Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Gary Weatherford is the assigned ALJ in this proceeding.

Findings of Fact

1. As a result of I.07-01-022 (Water Conservation Proceedings for Class A Water Companies), and in furtherance of the 2005 Water Action Plan, the Commission ordered, among others, to undertake the implementation of increasing block tiered water rates on a pilot basis in select ratemaking areas.

2. The Los Osos ratemaking area is one of the areas with such a pilot program, as ordered in D.09-05-005. The Company filed affidavits of newspaper noticing and mailing in Application proceeding A.080-09-010. On November 18, 2008 the Company filed an Affidavit of Mailing-Region I Los Osos Service Area, indicating that notice was mailed to each customer as to, among other things, how to obtain a copy of the application (requesting authority to established tiered conservation rates) and how to protest and comment. The Los Osos tiered conservation rates were implemented effective September 1, 2009, and are scheduled to be evaluated in the company-wide General Rate Case of the Golden State Water Company that is to be filed in July 2011.

3. Complainants in C.10-09-009 are customers in the Los Osos ratemaking area who have grievances concerning the notification, design and implementation of the pilot tiered conservation rates.

Conclusions of Law

1. The Commission-ordered pilot programs involving tiered conservation rates and the evaluation of those programs, during GRCs, should remain on schedule.

2. The Complaint in C.10-09-009 calls for a premature evaluation of the pilot tiered conservation rates in the Los Osos ratemaking area and should be dismissed, but the Complainants should be encouraged to participate in the company-wide General Rate Case to be filed in July 2011 that will include an evaluation of those pilot tiered conservation rates.

ORDER

IT IS ORDERED that:

1. The Complaint in Case 10-09-009 is dismissed.

2. The Golden State Water Company shall give separate and advanced written mailed notice, in addition to any bill insert, to each of the Complainants herein concerning all opportunities to review, protest and comment on that portion of the next company-wide General Rate Case bearing on the tiered conservation rate design in the Los Osos ratemaking area.

3. Case 10-09-009 is closed.

This order is effective today.

Dated January 13, 2011, at San Francisco, California.

MICHAEL R. PEEVEY

President

TIMOTHY ALAN SIMON

NANCY E. RYAN

Commissioners