Advice Letter No. 532

San Jose

Water

Company

110 W. Taylor Street

San Jose, CA 95110-2131

March 29, 2019

California Public Utilities Commission

505 Van Ness Avenue

San Francisco, CA 94102

Advice Letter No. 532

San Jose Water Company (U-168-W) (SJWC) hereby transmits for filing the following changes

in tariff schedules applicable to its service area and which are attached hereto:

Cal. P.U.C

Sheet No. Title of Sheet

Cancelling Cal.

P.U.C. Sheet No.

1971-W Schedule No. 1

General Metered Service (Continued)

1962-W

1972-W Schedule No. 1B

General Metered Service w/Automatic

Fire Sprinkler System (Continued)

1963-W

1973-W Schedule No. 1C

General Metered Service

Mountain District (Continued)

1974-W Schedule No. RW

Raw Water Metered Service (Continued)

1966-W

1975-W Table of Contents 1970-W

Purpose

This Advice Letter (AL) requests the authorization of the California Public Utilities Commission

(Commission) for SJWC to recover the $9,020,356 balance accumulated in the Water

Conservation Memorandum Account (WCMA) during the period January 1, 2018 through

December 31, 2018.

Pursuant to the Commission’s Standard Practice U-27-W, recovery of the accumulated balance is

requested via a 12-month quantity based surcharge of $0.1960 per ccf on all potable water usage

as the balance is greater than 2% but less than 5% of SJWC’s current annual authorized revenue

requirement of $376,180,000. This advice letter is designated as a Tier 3 Advice Letter. These

tariffs are submitted pursuant to General Order No. 96-B – Water Industry Rule 7.3.3(7).

Background

With California facing water shortfalls in the driest year in recorded state history, Governor

Edmund G. Brown Jr. proclaimed a State of Emergency on January 17, 2014, and directed state

CALIFORNIA PUBLIC UTILITIES COMMISSION

ADVICE LETTER NO. 532

Page 2

officials to take all necessary actions to prepare for these drought conditions. In response to the

Governor’s direction, on February 27, 2014, the Commision issued Resolution (Res.) W-4976.

In this Resolution, the Commission approved Drought Procedures for Water Conservation,

Rationing and Service Connection Moratoria (Drought Procedures) and required that all Class A

and B water utilities that had an existing Tariff Rule 14.1 activate the Rule within 30 days of the

Resolution effective date. The Drought Rules, in addition to providing steps to be taken when a

utility suffers from a water shortage, provided that a utility without a full revenue decoupling

Water Revenue Adjustment Mechanism request to add a memorandum account to track lost

revenue associated with reduced sales as a result of activating Rule 14.1. SJWC’s Rule 14.1

became effective March 31, 2014, via AL 456, and responded to both the Governor’s declaration

as well as a water use reduction target of 20% of 2013 usage established by our local wholesale

water supplier, the Santa Clara Valley Water District (SCVWD).

With Rule 14.1 in place, SJWC pursued an aggressive conservation campaign. Actions taken

include providing direct mailings to customers outlining the Rule 14.1 conservation measures in

effect and the State Water Resources Control Board’s Emergency Regulation to Control Water

Use during Droughts, many of which remain in effect today. Additionally, SJWC has increased

face-to-face conservation outreach by meeting directly with home owner associations,

neighborhood associations, trade associations, etc. SJWC has also increased leak repair activity

to reduce unaccounted for water.

On June 15, 2015, SJWC implemented Schedule 14.1 and Rule 14.1 as directed by the

Commission and approved in ALs 472/472A. Further, SJWC immediately activated Stage 3 –

Critical Water Reduction of that Rule in order to meet a 30% water use reduction goal

established by the SCVWD. Stage 3 consists of 11 different water use restrictions including but

not limited to a two day per week irrigation schedule and all current State restrictions. The

Schedule includes monthly drought allocations and drought surcharges for residential customers

and dedicated landscape services who do not meet the allocations. All drought surcharges

collected have been tracked in SJWC’s WCMA to offset lost revenues as allowed in the

approved Schedule 14.1 – Special Condition 6. In conjunction with implementing Schedule

14.1, SJWC also reached out to our Commercial and Municipal customer base offering free

water audits, presentations and tabling events to educate their staff as well as customized

conservation analysis of their business.

In light of improved water supply conditions in 2016, the State Water Resources Control Board

removed its mandated conservation targets for urban water suppliers and the SCVWD reduced

its water use reduction goal from 30% to 20% on July 1, 2016. SJWC sought and received

approval from the Commission to update the drought allocations to match the SCVWD’s new

water use reduction goal under Schedule 14.1 effective July 1, 2016, via AL 491.

CALIFORNIA PUBLIC UTILITIES COMMISSION

ADVICE LETTER NO. 532

Page 3

Effective February 1, 2017, SJWC received approval from the Commission to suspend the

drought allocations and surcharges under Schedule 14.1 via AL 505.

SJWC’s conservation response and the efforts of our customers have produced exemplary results

as summarized below when compared to the 2013 baseline year and surpassed the Governor’s

mandated reduction of 20% for the company and nearly achieved the SCVWD’s 30% water use

reduction target. The SCVWD continues to request a water use reduction target of 20% of 2013

usage from all of its retailers, while the State Water Resource Control Board has made several

water use restrictions mandatory.

• 2014 – 14% reduction (from March 31 through December 31)

• 2015 – 28% reduction

• 2016 – 29% reduction

• 2017 – 20% reduction

• 2018 – 22% reduction

Regulatory filings for the recovery of unrecovered fixed costs resulting from the drought

included the following.

AL 477, effective December 9, 2015, authorized recovery of the undercollected $4,258,794

balance in the Mandatory Conservation Revenue Adjustment Memorandum Account

(MCRAMA) for the period March 31 through December 31, 2014, in accordance with Res. W-

5071. In addition, AL 477 used the WCMA methodology previously authorized for water

utilities in Decision (D.) 90-08-055 and D.91-10-042 for calculating revenues as directed in Res.

W-5071.

AL 486, effective April 26, 2016, authorized the recovery of the undercollected $7,667,713

WCMA balance for the period of January 1 through December 31, 2015, as provided in Res. W-

5095. Additionally, as discussed above, the unrecovered fixed costs tracked in the WCMA was

offset by drought surcharges collected for the same period as authorized in SJWC’s Schedule

14.1 – Special Condition 6.

