CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER AND AUDITS. Advice Letter Cover Sheet

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1 CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER AND AUDITS Advice Letter Cover Sheet Utility Name: California Water Service Company Date Mailed to Service List: 12/21/17 District: All Class A Districts and Grand Oaks CPUC Utility #: U-60-W Protest Deadline (20 th Day): 01/10/18 Advice Letter #: 2291 Review Deadline (30 th Day): 01/20/18 Tier: X X Compliance Requested Effective Date: 1/1/18 Authorization: Resolution M-4832 Description: CPUC User Fee Adjustment effective 1/1/18 Rate Impact: Decrease from 1.44% to 1.40 % The protest or response deadline for this advice letter is 20 days from the date that this advice letter was mailed to the service list. Please see the Response or Protest section in the advice letter for more information. Utility Contact: Natalie Wales Utility Contact: James Polanco Phone: Phone: nwales@calwater.com jpolanco@calwater.com DWA Contact: Tariff Unit Phone: (415) Water.Division@cpuc.ca.gov DWA USE ONLY DATE STAFF COMMENTS [ ] APPROVED [ ] WITHDRAWN [ ] REJECTED Signature: Comments: Date:

2 CALIFORNIA WATER SERVICE COMPANY 1720 NORTH FIRST STREET SAN JOSE, CA (408) F (408) December 21, 2017 Advice Letter No California Water Service Company (Cal Water) hereby transmits for filing the changes in its tariff schedules shown below affecting all regulated Class A districts, as well as Grand Oaks. Canceling C.P.U.C. C.P.U.C. Sheet No. Title of Sheet Sheet No. XXXXX-W Schedule No. UF (Surcharge to Fund Public Utilities Commission) XXXXX-W XXXXX-W Table of Contents (Page 5) XXXXX-W XXXXX-W Table of Contents (Page 1) XXXXX-W UUSummary This advice letter is requesting a change to the CPUC Utility Fee to be set at 1.40% in compliance with Resolution M-4832, which was ordered by the Commission on December 14, Background The Commission uses Public Utilities Code Sections 431 as the basis for its methodology to assess user fees for energy, water and telecommunication utilities: 431. (a) The commission shall annually determine a fee to be paid by every electrical, gas, telephone, telegraph, water, sewer system, and heat corporation and every other public utility providing service directly to customers or subscribers and subject to the jurisdiction of the commission other than a railroad, except as otherwise provided in Article 2 (commencing with Section 421). (b) The annual fee shall be established to produce a total amount equal to that amount established in the authorized commission budget for the same year, including adjustments for increases in employee compensation, other increases appropriated by the Legislature, and an appropriate reserve to regulate public utilities less the amount to be paid from special accounts or funds pursuant to Section 402, reimbursements, federal funds, and any other revenues, and the amount of unencumbered funds from the preceding year The commission shall establish the fee pursuant to Section 431 with the approval of the Department of Finance and in accordance with all of the following: (a) In its annual budget request, the commission shall specify both of the following: (1) The amount of its budget to be financed by the fee. (2) The dollar allocation of the amount of its budget shall be financed by the fee by each class of public utility subject to the fee. The fee allocation among classes of public utilities

3 CALIFORNIA WATER SERVICE COMPANY Advice Letter 2291, Adjusted CPUC User Fee for 2018 Page 3 shall reflect expenditures by the commission on regulatory and other authorized activities affecting each respective class, and shall bear the same ratio that the commission's workload for each class of public utility subject to the fee bears to the commission's total workload for all public utilities subject to the fee. (b) The commission may establish different and distinct methods of assessing fees for each class of public utility, if the revenues collected are consistent with paragraph (2) of subdivision (a), except that the commission shall establish a uniform charge per kilowatt hour for sales in kilowatt hours for the class of electrical corporations and a uniform charge per therm for sales in therms for the class of gas corporations. Discussion The current User Fee for all water and sewer utilities is 1.44%. The Commission decreased this rate to 1.40% based on the revenue forecast discussed in Resolution M-4832, effective January 1, Requested Effective Date This filing is in compliance with Resolution M-4832 and meets the requirements for a Tier 1 advice letter under General Order 96-B, Water Industry Rule 7.3.1(3). As ordered by Res. M-4832, Cal Water requests an effective date of January 1, Notice Customer Notice: This is a Tier 1 compliance filing under Water Industry Rule 7.3.1(3) of General Order 96-B. Water Industry Rule 3.2 indicates that this kind of Tier 1 filing does not require customer notice. Service List: In accordance with General Order 96-B, General Rules 4.3 and 7.2, and Water Industry Rule 4.1, a copy of this advice letter will be mailed or electronically transmitted on December 21, 2017 to competing and adjacent utilities and other utilities or interested parties having requested such notification. Response or Protest Anyone may respond to or protest this advice letter. A response supports the filing and may contain information that proves 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 are: (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;

