VIII. Comments on Proposed Decision

The proposed decision of the ALJ in this matter was mailed to the parties in accordance with Section 311(d) of the Public Utilities Code and Rule 77.1 of the Rules. Comments were filed by __________________ and reply comments were filed by ______________________________.

Findings of Fact

1. The Settlement, attached as Appendix A to this decision, resolves all issues between Park and RRB.

2. The Settlement provides for a return on rate base of 9.65% for 2001 and 9.64% for 2002 and 2003.

3. The Settlement results in an increase in revenue requirement of $1,334,000 (8.7%) for 2001, $560,300 (3.4%) for 2002, and $583,200 (3.4%) for 2003.

Conclusions of Law

1. The Settlement filed by Park and RRB complies with the criteria established in D.91-12-019. The Settlement: (1) is approved by all active parties, which represent affected interests; (2) no component of the settlement conflicts with applicable law or prior decisions; and (3) we have sufficient information to conclude that it is a reasonable compromise.

2. The Settlement is reasonable in light of the whole record, consistent with applicable law, and in the public interest. The Commission should adopt the Settlement in its entirety as a resolution of all issues.

3. Park should be authorized revenue increases for the years 2001-2003 consistent with the Settlement.

4. The increased revenue requirement authorized by this order for the years 2001-2002 should be reflected in rates consistent with the rate design previously approved for Park, and should be implemented through advice letter filings. Such advice letter filings shall be filed no later than November 5 of each year.

5. Park should be authorized an attrition year increase of $583,200 for the year 2003. The attrition increase should be implemented through an advice letter filed no later than November 5, 2002.

ORDER

IT IS ORDERED that:

1. Park Water Company (Park) is authorized an increase in revenue requirement of $1,334,000 (8.7%) for 2001, $560.300 (3.4%) for 2002, and $583,200 (3.4%) for 2003. This increase in revenue requirement reflects rates of return or rate base of 9.65% for 2001 and 9.64% for 2002 and 2003.

2. The Settlement attached to this decision as Appendix A is adopted.

3. Park is authorized to file in accordance with General Order (GO) 96 revised tariffs implementing the rate increase for 2001 shown in Appendix A to this order. The revised rates shall apply to service rendered on and after the tariffs' effective date.

4. On or after November 5, 2001, Park is authorized to file an advice letter, with appropriate workpapers, requesting the step-rate increase for 2002 included in Appendix C, or to file a proportionate lesser increase for those rates in Appendix B in the event that a Park's rate of return on ratebase, adjusted to reflect rates then in effect and normal ratemaking adjustments for the 12 months ended September 30, 2001, exceeds 9.23%. This filing shall comply with GO 96-A. The requested step rates shall be reviewed by the Commission's Water Division (WD) to determine their conformity with this order and shall go into effect upon WD's determination of conformity. WD shall inform the Commission if it finds that the proposed step rates are not in accord with this decision or other Commission decisions. The effective date of the revised schedules shall be not earlier than January 1, 2002, or 30 days after filing, whichever is later. The revised schedules shall apply only to service rendered on and after their effective date.

5. On or after November 5, 2002, Park is authorized to file an advice letter, with appropriate workpapers, requesting the step-rate increase for 2003, included in Appendix C or to file a proportionate lesser increase for those rates in Appendix B in the event that Park's rate of return on ratebase, adjusted to reflect rates then in effect and normal ratemaking adjustments for the 12 months ended September 30, 2002, exceeds 9.64%. This filing shall comply with GO 96-A. The requested step rates shall be reviewed by WD to determine their conformity with this order and shall go into effect upon WD's determination of

conformity. WD shall inform the Commission if it finds that the proposed step rates are not in accord with this decision or other Commission decisions. The effective date of the revised schedules shall be not earlier than January 1, 2003, or 30 days after filing, whichever is later. The revised schedules shall apply only to service rendered on and after their effective date.

6. Application 00-03-022 is closed.

Dated , at San Francisco, California.

BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF CALIFORNIA

In the matter of the Application of Park Water )

Company (U 314 W) for Authority to Increase ) Application 00-03-022

Rates in its Central Basin Division Authorized )

by NOI 00-01-045. )

_________________________________________)

SETTLEMENT

1.00 Introduction

1.01 The Parties to this Settlement are the Ratepayer Representation Branch ("RRB") of the Water Division and Park Water Company ("Park") -- collectively, the "Parties".

