COM/MP1/RSK/acb ALTERNATE DRAFT Agenda ID #5351

Ratesetting

Alternate to Agenda ID #5350

Decision ALTERNATE PROPOSED DECISION OF PRES. MICHAEL PEEVEY

(Mailed 2/10/2006)

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 an Order pursuant to Public Utilities Code Section 851 approving a Reallocation Agreement with the City of Folsom, as directed by D.04-04-069.

Application 04-07-018 (Filed July 8, 2004)

O'Melveny & Myers, LLP, by Patricia A. Schmiege,

Attorney at Law, Keith Switzer, and Roland Tanner
for Southern California Water Company, applicant.

Morrison & Foerster, LLP, Derek F. Foran, for the City of

Folsom, interested party.

Cleveland W. Lee, Attorney at Law, and Sung B. Han,

for the Office of Ratepayer Advocates.

OPINION APPROVING SALE PURSUANT TO SECTION 851¹ AND DETERMINING RATEMAKING TREATMENT FOR PROSPECTIVE REVENUES FROM SALE OF WATER RIGHTS

Summary

This opinion approves Southern California Water Company's (SCWC) lease of water rights to the City of Folsom pursuant to § 851 and directs SCWC to record proceeds from the lease into a memorandum account, in accordance with § 789 and § 790, for investment in utility infrastructure and plant.

¹ Unless indicated otherwise, all statutory citations are to the Public Utilities Code.