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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

April 8, 2004

TO: PARTIES OF RECORD IN APPLICATION 02-07-021

Enclosed is the Alternate Proposed Decision of Commissioner Lynch to the Proposed Decision of Administrative Law Judge (ALJ) Walker.

When the Commission acts on the proposed or alternate decision, it may adopt all or part of it as written, amend or modify it, or set aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Comments on the alternate decision must be filed and served April 15, 2004. Reply comments are due April 19, 2004.

Pursuant to Rule 77.3 comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service. Please also provide an electronic copy of the comments and reply comments to Darwin Farrar at edf@cpuc.ca.gov.

 /s/ ANGELA K. MINKIN by LTC 

Angela K. Minkin, Chief

Administrative Law Judge

ANG:mel

Attachment

COM/LYN/edf/mel ALTERNATE DRAFT Alt to Agenda ID #3099

Decision PROPOSED ALTERNATE DECISION OF COMMISSIONER LYNCH

(Mailed 04/08/2004)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Southern California Water Company (U 133 W) for an Order pursuant to Public Utilities Code Section 851 Approving a Settlement Agreement that will convey Water Rights in the Culver City Customer Service Area.

Application 02-07-021

(Filed July 11, 2002)

OPINION RESOLVING RATEMAKING ISSUES

1. Summary

In Interim Decision (D.) 03-05-001 on May 8, 2003, the Commission approved a settlement between the City of Santa Monica (City) and Southern California Water Company (SCWC) that conveyed SCWC water rights to the City and relieved SCWC from its participation in a number of pending lawsuits related to the Charnock Groundwater Basin (Charnock Basin, or the Basin). The issue of ratemaking treatment of the settlement proceeds and the issue of contamination payments made to SCWC by oil companies were deferred to this phase of the proceeding. This decision resolves those issues. The application is closed.

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