APPENDIX B

1 OF 27

California-American Water Company

PRELIMINARY STATEMENT

(continued)

F. National Oceanic and Atmospheric Administration Endangered Species Act ("NOAA/ESA")

Memorandum Account

The purpose of the NOAA Memorandum Account is to track compliance payments made by California American Water to the United States Department of Commerce National Oceanic and Atmospheric Administration ("NOAA"), or its designated payee, for Federal Endangered Species Act ("ESA") mitigation in its Monterey District. California American Water will seek recovery of these costs in its future Monterey District general rate case.

G. San Clemente Dam Memorandum Account (N)

Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, all San Clemente Dam retrofit project costs, including ESA compliance costs, shall be placed in a memorandum account for later reasonableness review. The cost caps for this memorandum account are $9,379,525 for 2004, $1,321,590 for 2005, $1,863,825 for 2006 and $11,433,000 for 2007, for a total cap of $23,997,940. This memorandum account will accrue Allowance for Funds Used During Construction ("AFUDC") as prescribed in the decision.

H. Water Revenue Adjustment Mechanism ("WRAM") Emergency Rate Overcollections Memorandum Account

Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, this memorandum account will track all revenues generated if emergency rates are put into effect. Any overcollections will be refunded to customers consistent with the process adopted in D. 05-03-012. Funds from this account cannot be used to pay any State Water Resource Control Board ("SWRCB") fines.

I. Endangered Species Act ("ESA") Memorandum Account

The purpose of the ESA Memorandum Account is to track costs incurred for compliance with ESA requirements, except for ESA compliance costs associated with the San Clemente Dam

retrofit project. ESA compliance costs for the San Clemente Dam project will be tracked in the San Clemente Dam Memorandum Account per the rate case decision issued for Monterey in A. 05-02-012. ESA fines may not be tracked in this account.

J. Monterey Peninsula Water Management District ("MPWMD") Expanded Rationing Costs Memorandum Account

The purpose of this memorandum account is to track costs for emergency conservation and rationing billed by the MPWMD as authorized in D. 03-02-030.

K. MPWMD Ordinance 92 Rationing Costs Memorandum Account

The purpose of this memorandum account is to track any costs incurred under MPWMD's

Ordinance 92 in the event that rationing is implemented. (N)

(continued)

APPENDIX B

2 OF 27

California-American Water Company

PRELIMINARY STATEMENT

(continued)

L. MPWMD Special Conservation Surcharge Balancing Account (N)

Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a conservation budget not to exceed $300,000 annually will be collected through a 1% surcharge on customer bills. The $300,000 is approximately 1% of the 2006 operating revenues of $31,935,700 authorized in the 2005 Monterey General Rate Case decision. These funds will support additional conservation efforts to be undertaken by MPWMD.

M. Employee Retirement Income Security Act ("ERISA") Surcharge Balancing Account

Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a monthly surcharge will be applied to customer bills to collect for the minimum ERISA pension payment. The surcharge at this time is 3% and all collections will be tracked in a balancing account. An annual advice letter filing will be made for a surcredit or surcharge based on the

final actual payments made for ERISA.

N. American Job Creation Tax Credits Memorandum Account

The purpose of this memorandum account is to track all tax benefits received from the

American Jobs Creation Act.

O. Water Rate Adjustment Mechanism ("WRAM") Balancing Account

Per Decisions 00-03-053 & 03-03-02-030, the WRAM Balancing Account will track the

under or over collection of revenues due to the design of rates in the Monterey district. Only differences caused by the design should accrue to the account, not differences caused by

variations in consumption. California American Water must file for recovery of the account when

the balance exceeds 5% of gross revenues in Monterey. (N)

APPENDIX B

3 OF 27

California-American Water Company

Schedule No. MO-1

Monterey District Tariff Area

GENERAL METERED SERVICE

APPLICABILITY

Applicable to all water furnished on a metered basis.

TERRITORY

The incorporated cities of Monterey, Pacific Grove, Carmel-by-the-Sea, Del Rey Oaks, Sand CIty,

a portion of Seaside, and certain unincorporated areas in the County of Monterey.

RATES

Per Meter

Quantity Rates: Per Month

Elevation Zone Surcharge:

Elevation Zone 1, per 100 cu. ft. .... $0.2567

Elevation Zone 2, per 100 cu. ft. .... $0.4464

Residential, Multi-Residential, & PAR Customers:

For the first 100 cu. ft. x Customer ECU...............................................$1.6390 (I)

For next 100 cu. ft x Customer ECU....................................................$3.2780 (I)

For the next 100 cu. ft x Customer ECU less allotment for people.............$4.9170 (I)

For the next 100 cu ft x Customer ECU less allotment for people...............$6.5560 (I)

All Water over fourth block, per 100 cu ft .............................................$13.1120 (I)

Service Charge...............................................................................$0.9388 (R)

Special Use Customers:

For all water delivered, per 100 cu. ft...................................................$4.9170 (I)

All Other Customers:

For all water delivered up to monthly allotment, per 100 cu. ft...................$3.2780 (I)

For all water delivered over monthly allotment, per 100 cu. ft....................$9.8340 (I)

