SJWC A.17 04-001 endorsed application

50970499.v1
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
In the Matter of the Application of )
SAN JOSE WATER COMPANY (U-168-W) )
for Authority to Adjust Its Cost of Capital ) Application No.
and to Reflect That Cost of Capital in Its )
Rates for the Period from January 1, 2018 )
through December 31, 2020. )
)
APPLICATION OF SAN JOSE WATER COMPANY
(U-168-W) FOR AN AUTHORIZED COST OF CAPITAL
FOR UTILITY OPERATIONS FOR 2018-2020
NOSSAMAN LLP
Martin A. Mattes
Mari L. Davidson
50 California Street, 34th
Floor
San Francisco, CA 94111-4799
Tel: (415) 398-3600
Fax: (415) 398-2438
Email: mdavidson@nossaman.com
Attorneys for SAN JOSE WATER COMPANY
Palle Jensen
Senior Vice President of Regulatory
Affairs
SAN JOSE WATER COMPANY
110 West Taylor Street
San Jose, CA 95110
Tel: (408) 279-7970
Fax: (408) 279-7934
Email: palle.jensen@sjwater.com
April 3, 2017
A1704001
FILED
4-03-17
04:59 PM

1
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
In the Matter of the Application of )
SAN JOSE WATER COMPANY (U-168-W) )
for Authority to Adjust Its Cost of Capital ) Application No. 17-04-____
and to Reflect That Cost of Capital in Its ) (Filed April 3, 2017)
Rates for the Period from January 1, 2018 )
through December 31, 2020. )
)
APPLICATION OF SAN JOSE WATER COMPANY
(U-168-W) FOR AN AUTHORIZED COST OF CAPITAL
FOR UTILITY OPERATIONS FOR 2018-2020
In accordance with Article 2 and Rule 3.2 of the Rules of Practice and Procedure
(“Rules”) of the California Public Utilities Commission (“Commission”), and pursuant to
Commission direction provided in Decision No. (“D.”) 07-05-062,1
D.10-10-035,2
D.12-07-
009,3
and the letter of Executive Director Timothy Sullivan, dated February 1, 2016, granting
requests for a one-year delay for this filing to March 31, 2017,4
San Jose Water Company
(“Applicant” or “SJWC”) respectfully requests the Commission’s authorization:
(1) To adjust its cost of capital for ratemaking purposes to reflect Applicant’s
current forecast of its costs of common equity and long-term debt and its
forecasted capital structure, for the period from January 1, 2018 through
December 31, 2020; and
(2) To adjust its rates in accordance with the adopted cost of capital promptly
upon such adoption but in coordination with other rate adjustments required
to be implemented at approximately the same time; and
1
Rulemaking to Consider Revisions to the General Rate Case Plan for Class A Water Companies,
D.07-05-062, adopted May 24, 2007, at 15, 32 (Ordering Paragraph 5) and App. A, at A-3.
2
Re San Jose Water Co., et al., D.10-10-035, adopted October 28, 2010, at 61, 73 (Ordering
Paragraph 3).
3
Re California Water Service Co., et al., D.12-07-009, adopted July 12, 2012, at 21 (Ordering
Paragraph 4).
4
In accordance with Rule 1.15, because Friday, March 31, 2017 is a Commission holiday, this
Monday, April 3, 2017 submission is timely filed.

2
(3) To maintain in place the Water Cost of Capital Mechanism (“WCCM”)
authorized for Applicant in D.10-10-035, as modified by D.12-07-009, the most recent generic
Cost of Capital decision for SJWC.5
I.
PROCEDURAL BACKGROUND
In its July 2007 decision adopting a revised Rate Case Plan for Class A Water
Companies, the Commission directed the three large multi-district Class A water utilities to file
cost of capital applications on May 1, 2008, and on a triennial basis thereafter, and directed all
the remaining Class A water utilities, including SJWC, to file cost of capital applications on
May 1, 2009, and on a triennial basis thereafter, with each set of applications to be consolidated
into a single proceeding in each year.6
SJWC’s Application No. (“A.”) 09-05-001 was
consolidated with the other May 2009 filings and resulted in the Commission’s adoption of
D.10-10-035 in October of the following year. Ordering Paragraph 3 of that decision ordered
SJWC to file its subsequent cost of capital application in an expedited manner with the group of
water utilities comprised of the three large multi-district Class A water utilities before May 1,
2011. Therefore, in the next cycle, SJWC’s most recent cost of capital application, A.11-05-
002, was consolidated with the May 2011 filings of the three other large publicly traded Class
A companies and resulted in the Commission’s adoption of a settlement agreement among the
applicants and the Division of Ratepayer Advocates7
in D.12-07-009. By that most recent
decision, the Commission set a rate of return on equity (“ROE”) of 9.99% for all four of the
5
D.12-07-009, at 12-13.
6
D.07-05-062, supra, at 15 and App. A, at 3.