1.02 The Parties agree that no signatory hereto nor any member of the Staff of the Public Utilities Commission assumes any personal liability as a result of this Settlement. The Parties agree that no legal action may be brought in any state or federal court, or in any other forum, against any individual signatory representing the interest of RRB, its staff, its attorneys, or the RRB itself regarding this Settlement. All rights and remedies are limited to those available before the California Public Utilities Commission.

1.03 Park acknowledges that RRB is charged with representing the interests of customers of public utilities in the State of California, as required by Public Utilities Code Section 309.5, and nothing in this Settlement is intended to limit the ability of RRB to carry on that responsibility.

1.04 The Parties' negotiations have resulted in the resolution of all issues raised in Application 00-03-022 and in RRB's reports dated July 21, 2000. In summary, the annual increases proposed by the Parties and those agreed to in the Settlement are as follows:

2001 2002 2003

Park 11.8% 3.6% 4.2%

RRB (6.7%) 1.4% 2.6%

Settlement 8.7% 3.4% 3.4%

1.05 Attached to this Settlement are the following appendices showing the calculations, quantities, and rates that have been agreed to by the Parties:

Appendix A _ Summary of Earnings

Appendix B _ Schedules of Rates (including revision to Rule 16)

Appendix C _ Comparison of Rates

Appendix D _ Adopted Quantities, Ratebase, and

Calculation of Income Tax.

2.00 Sales and Revenues

2.01 Consumption: After review of recent events involving neighboring utilities, the Parties agree to use the consumption per customer proposed by RRB in Tables D-1 and D-2 of its report on the Application for a General Increase in Rates of the Park Water Company.

2.02 Customers: While no issue was originally identified, the Parties now agree to assume that one customer will receive service under Resale - Code 71 and one customer will receive service under Resale - Code 72 during the Test Years.

2.03 Revenues : The Parties agree to correct errors of omission in Park's calculation of revenues and to reflect the stipulations regarding consumption and customers.

3.00 Expenses of Operation and Maintenance

3.01 Escalation: The Parties agree to use the escalation recommended by the Office of Ratepayer Advocates in its memo of July 31, 2000, which is more recent than that used in RRB's report. The Parties further agree that a weighting 60/40 of the Producer Price Index and the Compensation Per Hour Index should be used for all non-labor expenses subject to escalation.

3.02 Production: The Parties agree that purchased power, replenishment, leased water rights, and chemicals should reflect the stipulated production. The Parties agree that the costs for the Water Year July, 2000, through June, 2001, should be used to calculate expenses for purchased water, leased water rights, and replenishment. The Parties agree that purchased power per acre-foot of production should be based on the average rates charged by Southern California Edison Company and Southwest Gas Company during the period of June 1, 1999, through May 31, 2000.

3.03 After further review, the Parties agree that the 1887 acre-feet of pumped production in 1999 was unusual. The Parties agree to assume that Park will pump 1500 acre-feet each Test Year and that the remaining production will come from water purchased from the Central Basin Municipal Water District.

3.04 Payroll: The Parties agree that the apparent effect of the methodological differences between Park and RRB in Payroll were overstated as RRB allocated payroll to capital and clearing accounts from a recorded payroll which was already net of these adjustments. After review of prior decisions, the Parties agree to use Park's methodology of calculating payroll which incorporates increases for merit. After review of Park's historic and projected projects, the Parties agree to use Park's budgeted allocations of payroll to capital and clearing accounts rather than percentages based on an average of five years.

3.05 After review of Park's current staffing and those adopted in Park's last case, as well as discussion of workforce since Park relinquished its operating contract with the City of Bell Gardens and centralized the processing of remittance at Central Basin, the Parties agree to calculate the Payroll on the assumption that Park will add one employee to its workforce.

3.06 During negotiations, Park discovered an error in its payroll involving an underestimate of the time charged out by Central Basin's employees to Park's subsidiaries for the centralized processing of remittances. As a result, payroll charged to expense was overstated by approximately $26,000. The Settlement corrects this error.

3.07 Other Expenses: RRB estimated Other Expenses on an average of five years while Park's estimate was based on the operating budget for 2000. This issue also involves Office Supplies, Outside Services, and Miscellaneous A&G Expenses. During the negotiations, the Parties discovered that Park had provided RRB recorded amounts which contained a mischaracterization of some expenses. When averages were calculated using the correct expenses, Park's estimates were lower for the total of all categories. The Parties agree to use Park's estimates, adjusted for the stipulated escalation, for all expenses involved here.

