Conclusions of Law

1. The Settlement Agreement fully resolves and settles all disputed issues, among the parties concerning SCWC's application in this proceeding.

2. The Settlement Agreement we approve herein does not contravene the law.

3. Because the Settlement Agreement sufficiently states the amount of the proposed electric revenues, the proposed allocation of revenues to customer classes, adjustments to the PPAC balancing account, and miscellaneous provisions, the Settlement Agreement creates no regulatory uncertainty.

4. Approval of the Settlement Agreement provides that consistent with AB 1X, rates for residential customers using 130% or less of baseline allowance will be exempted from a rate increase.

5. Approval of the Settlement Agreement does not provide baseline allowances for those SCWC customers whose usage is for a second home under Schedule DO, consistent with D.89-01-043, and D.86-02-030.

6. A reduction of $1.851 million per year in requested PPAC revenues is within the range of outcomes the Commission could have found reasonable based on the record and evidence, had this matter not been settled.

7. The Settlement Agreement is reasonable in light of the strength of each party's litigation position, the risk, expense, and complexity of the litigation, and the settlement amount upon which the parties agreed.

8. The Settlement Agreement is reasonable in light of the whole record, consistent with law, consistent with prior Commission decisions, and in the public interest.

9. As provided in Rule 51.8 of the Commission's Rules of Practice and Procedure, and consistent with the terms of the Settlement Agreement itself, the adoption of the Settlement Agreement is binding on all parties but does not constitute approval of, or precedent regarding, any principle or issue in the proceeding or in any future proceeding.

10. The decision should be effective today so that the settlement may be implemented expeditiously.

ORDER

IT IS ORDERED that:

1. The February 8, 2002 Joint Motion of Southern California Water Company (SCWC), the Office of Ratepayer Advocates (ORA), and Bear Mountain, Inc. for approval of the Settlement Agreement dated February 8, 2002 is granted and the Settlement Agreement is approved without modification.

2. SCWC shall credit the Purchased Power Adjustment Clause (PPAC) Balancing Account by the differential between $87.41 per Megawatt-hour(MWh) and $77.00 per MWh times the average of actual purchases and prorated adopted purchases for the period April 1, 2001 through the end of the calendar month of this decision.

3. The weighted average annual energy cost component of the PPAC shall not exceed $77.00 per MWh.

4. SCWC shall forgo its previously-authorized attrition allowance of $600,000 for its water utility customers for 2002.

5. SCWC may extend its existing PPAC Balancing Account surcharge of $0.02246/kWh until August 31, 2011, or until such time as the remaining balance in the PPAC Balancing Account is less than $100,000, whichever should occur first.

6. SCWC will file an advice letter to initiate review of the PPAC Rate when the remaining balance in the PPAC Balancing Account is approximately $1 million or by August 31, 2011, whichever should occur first.

7. SCWC shall vigorously pursue its complaint against Mirant Americas Energy Marketing, L.P. at the Federal Energy Regulatory Commission, and report to the Commission the results of the complaint. If the result of the complaint lowers average annual purchased power costs below $77.00 per MWh, SCWC shall file an advice letter with this Commission within thirty days reflecting that result.

8. The motion of the Big Bear Area Regional Wastewater Agency, filed, February 13, 2002 to withdraw its testimony, identified as Exhibit 16, from evidence and to withdraw from the proceeding is granted.

9. SCWC shall file an advice letter to modify its Preliminary Statements and tariffs in conformance with the attached Settlement Agreement.

10. This proceeding is closed.

This order is effective today.

Dated , at San Francisco, California.

ATTACHMENT 1

BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF CALIFORNIA

In the Matter of the Application of Southern California Water Company (U 133 E) for Authority to Increase Rates for Electric Service in the Bear Valley Electric Customer Service Area.

Application 01-08-020

SETTLEMENT AGREEMENT

This Settlement Agreement is entered into as of the date listed below, by and between Southern California Water Company (SCWC), the Office of Ratepayer Advocates (ORA) of the California Public Utilities Commission (Commission), and Bear Mountain, Inc. (Bear Mountain) (collectively, the Parties).

