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ALJ/JCM/tcg * Mailed 6/7/2002

Decision 02-06-005 June 6, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Cypress Ridge Service Co., Inc., for a Certificate of Public Convenience and Necessity to Construct and Operate a Public Utility Sewer System in the Unincorporated Area of San Luis Obispo County, near Arroyo Grande, California and to Establish Rates for Service and to Issue Stock

Application 00-08-056

(Filed August 31, 2000)

Rural Water Company, Inc., a California Corporation, for a Certificate of Public Convenience and Necessity to Construct and Operate a Public Utility Sewer System in the Unincorporated Area of San Luis Obispo, near Arroyo Grande, California, and to Establish Rates for Service

Application 01-02-006

(Filed February 2, 2001)

Steven S. Wall, Attorney at Law, and Denis Sullivan, for Cypress Ridge Service Co., Inc., applicant.

Charles Baker, for Rural Water Company, Inc., applicant.

Julio Ramos, Attorney at Law, and Mohsen Kazemzadeh, for Office of Ratepayer Advocates, interested party.

TABLE OF CONTENTS

O P I N I O N 22

Findings of Fact 1919

Conclusions of Law 2222

ORDER 2323

O P I N I O N

Summary

Rural Water Company, Inc., is granted a certificate of public convenience and necessity to provide sewer service to the Cypress Ridge subdivision in San Luis Obispo County. Cypress Ridge Service Company's application for a certificate to serve the same area and for related relief is dismissed. The authority granted Rural is subject to a series of conditions, most of which were agreed to by all of the parties. Rates for Rural's new service are based on test year 2005. Rural is authorized to file rates for any new commercial customer types as they are needed, provided that rates for other customers are to be adjusted at the same time to achieve a zero net revenue effect. Rural is not required to charge the Cypress Ridge golf course for receiving effluent from the sewage treatment plant. The consolidated proceeding is closed.

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