3.07.8.1 Balancing Account: The Parties, after further review, agree that Park's balancing account is currently overcollected, but that it is expected to decrease for the rest of this year to the point that it will be less than 2% of revenues by January 1, 2001. The Parties agree, therefore, that Park should not set up a surcredit at this time.

4.00 Administrative and General Expenses

4.01 Payroll: Overall Payroll is allocated between Operations and Maintenance and Administrative and General Expenses. The discussion under Operation and Maintenance applies equally here.

4.02 Office Supplies: The Parties agree to use Park's estimates of Office Supplies adjusted for stipulated escalation. In addition, the Parties agree to reduce this category to reflect $22,000 in savings in utilities and maintenance resulting from the replacement of the air conditioning and a roof which were not reflected in Park's estimates (see Paragraph 7.06).

4.03 Pensions & Benefits: The Parties agree to use the latest actuarial studies in calculating expenses for Group Pension and Post-Retirement Benefits Other than Pension. The Parties also agree to calculate Pensions and Benefits based upon stipulated payroll.

4.04 Regulatory Expense: After further review of prior cases and actual expenditures to date, the Parties agree to use an estimate of $90,000 for this proceeding to be spread over 3 years at $30,000 per year.

4.05 Outside Services: During the negotiations, Park discovered an error in its calculations for Outside Services. The recorded amounts were incorrectly normalized, resulting in an understatement of approximately $70,000. The Parties agree to correct this error.

4.06 Miscellaneous Expenses: The Parties agree to use Park's estimates adjusted for stipulated escalation.

4.07 Injuries and Damages: The Parties agree that Injuries and Damages should be calculated using stipulated payroll.

5.00 Main Office

5.01 Payroll: During negotiations, the Parties reviewed and discussed RRB's study of executive salary per customer based on the comparability of other water companies; the different ways in which employees are compensated at different companies; the effects of accomplishing certain functions with outside consultants versus employees; the portions of payroll which are charged elsewhere, and the ability of Park to reduce workforce following condemnation of its subsidiary, Santa Paula Water Works, in 1996. The Parties agree to use Park's salary and employees to calculate payroll of the Main Office with one exception. Park had assumed in its application that its V.P. - Engineering would continue to work half time after retiring in 2000. The Parties agree that this employee will be fully retired at the end of 2000.

5.02 Benefits and Workers Compensation: The Parties agree to calculate these expenses using stipulated payroll. Also the Parties agree to use the latest actuarial studies for 2000 to calculate the Group Pension and Post-Retirement Benefits Other than Pension. In addition, during negotiations, Park discovered that the benefits charged to capital and other divisions had been omitted from its Main Office, resulting in an overstatement of benefits by approximately $50,000. The Parties agree to correct this error.

5.03 Plant: After discussion of current options, the Parties agree to assume a cost of $24,000 per vehicle for additions to the Main Office.

5.04 Based on further information provided by Park, the Parties agree to calculate ratebase for the Main Office using the Construction Work in Progress (CWIP) proposed by Park and using additions (after allocation of common plant) of $481,186 for 2000, $559,793 for 2001, and $1,153,805 for 2002. In the aggregate, these additions are lower than those in Park's application by $223,402.

5.05 Allocational Factors: The Parties agree to use the latest available allocational factors, as set forth in RRB's report.

6.00 Taxes Other Than Income Tax

6.01 Taxes on Payroll: The differences between RRB's and Park's estimated taxes on Payroll resulted entirely from the different estimates of Payroll. The Parties agree that the stipulated taxes should reflect stipulated Payroll.

6.02 Ad Valorem Taxes: The differences between RRB's and Park's estimates of Ad Valorem Taxes result entirely from differences in estimates of plant. The Parties agree that taxes should reflect stipulated plant.

7.00 Plant - Central Basin

7.01 Wells: Based on the hydraulic capabilities of the system, the capacity of the other well, and the correspondence from the Department of Health Services, the Parties agree that construction of a well is required and should be included in plant.

7.02 During negotiations, Park discovered that the CWIP for 1999 had been omitted from its workpapers with the result that the amount closed to plant in 2000 was understated by $363,000. The Parties agree to correct this error.

7.03 Mains and Services: Since Park's estimates of total capital expenditures are consistent with the average of recorded years, the Parties agree to use Park's estimates of capital expenditures for mains and services.