(continued)

APPENDIX B

4 OF 27

California-American Water Company

Schedule No. MO-1

Monterey District Tariff Area

GENERAL METERED SERVICE

Meter Charge:

Per Meter Per Month

Residential PAR All Other

Customers Customers Customers

For 5/8 x 3/4-inch meter ................................ $6.91 $0.00 $13.81 (I)

For 3/4-inch meter................................. $10.36 $0.00 $20.72 (I)

For 1-inch meter.................................. $17.26 $0.00 $34.53 (I)

For 1-1/2-inch meter...................................$34.53 $0.00 $69.05 (I)

For 2-inch meter...................................$55.24 $0.00 $110.48 (I)

For 3-inch meter...................................$103.58 $0.00 $207.15 (I)

For 4-inch meter...................................$172.63 $0.00 $345.25 (I)

For 6-inch meter...................................$345.25 $0.00 $690.50 (I)

For 8-inch meter................................. $552.40 $0.00 $1,104.80 (I)

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

SPECIAL CONDITIONS

1. The boundaries of the three zones in which the above rates apply are as set forth in the Preliminary Statement and delineated on the Tariff Service Area Maps filed as a part of these tariff schedules.

2. Any residential customer who has been required to install a Residential Fire Sprinkler System (R.F.S.S.) at their place of residence by local fire ordinances will be allowed to have their monthly service charge reduced by one meter size, provided it has been requested by the customer and verified by the Company that the lower size of meter would be large enough to provide adequate service to the residence. The R.F.S.S. Service is not considered a fire service by the Company, but is considered an oversized general metered service and therefore, only the rules and conditions of service for general metered service apply.

3. A surcharge is included on each bill to collect franchise taxes and/or business license fees paid

to various municipalities. The amount collected is based on a percentage of the gross revenues

of each bill. The percentages are as follows: Ryan Ranch 2.05%, City of Pacific Grove 0.10%,

City of Carmel-by-the-Sea 2.15%, City of Seaside 1.00%, City of Del Rey Oaks 0.11%, City of Sand

City 0.14%, City of Monterey 1.05%, and unincorporated areas of Monterey County 1.00%.

4. Customers must apply with the Company for acceptance into the Program for Alternate Rates

(PAR). Company will analyze applications based upon proof of acceptance into the California Alternate Rates for Energy Program of Pacific Gas and Electric.

(continued)

APPENDIX B

5 OF 27

California-American Water Company

Schedule No. MO-1 (continued)

Monterey District Tariff Area

GENERAL METERED SERVICE

SPECIAL CONDITIONS (continued)

5. All bills are subject to the reimbursement fee set forth in Schedule No. UF.

6. The per capita design shall remain in effect and until ordered otherwise by the Commission.

Residential customers:

The Equivalent Consumption Unit (ECU) is determined by taking into consideration the following factors: a) the number of people in the household; b) the size of the lot in which the home is constructed; and c) an allotment for large animals. The monthly ECU calculation is as follows:

a. Determine the base allotment for the number of people using the table below.

b. Apply the lot size adjustment for winter and summer months. (C)

c. Apply the allotment for large animals.

d. Add up the allotments from (a), (b) and (c). Divide the sum by two to determine the block width for each block. (C)

TABLE TO CALCULATE EQUIVALENT CONSUMPTION UNIT (ECU) (C)

	ALLOTTED UNITS PER MONTH
NUMBER OF PEOPLE
1 Person	3
2 People	5
3 People	7
4 People	9
5 People	10
6 People	12
7 People	13
8 People	14
9 People	15
10 People	16
11 People	17
12 People	18
SIZE OF LOT
No Outside Space	0
Up to ¼ Acre	1
Over ¼, up to ½ Acre	2
Over ½, up to 1 Acre	3
Over 1 Acre, up to 2 Acres	4
Over 2 Acres, up to 3 Acres	6
Over 3 Acres, up to 4 Acres	8
Greater than 4 Acres	10
ALLOTMENT FOR LARGE ANIMALS
1 or 2 Large Animals	1
3 to 5 Large Animals	2
6 to 10 Large Animals	3
11 to 20 Large Animals	4
Over 20 Large Animals	5

APPENDIX B

6 OF 27

California-American Water Company

Schedule No. MO-1 (continued)

Monterey District Tariff Area

GENERAL METERED SERVICE

SPECIAL CONDITIONS (continued)

7. The Winter (November to April) Adjustment is as follows:

a. No outside space: No adjustment.

b. Outside space: Add 1 Unit.

c. All bills are subject to the reimbursement fee set forth in Schedule No. UF.

8. The Summer (May to October) Adjustment is as follows:

a. No Outside Space: No Adjustment.

b. Outside Space: Add twice the units allotted for outside space minus 1 unit.

9. Due to an over collection in the Water Revenue Adjustment Mechanism Balancing Account, a

monthly meter surcredit will be added to all meter sizes for all classes of customers with the exception of PAR for a 36 month period beginning May 5, 2006 per Advice Letter 645.

A monthly surcredit of ($0.89) will apply to PAR customers.

