7. Rate Design

At the request of the assigned ALJ, Applicant provided a cost allocation, a revenue requirement, and a rate design. These submittals still did not remedy all the defects in the application. Thus, the rate design we adopt necessarily relies on analysis and proposals by the Water Division. Applicant does not object to these proposals.

The Water Division provided the following rate design based on its estimated summaries of earnings:

Per Month
	2003	2004	2005	2006
Cottage Units	$108.35	$108.59	$109.00	$111.16
Casitas	49.25	49.37	49.55	50.53
Golf Club	2,007.28	2,235.34	2,243.69	2,288.08

The average annual sewer bill in 2003 for one of the 31 single-family cottage units is $1,300.20; for one of the 50 short-term casitas it is $591.00.