App E-p.1

Appendix E

Page 1 of 4

Effect on Revenue Requirement of

After-Tax Allocation of Gains on Sale of Property

For The Period 7/17/04 to 7/1/06

A.05-08-021

San Gabriel Valley Water Company

Fontana Water Company Division

(Dollars in thousands)

Calendar Year

Total

7/17/04 to

2004

2005

2006

7/1/06

Beginning Effect on Revenue Requirement

of After-Tax Allocation of Gains on Sale of Property

$522.2

$522.2

$542.6

Adjustment to Depreciation Expense

$20.4

$0.0

$522.2

$542.6

$542.6

Adjust for 6 Months

50%

Revenue Requirement Adjustment for After-Tax Allocation

of Gains on Sale of Property

$261.1

+

$542.6

+

$0.0

=

$803.8

July-Dec 2006

$0.0

Notes:

Total thru Dec 2006

$803.8

The superseded Rate Case Plan in effect for D.04-07-034 required a Summary of Earnings

on a calendar year basis, but rates in D.04-07-034 did not become effective until 7/17/04.

New rates resulting from A.05-08-021 are expected to become effective ______.