For 5 / 8 x 3 / 4 meter	($1.77)
For 3 / 4 meter	($2.65)
For 1 meter	($4.42)
For 1 1 / 2 meter	($8.83)
For 2 meter	($14.13)
For 3 meter	($26.50)
For 4 meter	($44.17)
For 6 meter	($88.34)
For 8 meter	($141.34)

(D)

(D)

10. Per the decision from Application 05-02-012, costs associated with the Carmel River Dam (N)

shall be placed in a balancing account and collected through a meter surcharge over the next four years. The total amount to be recovered is $3,601,239. A monthly surcharge of $0.67 will apply to PAR customers. The balancing account will earn interest at the 90-day commercial rate.

	Meter Surcharge
For 5 / 8 x 3 / 4 meter	$1.34
For 3 / 4 meter	$2.01
For 1 meter	$3.35
For 1 1 / 2 meter	$6.69
For 2 meter	$10.71
For 3 meter	$20.08
For 4 meter	$33.46
For 6 meter	$66.92
For 8 meter	$107.07

APPENDIX B

7 OF 27

California-American Water Company

Schedule No. MO-1 (continued)

Monterey District Tariff Area

GENERAL METERED SERVICE

SPECIAL CONDITIONS (continued)

11. Per the decision from Application (A.) 05-02-012, a 3% monthly surcharge on customer bills will (N)

be collected for the minimum ERISA pension payment. Collections will be tracked in a

balancing account. An annual advice letter filing will be made for a surcredit or surcharge,

depending on the balance in the account.

12. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 1% monthly conservation surcharge will be collected from customers. The funds will support additional conservation efforts to be undertaken by the Monterey Peninsula Water Management District. (N)

APPENDIX B

8 OF 27

California-American Water Company

Schedule No. MO-1

Monterey District Tariff Area

GENERAL METERED SERVICE

PROPOSED STEP RATE INCREASES

Each of the following increases in rates may be put into effect on the indicated date by filing a rate schedule which adds the appropriate increases to the rate which would otherwise be in effect on that date.

Quantity Rates: Rates to be Effective

	Elevation Zone Surcharge:	01/01/07	01/01/08
	Elevation Zone 1, per 100 cu. ft.	$	$
	Elevation Zone 2, per 100 cu. ft.	$	$
	Residential, Multi-Residential, and PAR Customers:
	For the first 100 cu. ft. x Customer ECU	$	$
	For next 100 cu. ft x Customer ECU	$	$
	For next 100 cu. ft x Customer ECU less allotment for people	$	$
	For next 100 cu. ft x Customer ECU less allotment for people	$	$
	All Water over fourth block, per 100 cu ft.	$	$
	Golf Customers:
	For all water delivered, per 100 cu. ft.	$	$
	All Other Customers:
	For all water delivered up to monthly allotment, per 100 cu. ft.	$	$
	For all water delivered over the monthly allotment, per 100 cu. ft.	$	$

Meter Charge: Per Meter Per Month

			Residential	Residential	PAR	PAR	All Other	All Other
			01/01/07	01/01/08	01/01/07	01/01/08	01/01/07	01/01/08
For	5/8 x 3/4-inch	meter
For	3/4-inch	meter
For	1-inch	meter
For	1-1/2-inch	meter
For	2-inch	meter
For	3-inch	meter
For	4-inch	meter
For	6-inch	meter
For	8-inch	meter

APPENDIX B

9 OF 27

California-American Water Company

Schedule No. MO-1AB

Monterey Peninsula District Tariff Area

GENERAL METERED SERVICE

AMBLER PARK AND BISHOP SERVICE AREA

APPLICABILITY

Applicable to all metered water service.

TERRITORY

Ambler Park subdivision, Rim Rock subdivision, Rancho El Toro Country Club, located nine miles southwest of Salinas, Monterey County, the area known as Laguna Seca Ranch Estates, and vicinity.

RATES

Quantity Rates:

All water used per 100 cu. ft.. $2.2898 (I)

Service Charge:

Per Meter Per Month

For 5/8 x 3/4-inch meter $13.81 (I)

For 3/4-inch meter $20.72 (I)

For 1-inch meter $34.53 (I)

For 1-1/2-inch meter $69.05 (I)

For 2-inch meter $110.48 (I)

For 3-inch meter $207.15 (I)

For 4-inch meter $345.25 (I)

For 6-inch meter $690.50 (I)

For 8-inch meter $1,104.80 (I)

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

SPECIAL CONDITIONS

1. All bills are subject to the reimbursement fee as set forth in Schedule No. UF.

(continued)

APPENDIX B

10 OF 27

California-American Water Company

Schedule No. MO-1AB (continued)

Monterey Peninsula District Tariff Area

GENERAL METERED SERVICE

AMBLER PARK AND BISHOP SERVICE AREA

SPECIAL CONDITIONS (continued)

Applicable to Ambler Park:

2. Any residential customer who has been required to install a Residential Fire Sprinkler System (R.F.S.S.) at their place of residence by local fire ordinances will be allowed to have their monthly service charge reduced by one meter size for 3/4" and 1" meters and a reduction of two meter sizes for all 1-1/2" meters, provided it has been requested by the customer and verified by the Company that the lower size of meter would be large enough to provide adequate service to the residence. The R.F.S.S. Service is not considered a fire service by the Company, but is considered an oversized general metered service and therefore, only the rules and conditions of service for general metered service apply.