7.04 Coating of Reservoir: After additional review of the progress of this project, the amounts expended to date, and the amounts committed under firm bid, the Parties agree that the cost and timing are sufficiently certain to warrant inclusion in this proceeding.

7.05 Replacement of Parking Lot: After additional review, the Parties agree that the replacement of the parking lot can be deferred until after the Test Years.

7.06 Replacement of Roof and Air Conditioning System: During the negotiations, Park provided quantification of the savings resulting from these projects. The Parties agree that the proposed projects should be authorized on the condition that the savings are reflected in estimated expenses.

8.00 Depreciation

8.01 The Parties agree that depreciation and accumulated depreciation should be based on the stipulated rates of depreciation and the stipulated balances of plant incorporating stipulated adjustments, additions, and retirements.

9.00 Rate Base

9.01 Lag: The Parties agree that the lag for Water Rights Leases and Pensions contained in Park's filing was incorrect because it did not reflect current practices. The Parties now agree to recalculate this using the most recent data and agree on minus 76.99 days for water rights leases and 220.99 days for Pensions. The Parties agree that Park's lag for Ad Valorem taxes is consistent with actual payment and should be used.

9.02 Operational Cash: After review of prior decisions, the Parties agree that the unamortized portion of regulatory expense is appropriately included in operational cash as part of the allowance for working cash.

10.00 Memorandum Accounts

10.01 Radon and Arsenic : The Parties agree that Park should be authorized to establish a memorandum account to track the costs of compliance with regulations established by the Environmental Protection Agency and the Department of Health Services for radon and arsenic similar to the memorandum accounts recently authorized by the Commission for Southern California Water Company.

10.02 CALFED Bay-Delta Program: The Parties agree that Park will withdraw its request for a memorandum account to track costs associated with regulations arising out of the CALFED Bay-Delta Program.

11.00 Net-To-Gross Multiplier

11.01 The Parties agree with the net-to-gross multiplier calculated by RRB.

12.00 Income Tax

12.01 Having no methodological difference, the Parties agree that stipulated Income Taxes should be calculated consistent with all other aspects of the Settlement.

13.00 Design Of Rates

The Parties agree that the service charges and commodity rates should be designed according to the Commission's policy and that the increase in the refundable deposit for a 3-inch meter in Park's Schedule PR-9CM from $650 to $750 should be authorized. The Parties agree that Park should be authorized to revise its Rule 16 as requested and as shown in the revised tariff attached to this Settlement. The revised language is identical to that recently approved for Southern California Water Company.*

14.00 Cost of Capital

14.01 The Parties agree to incorporate the effects of bonds issued by Park on June 29, 2000. The Parties further agree to use a Return on Ratebase of 9.65% for 2001 and 9.64% for 2002 and 2003.

15.00 Summary of Earnings

15.01 The Parties agree that the Summary of Earnings attached to this Settlement as Appendix A reflects all the items, conditions, and adjustments to which the Parties have agreed and that this schedule should be included in the Commission's decision in this proceeding.

RATEPAYER REPRESENTATION BRANCH

WATER DIVISION PARK WATER COMPANY

By______________________ By_______________________

Victor D. Moon Leigh K. Jordan

Project Manager Chief Operating Officer

Ratepayer Representation Branch Park Water Company

of the Water Division P. O. Box 7002

California Public Utilities Commission Downey, CA 90241-7002

320 West 4^th Street, Suite 500

Los Angeles, CA 90013

(213) 576-7045

`

Dated: October 24, 2000 Dated: October 24, 2000

* Deleted pursuant to letter date January 25, 2001 to ALJ.

APPENDIX A

Page 8

PARK WATER COMPANY

SUMMARY OF EARNINGS

TEST YEAR 2001 AT 2000 PRESENT RATES

(Dollars in Thousands)

(1) DEPRECIATION, AD VALOREM AND PAYROLL TAXES FROM PARK'S MAIN OFFICE HAVE BEEN INCLUDED IN THE APPROPRIATE LINE ITEM OF EXPENSE.