RECITALS

A. On August 17, 2001, SCWC filed Application 01-08-020, seeking authorization to increase rates in its Bear Valley Electric Customer Service Area (CSA) to recover the increased cost of purchased power, and to implement rate design adjustments in connection with the proposed rate increase. Specifically, SCWC seeks to increase its annual revenues in the Bear Valley Electric CSA by $7,853,323, by increasing both the Energy Charge and Power System Delivery Charge rate components of its Purchase Power Adjustment Clause (PPAC) Rate. SCWC seeks to increase these rate components, which were set by the Commission at their current level in May 1996 in Decision 96-05-033, from $0.02437 per kWh to $0.09228 per kWh on average for the Energy Charge and from $0.0216 per kWh to $0.02456 per kWh on average for the Power System Delivery Charge. The total PPAC Rate, which is the sum of the Energy Charge and Power System Delivery Charge components, would increase from $0.04597 per kWh to an average of $0.11684 per kWh.

B. ORA and Bear Mountain protested SCWC's Application, and, along with the Big Bear Area Regional Wastewater Agency (BBARWA), comprised the initial active parties intervening in this proceeding. ORA conducted an independent review of SCWC's Application and supporting testimony. Upon conclusion of that review, ORA submitted its December 2001 Report, indicating particular areas of disagreement with SCWC's Application. Similarly, both Bear Mountain and BBARWA reviewed SCWC's Application and testimony and submitted their own testimony in December 2001 indicating areas of particular disagreement with SCWC's Application. A genuine dispute exists among the Parties concerning the issues raised by SCWC's Application, and ORA, Bear Mountain and BBARWA would be expected to litigate their areas of disagreement with SCWC's Application in the absence of this Settlement Agreement.

C. Subsequent to the exchange of direct and rebuttal testimony, during January and February 2002, the Parties and BBARWA met to discuss the areas of disagreement with SCWC's Application. As a result of such discussions and negotiations, the Parties now wish to compromise and settle their disagreements, and to resolve all issues in the manner set forth in greater detail below. The Parties regard this Settlement Agreement as a package, the resolution of which reflects substantial compromise among the Parties.

D. Following its participation in the all-party settlement negotiations and detailed discussions held during January and February 2002, and with knowledge and understanding of the terms and substance of this Settlement Agreement, BBARWA informed the Parties of its intention to petition the Commission to withdraw from this proceeding, and of its intention not to oppose adoption of this Settlement Agreement by the Commission. Based on the assumption that BBARWA's request to withdraw from the proceeding will be granted, this Settlement Agreement will constitute a settlement as among all the parties to this proceeding.

E. This Settlement Agreement resolves all issues in this proceeding and provides benefits to all customer rate classes. The Parties believe that this Settlement Agreement, together with those materials presented on the formal record in this proceeding, provide the Commission with the basis for finding that the Settlement Agreement is reasonable, fair and in the public interest.

NOW, THEREFORE, in compromise of the disputes and in settlement of this proceeding, the Parties agree as follows:

AGREEMENT

1. This Settlement Agreement resolves and settles all issues, disputes and demands among the Parties concerning SCWC's Application in this proceeding.

2. Annual revenues for the Bear Valley Electric CSA are derived from the PPAC Rate, the Base Rate, and any authorized Balancing Account Amortization surcharges. Presently, based on adopted sales, the revenue collected through the PPAC Rate is $5,227,693; the revenue collected through the Base Rate is $8,049,264; and the revenue collected through the Balancing Account Amortization is $2,514,653, resulting in annual revenues of $15,791,610. As a result of this Settlement Agreement, based on adopted sales, the annual revenue collected through the PPAC Rate will increase to $11,230,881. The annual revenue collected through the Base Rate and the Balancing Account Amortization is unchanged. Therefore, based on adopted sales, the total annual revenue collected as a result of the Settlement will be $21,794,798, which represents an increase in annual revenues of $6,003,188, or 38%, over present revenues, and a reduction of 24% from the increase in revenues requested in SCWC's Application.