4 CALIFORNIA WATER SERVICE COMPANY Advice Letter 2291, Adjusted CPUC User Fee for 2018 Page 4 (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 Commission in a formal proceeding; or (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 protest shall provide citations or proofs where available to allow staff to properly consider the protest. 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 advice letter process does not provide for any responses, protests or comments, except for the utility s reply, after the 20-day comment period. The address for mailing or delivering a protest is: Tariff Unit, Water Division, 3 rd floor California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA waterdivision@cpuc.ca.gov 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 ) to us, addressed to: Natalie Wales California Water Service Company 1720 North First Street, San Jose, California Fax 408/ or nwales@calwater.com Cities and counties that need Board of Supervisors or Board of Commissioners approval to protest should inform the Water Division, within the 20-day protest period, so that a late filed protest can be entertained. The informing document should include an estimate of the date the proposed protest might be voted on. Replies The utility shall reply to each protest and may reply to any response. Each reply must be received by the Water Division within 5 business days after the end of the protest period, and shall be served on the same day to the person who filed the protest or response. If you have not received a reply to your protest within 10 business days, contact California Water Service Company at 408/

5 CALIFORNIA WATER SERVICE COMPANY Advice Letter 2291, Adjusted CPUC User Fee for 2018 Page 5 CALIFORNIA WATER SERVICE COMPANY /s/ Natalie Wales Director of Regulatory Policy & Compliance Enclosures cc: Ting-Pong Yuen, ORA

6 CALIFORNIA WATER SERVICE COMPANY 1720 North First Street, San Jose, CA Revised CPUC Sheet No. XXXXX-W (408) Canceling CPUC Sheet No. XXXXX-W Table of Contents - Page 1 The following listed tariff sheets contain all effective rates and rules affecting the rates and service of the Utility together with information relating thereto: Sheet Subject Matter Service Area Schedule No. CPUC Sheet No. Title Page 5613-W Table of Contents Page 1 Table of Contents XXXXX-W (C) Page 2 Preliminary Statements W Page 3 Preliminary Statements W Page 4 Preliminary Statements W Page 5 Rate Schedules - All Districts XXXXX-W (C) Page 6 Rate Schedules - District Specific W Page 7 Rate Schedules - District Specific W Page 8 Rate Schedules - District Specific W Page 9 Rate Schedules - District Specific W Page 10 Rate Schedules - District Specific W Page 11 Service Area Maps W Page 12 Rules W Page 13 Rules W Page 14 Sample Forms XXXXX-W Page 15 Sample Forms XXXXX-W (continued) (To be inserted by utility) Issued by (To be inserted by CPUC) 2291 Advice Letter No. PAUL G. TOWNSLEY Date Filed Decision No. Name Effective Vice President Resolution No. TITLE

7 CALIFORNIA WATER SERVICE COMPANY 1720 North First Street, San Jose, CA Revised CPUC Sheet No. XXXXX-W (408) Canceling CPUC Sheet No. XXXXX-W Table of Contents - Page 5 Rate Schedules Sheet Subject Matter Service Area Schedule No. CPUC Sheet No. Rate Schedules: ALL DISTRICTS Service to Company Employees ED W Surcharge to Fund Public Utilities Commission UF XXXXX-W (C) Reimbursement Fee Rate Support Fund RSF W Low Income Ratepayer Assistance Page 1 LIRA W Page 2 LIRA W Page 3 LIRA W PBOP Surcharge PB 7049-W Additional Surcharges/Surcredits Page 1 AS W Page 2 AS W Page 3 AS W FIRE FLOW TESTING CHARGE FF 8597-W Schedule 14.1 Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W Page W (continued) (To be inserted by utility) Issued by (To be inserted by CPUC) 2291 Advice Letter No. PAUL G. TOWNSLEY Date Filed Decision No. Name Effective Vice President Resolution No. TITLE

8 CALIFORNIA WATER SERVICE COMPANY 1720 North First Street, San Jose, CA Revised CPUC Sheet No. XXXXX-W (408) Canceling CPUC Sheet No. XXXXX-W Schedule No. UF SURCHARGE TO FUND PUBLIC UTILITIES COMMISSION APPLICABILITY This surcharge applies to all water bills rendered under all tariff rate schedules authorized by the Commission, with the exception of resale rate schedules where the customer is a public utility. TERRITORY This schedule is applicable within the entire territory served by the utility. RATES* A 1.40% surcharge shall be added to all customer bills. ( R ) * In 1982, the Legislature established a Public Utilities Commission Reimbursement Fee to be paid by the utilities to fund their regulation by the Commission (Public Utilities (or P.U.) Code Sections ). The surcharge to recover the cost of that fee is ordered by the Commission under authority granted by P.U. Code Section 433. (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No PAUL G. TOWNSLEY Date Filed Decision No. - NAME Effective Vice President Resolution No. M-4832 TITLE

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