AL 508A/B, effective January 1, 2017, authorized the re-implementation of the 2014 MCRAMA

and 2015 WCMA surcharges which expired with significant undercollections remaining as

authorized in ALs 477 and 486 due to the successful conservation efforts.

The 2016 and 2017 WCMA balances were resolved in SJWC’s 2018 General Rate Case.

Unrecovered fixed costs tracked in the WCMA in 2016 and 2017 were offset by drought

surcharges collected in the same period and netted against other memorandum accounts as

provided in D.18-11-025.

CALIFORNIA PUBLIC UTILITIES COMMISSION

ADVICE LETTER NO. 532

Page 4

WCMA Under-collection

The unrecovered fixed cost recovery requested in this advice letter is calculated based on the

WCMA methodology approved by the Commission in Res. W-5071 on December 3, 2015.

WCMA calculations are provided in Attachment A.

As detailed in Attachment A, the total lost revenue of $8,935,385, which includes the required

20 basis point adjustment in SJWC’s ROE. Inclusion of interest at the 90-day commercial rate

provides a total WCMA under-collection of $9,020,356, which results in a surcharge of $0.1960

per ccf to be applied to all potable and raw water usage for a 12-month period or until recovered.

Recovery of the accumulated balance of the memorandum account is being requested in

accordance with Commission procedures as the balance has exceeded 2% of authorized revenue

for the prior calendar year. The memorandum account surcharge will result in an increase of

$2.19 per month, or approximately 2.26% for a customer with a 3/4-inch meter using 11 ccf per

month (Attachment B). SJWC earned its authorized Rate of Return for the WCMA period

requested for recovery in this filing (Attachment C).

Public notice of the offset rate adjustment is being completed by separate direct mailing to all

customers (Attachment D) in compliance with GO 96B General Rule 4.2 and Water Industry

Rule 3.1. This direct mailing is anticipated to begin on or about March 29, 2019, in order to

providesufficient time for responses or protests to be received within the 20-day protest period

and for the required minimum 30-day notice prior to the requested effective date of July 1, 2019.

Proof of mailing will be submitted to the Commission when the notification has been completed.

Effective Date

SJWC requests the proposed surcharge become effective July 1, 2019.

Protests and Responses

Anyone may respond to or protest this advice letter. A response does not oppose the filing but

presents information that may prove useful to the Commission in evaluating the advice letter. A

protest objects to the advice letter in whole or in part and must set forth the specific grounds on

which it is based. These grounds may include the following:

(1) The utility did not properly serve or give notice of the advice letter;

(2) The relief requested in the advice letter would violate statute or

Commission order, or is not authorized by statute or Commission

order on which the utility relies;

(3) The analysis, calculations, or data in the advice letter contain material

error or omissions;

CALIFORNIA PUBLIC UTILITIES COMMISSION

ADVICE LETTER NO. 532

Page 5

(4) The relief requested in the advice letter is pending before the

Commission in a formal proceeding;

(5) The relief requested in the advice letter requires consideration in a

formal hearing, or is otherwise inappropriate for the advice letter

process; or

(6) The relief requested in the advice letter is unjust, unreasonable, or

discriminatory (provided that such a protest may not be made where it

would require relitigating a prior order of the Commission).

A response or protest must be made in writing or by electronic mail and must be received by the

Water Division within 20 days of the date this advice letter is filed. The address for mailing or

delivering a protest is:

Tariff Unit, Water Division, 3

floor

California Public Utilities Commission,

505 Van Ness Avenue

San Francisco, CA 94102

[email protected]

On the same date the response or protest is submitted to the Water Division, the respondent or

protestant shall send a copy of the protest by mail to us, addressed to:

Regulatory Affairs

San Jose Water Company

110 West Taylor Street

San Jose, CA 95110

Fax 408.279.7934

[email protected].

The advice letter process does not provide for any responses, protests or comments, except for

the utility’s reply, after the 20-day comment period.

In compliance with Paragraph 4.3 of General Order 96-B, a copy of this advice letter has been

mailed to all interested and affected parties as detailed in Attachment E.

SJWC currently has Advice Letter 531 pending before the Commission.

CALIFORNIA PUBLIC UTILITIES COMMISSION

ADVICE LETTER NO. 532

Page 6

This filing will not cause the withdrawal of service, nor conflict with other schedules or rules.

Very truly yours,

/S/ JOHN TANG

JOHN TANG

Vice President of Regulatory Affairs

Enclosure

Index of Workpapers

Attachment A Revenue and Rate Calculations w/Workpapers

Attachment B

Bill Comparison

Attachment C Summary of Earnings

Attachment D Public Notice

Attachment E Service List

SAN JOSE WATER COMPANY

ADVICE LETTER NO. 532

ATTACHMENT A

SAN JOSE WATER COMPAN

(U-168-W)

ADV 532

WATER CONSERVATION MEMORANDUM ACCOUNT

2018

Drought Surcharges are booked as liabilites 100.249010.427, 100.249020.427 and 100.249040.427 and related 101 accounts

Authorized in Advice Letter 479-A Schedule 14.1

Interest on memorandum account pursuant to D.94-06-033.

Month

Beginning

Balance

Monthly

Charges

Ending

Balance

Average

Balance

Fed. Res.

Com. Paper

3-month

Prorated

Monthly

Rate

Computed

Interest

Cumulative

Interest

Month End

Balance

2018

Jan $0 $362,470 $362,470 $181,235 1.59% 0.13% $236 $236 $362,706

Feb $362,706 $241,045 $603,752 $483,229 1.69% 0.14% $677 $913 $604,429

Mar $604,429 $102,517 $706,945 $655,687 1.90% 0.16% $1,049 $1,962 $707,994

Apr $707,994 ($701,727) $6,268 $357,131 2.00% 0.17% $607 $2,569 $6,875

May $6,875 ($1,650,603) ($1,643,728) ($818,427) 2.03% 0.17% ($1,391) $1,178 ($1,645,119)

Jun ($1,645,119) ($1,763,689) ($3,408,808) ($2,526,964) 2.08% 0.17% ($4,296) ($3,118) ($3,413,104)

