App A-p.1

				APPENDIX A
				Page 1 of 3
			San Gabriel Valley Water Company
			Fontana Water Company Division
			Summary of Earnings
			(Dollars in Thousands)
				TY 2006-2007
				Present Rates		Adopted Rates
Operating Revenue				$43,588.8		$41,938.8
Operating Expenses
	Purchased Water & Assess.			$8,625.1		$8,625.1
	Purchased Power			$4,795.5		$4,795.5
	Chemicals			$637.4		$637.4
	Payroll			$4,628.1		$4,628.1
	Materials & Supplies			$465.5		$465.5
	Transportation			$619.3		$619.3
	Pensions & Benefits			$1,650.3		$1,650.3
	Uncollectibles			$85.0		$81.8
	Franchise Fees			$352.7		$339.3
	Outside Services			$452.6		$452.6
	Insurance			$591.2		$591.2
	Other O&M Expense			$163.5		$163.5
	Other A&G Expense			($34.6)		($34.6)
	Bank Charges			$62.0		$62.0
		Subtotal		$23,093.7		$23,077.2
	Allocated Common			$2,987.8		$2,987.8
		Total Operating Exp.		$26,081.5		$26,064.9
	Depreciation			$3,701.3		$3,701.3
	Ad Valorem Taxes			$849.2		$849.2
	Payroll Taxes			$444.1		$444.1
	Total Expense before Inc.Tax			$31,076.1		$31,059.5
	Net Revenue before Inc. Tax			$12,512.7		$10,879.3
	State Income Tax			$421.1		$276.7
	Federal Income Tax			$3,066.8		$2,508.5
	Total Operating Expense			$34,563.9		$33,844.7
Net Operating Revenues				$9,024.8		$8,094.2
Rate Base				$86,791.5		$86,791.5
Rate of Return			9.33%	10.40%		9.3261%