ALJ/PAB/k47 DRAFT CA-3

9/6/2001

Decision PROPOSED DECISION OF ALJ BENNETT (Mailed 8/1/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Citizens Utilities Company of California (U-87-W), for Approval of its Water System Master Plan Update for its Montara District.

Application 00-10-049 (Filed October 24, 2000)

E. Garth Black, Attorney at Law, for Citizens Utilities

Company of California, applicant.

Lenard Weiss, Attorney at Law, for California American

Water Company and Edward W. O'Neill, Attorney at

Law, for Montara Sewer District, interested parties.

Peter Fairchild and Jason J. Zeller, Attorneys at Law, for

Commission Office of Ratepayer Advocates.

TABLE OF CONTENTS

TITLE PAGE

OPINION APPROVING A REVISED 2000 MASTER PLAN OF IMPROVEMENTS FOR CITIZENS' MONTARA DISTRICT 2

Summary 2

Background 2

Procedural History 6

Department of Water Resources Study 8

Citizens' 2000 Master Plan 12

ORA's Recommendations 15

Montara Sewer District Recommendations 19

Discussion 22

Groundwater Supply Projects 22

Conservation 25

Storage Tank Projects 25

Distribution Pipeline Replacement 26

Estimated Project Costs 26

Cost Recovery 27

Conclusion 29

Comments on Proposed Decision 31

Findings of Fact 32

Conclusions of Law 35

ORDER 35

OPINION APPROVING A REVISED 2000 MASTER PLAN OF IMPROVEMENTS FOR CITIZENS' MONTARA DISTRICT

Summary

Citizens Utilities Company of California (Citizens) requests approval of its 2000 Master Plan of improvements for its Montara District over a seven-year period, 2001 - 2007. As requested, these improvements are estimated to increase revenues by 9.08% annually and 83% over the seven-year period. We do not approve this request, but instead we herein authorize a revised 2000 Master Plan of Improvement estimated to increase rates by slightly over one-half the requested amount.