COM/JB2/jt2 Date of Issuance 5/30/2008

Decision 08-05-036 May 29, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of California-American Water Company (U210W) for an Interest Rate of 8.33% for Allowance for Funds Used During Construction (AFUDC) for its San Clemente Dam Memorandum.

Application 07-02-023 (Filed February 20, 2007)

DECISION DETERMINING CARRYING COSTS
FOR MEMORANDUM ACCOUNT

1. Summary

This alternate proposed decision approves the authorized rate of return as the appropriate carrying cost for the amounts properly recorded in California-American Water Company's (Cal-Am) San Clemente Dam Memorandum Account.