CALIFORNIA PUBLIC UTILITIES COMMISSION WATER DIVISION. Advice Letter Cover Sheet

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1 CALIFORNIA PUBLIC UTILITIES COMMISSION WATER DIVISION Advice Letter Cover Sheet Utility Name: California Water Service Company Date Mailed to Service List: 08/31/17 District: All Districts CPUC Utility #: U60W Protest Deadline (20 th Day): 09/20/17 Advice Letter #: 2275 Authorization: Description: Review Deadline (30 th Day): 09/30/17 Tier: 1 X 2 3 Compliance Requested Effective Date: 10/1/17 Surcredit to Amortize Credit Card Memo Account (Preliminary Statement J2) Rate Impact: n/a 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: (408) 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DWA Contact: Tariff Unit Phone: (415) Water.Division@cpuc.ca.gov DWA USE ONLY DATE STAFF COMMENTS [ ] APPROVED [ ] WITHDRAWN [ ] REJECTED Signature: Comments: Date: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) August 31, 2017 Advice Letter No CALIFORNIA WATER SERVICE COMPANY (U 60 W) To The Public Utilities Commission of the State of California: California Water Service Company ( Cal Water ) respectfully submits this Tier 2 advice letter requesting authority to make the following change to tariffs applicable to multiple ratemaking area. New/Revised Cancelling CPUC CPUC Sheet No. Title of Sheet Schedule No. Sheet No. XXXXXW Table of Contents Page 1 XXXXXW XXXXXW Table of Contents Page 5 XXXXXW XXXXXW Schedule AS, Page 5 AS XXXXXW Summary In this advice letter, Cal Water proposes to amortize the final balance in Cal Water s Credit Card Memo Account (CCMA2) and close the account consistent with Ordering Paragraph 18 of D Specifically, Cal Water requests authority to: (1) Modify Schedule AS (the tariff for Additional Surcharges and Surcredits) to apply a onetime credit of $0.16 to all customers in its Class A districts beginning October 1, 2017; and (2) Eliminate Preliminary Statement J2, which describes the terms and conditions of the Credit Card Memo Account (CCMA2), from Cal Water s tariff. Background In D and the Settlement Agreement adopted therein, the Commission authorized Cal Water to amortize several balancing and memo accounts analyzed in Cal Water s 2015 GRC. While the balances of several accounts were amortized via the Tier 1 Advice Letter 2259, the Credit Card Memo Account was not included because it requires a Tier 2 filing.

3 CALIFORNIA WATER SERVICE COMPANY Advice Letter 2275 Credit Card Surcredit Page 3 Discussion The parties agreed in the Settlement adopted in D that Cal Water s Credit Card Pilot Program, which allowed customers to pay their water bills using a credit or debit card without incurring an additional fee, should become permanent. The costs and savings associated with the program were tracked in the Credit Card Memo Account (CCMA2) (Preliminary Statement J2), resulting in a net savings of $74,307. The parties agreed that the balance should be returned to all customers (regardless of whether or not individual customers use the credit/debit option), and that the memo account should then be eliminated. On page 36, the Settlement Agreement states as follows: RESOLUTION: The Parties agree that the net savings of $74,307 in the Credit Card Pilot Program Memorandum Account should be returned to customers as a credit via the filing of a Tier 2 advice letter. The Parties also support permanent authorization of Cal Water s credit/debit card payment program, and elimination of the related memo account after amortization of the memo account. When the amortization period is complete, and remaining amounts are rolled over into the DistrictSpecific Balancing Accounts, Cal Water may file a Tier 1 advice letter to eliminate Preliminary Statement J2. Accordingly, Ordering Paragraph 18 of D states as follows: 18. California Water Service Company is authorized to refund $74,307 from the Credit Card Pilot Program Memorandum Account to customers as a credit via the filing of a Tier 2 advice letter. As reflected in the provided workpapers, returning the $74,307 balance in the CCMA2 to all Class A customers results in a onetime credit of $0.16 to each customer. Cal Water proposes to add this surcredit to page 5 of its Schedule AS, which is for Additional Surcharges and Surcredits, effective October 1, Any balance remaining in the CCMA2 after the onetime surcredit will be rolled over into the DistrictSpecific Balancing Accounts for aggregation with other smalldollar balances associated with each ratemaking area. Accordingly, Cal Water also requests authority to close the Credit Card Memo Account by eliminating Preliminary Statement J2 from its tariff effective October 1, 2017.

