ALJ/MFG/tcg Date of Issuance 3/13/2009

Decision 09-03-008 March 12, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of VALENCIA WATER COMPANY (U-342W) for Authorization to Issue and Sell Notes, or Other Evidence of Indebtedness Not to Exceed $30,000,000.

Application 08-10-001 (Filed October 8, 2008)

DECISION AUTHORIZING VALENCIA WATER COMPANY
TO ISSUE UP TO $30 MILLION OF NEW LONG-TERM DEBT

1. Summary

This decision grants Valencia Water Company (Valencia) authority to issue up to $30 million of long-term Debt Instruments, as requested in Application 08-10-001. To the extent that Valencia has not exercised its entire requested financing authority upon the effective date of any changes to the Commission's Competitive Bidding Rule, Valencia shall be required to comply with those changes, if applicable, in exercising its remaining financing authority.

This decision also authorizes Valencia to report all Debt Instrument information required by General Order 24-B to the Commission on a quarterly basis. Further, Valencia shall continue to adhere to the conditions pertaining to affiliated transactions enumerated in Decision 07-09-026. This authority does not become effective until Valencia remits $15,500 to the Commission's Fiscal Office.