Jul ($3,413,104) ($1,373,378) ($4,786,482) ($4,099,793) 2.12% 0.18% ($7,380) ($10,498) ($4,793,862)

Aug ($4,793,862) ($1,362,928) ($6,156,791) ($5,475,327) 2.12% 0.18% ($9,856) ($20,354) ($6,166,647)

Sep ($6,166,647) ($1,527,947) ($7,694,594) ($6,930,620) 2.19% 0.18% ($12,475) ($32,829) ($7,707,069)

Oct ($7,707,069) ($945,687) ($8,652,756) ($8,179,912) 2.31% 0.19% ($15,542) ($48,371) ($8,668,298)

Nov ($8,668,298) ($337,707) ($9,006,005) ($8,837,152) 2.45% 0.20% ($17,674) ($66,045) ($9,023,679)

Dec ($9,023,679) $22,249 ($9,001,430) ($9,012,555) 2.52% 0.21% ($18,926) ($84,971)

($9,020,356)

2018 Total ($8,935,385) ($84,971)

D.18-11-025 2019 Authorized Potable and Raw Metered Sales CCF 46,021,000

12 Month Surcharge per CCF ($0.1960)

D.16-06-004

2018

ttac

ment

Page 1 of 1

Water Conservation Memorandum Account

Twelve Months Ended December 31, 2018

Potable water

SALES DATA (CCF)

601.10 METERED RESIDENTIAL

JAN 2018 FEB 2018 MAR 2018 APR 2018 MAY 2018 JUN 2018 JUL 2018 AUG 2018 SEP 2018 OCT 2018 NOV 2018 DEC 2018 2018 Total

Actual Consumption (CCF) 1,958,272 1,617,982 1,604,456 1,500,483 1,651,111 2,056,920 2,740,314 2,541,484 2,843,080 2,491,190 2,624,592 2,244,476 25,874,360

Adopted Usage/Customer 146.6

Monthly Allocation - 3 Yr. Average Distribution 6.60% 5.35% 5.62% 5.68% 7.36% 8.70% 11.35% 10.39% 11.64% 9.92% 9.77% 7.64% 100.00%

Allocated Adopted CCF/Customer 9.67 7.85 8.24 8.32 10.79 12.75 16.63 15.23 17.06 14.54 14.32 11.21 146.60

Recorded # Customers 199,006 199,018 199,138 199,242 199,448 199,053 199,034 199,257 199,521 199,738 199,808 199,691

Normalized Adopted Sales 1,924,388 1,561,376 1,639,952 1,658,635 2,151,412 2,538,253 3,310,633 3,033,957 3,403,789 2,903,412 2,861,644 2,237,834 29,225,284

Difference Actual vs. Normalized Adopted Sales (CCF) 33,884 56,606 (35,495) (158,152) (500,301) (481,333) (570,318) (492,472) (560,710) (412,222) (237,052) 6,642 (3,350,924)

601.10 METERED BUSINESS

Actual Consumption (CCF) 1,201,156 1,168,834 1,057,162 1,102,563 1,174,769 1,446,909 1,642,845 1,684,236 1,582,018 1,633,706 1,489,708 1,432,422 16,616,329

Adopted Usage/Customer 858.3

Monthly Allocation - 3 Yr. Average Distribution 6.53% 6.65% 5.85% 7.04% 7.70% 9.62% 9.68% 10.33% 9.87% 9.74% 8.51% 8.48% 100.00%

Allocated Adopted CCF/Customer 56.04 57.11 50.24 60.40 66.07 82.56 83.10 88.68 84.71 83.58 73.06 72.77 858.30

Recorded # Customers 20,610 20,585 20,636 20,619 20,641 20,639 20,658 20,668 20,681 20,682 20,689 20,687

Normalized Adopted Revenue 1,155,074 1,175,586 1,036,654 1,245,402 1,363,805 1,703,883 1,716,597 1,832,891 1,751,795 1,728,510 1,511,471 1,505,343 17,727,011

Difference Actual vs. Normalized Adopted Sales (CCF) 46,082 (6

,752) 20,509 (142,838) (189,036) (256,974) (73,752) (148,655) (169,778) (94,804) (21,763) (72,921) (1,110,682)

601.20 METERED INDUSTRIAL

ACTUAL 16,825 16,703 16,470 18,700 19,538 21,044 19,795 21,111 19,355 22,788 18,241 20,152 230,721

ADP CCF/CUST 3,830.2

Monthly Allocation - 3 Yr. Average Distribution 6.30% 8.08% 6.77% 7.19% 8.83% 9.99% 8.07% 10.28% 8.18% 8.75% 9.20% 8.35% 100.00%

Allocated Adopted CCF/Customer 241.35 309.52 259.23 275.44 338.18 382.80 309.12 393.75 313.31 335.32 352.41 319.76 3,830

REC # CUST 53 54 52 52 51 51 52 52 54 54 54 54

NORMALIZED 12,792 16,714 13,480 14,323 17,247 19,523 16,074 20,475 16,919 18,107 19,030 17,267 201,951

Difference Actual vs. Normalized Adopted Sales (CCF) 4,033 (11) 2,990 4,377 2,291 1,521 3,721 636 2,436

4,681 (789) 2,885 28,771

601.30 METERED PUBLIC AUTHORITY

ACTUAL 82,950 82,793 90,038 89,191 202,527 302,129 344,704 335,121 330,521 280,556 217,748 120,309 2,478,588

ADP CCF/CUST 1,969.8

Monthly Allocation - 3 Yr. Average Distribution 2.8% 3.2% 3.4% 5.1% 10.3% 13.5% 14.4% 14.3% 13.1% 9.6% 6.6% 3.7% 100.00%

Allocated Adopted CCF/Customer 55.28 62.41 66.23 100.12 202.28 266.91 283.95 282.28 257.48 190.00 130.01 72.91 1,970

REC # CUST 1,310 1,310 1,310 1,311 1,310 1,309 1,307 1,307 1,306 1,305 1,305 1,305

NORMALIZED 72,413 81,755 86,756 131,253 264,984 349,380 371,121 368,945 336,269 247,945 169,665 95,141 2,575,627

Difference Actual vs. Normalized Adopted Sales (CCF) 10,537 1

,039 3,282 (42,061) (62,457) (47,251) (26,417) (33,824) (5,748) 32,611 48,083 25,168 (97,040)

