ALJ/AYK/tcg Date of Issuance 11/19/2007

Decision 07-11-034 November 16, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American Water Company (U 210 W) and John W. Richardson & Associates, Court-Appointed Receiver for Toro Water Service, Inc., for an Order Authorizing the Sale and Conveyance of Certain Real Property and Utility Assets in Monterey County Pursuant to Public Utilities Code Section 851 and Authorizing an Increase in Revenues of $105,332 or 31.7% on an Interim Basis in 2007, or $208,467 or 63.5% (from Current Revenues) after Completion of Capital Improvements in 2007, and $15,903 or 3.0% in 2008.

Application 07-02-008 (Filed February 8, 2007)

OPINION APPROVING SALE AND CONVEYANCE OF
TORO WATER SYSTEM INC. TO
CALIFORNIA AMERICAN WATER COMPANY

1. Summary

In this decision, we approve the application of California American Water Company (CalAm Water) and John W. Richardson & Associates, Court-appointed Receiver for Toro Water Service Inc. (Receiver), to sell and convey the real property, water system assets, and other assets of Toro Water Service Inc. to CalAm Water pursuant to Pub. Util. Code § 851. We also adopt a proposed settlement agreement between CalAm Water and the Division of Ratepayer Advocates (DRA) which resolves the disputed ratemaking issues concerning the proposed sale.