3
applicant companies and approved the following capital structure and costs of capital for base
year 2012 for SJWC:8
AUTHORIZED CAPITAL STRUCTURE D.12-07-009
Ratio Cost Weighted Cost
Debt 48.65% 6.68% 3.25%
Equity 51.35% 9.99% 5.13%
Overall 100% 8.38%
Due to a decline in the average Moody’s Aa utility bond index rate for the set index
period, the WCCM authorized by the Commission was triggered effective January 1, 2013,
adjusting SJWC’s adopted ROE downward by 56 basis points. This adjustment provided for a
reduction in the ROE authorized in D.12-07-009 from 9.99% to 9.43%, which is the ROE
currently authorized for SJWC.
SJWC’s present Application includes information, schedules, and exhibits supporting
Applicant’s proposed cost of equity capital, cost of long-term debt, capital structure, and the
ROE and overall rate of return that would result from those proposals. The Application is
supported by the Prepared Direct Testimony of Pauline M. Ahern, an Exhibit to accompany
Ms. Ahern’s Testimony, and the Prepared Direct Testimony of James P. Lynch, all of which
are being served on the Office of Ratepayer Advocates (“ORA”) and Water Division
concurrently with the filing and service of this Application.9
SJWC’s Application is further
7
The Division of Ratepayer Advocates is the predecessor entity of the current Office of Ratepayer
Advocates.
8
D.10-10-035, supra, at 2-3.
9
Copies of these materials will be provided to others upon request.

4
supported by the Minimum Data Requirements, as specified in D.07-05-062, which also are
being served on ORA concurrently with this filing.
II.
THE APPLICANT
A. Incorporation and Place of Business
In accordance with Rule 2.1(a), Applicant states that its exact legal name is San Jose
Water Company and its principal place of business is 110 West Taylor Street, San Jose,
California 95110.
Applicant is a corporation duly organized and existing under and by virtue of the
laws of the State of California. A certified copy of Applicant’s Restated Articles of
Incorporation was filed with this Commission in A.92-02-050, and is by this reference made a
part hereof.
B. Applicant’s Business
Applicant is engaged as a public utility in the retail business of producing, treating,
storing, distributing, and selling potable and recycled water in a service territory defined by its
service area maps included in its tariffs on file with the Commission. Applicant’s service
territory includes all or portions of the Cities of San Jose, Campbell, Cupertino, Saratoga,
Monte Sereno, the Town of Los Gatos, and adjacent unincorporated portions of the County of
Santa Clara. As of December 31, 2016, SJWC provided water utility service to approximately
225,000 service connections. Applicant has provided public utility water service in Santa Clara
County since 1866.
For a more detailed description of SJWC’s business, reference is made to results of
operations, maps, rate schedules, financial reports, and other information filed by SJWC with

5
the Commission in A.15-01-002, SJWC’s most recent general rate case, and also to Applicant’s
annual reports filed with the Commission.
III.
APPLICANT’S COST OF CAPITAL
Public utilities have a constitutional right to a fair opportunity to earn a reasonable
return on their investments dedicated to public utility service. When ruling on the rate of return
SJWC has requested in the present Application, the Commission must consider the criteria the
United States Supreme Court set forth in the Hope10
and Bluefield11
cases. These decisions
provide guidelines for rate of return decisions that enable the Commission to strike an
appropriate balance between allowing a return to shareholders sufficient to allow the utility to
attract capital investment and finance its necessary investments in utility plant and protecting
the interests of customers in reasonably priced utility services. These guidelines specifically
provide that:
a) The allowed rate of return should be comparable to that generally being
made on investments and other business undertakings which are
attended by corresponding risks and uncertainties;
b) The allowed rate of return should be sufficient to maintain the utility’s
credit status;
c) The authorized rate of return should allow the utility to attract the
capital necessary to provide safe and reliable service to customers; and
d) The allowed rate of return should be sufficient to ensure confidence in
the financial soundness of the company.
10
Federal Power Comm’n v. Hope Natural Gas Co., 320 U.S.591 (1944).
11
Bluefield Water Works & Improvement Co. v. Public Service Comm’n of the State of Virginia, 262
U.S. 679 (1923).

