CONCLUSIONS

1. A public hearing is not necessary for this interim order.

2. The proposed planning loan of $25,000 is not adverse to the public interest.

3. Ordering Paragraph 7 of I.97-07-018 applies to Hillview's proposed construction project because the SDWSRF funding requires the imposition of surcharge.

4. The authority requested by Hillview in A.00-10-043, as amended to borrow $3,408,477 under the SDWSRF, to encumber its assets and to effect a surcharge on existing water rates should be consolidated with the OII.

5. Hillview should pay the fee determined in accordance with Public Utilities Code § 1904(b).

6. The following order should be effective on the date of signature.

INTERIM ORDER

THEREFORE, IT IS ORDERED that:

1. Hillview Water Company, Inc. (Hillview), on or after the effective date of this order, is authorized to borrow up to $25,000 from the State of California under the Safe Drinking Water State Revolving Fund (SDWSRF) at zero percent interest, upon terms and conditions substantially consistent with those set forth or contemplated by Application (A.) 00-10-043, as amended.

2. Hillview is authorized to execute and deliver the loan agreement and promissory note with the California Department of Water Resources (DWR).

3. Hillview shall use the proceeds of the planning loan for the purposes specified in the Amended Application.

4. Hillview shall file with the Commission a copy of the DWR planning loan agreement within 15 days of execution.

5. The matter relating to the authority to borrow a $25,000 planning loan set forth in A.00-10-043, as amended is closed.

6. In all other matters, A.00-10-043, as amended is consolidated with Order Instituting Investigation dated July 16, 1997 in I.97-07-018.

7. The authority granted by this order shall become effective when Hillview pays $50, the fee set forth by Public Utilities Code § 1904.

This order is effective today.

Dated ______________________, at San Francisco, California.