Applicable to Bishop:

3. Any residential customer who has been required to install a Residential Fire Sprinkler System (R.F.S.S.) at their place of residence by local fire ordinances will be allowed to have their monthly service charge reduced by one meter size, provided it has been requested by the customer and verified by the Company that the lower size of meter would be large enough to provide adequate service to the residence. The R.F.S.S. Service is not considered a fire service by the Company, but is considered an oversized general metered service and therefore, only the rules and conditions of service for general metered service apply.

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

5. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 1% monthly (N)

conservation surcharge will be collected from Bishop customers. The funds will support additional conservation efforts to be undertaken by the Monterey Peninsula Water Management District.

Applicable to Ambler & Bishop:

6. Per the 2005 Monterey General Rate Decision issued in A. 05-02-012, a 3% monthly surcharge (N)

on customer bills will be collected for the minimum ERISA pension payment. Collections will be

tracked in a balancing account. An annual advice letter filing will be made for a surcredit or

surcharge, depending on the balance in the account.

APPENDIX B

11 OF 27

California-American Water Company

Schedule No. MO-1 -68

Monterey District Tariff Area

GENERAL METERED SERVICE

HIDDEN HILLS AND RYAN RANCH SUBDIVISION

APPLICABILITY

Applicable to all water furnished on a metered basis.

TERRITORY

Hidden Hills and Ryan Ranch Subdivisions.

RATES

Residential Quantity Rates:

For the first 800 cu ft. per 100 cu ft........ $2.7933 (I)

For the next 1,600 cu ft, per 100 cu ft......................................................... $3.7244 (I)

For the next 1,600 cu ft, per 100 cu ft......................................................... $7.4488 (I)

All water over 4,000 cu ft, per 100 cu ft.. ..................................................... $18.6220 (I)

All Other Customers Quantity Rates:

For all water delivered, per 100 cu ft. ..... $0.9388 (R)

Meter Charge:

Per Meter Per Month

Residential PAR All Other

Customers Customers Customers

For 5/8 x 3/4-inch meter ................................ $6.91 $0.00 $13.81 (I)

For 3/4-inch meter................................. $10.36 $0.00 $20.72 (I)

For 1-inch meter.................................. $17.26 $0.00 $34.53 (I)

For 1-1/2-inch meter...................................$34.53 $0.00 $69.05 (I)

For 2-inch meter...................................$55.24 $0.00 $110.48 (I)

For 3-inch meter...................................$103.58 $0.00 $207.15 (I)

For 4-inch meter...................................$172.63 $0.00 $345.25 (I)

For 6-inch meter...................................$345.25 $0.00 $690.50 (I)

For 8-inch meter................................. $552.40 $0.00 $1,104.80 (I)

The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rates

(continued)

APPENDIX B

12 OF 27

California-American Water Company

Schedule No. MO-1-68 (continued)

Monterey District Tariff Area

Hidden Hills and Ryan Ranch Subdivision

GENERAL METERED SERVICE

SPECIAL CONDITIONS

1. Any residential customer who has been required to install a Residential Fire Sprinkler System (R.F.S.S.)

at their place of residence by local fire ordinances will be allowed to have their monthly service charge reduced by one meter size, provided it has been requested by the customer and verified by the Company that the lower size of meter would be large enough to provide adequate service to the

residence. The R.F.S.S. Service is not considered a fire service by the Company, but is considered an oversized general metered service and therefore, only the rules and conditions of service for general metered service apply.

2. A 1.00% surcharge is included on each bill to collect franchise taxes and/or business license fees paid

to Monterey County. The amount collected is based on a percentage of the gross revenues of each bill.

3. Customers must apply with the Company for acceptance into the Program for Alternate Rates (PAR). The Company will analyze applications based upon proof of acceptance into the California Alternate Rates for Energy Program of Pacific Gas and Electric.

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

5. Per the decision from Application 05-02-012, costs associated with the Carmel River Dam (N)

shall be placed in a balancing account and collected through a meter surcharge over the next four years. The total amount to be recovered is $3,601,239. A monthly surcharge of $0.67 will apply to PAR customers. The balancing account will earn interest at the 90-day commercial rate.

	Meter Surcharge
For 5 / 8 x 3 / 4 meter	$1.34
For 3 / 4 meter	$2.01
For 1 meter	$3.35
For 1 1 / 2 meter	$6.69
For 2 meter	$10.71
For 3 meter	$20.08
For 4 meter	$33.46
For 6 meter	$66.92
For 8 meter	$107.07

6. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 3% monthly

surcharge on customer bills will be collected for the minimum ERISA pension payment.

Collections will be tracked in a balancing account. An annual advice letter filing will be made for

a surcredit or surcharge, depending on the balance in the account.

7. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 1% monthly conservation surcharge will be collected from customers. The funds will support additional conservation efforts to be undertaken by the Monterey Peninsula Water Management District. (N)

APPENDIX B

13 OF 27

California-American Water Company

Schedule No. MO-4

Monterey Peninsula District Tariff Area

PRIVATE FIRE PROTECTION SERVICE

APPLICABILITY

Applicable to all water service furnished for private fire protection systems.