A. PPAC Costs

3. SCWC's PPAC Rate has two components: the Energy Charge and the Power System Delivery Charge. The Energy Charge component of the PPAC Rate includes energy costs (i.e., purchased power costs) and costs for scheduling coordination. The Power System Delivery Charge component of the PPAC Rate includes costs incurred for transmission service, capacity/demand charges, and ancillary services. For the purpose of designing the PPAC Rate in its Application, SCWC calculated Energy Charge costs of $10,332,179, resulting in an average PPAC Energy Charge rate of $0.09228 per kWh. SCWC's calculation of PPAC Energy Charge costs of $10,332,179 included purchased power costs of $10,255,116 and scheduling coordination costs of $77,063. SCWC's calculation of purchased power costs of $10,255,116 was based on a weighted average annual cost for purchased power of $87.41 per MWh and the Commission-adopted level of kilowatt-hour purchases (117,322 MWh, per GRC workpapers in Decision 96-05-033).

4. Pursuant to this Settlement Agreement, the Parties agree to use a weighted average annual cost of $77.00 per MWh in the calculation of the Energy Charge component of the PPAC Rate. Based on the weighted average annual cost of $77.00 per MWh and the adopted purchases of 117,322 MWh, the revised energy costs for the purposes of designing the PPAC Rate in this proceeding are $9,033,794. As described in Paragraph 13 below, the Parties agree that the energy costs included in the Energy Charge component of the PPAC Rate will not exceed the unit-cost ceiling of $77.00 per MWh, based on a weighted average annual cost of purchased power.

5. For the purposes of this Settlement Agreement, the Parties agree to SCWC's calculation of annual scheduling coordination costs of $77,063. Based on the revised calculation of energy costs described above, SCWC's Energy Charge cost for the purposes of designing the PPAC Rate in this proceeding is $9,110,857 ($9,033,794 + $77,063), which results in an average Energy Charge component in the PPAC rate of $0.08137 per kWh. This amount is $1,221,322 less than the $10,332,179 SCWC requested in its Application.

6. For the purpose of designing the PPAC Rate in its Application, SCWC calculated Power System Delivery Charge costs of $2,749,780, resulting in an average PPAC Power System Delivery Charge rate of $0.02456 per kWh. SCWC's calculation of PPAC Power System Delivery costs of $2,749,780 included demand charges of $1,593,724, transmission charges of $217,839, ancillary services costs of $862,103 and other capacity-related charges of $76,114.

7. Pursuant to this Settlement Agreement, the Parties agree to use the current Southern California Edison demand charge of $963,968 and the remaining Power System Delivery costs set forth in Paragraph 6, above, in the calculation of the Power System Delivery Charge component of the PPAC Rate. Based on the revised calculation of demand charges, the Power System Delivery cost for the purposes of designing the PPAC Rate in this proceeding is $2,120,024 ($963,968 + $217,839 + $862,103 + $76,114), which results in an average Power System Delivery Charge component in the PPAC Rate of $0.01893 per kWh. This amount is $629,756 less than the $2,749,780 SCWC requested in its Application.

8. Accordingly, pursuant to this Settlement Agreement, the Parties agree that, based on adopted levels of sales and purchases, the annual PPAC Costs are $11,230,881 ($9,110,857 + $2,120,024), which results in an average PPAC Rate of $0.10031 per kWh. This is a reduction of 14% from SCWC's request in its Application.