603.10 Resale

ACTUAL 12,848 12,834 10,410 10,745 15,884 20,406 21,944 23,713 22,749 20,004 19,938 15,033 206,508

ADP CCF/CUST 10,062.5

Monthly Allocation - 3 Yr. Average Distribution 3.73% 4.03% 3.70% 4.80% 8.34% 10.76% 13.89% 12.36% 12.81% 11.95% 7.00% 6.63% 100.0%

Allocated Adopted CCF/Customer 375.51 405.13 371.96 483.36 839.25 1,082.52 1,397.73 1,243.34 1,289.15 1,202.74 704.63 667.19

10,063

REC # CUST 33 33 33 33 33 33 33 33 33 33 33 33

NORMALIZED 12,392 13,369 12,275 15,951 27,695 35,723 46,125 41,030 42,542 39,690 23,253 22,017 332,063

Difference Actual vs. Normalized Adopted Sales (CCF) 456 (535) (1,865) (5,206) (11,811) (15,317) (24,181) (17,317) (19,793) (19,686) (3,315) (6,984) (125,555)

609.00 RAW WATER SALES

ACTUAL 844 733 426 1,526 23,296 17,178 20,440 23,589 20,509 15,376 12,504 6,723 143,143

ADP CCF/CUST 3,500.0

Monthly Allocation - 3 Yr. Average Distribution 3.73% 4.03% 3.70% 4.80% 8.34% 10.76% 13.89% 12.36% 12.81% 11.95% 7.00% 6.63% 100.0%

Allocated Adopted CCF/Customer 130.611 140.916 129.377 168.124 291.914 376.530 486.166 432.468 448.400 418.343 245.088 232.064 3,500.000

REC # CUST 5 5 5 5 5 5 5 5 5 5 5 5

NORMALIZED 653.054 704.580 646.887 840.619 1,459.572 1,882.650 2,430.828 2,162.338 2,241.998 2,091.714 1,225.438 1,160.322 17,500

Difference Actual vs. Normalized Adopted S

ales (CCF) 191 28 (221) 686 21,837 15,295 18,009 21,426 18,267 13,284 11,278 5,563 125,643

609.00 OTHER SALES

ACTUAL 5,538 2,962 6,331 5,259 13,116 12,446 12,211 7,791 13,722 12,708 7,039 7,072 106,195

ADP CCF/CUST 424.5

Monthly Allocation - 3 Yr. Average Distribution 2.38% 3.98% 4.24% 4.03% 7.11% 8.23% 16.58% 10.14% 13.18% 11.59% 7.54% 11.01% 100.0%

Allocated Adopted CCF/Customer 10.10 16.91 18.00 17.09 30.19 34.93 70.37 43.04 55.94 49.22 32.01 46.73 424.53

REC # CUST 236 222 213 221 234 268 268 280 271 277 283 272 3,045

NORMALIZED 2,383 3,755 3,834 3,778 7,065 9,361 18,859 12,051 15,161 13,633 9,058 12,710 111,647

Difference Actual vs. Normalized Adopted Sales (CCF) 3,155 (793) 2,497 1,481 6,051 3,085 (6,648) (4,260) (1,439) (925) (2,019) (5,638) (5,452)

TOTAL SALES DIFFERENCE (CCF) 98,338 49,581 (8,303) (341,714) (733,427) (780,974) (679,586) (674,467) (736,763) (477,062) (205,575) (45,285) (4,535,238)

Total Quantity Vo

lumes 3,277,589 2,902,108 2,784,867 2,726,942 3,076,946 3,859,854 4,781,812 4,613,457 4,811,444 4,460,952 4,377,266 3,839,464 45,512,701

Quantity Rates

Effective date 1/1/2018 1/1/2018 1/1/2018 &3/22/18 3/22/2018 3/22/2018 3/22/2018 7/1/2018 7/1/2018 8/25/2018 8/25/2018 8/25/2018 8/25/2018

Uniform Rate App. to All Potable Water Excl. Raw $5.6482 $5.6482 $5.6211 $5.5670 $5.5670 $5.5670 $5.6222 $5.6222 $5.6660 $5.6660

$5.6660 $5.6660

Revenue Loss Excluding Raw Water $ 554,355 $ 279,884 $ (45,433) $ (1,906,137) $ (4,204,552) $ (4,432,832) $ (3,922,022) $ (3,912,450) $ (4,278,002) $ (2,778,301) $ (1,228,694) $ (288,104) $ (26,162,288)

Raw Water Rates per CCF $5.4186 $5.4186 $5.3915 $5.3374 $5.3374 $5.3374 $5.3926 $5.3926 $5.4464 $5.4464 $5.4464 $5.4464

Revenue Loss

Raw Water $1,035 $154 ($1,191) $3,659 $116,550 $81,635 $97,116 $115,544 $99,490 $72,350 $61,426 $30,298 $678,066

GROSS REVENUE GAIN (LOSS) $ 555,389 $ 280,038 $ (46,624) $ (1,902,478) $ (4,088,001) $ (4,351,196) $ (3,824,906) $ (3,796,907) $ (4,178,512) $ (2,705,951) $ (1,167,267) $ (257,807) $ (25,484,222)

GROSS REVENUE GAIN (LOSS) 0 $ 555,389 $ 280,038 $ (46,624) $ (1,902,478) $ (4,088,001) $ (4,351,196) $ (3,824,906) $ (3,796,907) $ (4,178,512) $ (2,705,951) $ (1,167,267) $ (257,807) $ (25,484,222)

Details of Variable Cos

t Reductions:

PURCHASED POWER 17,693 8,921 (1,494) (61,482) (131,960) (140,514) (122,273) (121,351) (132,560) (85,834) (36,988) (8,148) (815,989)

PURCHASED WATER 178,497 89,997 (15,072) (620,257) (1,331,270) (1,417,575) (1,343,250) (1,333,131) (1,456,264) (942,947) (406,334) (89,509) (8,687,115)

PUMP TAXES 110,450 55,688 (9,326) (383,800) (823,758) (877,162) (836,954) (830,648) (907,370) (587,532) (253,179) (55,771) (5,399,364)

LEASED WATER RIGHTS

- - - - - - - - - - - - -

Chemical Costs 940 474 (79) (3,267)

