3. Scope of Proceeding

Administrative Law Judge (ALJ) Michelle Cooke, in her September 6, 2005 ruling, determined that there should be two distinct phases to this proceeding: (1) selection of a water supply solution and (2) interim rate relief. Also, she directed California-American Water Company (Cal-Am) to provide additional testimony with regard to its request for interim rate relief. Following a prehearing conference held on October 5, 2005, Cal-Am provided additional testimony in April, 2006, with regard to its request for interim rate relief. Accordingly, this phase of the proceeding will be limited to Cal-Am's Motion for Interim Rate Relief. There will be a separate phase to address the selection of a water supply solution, which will commence after the Environmental Impact Report on the proposed Coastal Water Project is further underway. A scoping memo for the second phase will be issued once a schedule is clear.