	Present	Application	Settlement
Energy Charge - costs		$10,332,179	$9,110,857
Energy Charge - rate	$0.02437/kWh	$0.09228/kWh	$0.08137/kWh
Power System Delivery Charge - costs		$2,749,780	$2,120,024
Power System Delivery Charge - rate	$0.0216/kWh	$0.02456/kWh	$0.01893/kWh
PPAC costs	$5,227,693	$13,081,959	$11,230,881
PPAC Rate	$0.04597/kWh	$0.11684/kWh	$0.10031/kWh
Total BVE revenues	$15,791,610	$23,644,933	$21,794,798
Increase over Present revenues		$7,853,323	$6,003,188

B. Rate Design

9. In its Application, SCWC seeks to implement several rate design changes, including no rate increase for permanent-resident domestic customers whose usage level is less than 130% of baseline; a third tier starting at 130% of baseline for Schedules D and D-LI; a minimum monthly charge for Schedules D, DO, D-LI, and A-1; time and tier differentiated PPAC rates; increased rate differentials between on-peak, mid-peak, and off-peak rates for Schedules I-1, I, TOU, TOU-1, as well as increased service charges for these schedules; and the creation of two-tier rate structures for Schedules A-1, A-2, and A-3, as well as increased service charges for Schedules A-2 and A-3.

10. The Parties acknowledge that under current rates, an average monthly bill for a DO customer is less than the cost of providing such DO customer access to basic electric service and does not nearly cover the total cost of service for these customers (i.e., access plus energy charges). Pursuant to this Settlement Agreement, the Parties agree that a minimum monthly bill is appropriate for Schedule DO customers. The Parties believe that the rates that will result for DO customers as a result of this Settlement Agreement are fair and reasonable because such rates are still less than, but more closely approximate, the cost of providing electric service to DO customers.

11. For the purposes of this Settlement Agreement, the Parties agree to the rate design changes as implemented in the attached Tariff sheets. The Parties agree that SCWC shall file the attached Tariff sheet revisions, replacing the Tariff sheets currently in effect in the Bear Valley Electric CSA.

12. Tables A, B, and C, set forth below, reflect the results of the stipulated revenue and rate design elements expressed above.

C. PPAC Balancing Account

13. Pursuant to Section G.3 of SCWC's Preliminary Statement, "[a] Balancing Account shall be maintained to record the difference between the accumulated revenue billed through the Purchase Power Adjustment Clause and the accumulated recorded costs of purchased power." Pursuant to this Settlement Agreement, the Parties agree that entries to the PPAC Balancing Account for purchased power costs included in the Energy Charge component of the PPAC Rate will be based on average annual recorded costs, to the extent that those costs do not exceed the $77.00 per MWh unit-cost ceiling on a weighted average annual basis, as described in Paragraph 4, above. The weighted average annual recorded costs shall be calculated based upon actual annual purchases (i.e., contract and spot purchases and resale transactions). If SCWC's recorded annual cost of purchased power exceeds $77.00 per MWh on a weighted average annual basis, SCWC will not record the excess above the $77.00 per MWh ceiling in the PPAC Balancing Account. In order to comply with this provision of the Settlement Agreement, SCWC will calculate its weighted average annual recorded costs on a twelve-month basis, beginning on the first day of the month following the effective date of the Commission decision adopting this Settlement Agreement and every twelve months thereafter. All other components of the PPAC Balancing Account, including the costs of transmission and delivery, capacity, demand, scheduling coordination and ancillary services, are not subject to nor included in the calculation of the $77.00 per MWh unit-cost cap. The Parties agree that SCWC shall file the attached revision to its Preliminary Statements, replacing the Preliminary Statements currently in effect in the Bear Valley Electric CSA. This $77.00 per MWh unit-cost cap will expire upon Commission approval of the revised PPAC Rate pursuant to the advice letter filing required under Paragraph 16, below.

14. The Parties agree that upon Commission approval of this Settlement Agreement, SCWC will credit to the PPAC Balancing Account the cost differential between $87.41/MWh and $77.00/MWh, times the average of actual purchases and prorated adopted purchases (117,322 MWh, per GRC workpapers in D.96-05-033) for the period April 1, 2001 through the end of the calendar month of the date of such Commission decision. The effect of this crediting to the PPAC Balancing Account will be to reduce the existing undercollection in the PPAC Balancing Account to the benefit of all customer classes.

