STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

Alternate to Agenda ID # 3683

Ratesetting

August 19, 2004

TO: PARTIES OF RECORD IN APPLICATION 02-11-057

Enclosed is the Alternate Draft Decision of Commissioner Lynch to the Draft Decision of Administrative Law Judge (ALJ) Bushey, which was not mailed for comments. We are enclosing a copy of that Draft Decision for the parties' information and convenience, but we are not taking comments on the ALJ's decision.

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

Public Utilities Code Section 311(e) requires that an alternate to a draft decision be served on all parties, and be subject to public review and comment prior to a vote of the Commission. Rule 77.6(d) provides that comments on the alternate draft decision be filed at least seven days before the Commission meeting.

Any comments on the alternate decision must be filed and served by August 12, 2004. Any reply comments are due August 16, 2004.

Pursuant to Rule 77.3 comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service. Please also provide an electronic copy of the comments and reply comments to Tom Long at tjl@cpuc.ca.gov.

Angela K. Minkin, Chief

Administrative Law Judge

ANG:mel

COM/LYN/tjl/mel ALTERNATE DRAFT Agenda ID #3811

Alternate to Agenda ID# 3683

Ratesetting

Item # -- 8/19/04

ALTERNATE DRAFT DECISION OF COMMISSIONER LYNCH___________

(Mailed 8/5/2004)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Point Arena Water Works, Inc. for an order authorizing a rate increase in rates subject to refund producing additional annual revenues of $70,137 or 56.9% for the test year 2002.

Application 02-11-057 (Filed November 25, 2002)

FINAL OPINION APPROVING SETTLEMENT
OF TEST YEAR 2002 GENERAL RATE CASE

A. Summary

This decision approves the "stipulation" between Point Arena Water Works (PAWW) and the City of Point Arena (City), whereby PAWW and the City propose to resolve all but one of the issues in PAWW's rate increase application. This decision also decides the one remaining issue. The stipulation is attached to this decision.