TERRITORY

The incorporated cities of Monterey, Pacific Grove, Carmel-by-the-Sea, Del Rey Oaks, Sand City, a portion of Seaside and certain unincorporated areas in the County of Monterey.

RATES Per Month

For each 4-inch connection and smaller $31.09 (I)

For each 6-inch connection $62.94 (I)

For each 8-inch connection $99.55 (I)

For each 10-inch connection $140.93 (I)

The rates for private fire service are based upon the size of the service and no additional charges will be made for fire hydrants, sprinklers, hose connections or standpipes connected to and supplied by such private fire service.

SPECIAL CONDITIONS

1. The fire protection service and connection shall be installed by the Utility or under the Utility's

direction. Cost of the entire fire protection installation shall be paid for by the applicant. Such

payment shall not be subject to refund.

2. The installation housing the detector type check valve and meter and appurtenances thereto shall be in a location mutually agreeable to the applicant and the Utility. Normally such installation shall be located on the premises of applicant, adjacent to the property line. The expense of maintaining the fire protection facilities on the applicant's premises (including the vault, meter, detector type check valves, backflow device and appurtenances) shall be paid for by the applicant.

3. All facilities paid for by the applicant, excluding the connection at the main and any service pipe

located in a public right-of-way, shall be the sole property of the applicant. The Utility and its duly authorized agents shall have the right to ingress to and egress from the premises for all purposes relating to said facilities.

(continued)

APPENDIX B

14 OF 27

California-American Water Company

Schedule No. MO-4 (continued)

Monterey Peninsula District Tariff Area

PRIVATE FIRE PROTECTION SERVICE

SPECIAL CONDITIONS (continued)

4. The minimum diameter will be 1 inch, and maximum diameter will be the diameter of the main

to which the service is connected.

a. The minimum diameter of connections for private fire hydrants will be six inches.

5. If distribution main of adequate size to serve a private fire protection system in addition to all other normal services does not exist in the street or alley adjacent to the premises to be served, then a main from the nearest existing main of adequate capacity shall be installed by the Utility, or under the Utility's direction, and the cost paid by the applicant. Such payment shall not be subject to refund.

6. 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. All facilities are to be installed according to the Utility's specifications and maintained to the Utility's satisfaction. The Utility may require the installation of a backflow prevention device and a standard detector type meter approved by the Insurance Services Office for protection against theft, leakage or waste of water.

7. No structure shall be built over the fire protection service and the customer shall maintain and safeguard the area occupied by the service from traffic and other hazardous conditions. The customer will be responsible for any damage to the fire protection service facilities.

8. Subject to the approval of the Utility, any change in the location or construction of fire protection

service as may be requested by public authority or the customer will be made by the Utility following payment to the Utility of the entire cost of such change.

9. Any unauthorized use of water other than fire protection purposes, charges shall be made therefore at the regular established rate for general metered service, and/or may be grounds for the Utility discontinuing the fire protection service without liability to the Utility.

10. Customers who use Cal-Am's system to provide for fire flow, but do not receive their domestic supply

from Cal-Am, will pay a special Private Fire Service rate equal to either the higher of the standard rate

for their size service or a rate equal to the sum of the standard monthly Service Charges that would

be billed for all the properties served by the Private Fire Service if they did receive domestic service.

All fire service to non-domestic customers will be considered private fire service. If a new public fire

hydrant is required to be installed for a non-domestic customer and other customers will benefit, no fee

will be charged.

11. All b ills are subject to the reimbursement fee set forth on Schedule No. UF.

12. Due to an over collection in the Water Revenue Adjustment Mechanism Balancing Account, a

monthly meter surcredit will be added to all Private Fire Service connections for a 36 month period beginning May 5, 2006 per Advice Letter 645.

< 4"	($3.65)
6	($7.39)
8	($11.68)
10	($16.54)

APPENDIX B

15 OF 27

California-American Water Company

Schedule No. MO-4 (continued)

Monterey Peninsula District Tariff Area

PRIVATE FIRE PROTECTION SERVICE

SPECIAL CONDITIONS (continued)

13. Per the 2005 Monterey General Rate Case decision issued in A. 05-02-012, a 3% monthly (N)

surcharge on customer bills will be collected for the minimum ERISA pension payment.

Collections will be tracked in a balancing account. An annual advice letter filing will be made for

a surcredit or surcharge, depending on the balance in the account.

14. Per the 2005 Monterey General Rate Case decision issued in A. 05-02-012, costs associated with the Carmel River Dam shall be placed in a balancing account and collected through a meter surcharge over the next four years. The total amount to be recovered is $3,601,239. The balancing account will earn interest at the 90-day commercial rate.

< or equal to 4"	$0.88
6	$1.77
8	$2.81
10	$3.97

15. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 1% monthly conservation surcharge will be collected from customers. The funds will support additional conservation efforts to be undertaken by the Monterey Peninsula Water Management District. (N)

APPENDIX B

16 OF 27

California-American Water Company

Schedule No. MO-4AB

Monterey Peninsula District Tariff Area

PRIVATE FIRE PROTECTION SERVICE

AMBLER PARK AND BISHOP SERVICE AREA

APPLICABILITY

Applicable to all water service furnished for privately owned fire protection systems.