15. The Parties agree that SCWC may extend its existing PPAC Balancing Account surcharge of $0.02246/kWh until August 31, 2011, or until such time as the remaining balance in the PPAC Balancing Account is less than $100,000, whichever should occur first.

16. The Parties agree that SCWC will file an advice letter to initiate review of the PPAC Rate when the remaining balance in the PPAC Balancing Account is approximately $1 million or by August 31, 2011, whichever should occur first.

17. SCWC acknowledges that ORA may audit SCWC's PPAC Balancing Account upon request. Nothing in this Settlement Agreement addresses or limits the rights of any Party to contest the reasonableness of any future power purchase agreements or power procurement activities not in place at the time of this Settlement Agreement.

D. Miscellaneous Provisions

18. SCWC has filed a complaint against Mirant Americas Energy Marketing LP (Mirant) at the Federal Energy Regulatory Commission (FERC). SCWC will act in good faith in pursuing its action against Mirant. The Parties agree that if SCWC obtains a result in its action against Mirant such that SCWC's purchased power costs are lowered below $77.00 per MWh, SCWC will file an advice letter with the Commission within thirty days of such FERC result becoming final, to adjust the PPAC Rate to reflect such result.

19. The Parties acknowledge that as a result of SCWC's cash conservation program, SCWC has reduced previously authorized step and attrition increases for its water utility operations by $600,000 in 2002. Pursuant to this Settlement Agreement, SCWC agrees to forgo pursuing recovery of that amount.

20. Entering into this Settlement Agreement or approval of this Settlement Agreement by the Commission shall not be construed as an admission or concession by any Party regarding any fact or matter of law in dispute in this proceeding.

21. The Commission shall have jurisdiction over this Settlement Agreement. The Parties agree that no legal action may be brought by any Party in any state or federal court, or any other forum, against any individual signatory representing the interests of any of the Parties, attorneys representing the Parties, or the Parties themselves, involving any matter related to this Settlement Agreement.

22. The Parties agree to use their best efforts to propose, support and advocate adoption of this Settlement Agreement by the Commission. No Party to this Settlement Agreement will contest any aspect of this Settlement Agreement in any proceeding or in any other forum, by contact or communication, whether written or oral (including any ex parte communications) or in any other manner before this Commission; provided, however, that if a Party withdraws from the Settlement Agreement pursuant to Paragraph 24, below, that Party is released from all commitments and obligations under this Settlement Agreement and will be free to request a hearing on all issues. The Parties understand and acknowledge that time is of the essence in obtaining the Commission's approval of this Settlement Agreement and that each will extend its best efforts to promote the adoption of this Settlement Agreement.

23. The Parties agree jointly by executing and submitting this Settlement Agreement that the Settlement Agreement is just, fair and reasonable, and in the public interest. The Parties acknowledge the value of including all active participants in this case and settlement process. The Parties acknowledge the contribution of SCWC, ORA and all intervenors in the discovery and settlement negotiations, and that each Party presented substantiation of its positions and performed in an informed and professional manner.

24. The Parties acknowledge that the positions expressed in this Settlement Agreement were reached after consideration of all positions advanced in testimony as well as during settlement negotiations. This Settlement Agreement embodies compromises of the Parties' positions. No individual term of this Settlement Agreement is assented to by any Party except in consideration of the Parties' assents to all other terms. Thus, the Settlement Agreement is a complete package, indivisible, and each part is interdependent on each and every other part. This Settlement Agreement sets forth the entire understanding and agreement as between the Parties, and this Settlement Agreement may not be modified or terminated except through written assent by all Parties. The Parties agree to negotiate in good faith with regard to any Commission-mandated changes to the Settlement Agreement in order to restore the balance of benefits and burdens and, therefore, should the Commission require modification, may only withdraw from the Settlement Agreement if such subsequent negotiations are unsuccessful.

