Assignment of Proceeding

Commissioner Loretta M. Lynch is the Assigned Commissioner and Victor D. Ryerson is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Matthews has not shown that any costs relating to the water system at Plantation on the Lake are assessed to tenants in both their water rates and their rents, resulting in "double dipping."

2. Matthews has not shown that it is unjust or unreasonable to include the cost of plant and water serving common areas and fire protection requirements in tenants' rates.

3. Matthews has not shown that use of the ORM revenue requirement as a basis for setting water rates for tenants at Plantation on the Lake is unjust or unreasonable.

4. Matthews has not shown that any cost, or the return on investment, utilized by Meadows to establish the ORM revenue requirement is unjust or unreasonable.

Conclusions of Law

1. Meadows' motion to dismiss should be granted.

2. Case 98-08-040 should be dismissed, effective immediately.

ORDER

IT IS ORDERED that:

1. The motion of defendants, Meadows Management Company, James K. Krueger, and Rondell B. Hanson, to dismiss the complaint is granted.

2. The complaint is dismissed.

3. Case 98-08-040 is closed.

This order is effective today.

Dated May 22, 2003, at San Francisco, California.

MICHAEL R. PEEVEY

President