APPENDIX A

Page 9

PARK WATER COMPANY

SUMMARY OF EARNINGS

TEST YEAR 2001 AT 2001 PROPOSED RATES

(Dollars in Thousands)

APPENDIX A

Page 10

PARK WATER COMPANY

SUMMARY OF EARNINGS

TEST YEAR 2002 AT 2001 PROPOSED RATES

(Dollars in Thousands)

APPENDIX A

Page 11

PARK WATER COMPANY

SUMMARY OF EARNINGS

TEST YEAR 2002 AT 2002 PROPOSED RATES

(Dollars in Thousands)

(1) DEPRECIATION, AD VALOREM AND PAYROLL TAXES FROM PARK'S MAIN OFFICE HAVE BEEN INCLUDED IN THE APPROPRIATE LINE ITEM OF EXPENSE.

(END OF APPENDIX A)

APPENDIX B

Page 1 of 10

PARK WATER COMPANY

Schedule No. PR-1

GENERAL METERED SERVICE

APPLICABILITY

Applicable to all metered water service.

TERRITORY

Within all service areas in Los Angeles County as delineated in the service area maps included in the tariff schedules.

RATES

Per Meter Per Month

Per 100 cu. ft. $ 2.068 (I)

Service Charge:

For 5/8 x 3/4-inch meter $ 11.45 (I)

For 3/4-inch meter 17.20 |

For 1-inch meter 28.60 |

For 1 1/2-inch meter 57.30 |

For 2-inch meter 91.60 |

For 3-inch meter 172.00 |

For 4-inch meter 286.00 |

For 6-inch meter 573.00 |

For 8-inch meter 916.00 |

For 10-inch meter 1317.00 |

For 12-inch meter 1889.00 (I)

The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is to be added the bimonthly charge computed at the Quantity Rates.

SPECIAL CONDITIONS

1. All charges under this schedule to customers in the City of Norwalk subject to surcharge of 2.04 percent.

2. A late charge will be imposed per Schedule LC.

3. In accordance with Section 2714 of the Public Utilities Code, if a tenant in a rental unit leaves owing the Company, service to the subsequent tenants in that unit will, at the Company's option be furnished on the account of the landlord or property owner.

4. All bills subject to the reimbursement fee set forth on Schedule No. UF.

APPENDIX B

Page 2 of 10

PARK WATER COMPANY

Schedule No. PR-1

GENERAL METERED SERVICE

AUTHORIZED STEP INCREASES

Each of the following increases in rates may be put into effect by filing a rate schedule which adds the appropriate increase to the rates at that time

Rates to be Effective

2002 2003

Quantity Rate:

For all water delivered per 100 cu. ft. $ 0.059 $ 0.063

Service Charge:

For 5/8 x 3/4-inch meter $ 0.55 $ 0.55

For 3/4-inch meter 0.80 0.80

For 1-inch meter 1.40 1.40

For 1 1/2-inch meter 2.70 2.80

For 2-inch meter 4.40 4.40

For 3-inch meter 8.00 8.00

For 4-inch meter 14.00 14.00

For 6-inch meter 27.00 28.00

For 8-inch meter 44.00 44.00

For 10-inch meter 63.00 63.00

For 12-inch meter 91.00 91.00

APPENDIX B

Page 3 of 10

PARK WATER COMPANY

Schedule No. PR-4F

NON-METERED FIRE SPRINKLER SERVICE

APPLICABILITY

Applicable only for water service to privately owned non-metered fire sprinkler systems and hydrants where water is to be used only in case of fire.

TERRITORY

Within all service areas in Los Angeles County as delineated on the service area maps included in the tariff schedules.

RATES

Per Service

Per Month

Service Charge:

For 2-inch $ 10.50 (I)

For 3-inch 13.90 |

For 4-inch 20.60 |

For 6-inch 30.40 |

For 8-inch 45.00 |

For 10-inch 66.30 |

For 12-inch 95.90 (I)

SPECIAL CONDITIONS

1. The fire protection service connection shall be installed by the utility with the cost thereof paid by the applicant. Such payment shall not be subject to refund.

2. The minimum diameter for fire protection service shall be two (2) inches, and the maximum diameter shall be not more than the diameter of the main to which the service is connected.

3. If a distribution main of adequate size to serve a private fire protection system in addition to all Other normal service does not exist in the street or alley adjacent to the premises to be served, then a service main from the nearest main of adequate capacity shall be installed by the utility and the cost paid by the applicant. Such payment shall not be subject to refund.

(Continued)

APPENDIX B

Page 4 of 10

PARK WATER COMPANY

Schedule No. PR-4F

NON-METERED FIRE SERVICE

(Continued)

4. Service hereunder is for private fire protection systems to which no connections for other than fire protection purposes are allowed and which are regularly inspected by the underwriters having jurisdiction, are installed according to specifications of the utility, and are maintained to the satisfaction of the utility. The utility may install the standard detector type meter approved by the board of Fire Underwriters for protection against theft, leakage or waste of water, and the cost paid by the applicant. Such payment shall not be subject to refund.

