Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Darwin E. Farrar is the assigned ALJ in this proceeding.

Findings of Fact

1. The Assigned Commissioner's Ruling and Scoping Memo, dated
January 16, 2009, anticipates a final decision in this proceeding on or before
July 31, 2009.

2. GSWC requests authority to establish a memorandum account to track the difference between general office costs currently being collected and the
GO costs allocated to BVES in D.07-11-037.

3. GSWC requests authority to implement two surcharges - one for BVES' domestic low-income customers and one for BVES' remaining customers - to allow for full cost recovery of BVES' share of GSWC's general office costs.

4. The requested memorandum account is consistent with previously stated Commission objectives to leave both ratepayers and shareholders essentially indifferent to the precise date of the final decision, to remove incentives for any party to seek or promote delay, and to allow sufficient time for review and critical analysis of the record.

5. Due to retroactive ratemaking considerations, the proposed memorandum accounts cannot become effective prior to the date of this decision.

Conclusions of Law

1. The motion of GSWC for an interim rate increase for its BVES should be denied.

2. The motion of GSWC for authority to establish a memorandum account to track that portion of the un-recovered GO costs allocated to BVES should be granted.

3. The authorized memorandum account to track the difference between general office costs currently being collected and the GO costs allocated to BVES in D.07-11-037 should be effective as of June 4, 2009.

ORDER

IT IS ORDERED that:

1. Golden State Water Company is not authorized to implement surcharges to allow for full cost recovery of Bear Valley Electric Service Division's share of Golden State Water Company's general office costs at this time.

2. Golden State Water Company shall file an Advice Letter within 21 days with the Energy Division to establish a memorandum account to track the difference between general office costs currently being collected and the General Office costs allocated to Bear Valley Electric Service Division in
Decision 07-11-037.

3. Balances in this account shall accrue interest at the three-month commercial paper rate as set forth in the Federal Reserve Statistical Release H.15 or its successor.

4. To the extent needed, the disposition of the memorandum accounts will be addressed in the final decision.

5. Application 08-06-034 remains open.

This order is effective today.

Dated June 4, 2009, at San Francisco, California.

************** PARTIES **************

Kendall H. Macvey, Esq.
BEST, BEST & KRIEGER, LLP
3750 UNIVERSITY AVENUE, SUITE 300
RIVERSIDE CA 92501-1028
(951) 686-1450
kendall.macVey@bbklaw.com
For: City of Big Bear Lake ____________________________________________
Jeffrey P. Gray
Attorney At Law
DAVIS WRIGHT TREMAINE LLP
505 MONTGOMERY STREET, SUITE 800
SAN FRANCISCO CA 94111-6533
(415) 276-6581
jeffgray@dwt.com
For: Bear Mountain Resort or Snow Summit Inc. ____________________________________________

Keith Switzer
Vice President Of Regulatory Affairs
GOLDEN STATE WATER COMPANY
630 EAST FOOTHILL BOULEVARD
SAN DIMAS CA 91773
(909) 394-3600 X759
kswitzer@gswater.com
For: Golden State Water Company ____________________________________________
Noel Obiora
Legal Division
RM. 4107
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-5987
nao@cpuc.ca.gov
For: DRA

********** STATE EMPLOYEE ***********

Fred L. Curry 2
Division of Water and Audits
RM. 3106
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-1739
flc@cpuc.ca.gov

Douglas DeRoy
Executive Division
505 VAN NESS AVE
San Francisco CA 94102 3298
dmd@cpuc.ca.gov

Darwin Farrar
Administrative Law Judge Division
RM. 5041
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-1599
edf@cpuc.ca.gov

Maryam Ghadessi
Energy Division
AREA 4-A
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-1191
mmg@cpuc.ca.gov

Donald J. Lafrenz
Energy Division
AREA 4-A
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-1063
dlf@cpuc.ca.gov

Laura A. Martin
Energy Division
AREA 4-A
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-2149
lra@cpuc.ca.gov

Scott Mosbaugh
Executive Division
RM. 3008
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-1902
rsm@cpuc.ca.gov

Dao A. Phan
Division of Ratepayer Advocates
RM. 4205
505 VAN NESS AVE
San Francisco CA 94102 3298
(415) 703-5249
dao@cpuc.ca.gov

********* INFORMATION ONLY **********

Brent Tregaskis
BEAR MOUNTAIN RESORT OR SNOW SUMMIT INC.
PO BOX 77
BIG BEAR LAKE CA 92315
(909) 584-0201
brent@bearmtn.com
For: Bear Mountain Resort or Snow Summit Inc. ____________________________________________

CALIFORNIA ENERGY MARKETS
425 DIVISADERO ST., SUITE 303
SAN FRANCISCO CA 94117-2242
(415) 963-4439
cem@newsdata.com

William F. Dietrich
Principal Consultant
DIETRICH CONSULTING
2977 YGNACIO VALLEY ROAD, NO. 613
WALNUT CREEK CA 94598
(415) 297-2356
dietrichlaw2@earthlink.net

Allyson S. Taketa
FULBRIGHT & JAWORSKI L.L.P.
555 SOUTH FLOWER STREET, 41ST FLOOR
LOS ANGELES CA 90071
(213) 892-9200
ataketa@fulbright.com
For: Golden State Water Company ____________________________________________

Fred Yanney
FULBRIGHT & JAWORSKI L.L.P.
555 SOUTH FLOWER STREET, 41ST FLOOR
LOS ANGELES CA 90071
(213) 892-9200
fyanney@fulbright.com
For: Golden State Water Company ____________________________________________

Ronald Moore
Sr. Regulatory Analyst
GOLDEN STATE WATER CO/BEAR VALLEY
630 EAST FOOTHILL BLVD.
SAN DIMAS CA 91773
(909) 394-3600
rkmoore@gswater.com

David Morse
1411 W, COVELL BLVD., SUITE 106-292
DAVIS CA 95616-5934
(530) 756-5033
demorse@omsoft.com

MRW & ASSOCIATES, INC.
1814 FRANKLIN STREET, STE 720
OAKLAND CA 94612
(510) 834-1999
MRW@MRWASSOC.COM

Martin Homec
REDWOOD RENEWABLES
PO BOX 4471
DAVIS CA 95617
(530) 867-1850
martinhomec@gmail.com

(END OF APPENDIX A)

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