(7,012) (7,467) (6,498) (6,449) (7,044) (4,561) (1,966) (433) (43,363)

UNCOLLECTIBLES 1,088 549 (92) (3,782) (8,117) (8,643) (7,804) (7,745) (8,531) (5,524) (2,380) (524) (51,505)

LOCAL TAXES 1,787 901 (151) (6,209) (13,328) (14,192) (12,796) (12,700) (13,984) (9,055) (3,902) (860) (84,489)

Subtotal - Variable Cost Increase (Reduction) 310,456 156,529 (26,214) (1,078,798) (2,315,445) (2,465,553) (2,329,574) (2,312,024) (2,525,754) (1,635,453) (704,749) (155,245) (15,081,825)

20 BASIS PT. ADJ. * (117,536) (117,536) (122,927) (121,954) (121,954) (121,954) (121,954) (121,954) (124,811) (124,811) (124,811) (124,811) (1,467,012)

Total Adjustments to Gross Lost Revenue 192,919 38,993 (149,141) (1,200,752) (2,437,398) (2,587,507) (2,451,528) (2,433,978) (2,650,565) (1,760,264) (829,560) (280,056) ($16,548,837)

ADJUSTED NET REVENUE - OVER- (UNDER-) RECOVERY

362,470 241,045 102,517 (701,727) (1,650,603) (1,763,689) (1,373,378) (1,362,928) (1,527,947) (945,687) (337,707) 22,249 (8,935,385)

*Acutal Consumption taken fr

om JV 1

Raw Consumption is included in Resale Category in JV1

**Raw Consumption is taken from CC&B report "Monthly_Sales-

Raw

Aug 15 onward provided monthly from Customer Systems.

***Number of Raw Customers is taken from Rate Statistics by SA

pe (CMSA020A) provided by Customer Systems or Accounting.

SAN JOSE WATER COMPANY

ADVICE LETTER NO. 532

ATTACHMENT B

ADVICE LETTER 53

ATTACHMENT

BILL COMPARISON

BILL COMPARISON UNIFORM RATES

Bill Comparison Uniform Rates 3/4-Inch Meter

Usage

(ccf)

Current Rates

AL 528A

Proposed Rates

AL 532 Increase Increase

5 $68.90 $69.89 1.44% $0.99

11 $101.67 $103.86 2.15% $2.19

15 $123.52 $126.50 2.41% $2.98

20 $150.83 $154.81 2.64% $3.97

30 $205.45 $211.42 2.90% $5.96

50 $314.70 $324.64 3.16% $9.94

100 $587.82 $607.69 3.38% $19.87

BILL COMPARISON RESIDENTIAL TIERED RATES

Tiered Rate Bill Comparison 3/4-Inch Meter

Usage

(ccf)

Current Rates

AL 528A

Proposed Rates

AL 532 Increase Increase

5 $64.02 $65.01 1.55% $0.99

Typical 11 $96.80 $98.98 2.26% $2.19

15 $118.64 $121.63 2.51% $2.98

20 $149.20 $153.17 2.66% $3.97

30 $220.02 $225.98 2.71% $5.96

50 $361.66 $371.60 2.75% $9.94

100 $715.78 $735.65 2.78% $19.87

SAN JOSE WATER COMPANY

ADVICE LETTER NO. 532

ATTACHMENT C

SAN JOSE WATER COMPANY

(

U-168-W

)

SUMMARY OF EARNINGS AND RATE OF RETURN

FOR THE TWELVE MONTHS ENDED December 31, 2018

($ Amounts in Thousands)

Authorized

Per

AL 524 Recorded Adjustment Pro-forma

Operating Revenue:

Operating Revenues $382,649 $363,277 $388,293

Other Water Revenues $0 $3,923 $3,923

Deferred Revenue on CIAC $487 $436 $487

Total Metered Revenue $383,136 $367,636 A $392,703

Operating Expense:

Purchased Water - Potable $98,526 $91,717 F $98,391

Purchased Water - Recycled $2,060 $2,680 F $2,769

Pump Taxes $61,390 $44,487 G $61,313

Purchased Power $8,969 $6,342 H $10,565

Operations & Maintenance $37,731 $41,101 D $37,731

Chemical $477 $663 I $478

Administrative & General $27,743 $37,013 D $27,743

Depreciation & Amortization $51,079 $51,001 D $51,619

Subtotal $287,973 $275,004 $290,609

Uncollectible $577 $374 B $594

Taxes Other Than Income $12,136 $13,420 C $13,385

Revenue Adjustment Balancing and Memo Acct $0 ($3,844) E $0

Total Operating Expense Before Income Taxes $300,687 $284,954 $304,588

Operating Revenue Before Income Taxes $82,449 $82,682 $88,116

State Income Tax $4,621 $4,095 J $5,569

Federal Income Tax $14,410 $9,635 J $16,463

Total Operating Expense $319,718 $298,684 $326,620

Net Operating Revenue

$63,419 $68,952 $66,083

Weighted Average Rate Base 829,563 864,933 864,933

Earned Rate of Return 7.64% 7.97% 7.64%

Authorized Rate of Return 7.64% K 7.64%

SAN JOSE WATER COMPAN

(U-168-W)

WEIGHTED AVERAGE RATE BASE

FOR THE TWELVE MONTHS ENDED December 31, 2018

($ Amounts in Thousands)

Weighted Averages [2]:

Utility Plant $1,728,914

Reserve for Depreciation $539,630

Reserve for Amortization $520

Net Utility Plant 1,188,764

Adjustments:

Contributions in Aid of Construction $124,084

Total Tax Deferrals $155,104

Advances for Construction $72,824

Total Adjustments 352,012

Adjusted Net Utility Plant 836,752

Taxes on Contributions & Advances $8,897

Total Working Capital $19,284

Weighted Average Rate Base $864,933

[2] The weighted average is the sum of the first and last months balance divided by

two, plus the sum of the intervening eleven months, divided by twelve.

SAN JOSE WATER COMPANY

ADVICE LETTER NO. 532

ATTACHMENT D

SAN JOSE WATER COMPANY

Para más información o si necesita asistencia en español por favor llame al número (408) 279-7900.

