E. Assignment of Proceeding

Carl Wood is the Assigned Commissioner and Maribeth A. Bushey is the assigned ALJ in this proceeding.

Findings of Fact

1. PAWW's last general rate case was in 1991.

2. Since some time after 1991, PAWW's rates have failed to generate sufficient revenue to meet reasonable expenses.

3. PAWW received extraordinary revenue in the form of income tax refunds over a multi-year period ending in 1995.

4. PAWW did not seek Commission direction as to the disposition of the income tax refunds.

5. PAWW and the City entered into a stipulation that resolved all but one issue in this proceeding.

6. The stipulation is unopposed.

7. The stipulating parties are fairly reflective of the affected interests in this proceeding.

8. No term of the stipulation contravenes statutory provisions or prior Commission decisions.

9. The stipulation conveys sufficient information to permit the Commission to discharge its future regulatory obligations with respect to the parties and their interests.

10. PAWW overcharged its 5/8 x 3/4 inch meter customers for approximately 10 years, and has refunded the overcharges for 1999, 2000, and 2001.

11. PAWW's correct tariff rate for 5/8 x 3/4 inch meter customers was approved by the Commission and included in PAWW's tariffs.

12. PAWW at all relevant times made publicly available the correct information regarding the tariff rate for 5/8 x 3/4 inch meter customers, so these customers discovered that they were being overcharged.

Conclusions of Law

1. The stipulation is an uncontested settlement as defined in Rule 51(f).

2. The stipulation is reasonable in consideration of the whole record, consistent with law, and in the public interest.

3. The stipulation should be adopted.

4. All public utilities must print and keep open to public inspection all schedules showing rates, charges, and classifications collected or enforced.

5. Section 736 provides that all claims against a public utility must be filed within three years.

6. A statute of limitations is not tolled when a party is unaware of its legal rights.

7. PAWW owes no further refunds for the 5/8 x 3/4 inch meter overcharges.

FINAL ORDER

IT IS ORDERED that:

1. The stipulation between Point Arena Water Works and the City of Point Arena, filed April 8, 2004, is approved and adopted. The parties shall comply with all provisions of the stipulation.

2. This proceeding is closed.

This order is effective today.

Dated September 2, 2004, at San Francisco, California.

MICHAEL R. PEEVEY

President

GEOFFREY F. BROWN
SUSAN P. KENNEDY

Commissioners

I dissent.

/s/ CARL W. WOOD

Commissioner

I will file a concurrence.

/s/ SUSAN P. KENNEDY
Commissioner