8. Assignment of Proceeding

John A. Bohn is the assigned Commissioner, and Kenneth Koss is the assigned ALJ in this proceeding.

1. The LIRA program is consistent, in all aspects other than the proposed surcharge rate design, with the low-income programs of other water companies found to satisfy the directives in Section 739.8.

2. The volumetric surcharge for metered non-qualifying customers proposed by CWS, in contrast to the flat surcharges previously approved for other water companies, is reasonable and does not conflict with the policies outlined in our Water Action Plan.

3. D.06-08-011 authorized the RSF program, for certain customers in the Kern Valley, Redwood Valley, and Antelope Valley Districts, allowing for $10/month discounts.

4. The subject application, as amended, is unopposed and this decision grants the relief requested.

1. The Commission should authorize CWS's proposed LIRA program, to be effective January 1, 2007.

2. The Commission should authorize the LIRA discounts of 50% from the monthly service charge for qualified low-income customers, as described herein.

3. The LIRA program and the RSF program should be funded by monthly surcharges on the bills of non-qualifying customers of $0.01 p/Ccf for metered service, and $0.24 - $0.41 for flat rate service.

4. CWS Schedule No. LIRA tariff reflecting the LIRA discounts and surcharges should be authorized.

5. Service for fire protection in all districts, and non-potable irrigation service in the Oroville District should be exempt from the surcharge.

6. Eligible customers in the Kern River Valley, Redwood Valley, and Antelope Valley may receive either the RSF discount or the LIRA discount, but not both.

7. A public hearing is unnecessary.

8. Pursuant to Rule 14.6(c)(2), the 30-day comment period may be waived

9. This proceeding should be closed.

10. Today's decision should be effective immediately.

ORDER

IT IS ORDERED that:

1. California Water Service Company (CWS) is authorized to implement its Low-Income Ratepayer Assistance (LIRA) program.

2. CWS is directed to file in accordance with General Order 96-A, or its successor, an advice letter with tariff schedules, effective January 1, 2007, implementing its monthly subsidy amount of a 50% discount from the service charge with defined maximums; and the monthly surcharge to fund the program assessed on non-qualifying customers of $0.01 per hundred cubic feet of water billed for metered service, and $0.24 to $0.41 for flat rate service, as specified herein, with defined exemptions. This advice letter shall be made within 30 days of the date of this order.

3. The advice letter shall be reviewed by the Commission's Water Division for conformity with this decision. The Water Division shall reject the advice letter if it finds the proposed increase does not comply with this decision or other Commission requirements.

4. Eligible customers in the Kern River Valley, Redwood Valley, and Antelope Districts may receive discounts from the LIRA program or the discounts provided in Decision (D.) 06-08-011, but not both. The surcharges described in Ordering Paragraph 2, above, shall also fund the ratepayer discounts described in D.06-08-011.

5. CWS is authorized to implement a memorandum account to record the initial and ongoing expenses of its low-income assistance program. This memorandum account will be audited for reasonableness at the next general rate case proceeding.

6. A public hearing is unnecessary.

7. The 30-day comment period is waived.

8. Application 05-10-035 is closed.

This order is effective today.

Dated November 30, 2006, at San Francisco, California.

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