NOTICE OF REQUESTED SURCHARGE IMPLEMENTATION

On March 29, 2019, San Jose Water Company (SJWC) filed Advice Letter No. 532 (AL

532) with the California Public Utilities Commission (CPUC) requesting authorization to

recover the balance accumulated in the Water Conservation Memorandum Account

(WCMA) during the period of January 1, 2018, through December 31, 2018.

The CPUC previously authorized SJWC to establish a WCMA to track unrecovered fixed

costs occurring during mandatory conservation, and that impacted our quantity revenue.

The under-collection was a result of water conservation measures established by the State

of California and the Santa Clara Valley Water District. During the period of January 1,

2018, through December 31, 2018, an under-collection of $9,020,356 was accumulated in

the WCMA. As directed by the CPUC’s Water Division, the under-collection will be

recovered via a quantity surcharge of $0.1960 per hundred cubic feet (ccf, equivalent to

748 gallons) for a period of 12 months from the date of CPUC approval. If approved,

the requested recovery would begin on or about July 1, 2019.

If the CPUC authorizes the requested surcharge, the resulting monthly bill for a typical

customer with a 3/4-inch meter using 11 ccfs per month will increase by $2.19 or

approximately 2.26%.

Protests and Responses

Any customer may respond to or protest this advice letter. A response does not oppose the

filing but presents information that may prove useful to the CPUC in evaluating the

advice letter. A protest objects to the advice letter in whole or in part and must set forth

the specific grounds on which it is based. These grounds may include the following:

(1) The utility did not properly serve or give notice of the advice letter;

(2) The relief requested in the advice letter would violate statute or CPUC order, or is not

authorized by statute or CPUC order on which the utility relies;

(3) The analysis, calculations, or data in the advice letter contain material error or

omissions;

(4) The relief requested in the advice letter is pending before the CPUC in a formal

proceeding;

(5) The relief requested in the advice letter requires consideration in a formal hearing, or

is otherwise inappropriate for the advice letter process; or

(6) The relief requested in the advice letter is unjust, unreasonable, or discriminatory

(provided that such a protest may not be made where it would require re-litigating a

prior order of the CPUC).

A response or protest must be sent in writing or by electronic mail. It must be

received by the Division of Water and Audits by April 18, 2019; 20 days from the

filing date of this advice letter. The address for mailing or emailing a response or

protest is:

California Public Utilities Commission

Tariff Unit, Division of Water and Audits

505 Van Ness Avenue – 3rd Floor

San Francisco, CA 94102

water[email protected]

On the same date the response or protest is submitted to the Water Division, the

respondent or protestant shall send a copy by mail or email to us, addressed to:

San Jose Water Company

Regulatory Affairs

110 West Taylor Street

San Jose, CA 95110

Fax (408) 279-7934

regulatoryaffairs@sjwater.com

The advice letter process does not provide for any responses, protests, or comments

except for the utility’s reply, after the 20-day comment period has closed.

AVISO DE IMPLEMENTACIÓN DEL CARGO ADICIONAL SOLICITADO

El 29 de marzo de 2019, San Jose Water Company (SJWC) presentó la carta de aviso

Advice Letter No. 532 (AL 532) ante la Comisión de Servicios Públicos de California

(CPUC) solicitando autorización para recuperar el saldo acumulado en la cuenta de orden

para la conservación del agua Water Conservation Memorandum Account (WCMA)

durante el periodo comprendido entre el 1 de enero de 2018 y el 31 de diciembre de 2018.

La CPUC autorizó previamente a SJWC establecer una WCMA para rastrear los gastos

fijos no recuperados registrados durante la conservación obligatoria, mismos que

afectaron nuestro ingreso por cantidad. La subrecaudación fue resultado de las medidas

de conservación de agua establecidas por el estado de California y el distrito Santa Clara

Valley Water District. Durante el período del 1 de enero de 2018 al 31 de diciembre de

2018, se acumuló una subrecaudación de $9,020,356 en la cuenta WCMA. Según lo

ordenado por la División del Agua (Water Division) de la CPUC, la subrecaudación se

recuperará vía un cargo adicional de $0.1960 por ciento de pies cúbicos (ccf, equivalente

a 748 galones) por un periodo de 12 meses a partir de la fecha de aprobación de la CPUC.

De aprobarse, la recuperación solicitada entraría en vigor el 1 de julio de 2019 o

alrededor de esa fecha.

Si la CPUC autoriza el cargo adicional solicitado, la factura mensual resultante para un

cliente típico con un medidor de ¾ de pulgada que consume 11 ccf al mes aumentará

$2.19 o aproximadamente 2.26%.

Desacuerdos y respuestas

Cualquier cliente puede responder a o estar en desacuerdo con esta carta de aviso. Una

respuesta no se contrapone a la presentación de esta solicitud pero aporta información

que podría resultar útil para la CPUC al momento de evaluar la carta de aviso. Un

desacuerdo objeta la carta de aviso, total o parcialmente, y debe plantear los motivos

específicos en los que se basa. Entre los motivos se pueden incluir los siguientes:

(1) La empresa de servicios públicos no entregó o notificó sobre la carta de aviso en

forma correcta;

Para más información o si necesita asistencia en español, por favor llame al número (408) 279-7900.

SAN JOSE WATER COMPANY

A V I S O A L P Ú B L I C O

(2) La compensación solicitada en la carta de aviso violaría el estatuto o la orden de la

CPUC, o no está autorizada conforme al estatuto u orden de la CPUC de los cuales

depende la empresa de servicios públicos;

(3) El análisis, cálculos o datos en la carta de aviso contienen errores u omisiones

considerables;

(4) La compensación solicitada en la carta de aviso está pendiente ante la CPUC en un

procedimiento formal;

(5) La compensación solicitada en la carta de aviso requiere considerarse en una

audiencia formal, o de alguna otra forma resulta inapropiada para el proceso de la

carta de aviso, o

(6) La compensación solicitada en la carta de aviso es injusta, irrazonable o

discriminatoria (salvo que dicho desacuerdo no se manifieste cuando requiriera

volverse a litigar una orden previa de la CPUC).

