App E-p.3

					Appendix E
					Page 3 of 4
					San Gabriel Valley Water Company
					Fontana Water Company Division
		Calculation of After-Tax Allocation of Gains on Sale of Property From 1996 Through 2004
					Application Number 05-08-021
					As of January 1, 2004
					(Dollars in thousands)
					Legal Costs				Allocation of Net Gains
					Incurred but Not		Taxable		in Excess of Costs
			Net		Included in Rates		Net		50%		50%
Type of Sale			Gain		or Memo A/C		Gain		Ratepayers		Shareholders
Proceeds of Contamination Claim			$8,559,863		$208,554		$8,351,309		$5,595,377		$4,175,655
Service Duplication Judgment			$2,314,538		$616,835		$1,697,703		1/		1/
Sales under Threat of Condemnation			$2,421,727	2/	$225,110		$2,196,617		1/		1/
Sales to Private Owners			$431,004	2/	$0		$431,004		$0		$431,004
Condemnation Proceeds			$22,500		$0		$22,500		1/		1/
Additional Contamination Proceeds			$26,114		$0		$26,114		$17,496		$13,057
Total Pre-Tax Gains			$13,775,746		$1,050,499		$12,725,247		$5,612,873		$4,619,716
Less amount already included in CIAC per D.04-07-034									($2,618,291)
Additional amount to be Treated as CIAC as of Beginning of Test Year 2004									$2,994,582
		1/ To be determined in R.04-09-003
		2/ Gross amounts of proceeds are $2,520,148 and $507,199