all supporting data and calculations. The Water Division shall inform the Commission if it finds the proposed rate changes do not comply with this order or other Commission requirements.

3. CalWater shall include in its initial bills implementing the Ordering Paragraph 2 retroactive rate adjustments a one-time explanation of those adjustments.

4. This proceeding remains open pending resolution of CalWater's general rate case applications.

This order is effective today.

Dated _________________, at San Francisco, California.

INFORMATION REGARDING SERVICE

I have provided notification of filing to the electronic mail addresses on the attached service list.

Upon confirmation of this document's acceptance for filing, I will cause a copy of the filed document to be served upon the service list to this proceeding by U.S. mail. The service list I will use to serve the copy of the filed document is current as of today's date.

Dated July 25, 2006, at San Francisco, California.

************ APPEARANCES ************

Gregory Bowling
Attorney At Law
BINGHAM MCCUTCHEN, LLP
THREE EMBARCADERO CENTER
SAN FRANCISCO CA 94115
(415) 393-2601
gregory.bowling@bingham.com

For: California Water Service Company

Darin T. Duncan
CALIFORNIA WATER SERVICE COMPANY
1720 NORTH FIRST STREET
SAN JOSE CA 95112
(650) 367-6800
dduncan@calwater.com

For: California Water Service Company

Thomas F. Smegal
CALIFORNIA WATER SERVICE COMPANY
1720 NORTH FIRST STREET
SAN JOSE CA 95112
(408) 367-8219
tsmegal@calwater.com

For: California Water Service Company

Jack L. Chacanaca
LEONA VALLEY CHERRY GROWERS ASSN.
26201 TUOLUMNE ST.
MOJAVE CA 93501
(760) 373-3284
hoppy@mail.ccis.com

For: Leona Valley Cherry Growers Association

Joseph S. Lucido
President
LEONA VALLLEY CHERRY GROWERS ASSN.
9300 LEONA AVENUE
LEONA VALLEY CA 93551
(661) 270-9545

Jack Miller
LITTLE BIG HORN TRAILER HEAVEN
16471 RIO NIDO ROAD
GUERNEVILLE CA 95440
(707) 869-3049


Stephen R. Elias
LUCERNE COMMUNITY WATER ORGANIZATION
568 LAKEPORT LVD
LAKEPORT CA 95453
(707) 263-5811
selias2@aol.com

For: Lucerne Community Water Organization

Marcos Pareas
PO BOX 152
DILLON BEACH CA 94929
(707) 878-9266
mpareas@gmail.com


Jonathan J. Reiger
Legal Division
RM. 5035
505 VAN NESS AVE
San Francisco CA 94102
(415) 355-5596
jzr@cpuc.ca.gov


Jeffrey Young
473 WOODLEY PLACE
SANTA ROSA CA 95409
jffyng@sbcglobal.net


********** STATE EMPLOYEE ***********


Yoke W. Chan
Division of Ratepayer Advocates
RM. 3200
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-1909
ywc@cpuc.ca.gov

For: ORA

Fred L. Curry 5
Water Division
RM. 3106
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-1739
flc@cpuc.ca.gov

James C. McVicar
Administrative Law Judge Division
RM. 2106
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-4304
jcm@cpuc.ca.gov


********* INFORMATION ONLY **********

Michele Waterbury
Park Commissioner
CITY OF OROVILLE
1211 SECOND AVENUE
OROVILLE CA 95965
(530) 532-1278
mcwaterbury@yahoo.com

Sharon Atteberry
CITY OF OROVILLE
1735 MONTGOMERY STREET
OROVILLE CA 95966
(530) 538-2404
atteberrysl@cityoforoville.org


Frank B. Danzart
16346 LAUGHLIN RD.
GUERNEVILLE CA 95446
(707) 869-0893

John F. Dolan
DEER PARK WOODS
14755 ARMSTRONG WOODS RD.
GUERNEVILLE CA 95446
(707) 869-0144

Cary Krueger
16200 RIO NIDO RD.
GUERNEVILLE CA 95446
(707) 869-9753
adela@isp.com


Chris Horgan
LAKE ISABELLA.BODFISH PROPERTY OWNERS
PO BOX 267
LAKE ISABELLA CA 93240
sequoiastewards@verizon.net

For: Lake Isabella/Bodfish Property Owners Association


David Morse
1411 W, COVELL BLVD., SUITE 106-292
DAVIS CA 95616-5934
(530) 756-5033
demorse@omsoft.com


Mark Nelson
511 N PROSPECT AVE.
REDONDO BEACH CA 90277
menelson@gmail.com


John Ruggeiro
10 STOCKBRIDGE AVENUE
ATHERTON CA 94027
(650) 364-7401

Jim Davis
President
LEONA VALLEY TOWN COUNCIL
8824 CACHE
LEONA VALLEY CA 93551
jddcd@yahoo.com


Terrence D. Kenney
LEONA VALLEY TOWN COUNCIL
8869 ELIZABETH LAKE ROAD, PO BOX 742
LEONA VALLEY CA 93531
(661) 270-3200
herdem@aol.com


Lynette Matthews
3278 ATHOLL ROAD
LUCERNE CA 95458
(707) 349-2129
needja@mchsi.com

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