8. Ex Parte Communications

This proceeding is subject to Article 8 of the Rules of Practice and Procedure, which specifies standards for engaging in ex parte communications and the reporting of such communications. Pursuant to Rule 8.2(c), ex parte communications are subject to the restrictions set forth therein and the reporting requirements set forth in Rule 8.3.

IT IS ORDERED that:

1. An investigation on the Commission's own motion is instituted to address means to achieve the Commission's conservation objectives for Class A Water Utilities.

2. All Class A water utilities (utilities with over 10,000 service connections) are made respondents to this investigation.

3. Applications (A.) 06-09-006, A.06-10-026, A.06-11-009, and A.06-11-010 are consolidated for the purpose of considering the conservation proposals contained therein.

4. Class A water utilities are hereby placed on notice that the Commission, for good cause, and to advance the public interest, may enter orders beyond the confines of the requests in companion consolidated proceedings. This proceeding is classified as ratesetting. There is a need for hearings to implement rates for individual utilities.

5. The expected timetable for this proceeding is as set forth in the body of this order. The assigned Commissioner and the assigned Administrative Law Judge may adjust the timetable as necessary during the course of the proceeding, provided that in no instance shall this proceeding require longer than 18 months to complete.

6. All Class A water utilities, the Commission's Division of Ratepayer Advocates (DRA), the Department of Water Resources (DWR), the Department of Health Services (DHS), and other interested parties are invited to comment on the issues raised in this investigation, pursuant to the schedule adopted in this order.

7. Pursuant to Rule 5.2, a party filing a response to the preliminary scoping memo shall state in its comments any objections the party has regarding (1) the issues to be considered; (2) the need for hearings; and (3) the schedule for this proceeding as described in this order.

8. The Executive Director shall direct a copy of this order to be served upon Golden State Water Company, California Water Service Company, Park Water Company and Suburban Water Systems, all respondent Class A water and sewer service utilities, the DRA, the service lists for the consolidated applications, the service lists for the latest general rate cases of all Class A Water Utilities, the DWR, and the DHS. After service of this order, the service list for this proceeding shall be formed following the procedures set forth in the Service List section in the body of this order.

This order is effective today.

Dated January 16, 2007, at San Francisco, California.

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