2. Background

Golden State, a California corporation, is a subsidiary of American States Water Company. In addition to Region I, Golden State provides water service in various other areas in California including the counties of Contra Costa, Imperial, Lake, Los Angeles, Orange, Sacramento, San Bernardino, San Luis Obispo, Santa Barbara and Ventura and electric service in the vicinity of Big Bear Lake in San Bernardino County. As one of California's largest Commission-regulated water utilities, it serves approximately 240,000 customers in districts throughout the state. Golden State filed this application pursuant to the Commission's Rate Case Plan (RCP) for Class A water general rate cases (GRCs), which, at the time Golden State filed its GRC, was governed by Decision (D.) 04-08-016. On May 24, 2007, we adopted a revised RCP in D.07-05-062. Therefore, Golden State's next GRC filing must be filed consistent with the framework set forth therein and, on a going forward basis, we expect Golden State to conform its practices in Region I to the requirements set forth in D.07-05-062.