4 CALIFORNIA WATER SERVICE COMPANY Advice Letter 2275 Credit Card Surcredit Page 4 Requested Effective Date This is a Tier 2 advice letter in accordance with Ordering Paragraph 18 of D Cal Water requests an effective date of October 1, 2017 for the tariff changes described herein. Notice Customer Notice: This is a compliance filing under General Order 96B, Water Industry Rule 3.2, and therefore does not customer notice. Service List: In accordance with General Order 96B, 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 August 31, 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; (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 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 Division of Water and Audits 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 rd floor California Public Utilities Commission 505 Van Ness Avenue, San Francisco, CA water_division@cpuc.ca.gov On the same date the response or protest is submitted to the Division of Water and Audits, the respondent or protestant shall send a copy by mail (or ) to Cal Water at the following address:

5 CALIFORNIA WATER SERVICE COMPANY Advice Letter 2275 Credit Card Surcredit Page 5 Natalie Wales California Water Service Company 1720 North First Street San Jose, California nwales@calwater.com Cities and counties requiring Board of Supervisors or Board of Commissioners approval to protest should inform the Division of Water and Audits within the 20day protest period so a latefiled protest can be entertained. The informing document should include an estimate of the date the proposed protest might be voted on. The advice letter process does not provide for any responses, protests or comments, except for the utility s reply, after the 20day comment period. Replies: The utility shall reply to each protest and may reply to any response. Each reply must be received by the Division of Water and Audits 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/ CALIFORNIA WATER SERVICE COMPANY /s/ Natalie Wales Director of Regulatory Policy & Compliance Enclosures cc: TingPong Yuen, ORA

6 CALIFORNIA WATER SERVICE COMPANY 1720 North First Street, San Jose, CA Revised CPUC Sheet No. XXXXXW (408) Canceling CPUC Sheet No. XXXXXW 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 5613W Table of Contents Page 1 Table of Contents XXXXXW (C) Page 2 Preliminary Statements XXXXXW (C) Page 3 Preliminary Statements 11405W Page 4 Preliminary Statements 11360W Page 5 Rate Schedules All Districts XXXXXW (C) Page 6 Rate Schedules District Specific 11383W Page 7 Rate Schedules District Specific 11422W Page 8 Rate Schedules District Specific 11437W Page 9 Rate Schedules District Specific 11307W Page 10 Rate Schedules District Specific 11404W Page 11 Service Area Maps 11399W Page 12 Rules 11305W Page 13 Rules 11304W Page 14 Sample Forms 11409W Page 15 Sample Forms XXXXXW (continued) (To be inserted by utility) Issued by (To be inserted by CPUC) 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 W (408) Canceling CPUC Sheet No W Table of Contents Page 2 Preliminary Statements Sheet Subject Matter Service Area CPUC Sheet No. Preliminary Statements A Territory Served by the Territory Served by the Utility Page W Page W BD Types and Classes of Service, Procedure to Obtain Service, 610W and Symbols F Methyl Tertiary Butyl Ether Memorandum Account 8312W (MTBE MA) H LowIncome Ratepayer Assistance (LIRA) Memorandum 11323W Account J2 Credit Card Memorandum Account (CCMA2) 10438W (D) K Wausau Memorandum Account (WMA) 7313W M Water Revenue Adjustment Mechanism/ Modified Cost Balancing Account (WRAM/MCBA) Page W Page W Bakersfield BK 11379W Bay Area Region BAR 11219W Bear Gulch BG 11231W Chico CH 11286W Dixon DX 11230W Dominguez DOM 11418W East Los Angeles EL 11284W Hermosa Redondo HR 11411W Kern River Valley KRV 11229W Livermore LV 11228W Los Altos LS 11433W (C) Los Angeles County Region LAR 11425W Marysville MR 11226W Monterey Region MOR 11347W Oroville OR 11225W Selma SL 11224W (continued) (To be inserted by utility) Issued by (To be inserted by CPUC) 2275 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. XXXXXW (408) Canceling CPUC Sheet No. XXXXXW 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 ED1 5168W Surcharge to Fund Public Utilities Commission UF 11332W Reimbursement Fee Rate Support Fund RSF 11326W Low Income Ratepayer Assistance Page 1 LIRA 11325W Page 2 LIRA 10371W Page 3 LIRA 11324W PBOP Surcharge PB 7049W Additional Surcharges/Surcredits Page 1 AS 11391W Page 2 AS 11390W Page 3 AS 11126W Page 4 AS 11125W Page 5 AS XXXXXW (C) Page 6 AS 11394W FIRE FLOW TESTING CHARGE FF 8597W 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) Advice Letter No PAUL G. TOWNSLEY Date Filed Decision No. Name Effective Vice President Resolution No. Title