6
There are three basic factors that must be considered in calculating Applicant’s cost
of capital. Those factors are Applicant’s capital structure – that is, the percentage amounts of
long-term debt and common equity that comprise the company’s total capitalization – and the
costs of each of those fractional elements of the capital structure. Issues relating to Applicant’s
capital structure, its amounts and costs of long-term debt, and its amount of equity capital are
addressed in the Prepared Direct Testimony of James P. Lynch. Issues relating to Applicant’s
cost of common equity, and appropriate overall rate of return, are addressed in the Prepared
Direct Testimony of Pauline M. Ahern and her accompanying Exhibit.
A. Long-Term Debt
The weighted average cost of long-term debt consists of interest and issuance costs
for outstanding and newly issued debt. SJWC estimates the cost of future issuances of long-
term debt for the study period, including cost of issuance, at 5.62%. Using the 5.62%
forecasted cost of debt for future financing, SJWC has estimated its cost of long-term debt for
the years 2017 through 2020. The weighted average cost of debt is computed by averaging the
beginning of the year cost of debt with the end of year cost of debt. SJWC estimates the
weighted average cost of debt will be 6.17% as of January 1, 2018. As of January 1, 2018,
Applicant expects to have $370,000,000 in long-term debt outstanding.
B. Common Equity Capital
As noted previously, in D.12-07-009, adopted in July 2012, the Commission
adopted an ROE of 9.99% for SJWC and the other three applicant companies in that
consolidated cost of capital proceeding. The 9.99% equity return was not adjusted for any
company-specific risks. This compares to the range of 10.3% to 10.45% for equity returns that

7
the Commission adopted for California’s major investor-owned energy utilities12
in D.12-12-
034, adopted in December 2012.
As explained in the Testimony of Pauline M. Ahern, water utilities face a higher
degree of investment risk relative to electric, combination electric and gas, and natural gas
utilities. Applicant faces additional financial risk associated with the three-year General Rate
Case cycle in California, its dependence on purchased water, its lack of a full Water Revenue
Adjustment Mechanism, the company’s smaller relative size, and the concentration of its
operations in a single geographical location, amongst other items. Accordingly, and on the
basis of her detailed analysis of relevant models for the calculation of equity costs, Ms. Ahern
has calculated a cost of common equity of 10.75% for SJWC for the years 2018 through 2020.
C. Capital Structure
As of March 31, 2017, Applicant estimates that its capital structure at January 1,
2018, and for the year 2018, will be comprised of the following factors:
SAN JOSE WATER COMPANY CAPITAL STRUCTURE
Base Year 2018, and 2019-2020
Category Percent Cost Weighted Cost
Long-Term Debt 46.72% 6.21% 2.90%
Common Stock 53.28% 10.75% 5.73%
Total Capitalization/
Return on Rate Base
100% 8.63%
12
Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison
Company, and Southern California Gas Company.

8
III.
OTHER INFORMATION REQUIRED BY THE
COMMISSION’S RULES OF PRACTICE AND PROCEDURE
A. Statutory or Other Authority
As noted above, Applicant’s requests for authorization to adjust its cost of capital
for ratemaking purposes and to maintain its Water Cost of Capital Mechanism are being
submitted at this time pursuant to the Commission’s direction in D.07-05-062, D.10-10-035,
D.12-07-009 and the letter of Executive Director Sullivan, dated February 1, 2016. Applicant’s
associated request for authorization to adjust its rates is submitted in accordance with Section
454 of the California Public Utilities Code.
B. Correspondence and Communications
In accordance with Rule 2.1(b), Applicant requests that correspondence and
communications in regard to this Application and notices, orders, and other papers be
addressed to and served on both of the following persons:
Palle Jensen
Senior Vice President of Regulatory Affairs
San Jose Water Company
San Jose, CA 95110
Tel.: (408) 279-7970
Fax: (408) 279-7934
E-mail: palle.jensen@sjwater.com
Mari L. Davidson
NOSSAMAN LLP
Floor
San Francisco, CA 94111
Tel.: (415) 398-3600
Fax: (415) 398-2496
E-mail: mdavidson@nossaman.com

