ALJ/SMW/gd2 Date of Issuance 6/30/2011

Decision 11-06-023 June 23, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Golden State Water Company on Behalf of its Bear Valley Electric Service Division (U913E), for Approval of RPS Contract with BioEnergy Solutions, LLC, and for Authority to Recover the Costs of the Contract in Rates.

Application 10-07-012
(Filed July 8, 2010)

DECISION APPROVING SETTLEMENT AGREEMENT
BETWEEN GOLDEN STATE WATER COMPANY AND
THE DIVISION OF RATEPAYER ADVOCATES

TABLE OF CONTENTS

Title Page

DECISION APPROVING SETTLEMENT AGREEMENT BETWEEN GOLDEN STATE WATER COMPANY AND THE DIVISION OF RATEPAYER ADVOCATES 1 1

1. Summary 2 2

2. Background 2 2

3. Other Procedural Issues 7 7

3.1. Change in Determination on Need for Hearings 7 7

3.2. Receipt Into Evidence of Testimony and Exhibits 8 8

4. Application for Approval of a RPS-eligible Gas Purchase Contract 8 8

5. The Proposed Settlement Agreement 9 9

5.1. Ten Year Term 10 10

5.2. Price of Biogas 11 11

5.3. Costs Associated With Option 12 12

6. Standard of Review for Settlement Agreements 12 12

6.1. The Settlement Agreement is Reasonable in Light of
the Whole Record 13 13

6.2. Settlement Agreement is Consistent with the Law and
in the Public Interest 14 14

6.3. Request to Withdraw A.10-07-012 14 14

7. Costs Associated with Option 15 15

8. Comments on the Proposed Decision 15 15

9. Assignment of Proceeding 16 16

Findings of Fact 16 16

Conclusions of Law 17 17

ORDER 18 18

Attachment A - List of Testimony and Exhibits Entered into Record in
A.10-07-012

DECISION APPROVING SETTLEMENT AGREEMENT
BETWEEN GOLDEN STATE WATER COMPANY AND
THE DIVISION OF RATEPAYER ADVOCATES

1. Summary

This decision adopts, as clarified, the Settlement Agreement Between the Division of Ratepayer Advocates and Golden State Water Company, On Behalf of it's Bear Valley Electric Service Division, which authorizes Golden State Water Company to execute a Biogas Option Agreement with BioEnergy Solutions, LLC, and resolves all issues in Golden State Water Company's current application.