Deberá enviarse una respuesta o un desacuerdo por escrito o vía mensaje de correo

electrónico. La División de Agua y Auditorías (Division of Water and Audits) deberá

recibirlo antes del 18 de abril de 2019; 20 días contados a partir de la fecha de esta

carta de aviso. La dirección para enviar por correo postal o electrónico una respuesta o

un desacuerdo es:

California Public Utilities Commission

Tariff Unit, Division of Water and Audits

505 Van Ness Avenue – 3rd Floor

San Francisco, CA 94102

water[email protected]

La misma fecha en que la respuesta o el desacuerdo se presentan ante la División de

Agua, el que responde o presenta el desacuerdo deberá enviarnos por correo postal o

correo electrónico una copia del desacuerdo, dirigida a:

San Jose Water Company

Regulatory Affairs

110 West Taylor Street

San Jose, CA 95110

Fax (408) 279-7934

regulatoryaffairs@sjwater.com.

El proceso de la carta de aviso no contempla ninguna respuesta, desacuerdo o

comentario, salvo la respuesta de la empresa de servicios públicos, después del periodo

de comentarios de 20 días.

SAN JOSE WATER COMPANY

ADVICE LETTER NO. 532

ATTACHMENT E

SAN JOSE WATER COMPANY (U-168-W)

Advice Letter No. 532

Attachment E

Page 1 of 2

A copy of Advice Letter No. 532 has been sent to the following municipalities, water companies

and interested parties:

City of San Jose

Municipal Water Dept.

Attn: Jeffrey Provenzano

3025 Tuers Road

San Jose, CA 95121

California Water Service Co.

Attn: Regulatory Affairs

1720 North First Street

San Jose, CA 95112

City of Cupertino

10300 Torre Avenue

Cupertino, CA 95014

City of Campbell

70 North First Street

Campbell, CA 95008

Great Oaks Water Company

P.O. Box 23490

San Jose, CA 95153

Santa Clara Valley Water District

5750 Almaden Expressway

San Jose, CA 95118

County of Santa Clara

70 W. Hedding Street

San Jose, CA 95110

Mountain Springs Mutual Water Co.

17956 Greenwood Road

Los Gatos, CA 95033

San Jose Mercury News

Attn: Paul Rogers

4 N. Second Street, Suite 800

San Jose, CA 95113

Town of Los Gatos

Attn: Director of Public Works

110 E. Main Street

Los Gatos, CA 95032

City of Monte Sereno

Attn: Jessica Kahn, City Engineer

18041 Saratoga-Los Gatos Road

Monte Sereno, CA 95030

City of Santa Clara

1500 Warburton Avenue

Santa Clara, CA 95050

City of Milpitas

Attn: Utilities Engineering

455 East Calaveras Blvd.

Milpitas, CA 95035

City of Saratoga

Attn: Director of Public Works

13777 Fruitvale Avenue

Saratoga, CA 95070

Department of Water Resources

Safe Drinking Water Office, Room 804

1416 9

Street

Sacramento, CA 95814

SAN JOSE WATER COMPANY (U-168-W)

Advice Letter No. 532

Attachment E

Page 2 of 2

Nina Hawk

Chief Operating Officer

Water Utility Enterprises

Santa Clara Valley Water District

5750 Almaden Expressway

San Jose, CA 95118

Gillette MutualWater Company

21976 Gillette Drive

Los Gatos, CA 95033

Redwood Estates Services Association

PO Box 591

Redwood Estates, CA 95044-0591

Big Redwood Park Water

& Improvement Assoc.

18522 Mt. View Avenue

Los Gatos, CA 95033

Villa Del Monte Mutual Water Company

P.O. Box 862

Los Gatos, CA 95031

Ridge Mutual Water Company

22316 Citation Drive

Los Gatos, CA 95033

Summitt West Mutual Water Company

P.O. Box 974

Los Gatos, CA 95031

Oakmount Mutual Water Company

P.O. Box 31536

Stockton, CA 95213

Brush & Old Well Mutual

Water Company

21105 Brush Road

Los Gatos, CA 95033

Bob Burke

Regulatory Liaison For The Six

Mutual Water Companies

420 Alberto Way, Unit 49

Los Gatos, Ca 95032

Stagecoach Mutual Water Co

21825 Stagecoach Road

Los Gatos, CA 95033

Pat Kearns, MD

7 W Central Ave

Los Gatos, CA 95030

Saratoga City Council Member

Rishi Kumar

13777 Fruitvale Avenue

Saratoga, CA 95070

WRATES

Rita Benton

18555 Ravenwood Drive

Saratoga, CA 95070

Saratoga Heights Mutual Water Company

P.O. Box 337

Saratoga, CA 95071

James Hunter

6475 Dwyer Street

San Jose, CA 95120

Raineri Mutual Water Company

P.O. Box 11

Los Gatos, CA 95031

Mt. Summit Mutual Water Co

P.O. Box 3416

Saratoga, CA 95070

………………………

………………………..

…………………….….

………………………..

(To be inserted by utility)

Advice No. 532

Dec. No.

Issued by

JOHN TANG

Vice President,

Regulatory Affairs

TITLE

(To be inserted by Cal. P.U.C.)

Date Filed

Effective

Resolution No.

SAN JOSE WATER COMPANY (U168W)

San Jose, California

(N)

(Continued)

Cal. P.U.C. Sheet No. 1971-W Revised

Cal. P.U.C. Sheet No. 1962-W Revised Canceling

Schedule No. 1

GENERAL METERED SERVICE

6. To amortize the under-collection in Balancing Accounts, a surcharge of $0.2961 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 mo

nth period or until collected beginning with

the effective date of Advice Letter 528.

7. To amortize the under-collection of the Memorandum Accounts, a surcharge of $0.2954 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 528.

8. To refund prorated service charge rate changes for the period of June 1, 2011, through

Dec

ember 31, 2016, a one-time surcredit will be added to the bill as follows:

Surcredit:

For 5/8 x 3/4-inch meter $6.36

For

3/4-inch meter 6.36

For

1-inch meter 10.59

For

1-1/2-inch meter 21.17

For

2-inch meter 33.89

For

3-inch meter 63.55

For 4-inch meter 105.91

For 6-inch meter 211.83

For 8-inch meter 338.93

For

10-inch meter 487.21

(N)

To amortize the under-collection in the 2018 WCMA, a surcharge of $0.1960 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 532.

………………………

………………………..

…………………….….

………………………..

(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)

Advice No. 532

Dec. No.

JOHN TANG

Vice President,

Regulatory Affairs

TITLE

Date Filed

Effective

Resolution No.

