STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 28, 2001

TO: PARTIES OF RECORD IN A.99-03-064.

Enclosed is the alternate draft decision of Commissioner Richard A. Bilas. This item will be on the Commission's agenda for its July 12, 2001 meeting.

When the Commission acts on the draft alternate decision, it may adopt all or part of it as written, amend or modify it, or set it aside and adopt the proposed decision of the Administrative Law Judge Patrick, Item H-8. Only when the Commission acts does the decision become binding on the parties.

As set forth in Rule 77.6(d), parties to this proceeding may file comments on the alternate at least seven days before the Commission meeting on no later than July 5, 2001.

Reply comments shall be served by July 10, 201. An original and four copies of the comments and reply comments shall be filed with the Commission's Docket Office and copies shall be served on all parties on the same day of filing. Pursuant to Rule 77.3 comments shall not exceed 15 pages. In addition, comments shall be served separately on the ALJ and all Commissioners, preferably by hand delivery, overnight mail, or other expeditious method of service.

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC:acb

Enclosures

COM/RB1/acb DRAFT Item H-8 a

7/12/01

Decision ALTERNATE DRAFT DECISION OF COMR. BILAS (Mailed 6/28/01)

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 Authorizing it to Include the Remaining $1,600,000 of the Cost of the Sonoma Treatment Plant in the Utility Plant in Service for the Clearlake District.

Application 99-03-064 (Filed March 30, 1999)

(See Decision 00-06-074 for List of Appearances.)

OPINION

Summary

This decision denies the request of Southern California Water Company (SCWC) to include in rate base an additional undepreciated $1.6 million of the $3.1 million cost related to its Sonoma Treatment Plant in the Clearlake District. We shall not modify Decision (D.) 93-06-035, this Commission's previous decision restricting additional rate recovery for the capital cost of this treatment plant until increased customer growth or demand require additional plant capacity.