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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

July 25, 2006 Agenda ID #5855

TO: PARTIES OF RECORD IN APPLICATION 05-08-006 et al.

This is the draft decision of Administrative Law Judge (ALJ) McVicar. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure," accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages.

Comments must be filed with the Commission's Docket Office. Comments should be served on parties to this proceeding in accordance with Rules 2.3 and 2.3.1. Electronic copies of comments should be sent to ALJ McVicar at jcm@cpuc.ca.gov. All parties must serve hard copies on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail or other expeditious methods of service. The current service list for this proceeding is available on the Commission's web site, www.cpuc.ca.gov.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:niz

Attachment

ALJ/JCM/niz DRAFT Agenda ID #5855

Ratesetting

Decision DRAFT DECISION OF ALJ McVICAR (Mailed 7/25/2006)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California Water Service Company (U60W) for an Order Authorizing it to Increase Rates Charged for Water Service in the Antelope Valley District by $437,218 or 36.94% in Fiscal 2006-2007, by $145,000 or 8.94% in Fiscal 2007-2008, and $145,000 or 8.21% in Fiscal 2008-2009.

Application 05-08-006

(Filed August 8, 2005)

And Related Matters.

Application 05-08-007

Application 05-08-008

Application 05-08-009

Application 05-08-010

Application 05-08-011

Application 05-08-012

Application 05-08-013

(Filed August 8, 2005)

OPINION GRANTING INTERIM RATE RELIEF

Summary

This decision grants California Water Service Company (CalWater) interim rates for eight districts with pending 2006/2007 test year general rate cases, effective on July 20, 2006, pursuant to Public Utilities Code Section 455.2. Because we cannot find that CalWater's showing in the proceeding supports rate increases that are at least equal to the rate of inflation for four of the eight districts in this proceeding, and because multiple billing adjustments in a short period may cause unnecessary customer confusion, the rates currently in effect are designated as the interim rates. When the Commission adopts final rates in CalWater's pending general rate proceeding, the interim rates for these eight districts will be adjusted upward or downward back to their effective date and any under- or overcollection recovered or refunded accordingly.

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