5. The utility undertakes to supply only such water at such pressure as may be available at any time through the normal operation of its system.

6. Any unauthorized use of water, other than for fire extinguishing purposes, shall be charged for at the regular established rate as set forth under Schedule No.PR-1, and/or may be the grounds for the immediate disconnection of the service without liability to the Company.

7. The utility reserves the right to limit the installation of private fire hydrant service to such areas where public fire hydrant does not exist or where public fire hydrant service is limited in scope to the detriment of the applicant.

8. A late charge will be imposed per Schedule No. LC.

9. All bills are subject to the reimbursement fee set forth on Schedule No. UF.

APPENDIX B

Page 5 of 10

PARK WATER COMPANY

Schedule No. PR-4F

NON-METERED FIRE SPRINKLER SERVICE

AUTHORIZED STEP INCREASES

Rates to be Effective

1-1-02 1-1-03

Size of Service

For 2-inch $ 0.50 $ 0.50

For 3-inch 0.60 0.70

For 4-inch 1.00 1.00

For 6-inch 1.40 1.50

For 8-inch 2.20 2.20

For 10-inch 3.20 3.10

For 12-inch 4.60 4.60

APPENDIX B

Page 6 of 10

PARK WATER COMPANY

Schedule No. PR-6

RECLAIMED WATER SERVICE

APPLICABILITY

Applicable to metered reclaimed water service.

TERRITORY

Within all service areas in Los Angeles County as delineated on the service area maps included in the tariff schedules.

RATES

Quantity Rate:

Per Meter Per Month

$ 1.758 (I)

Per 100 cu. ft.

Service Charge:

For 5/8 x 3/4-inch meter $ 9.20 (I)

For 3/4-inch meter 13.80 |

For 1-inch meter 22.90 |

For 1 1/2-inch meter 45.80 |

For 2-inch meter 73.00 |

For 3-inch meter 138.00 |

For 4-inch meter 229.00 |

For 6-inch meter 458.00 |

For 8-inch meter 733.00 |

For 10-inch meter 1054.00 |

For 12-inch meter 1511.00 (I)

The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is to be added the bimonthly charge computed at the Quantity Rates.

SPECIAL CONDITIONS

1. The user (customer) is responsible for on-site compliance with local, state, or federal regulations that may apply to the use of an approved reclaimed water source.

2. All charges under this schedule to customers in the City of Norwalk are subject to a surcharge of 2.04 percent.

3. A late charge will be imposed per Schedule No. LC.

4. All bills are subject to the reimbursement fee set forth on Schedule No. UF.

APPENDIX B

Page 7 of 10

PARK WATER COMPANY

Schedule No. PR-6

RECLAIMED WATER SERVICE

Each of the following increases in rates may be put into effect by filing a rate schedule which adds the appropriate increase to the rates at that time.

Rates to be Effective 1-1-02 1-1-03

Quantity Rate

For all water delivered per 100 cu. ft. $ 0.059 $ 0.063

Service Charge:

For 5/8 x 3/4-inch meter $ 0.40 $ 0.40

For 3/4-inch meter 0.60 0.60

For 1-inch meter 1.10 1.10

For 1 1/2-inch meter 2.20 2.20

For 2-inch meter 3.80 3.50

For 3-inch meter 6.00 6.40

For 4-inch meter 11.00 11.20

For 6-inch meter 22.00 22.40

For 8-inch meter 35.00 35.20

For 10-inch meter 50.00 50.40

For 12-inch meter 73.00 72.80

APPENDIX B

Page 8 of 10

PARK WATER COMPANY

Schedule No. PR-9CM

CONSTRUCTION AND OTHER TEMPORARY METERED SERVICE

APPLICABILITY

Applicable to all metered water service furnished for construction and other temporary purposes.

TERRITORY

Within all service areas in Los Angeles County as delineated on the maps included in the tariff schedules.

RATES

Monthly quantity rates and service charge listed in Schedule PR-1, General Metered Service will apply to service furnished under this schedule.

