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B a c k g r o u n d   - R u l e s



                                                                   E n a c t m e n t   o f   C P U C   R u l e s


                                                                   In October 2010 CPUC adopted Decision “D” 10-

                                                                   10-019 which provides Class A and B water
                                                                   utilities with a set of rules governing affiliate
                                                                   transactions and the provision of non-tariffed

                                                                   products and services.

                                                                   The commission adopted the Rules to provided

                                                                   consistent and understandable rules for all
                                                                   subject       water       and      utilities     services.       The

                                                                   Commission adopted the Rules with the goal of
                                                                   protecting ratepayers, ensuring the financial
                                                                   health      of    the     utility    and      preventing        anti-

                                                                   competitive          behavior         in     the      competitive
                                                                   marketplace.
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