9 CALIFORNIA WATER SERVICE COMPANY 1720 North First Street, San Jose, CA Revised CPUC Sheet No. (408) Canceling CPUC Sheet No. XXXXXW Schedule No. AS ADDITIONAL SURCHARGES/SURCREDITS 4. CREDITS TO CUSTOMERS Page 5 ( A ) Tax Benefit Refund: As a result of federal taxpayer relief laws enacted in 2010 and 2012, Cal Water may increase its deferred taxes for certain infrastructure investments. This refund applies to customers in districts where there are additional tax benefit from these laws. ( B ) Conservation Program Refund: Water rates in effect for included funding for a conservation program in each district that provided incentives to reduce water use. This refund returns unspent district conservation funds to its customers. ( C ) Pension Cost Refund: The water rates in effect for included funding for pension costs. However, due to cost savings Cal Water sought for pension activities during that period, customers are receiving a refund on the funds not used. Refunds vary by district based on the number of local customers and employees. ( D ) Interim Rates Refund: In districts where excess funds were received through interim water rates associated with a previous general rate case, this refund returns the excess funds to customers. ( E ) Credit/Debit Card Program Refund: A pilot program allowed customers who use credit or debit cards (N) to pay water bills to avoid transaction fees. The CPUC has agreed to make the program permanent, and we are providing a onetime refund to all customers for cost savings related to the program. (N) Credit per Customer One Month (October 1, 2017 November 1, 2017) Credit per Customer/Mo for 12 Months (April 15, 2017 April 14, 2018) Credit/Debit Program Refund (N) Metered Customers (D) (D) ( E ) Antelope Valley $0.16 Bayshore $0.16 Bakersfield $0.16 Bear Gulch $0.16 Chico $0.16 Dixon $0.16 Dominguez $0.16 East Los Angeles $0.16 HermosaRedondo $0.16 Kern River Valley $0.16 King City $0.16 Livermore $0.16 Los Altos $0.16 Marysville $0.16 Oroville $0.16 Palos Verdes $0.16 RWVCoast Springs $0.16 RWVLucerne $0.16 RWVUnified $0.16 Salinas $0.16 Selma $0.16 Stockton $0.16 Visalia $0.16 Westlake $0.16 Willows $0.16 (N) (D) (D) Grand Oaks Tax Benefit Refund ( A ) $0.80 $0.19 $0.34 $0.07 $0.11 $0.11 $0.09 $0.18 $0.16 $0.38 $0.18 $0.25 $0.16 $1.63 $0.55 Conservation Refund Pension Cost Refund Interim Rates Refund ( B ) ( C ) ( D ) $1.12 $0.29 $0.47 $1.53 $0.60 $1.53 $0.48 $0.50 $0.52 $2.78 $0.69 $0.58 $0.40 $0.83 $0.68 $0.31 $0.43 $0.67 $0.97 $0.50 $1.12 $0.78 $1.62 $1.55 $3.08 $0.52 $0.41 $0.44 $0.34 $2.90 $0.52 $0.58 Flat Customers Credit per Customer One Month (October 1, 2017 November 1, 2017) Bakersfield $0.16 (N) (D) (D) Marysville $0.16 Selma $0.16 (N) (D) (D) Credit per Customer/Mo for 12 Months (April 15, 2017 April 14, 2018) $0.47 $0.67 $0.41 (continued) (To be inserted by utility) Issued by (To be inserted by CPUC) PAUL G. TOWNSLEY Date Filed Advice Letter No Name Effective Decision No Vice President Resolution No. Title

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15 Omrk#Gmx}#Hmwxvmgx# Pmzivqsvi#Hmwxvmgx# Pmxxpi#Fiev#[exiv#Gsqter}# 84534#Tmri#Ger}sr#Vh/#Wtegi#&458# Omrk#Gmx}/#GE#=6=63# XMRE#HEZMW#ERH#ZMGO]#QMPPIV# Tevo#Fmppmrk#Gsqter}# T1S1Fs #=43# Hm sr/#ge#=8953# xhezmwdtevofmppmrk1gsq# zqmppivdtevofmppmrk1gsq# IVMO#TIXIVWSR## Gmx}#sj#Pmzivqsvi#Yxmpmx}#Fmppmrk#Hmzmwmsr# 4385#W1#Pmzivqsvi#Ezi# Pmzivqsvi/#GE#=7883# ixtixivwsrdgm1pmzivqsvi1ge1yw# Epeqihe#Gsyrx}#Jpssh#Gsrxvsp#)# [exiv#gsrwivzexmsr#hmwxvmgx#^sri#;# [exiv#ekirg}# 433#Rsvxl#Ger}srw#Tevo{e}# Pmzivqsvi/#GE#=7884# xfetxmwxed~sri;{exiv1gsq# Service Lists Page 6 of 12

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