TERRITORY

The Ambler Park subdivision, Rim Rock subdivision, Rancho El Toro Country Club, located nine miles southwest of Salinas, Monterey County, the area known as Laguna Seca Ranch Estates, and vicinity.

RATES Per Month

For each 4-inch connection and smaller $31.09 (I)

For each 6-inch service connection $ 62.94 (I)

For each 8-inch service connection $ 99.55 (I)

For each 10-inch service connection $ 140.93 (I)

SPECIAL CONDITIONS

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

2. If a distribution main of adequate size to a private fire protection system in addition to all other normal service does not exist in the street or alley adjacent to the premise to be served, then a service main form the nearest existing 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.

3. 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.

4. For water delivered for other than fire protection purposes, charges shall be made therefor under Schedule No. 1, General Metered Service.

5. The utility will supply only such water at such pressure as may be available from time to time as a result of its normal operation of the system.

6. All bills are subject to the reimbursement fee as set forth in Schedule No. UF.

7. Per the decision from Application 05-02-012, a 3% monthly surcharge on customer bills will be (N)

collected for the minimum ERISA pension payment. Collections will be tracked in a balancing account. An annual advice letter filing will be made for a surcredit or surcharge, depending on

the balance in the account.

(continued)

APPENDIX B

17 OF 27

California-American Water Company

Schedule No. MO-4AB (continued)

Monterey Peninsula District Tariff Area

PRIVATE FIRE PROTECTION SERVICE

AMBLER PARK AND BISHOP SERVICE AREA

SPECIAL CONDITIONS (continued)

7. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 1% monthly (N)

conservation surcharge will be collected from Bishop customers. The funds will support additional conservation efforts to be undertaken by the Monterey Peninsula Water Management District.

APPENDIX B

18 OF 27

California-American Water Company

Schedule No. MO-4H

Monterey Peninsula District Tariff Area

PRIVATE FIRE HYDRANT SERVICE

APPLICABILITY

Applicable to all water service furnished for private fire hydrant service.

TERRITORY

The incorporated cities of Monterey, Pacific Grove, Carmel-by-the-Sea, Del Rey Oaks, Sand

City, a portion of Seaside, certain unincorporated areas in the County of Monterey, the Ambler Park subdivision, Rim Rock subdivision, Rancho El Toro Country Club, located nine miles southwest of Salinas, Monterey County, the area known as Laguna Seca Ranch Estates, and vicinity.

RATES Per Month

Private Fire Hydrant Service Installed at Cost of Applicant:

For each Fire Hydrant Installed $30.03 (I)

SPECIAL CONDITIONS

1. The fire protection service and connection shall be installed by the Utility or under the Utility's

direction. Cost of the entire fire protection installation shall be paid for by the applicant. Such

payment shall not be subject to refund.

2. The installation housing the detector type check valve and meter and appurtenances, thereto,

shall be in a location mutually agreeable to the applicant and the Utility. Normally such installation

shall be located on the premises of applicant, adjacent to the property line. The expense of

maintaining all facilities which are the sole property of the applicant (including the vault, meter,

detector type check valves, backflow device and appurtenances) shall be paid for by the applicant.

3. All facilities paid for by the applicant, excluding the connection at the main and any service pipe

located in a public right-of-way, shall be the sole property of the applicant. The Utility and its duly authorized agents shall have the right to ingress to and egress from the premises for all purposes relating to said facilities.

4. The minimum diameter will be 6 inches, and the maximum diameter will be the diameter of the main to which the service is connected.

(continued)

APPENDIX B

19 OF 27

California-American Water Company

Schedule No. MO-4H (continued)

Monterey Peninsula District Tariff Area

PRIVATE FIRE HYDRANT SERVICE

SPECIAL CONDITIONS (continued)

5. If 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 main from the nearest existing main of adequate capacity shall be installed by the Utility, or under the Utility's direction, and the cost paid by the applicant. Such payment shall not be subject to refund.

6. Service hereunder is for private fire hydrant service to which no connections for other than fire protection purposes are allowed and which are regularly inspected by the underwriters having jurisdiction. All facilities are to be installed according to the Utility's specifications and maintained to the Utility's satisfaction. The Utility may require the installation of a backflow prevention device and a standard detector type meter approved by the Insurance Services Office for protection against theft, leakage or waste of water.

7. No structure shall be built over the fire protection service and the customer shall maintain and safeguard the area occupied by the service from traffic and other hazardous conditions. The customer will be responsible for any damage to the fire protection service facilities.

8. Subject to the approval of the Utility, any change in the location or construction of fire protection service as may be requested by the public authority or the customer will be made by the Utility following payment to the Utility of the entire cost of such change.

9. Any unauthorized use of water other than fire protection purposes, charges shall be made therefore at the regular established rate for general metered service and/or may be grounds for the Utility discontinuing the fire protection service without liability to the Utility.