SPECIAL CONDITIONS

1. Where it is necessary to install or relocate a meter to furnish service under this schedule, and such meter may be connected to the utility's existing facilities, the following charges will apply:

a. For installation and removal of the meter $25.00

b. For each relocation of the meter within the same

local area as the original installation $12.50

2. Where no suitable outlet exists at the point where service is desired, the necessary facilities will be installed under the provisions of Rule No. 13, Temporary Service.

3. In case a meter is installed or used under conditions which are considered by the utility to subject the meter to unusual hazards, the applicant will be required to deposit with the utility the amount, show in the table below, which corresponds to the size and type of meter installed:

Size of Meter Amount of Deposit

5/8 x 3/4 or 3/4 inch $ 30.00

1-inch disc 60.00

1-1/2 inch 125.00

2-inch disc or torrent 200.00

2-1/2 inch Sparling Fire Hydrant 250.00 3-inch disc or torent 700.00 (I)

The deposit less the cost of any repairs other than those due to normal depreciation, will be returned to the customer upon completion of the service for which the meter was installed.

4. A late charge will be imposed per Schedule No. LC.

APPENDIX B

Page 9 of 10

PARK WATER COMPANY

Schedule No. LC

LATE PAYMENT CHARGE

APPLICABILITY

Applicable to all service.

TERRITORY

Within the entire service area of the Company.

RATES

Late Charge: A late charge of 1.5% on unpaid balance subject to special

conditions and minimum charge below:

Minimum Charge: The minimum charge is $1.00

SPECIAL CONDITIONS

1. The balance is unpaid and subject to a late charge if the bill is Past-Due, or delinquent,

as defined in Rule No, 11, Section B.1.a.

2. The late charge should be imposed only once on a delinquent bill since the account

would be shut off before a subsequent bill and then subject to the reconnection fee as

authorized by Tariff Rule No. 11.

3. All bills shall be subject to the reimbursement fee as set forth on Schedule No. UF.

APPENDIX B

Page 10 of 10

PARK WATER COMPANY

Schedule No. UF

SURCHARGE TO FUND PUBLIC UTILITIES

COMMISSION REIMBURSEMENT FEE

APPLICABILITY

This surcharge applies to all water bills rendered under all tariff rate schedules authorized by the Commission.

TERRITORY

This schedule is applicable within the entire territory service by the utility.

RATES*

A 1.4% surcharge shall be added to all customer bills.

*In 1982 the Legislature established a Public Utility Commission Reimbursement Fee to be paid by all water and sewer system corporations to fund their regulation by the Commission. Public Utilities (PU) Code Sections 401-442. The surcharge to defray the cost of that fee is ordered by the Commission under authority granted by PU Code Section 403.

(END OF APPENDIX B)

APPENDIX C

PARK WATER COMPANY

COMPARISON OF RATES

NOTE: BASED ON MONTHLY CHARGES ACCORDING TO SCHEDULE

NO. PR-1 FOR A 5/8 X ¾ INCH METER

(END OF APPENDIX C)

APPENDIX D

Page 1 of 8

PARK WATER COMPANY

ADOPTED QUANTITIES

Net-to-Gross Multiplier 1.7679

Uncollectibles Rate 0.65%

Franchise Rate 0.39%

Federal Tax Rate 34.00%

State Tax Rate 8.84%

APPENDIX D

Page 2 of 8

PARK WATER COMPANY

ADOPTED QUANTITIES

APPENDIX D

Page 3 of 8

PARK WATER COMPANY

RATE BASE SUMMARY

TEST YEAR 2001

APPENDIX D

Page 4 of 8

PARK WATER COMPANY

RATE BASE SUMMARY

TEST YEAR 2002

APPENDIX D

Page 5 of 8

PARK WATER COMPANY

INCOME TAX CALCULATIONS

TEST YEAR 2001 AT 2000 PRESENT RATES

(Dollars in Thousands)

APPENDIX D

Page 6 of 8

PARK WATER COMPANY

INCOME TAX CALCULATIONS

TEST YEAR 2001 AT 2001 PROPOSED RATES

(Dollars in Thousands)

APPENDIX D

Page 7 of 8

PARK WATER COMPANY

INCOME TAX CALCULATIONS

TEST YEAR 2002 AT 2001 PROPOSED RATES

(Dollars in Thousands)

APPENDIX D

Page 8 of 8

PARK WATER COMPANY

INCOME TAX CALCULATIONS

TEST YEAR 2002 AT 2002 PROPOSED RATES

(Dollars in Thousands)

(END OF APPENDIX D)