APPENDIX B

PAGE 1 OF 4

California-American Water Company

Schedule No. FE-1

Felton Tariff Area

GENERAL METERED SERVICE

APPLICABILITY

Applicable to all metered water service.

TERRITORY

Felton and vicinity, Santa Cruz County.

RATES

Per Meter

Per Month

For all water delivered, per 100. cu. ft. $ 4.3564(I)

Per Meter Per Month Per Meter Per Month

Service charge SDWBA Surcharge 1/

For 5/8 x ¾-inch meter $30.98 (I) $11.50

For ¾-inch meter $46.47 (I) $17.26

For 1-inch meter $77.44 (I) $28.76

For 1½-inch meter $154.89 (I) $57.52

For 2-inch meter $247.82 (I) $92.03

For 3-inch meter $464.67 (I) $172.55

For 4-inch meter $774.45 (I) $287.59

The service charge is a readiness-to-serve charge which is applicable to all metered service and to which is to be added the charge for water used computed at the quantity rates.

Conservation Discount

The following conservation discounts will be applied to the service and

quantity charges.

Monthly Consumption Discount

0-5 CCFs 20.00%

6-10 CCFs 15.00%

11-15 CCFs 10.00%

Over 15 CCFs 0.00%

The percentage discount will be calculated based upon the customer's bi-monthly consumption.

APPENDIX B

PAGE 2 OF 4

California-American Water Company

Schedule No. FE-1 (continued)

Felton Tariff Area

GENERAL METERED SERVICE

Service Reestablishment Charge:

For each reestablishment of water service $ 4.10

SPECIAL CONDITIONS

1. The service reestablishment charge is in addition to the charges calculated in accordance with this schedule and will be made each time an account is reopened for a customer at the time water service is to be restored after discontinuance at that customer's request.

2. A surcharge is included in each bill to recover revenues deferred in D.04-05-023. The surcharge is $0.1824 per 100 cu ft. applied to the quantity rate for all units consumed and a monthly meter surcharge will be added to all meter sizes for all classes of customers for a six year period beginning September 27, 2005 based on the following table:

3. All bills are subject to the reimbursement fee set forth on Schedule No. UF.

METERED SERVICE SURCHARGE 1/

NOTE:

This surcharge is in addition to the regular monthly metered water bill. The

total monthly surcharge must be identified on each bill. This surcharge is

specifically for the repayment of the California Safe Drinking Water Bond Act loan as authorized by Decision 96-12-061.

4. Per the decision from Application 05-02-012/013, a 3% monthly surcharge on customer bills will (N)

be collected for the minimum ERISA pension payment. Collections will be tracked in a

balancing account. An annual advice letter filing will be made for a surcredit or surcharge,

depending on the balance in the account.

5. Qualifying low-income customers can receive a 50% discount on the monthly service (N)

charge. Customers must apply with the Company for acceptance into the low-income

program.

APPENDIX B

PAGE 3 OF 4

California-American Water Company

Schedule No. FE-4

Felton Tariff Area

PRIVATE FIRE PROTECTION SERVICE

APPLICABILITY

Applicable to all water service furnished to privately owned fire protection purposes.

TERRITORY

Felton and vicinity, Santa Cruz County

RATES

Per Meter

Per Month

For each 4-inch connection, or smaller, $ 43.00 (I)

For each 6-inch connection................ $ 64.55 (I)

For each 8-inch connection................ $ 86.00 (I)

For each 10-inch connection.............. $ 172.49 (I)

SPECIAL CONDITIONS

1. Per the decision from Application 05-02-012/013, a 3% monthly surcharge on customer bills will (N)

be collected for the minimum ERISA pension payment. Collections will be tracked in a

balancing account. An annual advice letter filing will be made for a surcredit or surcharge,

depending on the balance in the account.

APPENDIX B

PAGE 4 OF 4

California-American Water Company

Schedule No. FE-1

Felton District Tariff Area

GENERAL METERED SERVICE

PROPOSED STEP RATE INCREASES

Each of the following increases in rates may be put into effect on the indicated date by filing a rate schedule which adds the appropriate increases to the rate which would otherwise be in effect on that date.

Quantity Rates: Rates to be Effective

		01/01/07	01/01/08
	Quantity Rates:
	For all water delivered, per 100 cu. ft.

Service Charge: Per Meter Per Month

			01/01/07	01/01/08
For	5/8 x 3/4-inch	Meter
For	3/4-inch	Meter
For	1-inch	Meter
For	1-1/2-inch	Meter
For	2-inch	Meter
For	4-inch	Meter