ALJ/MFG/hkr Mailed 10/3/2003

Decision 03-10-005 October 2, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of CALIFORNIA WATER SERVICE COMPANY (U 60 W), a corporation, for an order authorizing it to increase rates charged for water service in the ANTELOPE VALLEY district by $60,300, or 5.8%, in 2003, by $130,600 or 11.8%, in 2004, by $126,900, or 10.2%, in 2005, and $127,500, or 9.3% in 2006.	Application 02-11-021 (Filed November 8, 2002)
In the Matter of the Application of CALIFORNIA WATER SERVICE COMPANY (U 60 W), a corporation, for an order authorizing it to increase rates charged for water service in the KERN RIVER VALLEY district by $913,200, or 46.9%, in 2003, by $148,800 or 5.3%, in 2004, by $137,500, or 4.6%, in 2005, and $139,000, or 4.4% in 2006.	Application 02-11-022 (Filed November 8, 2002)

Bingham McCuthen LLP, by Gregory Bowling, Attorney at Law, for California Water Service Company, applicant.

Jack L. Chacanaca and Roger Berger, for Leona Valley Cherry Growers Association; and, Roger Berger, for Leona Valley Town Council, interested parties.

Monique Steele and Monica L. McCrary, Attorneys at Law, for the Office of Ratepayer Advocates.

OPINION RESOLVING GENERAL RATE CASES

OPINION RESOLVING GENERAL RATE CASES

I. Summary

This decision adopts an all-party settlement agreement entered into by California Water Service Company (CWS), the Office of Ratepayer Advocates (ORA), the Leona Valley Cherry Growers Association (CGA), and the Leona Valley Town Council (LVTC).¹ The settlement agreement resolves all issues in the Antelope Valley District and Kern River Valley District rate increase applications of CWS.

CWS is authorized to change its Antelope Valley District rates by amounts designed to reduce revenue by $151,800, or 14.05% for 2003 and to increase revenue by $95,300, or 10.27% for 2004; $68,800, or 6.72% in 2005; and $68,800, or 63% for 2006. CWS is also authorized to change its Kern River Valley District rates by amounts designed to increase revenue by $183,100, or 9.36% for 2003; $230,100 or 10.76% for 2004; $131,600, or 5.56% in 2005; and $131,600, or 5.26% for 2006. The adopted rates are based on an interim 8.90% return on rate base (ROR) and a 9.70% return on equity (ROE).

CWS shall file advice letters revising the rates adopted in this order to reflect adoption of a revised ROR and ROE in CWS' pending Application (A.) 03-01-034 et al. Those advice letters shall be filed within 30 days after the effective date of a decision in A.03-01-034, and shall go into effect upon the Water Division determination that they conform to this order.

As a result of the revenue changes granted by this decision, the 2003 average residential customer's monthly bill in the Antelope Valley District using 34 hundred cubic feet (Ccf) of water with a 5/8" by 3/4" meter would decrease by $6.83, or 13.11% from $52.10 to $45.27. The 2003 average residential customer's monthly bill in the Kern River Valley District using 11 Ccf of water with a 5/8" by 3/4" meter would increase by $3.52, or 9.16% from $79.15 to $84.52 for the remainder of 2003.