25. This Settlement Agreement supersedes all prior agreements, negotiations, and understandings among the Parties as to matters at issue in this proceeding. The Settlement Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

26. Each individual executing this Settlement Agreement on behalf of any entity hereby warrants that he or she is authorized to execute this Settlement Agreement on behalf of said entity.

27. This Settlement Agreement shall be construed and interpreted in accordance with the laws of the State of California.

Dated: February 8, 2002 Southern California Water Company

By /s/ Patricia A. Schmiege

Patricia A. Schmiege

O'Melveny & Myers LLP

Attorneys for Applicant

Southern California Water Company

Office of Ratepayer Advocates

By /s/ J. Michael Chamberlain

J. Michael Chamberlain

Staff Counsel

Attorneys for the Office of

Ratepayer Advocates

Bear Mountain, Inc.

By /s/ Brian J. Pope

Brian J. Pope

Vice President

Booth Creek Ski Holdings, Inc.

SF1:456669.4

ATTACHMENT 2

Page 2

PRELIMINARY STATEMENTS

(Continued)

G. PURCHASED POWER ADJUSTMENT CLAUSE

1. The purpose of the Purchased Power Adjustment Clause is to reflect in rates the utility's cost of

purchased power.

2. The monthly charges for service otherwise applicable under each of the utility's rate schedule shall

include an adjustment to reflect a) the Power System Delivery Charge, b) the Energy Charge for

Purchases and c) the Amortization Charge.

a. The Power System Delivery Charge shall include the most recently adopted estimate of costs

to the utility for Transmission Service, the most recently adopted estimate of costs to the utility for

Capacity, and the most Recently adopted estimate of costs for Ancillary Services, which include the

Costs for system protection services, line losses and energy imbalance Services. These charges

shall be expressed in terms of cents per kilowatthour or dollars per kilowatt, depending upon the

nature of the charge and the applicable rate schedule.

b. The Energy Charge for Purchases shall include the most recently adopted estimate of the costs

to the utility of purchasing energy, expressed in terms of cents per kilowatthour.

c. The Amortization Charge shall reflect the most recently adopted over or under collection in the

Balancing Account, expressed in terms of cents per kilowatthour.

3. A Balancing Account shall be maintained to record the difference between the accumulated

revenue billed through the Purchased Power Adjustment Clause and the accumulated accrued

costs of purchased power. Monthly entries to the Balancing Account will be determined from the

following calculations:

a. Purchased Power Adjustment Clause revenue billed during the month;

b. Less than adjustment of 1.429 percent to reflect the adopted rate for franchise

fees and uncollectibles;

c. Less the accrued costs for purchasing energy, capacity, transmission

service and related ancillary services;

d. Plus any refunds for purchased power costs previously reflected in the

balancing account;

e. Plus or minus interest expense, depending upon whether there is an under-

collection or over-collection. Such interest shall be calculated based upon

the average of the beginning and ending monthly balance in the Balancing

Account multiplying by the 90-day commercial paper rate for the month.

f. Less an adjustment, if any, for the direct payment of refunds to customers.

g. The accumulated accrual cost of purchased power shall be true-up on a monthly basis.

If the above calculation produces a positive amount (over-collection), such amount shall be

credited to the Balancing Account. If the calculation produces a negative amount (under-

collection), such amount shall be debited to the Balancing Account.

4. The utility may make periodic Advice finings to revise the Amortization Charge to reflect the most

current status of the Balancing Account.

5. Not more often than once per year, the utility may file an Application to revise the components

of the Purchase Power Adjustment Clause to reflect the most current estimates75

of its purchased

power costs.

