ALJ/XJV/avs

Decision 02-01-034 January 9, 2002

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 Authority to Establish a Lifeline Rate for Residential Domestic Water Service in Region III.

Application 00-09-048

(Filed September 21, 2000)

Julio Ramos, Attorney at Law, for Office of
Ratepayer Advocates; and Patricia A. Schmiege, Attorney at Law,
for Southern California Water Company; applicant.

Deidre Von Rock, and Edward G. Poole, Attorneys at Law,
for Western Manufactured Housing Communities
Association; interested parties.

TABLE OF CONTENTS

OPINION 2 2

1. Summary 2 2

2. Background 2 2

3. The Lifeline Rate Proposals 5 5

Impact of Discount Calculation 7 7

Discussion 10 10

Balancing Account Issues 14 14

Public Response 15 15

4. Extending the Lifeline Program to Region I;
Company-Wide Ratemaking 16 16

5. Mobilehome Park Issues 17 17

6. Comments on Proposed Decision 20 20

Findings of Fact 20 20

Conclusions of Law 22 22

ORDER 23 23

OPINION

1. Summary

We conclude that the lifeline rate proposal filed by Southern California Water Company (SCWC) at our direction is in the public interest and we approve it for implementation in the utility's Region III. The rate relief program offers all eligible customers a 15% discount on each component of the water bill. SCWC shall file an advice letter for authority to establish the same program in Region II. We direct SCWC to notify its master-meter customers of the lifeline rate program so that submeter customers, who are residents of manufactured housing communities and mobilehome parks (collectively, MHPs) and who meet the eligibility requirements, may receive a 15% discount on their submeter bills.

In SCWC's next Region I general rate case we intend to review in greater detail whether, and if so, how, we might establish a lifeline rate program in the seven, separate districts that comprise Region I. We also intend to review the feasibility of administering the ratemaking for the lifeline rate program on a company-wide basis.

We stress that today's decision is limited to the facts developed on this record. We do not suggest that SCWC's proposal provides a model which we are endorsing for low-income rate relief in all Commission-regulated water utilities.