9
C. Category, Hearing, Issues, and Schedule
In accordance with Rule 2.1(c), Applicant offers the following proposals:
1. The category for this proceeding should be ratesetting.
2. This Application will require an evidentiary hearing.
3. The issues to be considered include the following:
a. Applicant’s cost of capital for the Years 2018 through 2020, including
consideration of its cost of equity capital, its cost of long-term debt, and its
capital structure.
b. Determination of a fair ROE and overall rate of return for the purpose of
adjusting Applicant’s rates for the Year 2018.
c. Setting of rates reflecting the authorized rate of return.
d. Maintenance of a Water Cost of Capital Mechanism for possible adjustment of
Applicant’s ROE and overall cost of capital for Years 2019 and 2020 in the
event of substantial changes in the utility bond index.

10
4. The following schedule for the consolidated 2011 Cost of Capital proceeding will
allow rate adjustments to be effective January 1, 2018:
April 3, 2017 Application filed
April 5, 2017 Notice of Application on Daily Calendar
May 5, 2017 Protests filed
May 12, 2017 Prehearing Conference
June 23, 2017 ORA and intervenors serve testimony
July 14, 2017 Applicant serves rebuttal testimony
July 24, 2017 Formal settlement or mediation begins
August 7, 2017 Evidentiary hearings begin
September 8, 2017 Concurrent opening briefs to be filed
September 22, 2017 Concurrent reply briefs to be filed
November 14, 2017 Proposed Decision to be issued
December 4, 2017 Comments on Proposed Decision
December 11, 2017 Reply Comments on Proposed Decision
December 14, 2017 Commission to adopt its Decision
D. Compliance with Rules Applicable to Rate Increase Applications
In accordance with Rule 3.2(a)(1), Applicant’s most recent financial statements,
consisting of a Balance Sheet as of February 28, 2017, and an Income Statement for the three
months ending February 28, 2017, are attached as Exhibit A to this Application.
In compliance with Rules 3.2(a)(2) and (3), Applicant states that it proposes to
adjust its rates to reflect the effect on revenue requirement of the determination of its cost of

11
capital in this proceeding by adjusting quantity and service charge rates in accordance with
Commission rate design policy.
Pursuant to Rule 3.2(a)(5), Applicant attaches as Exhibit B a summary of earnings
(rate of return summary) for the Year 2018 showing the impact of the change to cost of capital
requested with this application,. Exhibit B also specifies the proposed revenue increase
expressed both in dollars of annual revenue ($7.3 million) and as a percentage of annual
revenue (2.03%). Applicant’s current and proposed rates for Tariff Schedule 1 are set forth in
Exhibit C attached to this Application.
In accordance with Rule 3.2(a)(8), SJWC states that it has previously submitted a
copy of its parent company’s most recent proxy statement sent to stockholders in SJWC’s most
recent general rate case application, A.15-01-002.
In compliance with Rule 3.2(a)(10), Applicant states that the proposed rate increase
does not reflect or pass through to customers increased costs to SJWC for services or
commodities furnished by it, except in the general sense of reflecting a current calculation of
SJWC’s prospective cost of capital employed in the furnishing of its services.
A copy of the proposed customer notice is set forth in Exhibit D attached to this
Application. SJWC has submitted this draft notice to the Commission’s Public Advisor for
review and will comply with the notice requirements of Public Utilities Code Section 454(c)
and Rules 3.2(b) through (d). Specifically, in accordance with Rules 3.2(b) and (c), Applicant
intends to mail notice of the proposed increases in rates to the persons referenced in Rule 3.2(b)
and in the Certificate of Service appended to this Application, and intends to publish notice of
the of the proposed rate increases as required by Rule 3.2(c). Applicant intends to provide bill
insert notice of the Application to its customers conforming to the terms specified in Rule

