STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

July 15, 2004

TO: ALL PARTIES OF RECORD IN APPLICATION 04-06-020

Decision 04-07-035 is being mailed without the Concurrence of Commissioner Lynch. The Concurrence will be mailed separately.

Very truly yours,

/s/ ANGELA K. MINKIN by PSW

Angela K. Minkin, Chief

Administrative Law Judge

ANG:sid

Attachment

ALJ/JCM/sid Mailed 7/15/2004

Decision 04-07-035 July 8, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American Water Company (U210W) for an Order for Emergency Authority to Temporarily Increase Upper Block Rates for Water Service in its Monterey District to Avoid SWRCB Violations and Request for Immediate Ex Parte Relief.

Application 04-06-020 (Filed June 16, 2004)

OPINION AUTHORIZING CONSERVATION RATES

Summary

California-American Water Company (CalAm) is ordered to restructure the quantity blocks and increase certain upper-block rates in its Monterey District to promote water conservation. The revised rates are to apply to service rendered through October 31, 2004. CalAm must also file an application seeking to impose a moratorium on new water connections and expansions of existing connections in its Monterey District within 90 days. This proceeding is closed.