10. Customers who use Cal-Am's system to provide for fire flow, but do not receive their domestic

Supply from Cal-Am, will pay a special Private Fire Service rate equal to either the higher of the standard rate for their size service or a rate equal to the sum of the standard monthly Service Charges that would be billed for all the properties served by the Private Fire Service if they did receive domestic service. All fire service to non-domestic customers will be considered private fire service. If a new public fire hydrant is required to be installed for a non-domestic customer and

other customers will benefit, no fee will be charged.

11. All b ills are subject to the reimbursement fee set forth on Schedule No. U.F.

12. Due to an over collection in the Water Revenue Adjustment Mechanism Balancing Account, a

monthly meter surcredit of ($3.52) will be added to all Private Fire Hydrant Service for a 36 month period beginning May 5, 2006 per Advice Letter 645.

13. Per the decision from Application 05-02-012, a 3% monthly surcharge on customer bills will be (N)

collected for the minimum ERISA pension payment. Collections will be tracked in a balancing account. An annual advice letter filing will be made for a surcredit or surcharge, depending on

the balance in the account.

APPENDIX B

20 OF 27

California-American Water Company

Schedule No. MO-4H (continued)

Monterey Peninsula District Tariff Area

PRIVATE FIRE HYDRANT SERVICE

SPECIAL CONDITIONS (continued)

14. Per the decision from Application 05-02-012, costs associated with the Carmel River Dam (N)

shall be placed in an interest free balancing account and collected through a meter surcharge

over the next four years. The total amount to be recovered is $3,601,239. A surcharge of $0.85

will be applied to all fire hydrant services.

15. Per the 2005 Monterey General Rate Case Decision issued in A. 05-02-012, a 1% monthly (N)

conservation surcharge will be collected from customers. The funds will support additional conservation efforts to be undertaken by the Monterey Peninsula Water Management District.

APPENDIX B

21 OF 27

California-American Water Company

Schedule No. MO-AB

Monterey District Tariff Area

AMBLER PARK AND BISHOP

GENERAL METERED SERVICE

PROPOSED STEP RATE INCREASES

Each of the following increases in rates may be put into effect on the indicated date by filing a rate schedule which adds the appropriate increases to the rate which would otherwise be in effect on that date.

Quantity Rates: Rates to be Effective

		01/01/07	01/01/08
	All water used, per 100 cu. ft.	$	$

Meter Charge: Per Meter Per Month

			All Other	All Other
			01/01/07	01/01/08
For	5/8 x 3/4-inch	Meter
For	3/4-inch	Meter
For	1-inch	Meter
For	1-1/2-inch	Meter
For	2-inch	Meter
For	3-inch	Meter
For	4-inch	Meter
For	6-inch	Meter
For	8-inch	Meter

APPENDIX B

22 OF 27

California-American Water Company

Schedule No. MO-1-68

Monterey District Tariff Area

HIDDEN HILLS AND RYAN RANCH

GENERAL METERED SERVICE

PROPOSED STEP RATE INCREASES

Each of the following increases in rates may be put into effect on the indicated date by filing a rate schedule which adds the appropriate increases to the rate which would otherwise be in effect on that date.

Quantity Rates: Rates to be Effective

		01/01/07	01/01/08
	Residential:
	For the first 8 cu. ft. per 100 cu. ft.	$	$
	For the next 16 cu. ft. per 100 cu. ft.	$	$
	For the next 16 cu. ft. per 100 cu. ft.	$	$
	Over 40 cu. ft. per 100 cu. ft.	$	$
	All Other Customers:
	For the first 40 cu. ft. per 100 cu. ft.	$	$
	For the next 40 cu. ft. per 100 cu. ft.	$	$
	For the next 120 cu. ft. per 100 cu. ft.	$	$
	Over 200 cu. ft. per 100 cu. ft.	$	$
	Service Charge, per 100 cu. ft.	$	$

Meter Charge: Per Meter Per Month

			Residential	Residential	PAR	PAR	All Other	All Other
			01/01/07	01/01/08	01/01/07	01/01/08	01/01/07	01/01/08
For	5/8 x 3/4-inch	meter
For	3/4-inch	meter
For	1-inch	meter
For	1-1/2-inch	meter
For	2-inch	meter
For	3-inch	meter
For	4-inch	meter
For	6-inch	meter
For	8-inch	meter

APPENDIX B

23 OF 27

California-American Water Company

Schedule No. MO-4, MO-4AB, MO-4H

Monterey District Tariff Area

PRIVATE FIRE PROTECTION

PROPOSED STEP RATE INCREASES

Each of the following increases in rates may be put into effect on the indicated date by filing a rate schedule which adds the appropriate increases to the rate which would otherwise be in effect on that date.

Rates: Rates to be Effective

		01/01/07	01/01/08
	4-inch connection and smaller	$	$
	6-inch connection	$	$
	8-inch connection	$	$
	10-inch connection	$	$
	For each fire hydrant installed	$	$

APPENDIX B

24 OF 27

California-American Water Company

Schedule No. MO-1

Monterey District Tariff Area

GENERAL METERED SERVICE

EMERGENCY RATE TARIFF

APPLICABILITY

Applicable to all water furnished on a metered basis.

