APPENDIX A
Page 1

(Advice Letter filing requirements from D.97-03-028)

  1. Within 5 working days from the date of an agreement to acquire a non-Commission regulated water system, Cal Water shall contact and if required meet with WD staff to explain the details of the proposed acquisition.
 
2. Within 30 days from the date of execution of an agreement to acquire a non-Commission regulated water system Cal Water shall file an acquisition advice letter with the WD.
 
3. The acquisition advice letter shall include, but not be limited to, the following items. Appendices need only be filed with WD, however, the acquisition advice letter should indicate that appendices are available upon request.

A. A copy of the executed purchase agreement. (Appendix)
 
B. Proposed rates.
 
Cal Water's established rates may be applicable to the acquired customers, but adequate justification must be provided.
 
C. A detailed description of water system facilities being acquired, based on the best information available from the acquired water system operator and Cal Water's good faith effort to supplement deficiencies. This should include, but not be limited to, such items as a distribution system map, showing pipe sizes and fire flow and pressure area deficiencies. Acquisition advice letters for water systems which do not meet the minimum design and service standards of General Order (G.O.) 103 shall require Commission action by Resolution.
 
D. Cal Water's planned water system improvements for the acquisition, including estimated costs and the rate impact on the acquired and existing Cal Water customers.
 
E. Estimated Summary of Earnings before and after the acquisition both with and without the estimated cost of water system improvements from D. above.  

APENDIX A
(Page 2)

F. The names and addresses of all utilities, corporations, persons or other entities, whether publicly-or privately-
operated, with which the acquisition is likely to compete, and of cities or counties within which service will be rendered.
 
G. A certification that a copy of the acquisition advice letter has been served upon or mailed to each such entity or person in F. above.
 
H. A map of suitable scale showing the location of the acquisition and its relation to other public utilities, corporations, persons or entities with which the same is likely to compete. (Appendix)
 
I. A statement identifying the franchises and such health and safety permits as the appropriate public authorities have required or may require.
 
J. A detailed statement of the amount and basis of the original cost (estimated if not known) of all plant and of the depreciation reserve and purchase price. The parties understand that the original cost is subject to change after verification of the acquired system's records and facilities.

(END OF APPENDIX A)

APPENDIX B

Timeline

June 6, 1996 Commission issues interim decision authorizing rate increase in 5 districts but setting for later phase the issue of three unauthorized acquisitions: Goshen Water System, City of Visalia Industrial Water System, and E.B. Hicks Water Co.

January 7, 1997 Cal Water and Commission Staff sign MOU setting out rules for filing new acquisition agreements.

March 12, 1997 Cal Water acquires Indian Meadows.

March 18, 1997 Commission issues decision approving MOU.

August 10, 1999 Cal Water acquires Olcese.

March 9, 2000 Cal Water acquires Country Meadows.

May 6, 2002 Cal Water files Advice Letters 1514 (County Meadows)
and 1515 (Indian Springs).

June 26, 2002 Cal Water files Advice Letter 1517 (Olcese).

(END OF APPENDIX B)

APPENDIX C