SAN JOSE WATER COMPANY (U168W)

San Jose, California

(Continued)

(N)

Cal. P.U.C. Sheet No. 1972-W Revised

Cal. P.U.C. Sheet No. 1963-W Revised Canceling

Schedule No. 1B

GENERAL METERED SERVICE WITH

AUTOMATIC FIRE SPRINKLER SYSTEM

7. To amortize the under-collection in Balancing Accounts, a surcharge of $0.2961 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 528.

8. To amortize the under-collection of the Memorandum Accounts, a surcharge of $0.2954 per 100 cu.ft

is to be added to the Quan

tity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 528.

9. To refund prorated service charge rate changes for the period of June 1, 2011, through

cember 31, 2016, a one-time surcredit will be added to the bill as follows:

Surcredit:

For 5/8 x 3/4-inch meter

$6.36

For 3/4-inch meter

6.36

For 1-inch meter

10.59

For 1-1/2-inch meter

21.17

For 2-inch meter

33.89

For 3-inch meter

63.55

10. (N)To amortize the under-collection in the 2018 WCMA, a surcharge of $0.1960 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 532.

(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)

Advice No. 532

Dec. No.

JOHN TANG

Vice President,

Regulatory Affairs

TITLE

Date Filed

Effective

Resolution No.

SAN JOSE WATER COMPANY (U168W)

San Jose, California

(Continued)

(N)

Cal. P.U.C. Sheet No. 1973-W Origial

Cal. P.U.C. Sheet No.Revised Canceling

Schedule No. 1C

GENERAL METERED SERVICE

Mountain District

12. (N)To amortize the under-collection in the 2018 WCMA, a surcharge of $0.1960 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 532.

………………………..

…………………….….

………………………..

(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)

Advice No. 532 JOHN TANG Date Filed

Vice President, Effective

Dec. No. Regulatory Affairs Resolution No.

TITLE

SAN JOSE WATER COMPANY (U168W)

San Jose, California

(Continued)

(N)

Cal. P.U.C. Sheet No. 1974-W Revised

Cal. P.U.C. Sheet No. 1966-W Original Canceling

Schedule No. RW

RAW WATER METERED SERVICE

7. To amortize the under-collection in Balancing Accounts, a surcharge of $0.2961 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 528.

8. To amortize the under-collection of the Memorandum Accounts, a surcharge of $0.2954 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 mo

nth period or until collected beginning with

the effective date of Advice Letter 528.

9. To refund prorated service charge rate changes for the period of June 1, 2011, through

Dec

ember 31, 2016, a one-time surcredit will be added to the bill as follows:

Surcredit:

For 3/4-inch meter $6.36

For 1-inch meter 10.59

For 1-1/2-inch meter 21.17

For 2-inch meter 33.89

For 3-inch meter 63.55

For 4-inch meter 105.91

For 6-inch meter 211.83

For 8-inch meter 338.93

For 10-inch meter 487.21

10. (N)To amortize the under-collection in the 2018 WCMA, a surcharge of $0.1960 per 100 cu.ft

is to be added to the Quantity rate shown for a 12 month period or until collected beginning with

the effective date of Advice Letter 532.

Cal. P.U.C. Sheet No. 1975-W Revised

Cal. P.U.C. Sheet No. 1970-W Revised Canceling

TABLE OF CONTENTS

The following listed tariff sheets contain all effective rates, rules

and regulations affecting the rates and

service of the Utility, together

with information relating thereto:

Subject Matter of Sheet

C.P.U.C.

Sheet No.

Title 1495-W

Table of Contents 1975-W, 1795-W, 848-W and 1906-W (T)

Preliminary Statement 919-W, 1303-W, 1699-W, 1700-W, 1702-W, 14

20-W,

1889-W, 1427-W, 1469-W, 1492-W, 1508-W, 1542-W, 1799-W, 1818-W, 1933-W and 1934-W

Service Area Map Locator 1266-W

Service Area Map Locator, Index 1589-W

Map of Areas With Special Pressure and Fire Flow Conditions 1590-W

Index to Map of Areas With

Special Pressure and

Fire Flow Conditions 1079-W, 1591-W

1082-W, 10

87-W and 1404-W

Rate Schedules:

Schedule No. 1, General Metered Service 1947-W, 1915-W and 1971-W (C)

Schedule No. 1B, General Metered

Service

With Automatic Fire Sprinkler System 1949-W, 1741-W, 1882-W and 1972-W

Schedule No. 1C, General Metered Service

Mountain District 1951-W, 1952-W, 1884-W, 1964-W and 1973-W

(C)

Schedule No. 4, Private Fire Service 1954-W and 1965-W

Schedule No. 9C, Construction and Other

Tempora

ry Metered Service 1118-W and 1094-W

Schedule No. 10R, Service to Employees 152-W

Schedule No. 14.1 Water Shortage Contingency Plan With

Staged Man

datory Reductions And Drought Surcharges

1668-W,1669-W,1780-W,1671-W,

1672-W,1673-W,1766-W, and 1820-W

Sched

ule No. RW, Raw Water Mete

red Service 1955-W, 1920-W and 1974-W

(C)

Schedule No. RCW, Recycled Water

Metered Service 1957-W, 1958-W and 1967-W

Schedule No. UF, Surcharge to Fund Public

tilities Commission, Reimbursement Fee 1969-W

Schedule No. WRAP, Water Rate Assistance Program 1904-W and 1211-W

List of Contracts and Deviations 1857-W

Rules:

No. 1 - Definitions 764-W and 976-W

No. 2 - Description of Service 525-W

No. 3 - Application for Service 351-W and 903-W

No. 4 - Contracts 352-W

No. 5 - Special Information Required on Forms 1936-W thru 1937-W

No. 6 - Establishment and Re-establishment of Credit 354-W

No. 7 - Deposits 355-W and 356-W

No. 8 - Notices 1054-W and 825-W

No. 9 - Rendering and Payment of Bills 996-W, 997-W and 1146-W

(To be inserted by utility)

Advice No. 532

Dec. No.

Issued by

JOHN TANG

TITLE

Vice President,

Regulatory Affairs

(To be inserted by Cal. P.U.C.)

Date Filed

Effective

Resolution No.

(Continued)

SAN JOSE WATER COMPANY (U168W)

San Jose, California