6. The utility shall, on an annual basis, make an adjustment to the Balancing Account to reflect the annual weighted (T)

average purchased power cost ceiling of $77 per MWH. Appropriate adjustments to the interest component shall (T)

also be made. This paragraph shall remain in effect through August 31, 2011 or as authorized by the Commission. (T)

(Continued)

Schedule No. A-1

GENERAL SERVICE

Less than 20kW

APPLICABILITY

Applicable to all general power service including lighting and power,

also for heating service whose maximum load is less than 20 kW as

estimated by SCWC or as metered. Demand cannot exceed 20 kW

in any 12-month consecutive period.

TERRITORY

Big Bear Lake and vicinity, San Bernardino County.

RATES Per Meter

Per Month

System Availability Charge, Per Meter, Per Month: $ 5.00

Metering, Per Meter, Per Month: $ 2.30

First 1,500 kWh Excess

Local Transmission and Distribution Charge, per kWh: $0.07580 $0.07580

Transmission Service, per kWh: $0.00200 $0.00200

Capacity Service, per kWh: $0.00850 $0.00850

Ancillary Services per kWh: $0.00770* $0.00770*

Total PSDC Components, per kWh $0.01820 $0.01820

Energy Charges for Purchases, per kWh: $0.06480* $0.11570*

CARE and Public Good, per kWh: $0.00038 $0.00038

Research and Development, per kWh: $0.00050 $0.00050

Renewable Resource Technologies, per kWh: $0.00050 $0.00050

Amortization, per kWh $0.02246 $0.02246

*Component available for direct access purchases.

Schedule No. A-2

GENERAL SERVICE

20 to 50 kW

APPLICABILITY

Applicable to all general power service including lighting and power,

also for heating service whose maximum load is between 20 and 50 kW

as estimated by SCWC or as metered.

TERRITORY

Big Bear Lake and vicinity, San Bernardino County.

RATES Per Meter Per Month

System Availability Charge, Per Meter, Per Month: $47.70

Metering, Per Meter, Per Month: $2.30

First 7,500 kWh Excess

Local Transmission and Distribution Charge, per kWh: $0.07580 $0.07580

Transmission Service, per kWh: $0.00200 $0.00200

Capacity Service, per kWh: $0.00850 $0.00850

Ancillary Services per kWh: $0.00770* $0.00770*

Total PSDC Components, per kWh $0.01820 $0.01820

Energy Charges for Purchases, per kWh: $0.06480* $0.11570*

CARE and Public Good, per kWh: $0.00038 $0.00038

Research and Development, per kWh: $0.00050 $0.00050

Renewable Resource Technologies, per kWh: $0.00050 $0.00050

Amortization, per kWh $0.02246 $0.02246

* Component available for direct access purchases.

Schedule No. A-3

GENERAL SERVICE

Greater than 50 kW

APPLICABILITY

Applicable to all general power service including lighting and power,

also for heating service where load is in excess of 50 kW.

TERRITORY

Big Bear Lake and vicinity, San Bernardino County.

RATES Per Meter Per Month

System Availability Charge, Per Meter, Per Month: $497.70

Metering, Per Meter, Per Month: $2.30

First 20,000 kWh Excess

Local Transmission and Distribution Charge, per kWh: $0.07580 $0.07580

Transmission Service, per kWh: $0.00200 $0.00200

Capacity Service, per kWh: $0.00850 $0.00850

Ancillary Services per kWh: $0.00770* $0.00770*

Total PSDC Components, per kWh $0.01820 $0.01820

Energy Charges for Purchases, per kWh: $0.06480* $0.11570*

CARE and Public Good, per kWh: $0.00038 $0.00038

Research and Development, per kWh: $0.00050 $0.00050

Renewable Resource Technologies, per kWh: $0.00050 $0.00050

Amortization, per kWh $0.02246 $0.02246

* Component available for direct access purchases.

Schedule No. D

DOMESTIC SERVICE - SINGLE FAMILY ACCOMMODATION

APPLICABILITY

Applicable only to permanent residents of Bear Valley for domestic

single-phase service, including lighting, heating, cooking and power

or combination thereof in a single-family accommodation; also to

permanent domestic single-phase farm service when supplied through

the farm operator's domestic meter.