8. Assignment of Proceeding

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

Findings of Fact

1. Cal-Am's LIRA program for its Sacramento and Larkfield Districts is consistent with the low-income programs of other water companies found to satisfy the directives in § 739.8.

2. The proposed program discounts and related recovery mechanisms are reasonable and do not conflict with the policies outlined in our Water Action Plan.

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

Conclusions of Law

1. The Commission should authorize Cal-Am's proposed LIRA program for its Sacramento and Larkfield Districts, to be effective within 30 days from the effective date of today's order.

2. The Commission should authorize the LIRA discounts for eligible customers of $5.00/month in the Sacramento District, and $8.50/month in the Larkfield District, as described herein.

3. Cal-Am should be authorized to establish a memorandum account to track the discounts and expenses of its LIRA program.

4. Cal-Am should account for its LIRA program discounts and costs in its next GRC.

5. A public hearing is unnecessary.

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

7. Application 06-01-014 should be closed.

8. Today's decision should be effective immediately.

ORDER

IT IS ORDERED that:

1. California-American Water Company (Cal-Am) is authorized to implement a Low-Income Ratepayer Assistance (LIRA) program in its Sacramento and Larkfield Districts, effective within 30 days of the effective date of this order, as described herein.

2. Cal-Am shall offer discounts to qualifying customers of $5.00 per month in its Sacramento District, and $8.50 per month in its Larkfield District.

3. Cal-Am is authorized to add a memorandum account to its Preliminary Statement to record the initial and ongoing expenses of the low-income assistance program. This account shall be audited for reasonableness at the next general rate case (GRC) proceeding.

4. The memorandum account and related GRCs 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.

5. A public hearing is unnecessary.

6. The 30-day comment period is waived.

7. Application 06-01-014 is closed.

This order is effective today.

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

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