Word Document

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 29, 2001

TO: PARTIES OF RECORD IN A.00-02-035

Enclosed is Item H-la Alternate Order of Commissioner Bilas to the proposed decision of Administrative Law Judge (ALJ) Patrick previously mailed to you. This item is on the Commission's agenda for April 19, 2001.

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

As set forth in Rule 77.6, parties to the proceeding may file comments on the enclosed alternate at least seven days before the Commission meeting or no later than April 5, 2001. Reply comments should be served by April 12, 2001. An original and four copies of the comments and reply comments with a certificate of service shall be filed with the Commission's Docket Office and copies shall be served on all parties on the same day of filing. The Commissioners and ALJ shall be served separately by overnight service.

________________________

LYNN T. CAREW, Chief

Administrative Law Judge

LLJ:rmn

Enclosure

COM/RB1/acb H-1a

Decision ALTERNATE ORDER OF COMMISSIONER BILAS (Mailed 3/29/01)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of SAN JOSE WATER COMPANY (U-168-W), a corporation, for an order authorizing it to increase rates charged for water service.

Application 00-02-035

(Filed February 18, 2000)

O P I N I O N

I. Summary

San Jose Water Company (SJWC) is authorized to increase its rates by amounts designed to increase revenue by $8,434,000 (7.40%) for 2001; $3,583,000 (2.93%) for 2002; and $3,930,100 (3.12%) for 2003. We authorize rates of return on rate base of 9.10% for the year 2001; 9.11% in 2002; and 9.11% in 2003. The return on common equity (ROE) authorized by this decision is 9.95%.

As a result of the revenue increase granted by this decision, the monthly bill for the average residential customer using 1,500 cubic feet per month would increase by $2.97 or 10.48% from $28.33 to $31.30 for year 2001.

Also, the Commission adopts a Settlement entered into by the Ratepayer Representation Branch (RRB) of the Water Division and SJWC. The Settlement resolves all issues between RRB and SJWC except for ROE. Following evidentiary hearings on this one issue, the Commission concludes the appropriate ROE is 9.95% and that such a rate is just and reasonable for the years 2001-2003.

Previous PageTop Of PageGo To First PageNext Page