TERRITORY

The incorporated cities of Monterey, Pacific Grove, Carmel-by-the-Sea, Del Rey Oaks, Sand City,

a portion of Seaside, and certain unincorporated areas in the County of Monterey.

RATES

Per Meter

Quantity Rates: Per Month

Elevation Zone Surcharge:

Elevation Zone 1, per 100 cu. ft. .... $0.2567

Elevation Zone 2, per 100 cu. ft. .... $0.4464

Residential, Multi-Residential, & PAR Customers:

For the first 100 cu. ft. x Customer ECU...............................................$1.6390 (I)

For next 100 cu. ft x Customer ECU....................................................$3.2780 (I)

For the next 100 cu. ft x Customer ECU less allotment for people.............$4.9170 (I)

For the next 100 cu ft x Customer ECU less allotment for people...............$13.1120 (I)

All Water over fourth block, per 100 cu ft less allotment for people.............$26.2240 (I)

Service Charge...............................................................................$0.9388 (R)

Golf Course Customers:

For all water delivered up to monthly allotment, per 100 cu. ft...................$3.2780 (I)

For all water delivered over monthly allotment, per 100 cu. ft....................$9.8340 (I)

Public Authority Customers:

For the first 40 ccf's, per 100 cu. ft......................................................$3.2780 (I)

For all water delivered over 40 ccf's, per 100 cu. ft.................................$6.5560 (I)

Special Use Customers:

For all water delivered, per 100 cu. ft...................................................$6.5560 (I)

All Other Customers:

For all water delivered up to monthly allotment, per 100 cu. ft...................$3.2780 (I)

For all water delivered over monthly allotment, per 100 cu. ft....................$19.6680 (I)

APPENDIX B

25 OF 27

California-American Water Company

Schedule No. MO-1 (continued)

Monterey District Tariff Area

GENERAL METERED SERVICE

EMERGENCY RATE TARIFF

Meter Charge:

Per Meter Per Month

Residential PAR All Other

Customers Customers Customers

For 5/8 x 3/4-inch meter ................................ $6.91 $0.00 $13.81 (I)

For 3/4-inch meter................................. $10.36 $0.00 $20.72 (I)

For 1-inch meter.................................. $17.26 $0.00 $34.53 (I)

For 1-1/2-inch meter...................................$34.53 $0.00 $69.05 (I)

For 2-inch meter...................................$55.24 $0.00 $110.48 (I)

For 3-inch meter...................................$103.58 $0.00 $207.15 (I)

For 4-inch meter...................................$172.63 $0.00 $345.25 (I)

For 6-inch meter...................................$345.25 $0.00 $690.50 (I)

For 8-inch meter................................. $552.40 $0.00 $1,104.80 (I)

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

APPENDIX B

26 OF 27

Rule No.11

DISCONTINUANCE AND RESTORATION OF SERVICE

(continued)

B. 2. For Noncompliance with Rules

The utility may discontinue service to any customer for violation of these rules after it has given the customer at least five days written notice of such intention. Where safety of water supply is endangered, service may be discontinued immediately without notice.

3. For Waste of Water

a. Where negligent or wasteful use of water exists on a customer's premises, the utility may discontinue the service if such practices are not remedied within five days after it has given the customer written notice to such effect.

b. In order to protect itself against serious and unnecessary waste or misuse of water, the utility may meter any flat rate service and apply the regularly established meter rates where the customer continues to misuse or waste water beyond five days after the utility has given the customer written notice to remedy such practices.

4. For Unsafe Apparatus or Where Service is Detrimental or Damaging to the Utility or its Customers.

If an unsafe or hazardous condition is found to exist on the customer's premises, or if the use of water thereon by apparatus, appliances, equipment or otherwise is found to be detrimental or damaging to the utility or its customers, the service may be shut off without notice. The utility will notify the customer immediately of the reasons for the discontinuance and the corrective action to be take by the customer before service can be restored.

5. For Fraudulent Use of Service

When the utility has discovered that a customer has obtained service by fraudulent means, or has diverted the water service for unauthorized use, the service to that customer may be discontinued without notice. The utility will not restore service to such customer until that customer has complied with all filed rules and reasonable requirements of the utility and the utility has been reimbursed for the full amount of the service rendered and the actual cost to the utility incurred by reason of the fraudulent use.

C. Restoration of Service

Reconnection Charge

Where service has been discontinued for violation of these rules or for nonpayment of bills, the utility may charge $10.00 for reconnection of service during regular working hours or $15.00 ($ 50.00 for Monterey, Larkfield, Sacramento, Coronado and Village (C)

Districts) for reconnection of service at other than regular working hours when the customer has requested that the reconnection be made at other than regular working hours.

(continued)

APPENDIX B

27 OF 27

Rule No.11

DISCONTINUANCE AND RESTORATION OF SERVICE

(continued)

Low-income customers enrolled in the Program for Alternative Rates ("PAR") in the (N)

Monterey district will not be charged a reconnection fee. Customers who face the fee and reside in the area the PAR program is offered will be notified of the PAR program at the time the request for reconnection is made.