ALJ/JCM/hkr Mailed 3/18/2005

Decision 05-03-012 March 17, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California-American Water Company (U210W) for Orders (1) for Standby Authority to Impose Emergency Temporary Increases in Upper Block Volume Rates for Water Service in its Monterey District if Needed to Avoid SWRCB Violations in 2005 and (2) for Authority to Refund Over Collections of the Monterey District WRAM Account Balances Collected Pursuant to D.04-07-035.

Application 04-10-037 (Filed October 29, 2004)

OPINION AUTHORIZING CONSERVATION RATES

Summary

California-American Water Company (CalAm) is authorized to implement in its Monterey District a sharply increasing block rate structure intended to discourage non-essential water use in the upper blocks, if water production levels from its Carmel River sources indicate a likelihood CalAm would otherwise be in violation of a State Water Resources Control Board (SWRCB) production-limitation order. This decision defines the revised rate structure and establishes the triggering criteria and implementation procedure. This authority is temporary and will expire when the Commission issues its order in CalAm's pending Monterey District general rate case later this year. In addition, CalAm is ordered to refund to Monterey customers Water Revenue Adjustment Mechanism (WRAM) balancing account revenues collected when the Commission approved the same conservation rate structure for use in July through October 2004. This proceeding is closed.