12
3.2(d). Applicant will file proof of compliance with Rules 3.2(c) and (d) within the time
specified by those Rules.
E. Exhibits and Testimony
1. Exhibits
Exhibit A: Most recent financial statements.
Exhibit B: Summary of Earnings and proposed revenue increase.
Exhibit C: Current and proposed rates in Tariff Schedule 1.
Exhibit D: Draft customer notice.
2. Testimony (served but not filed)
Prepared Direct Testimony of Pauline M. Ahern
Exhibit to Accompany Prepared Direct Testimony of Pauline M. Ahern
Prepared Direct Testimony of James P. Lynch
V.
REQUEST FOR RELIEF
WHEREFORE, Applicant respectfully requests that the Commission issue its Order
herein authorizing San Jose Water Company to:
A. Adjust its cost of capital for ratemaking purposes to reflect Applicant’s
current forecast of its cost of common equity capital, cost of long-term
debt, and capital structure for the period from January 1, 2018 through
December 31, 2020; and
B. Adjust its rates in accordance with the adopted cost of capital promptly
upon such adoption but no sooner than January 1, 2018, or in
coordination with other rate adjustments required to be implemented at
approximately the same time; and
C. Maintain a Water Cost of Capital Mechanism, as approved in the most
recent generic Cost of Capital Proceeding, to provide for an automatic
adjustment to Applicant’s rate of return on equity and overall cost of

13
capital adopted for the year 2018, that will apply for years 2019 and
2020, respectively, if there is a positive or negative difference greater
than a specified amount between a current 12-month average of
interest rates on utility bonds and a previous benchmark 12-month
average of such rates; and
D. Grant such additional authorizations as the Commission may deem
appropriate.
Respectfully submitted,
NOSSAMAN LLP
Martin A. Mattes
Mari L. Davidson
Floor
San Francisco, CA 94111-4799
Tel: (415) 398-3600
Fax: (415) 398-2438
Email: mdavidson@nossaman.com
Attorneys for SAN JOSE WATER COMPANY
By: /s/ Palle Jensen
Palle Jensen
Senior Vice President of Regulatory Affairs
San Jose, CA 95110
Tel: (408) 279-7970
Fax: (408) 279-7934
Email: palle.jensen@sjwater.com
April 3, 2017

EXHIBITS and TESTIMONY
A. Exhibits (attached to this Application)
Exhibit A: Most recent financial statements.
Exhibit B: Summary of Earnings and proposed revenue increase.
Exhibit C: Current and proposed rates in Tariff Schedule 1.
Exhibit D: Draft customer notice.
B. Testimony (served but not filed)
Prepared Direct Testimony of Pauline M. Ahern
Exhibit to Accompany Prepared Direct Testimony of Pauline M. Ahern
Prepared Direct Testimony of James P. Lynch

Statement of Income
For the Period Ended February 2017
UNIFORM SYSTEM OF ACCOUNTS REPORT
Page 1 of 143/20/2017 1:27:03 PM
February 2017 February 2016 Change Change %
Current
YTD
Prior
YTD
Change Change %
Operating revenue
hide 18,536,519 17,413,592 1,122,927 6.4% 38,116,912 35,111,123 3,005,789 8.6%
Operating expense
Operations
Purchased water 4,057,002 3,136,410 920,592 29.4% 8,830,235 6,196,679 2,633,556 42.5%
Power 354,220 389,291 (35,071) (9.0)% 611,574 676,384 (64,810) (9.6)%
Ground water extraction 2,242,883 1,820,256 422,628 23.2% 4,572,597 4,252,838 319,758 7.5%
Admin and general 2,631,857 2,442,304 189,553 7.8% 5,191,845 4,726,882 464,962 9.8%
Other production costs 1,725,464 1,618,880 106,585 6.6% 3,358,710 2,986,021 372,690 12.5%
Total operations 11,011,427 9,407,140 1,604,287 17.1% 22,564,960 18,838,804 3,726,156 19.8%
Maintenance 1,047,363 1,508,615 (461,252) (30.6)% 2,300,992 2,632,988 (331,996) (12.6)%
Taxes, other than income 907,688 1,017,858 (110,170) (10.8)% 2,062,859 1,981,354 81,505 4.1%
Depreciation & amortization 3,692,171 3,506,070 186,101 5.3% 7,384,768 6,601,616 783,152 11.9%
Income taxes 152,059 278,098 (126,039) (45.3)% 319,859 932,007 (612,148) (65.7)%
Total operating expense 16,810,707 15,717,781 1,092,926 7.0% 34,633,437 30,986,769 3,646,668 11.8%
Operating income 1,725,812 1,695,810 30,002 1.8% 3,483,475 4,124,354 (640,879) (15.5)%
Other (expense) income
Other income sel1 93,020 155,851 (62,831) (40.3)% 252,701 274,775 (22,074) (8.0)%
Other income sel2 268,583 262,277 6,306 2.4% 530,071 454,008 76,064 16.8%
Other income 361,603 418,129 (56,525) (13.5)% 782,772 728,782 53,990 7.4%
Sale of non-utility property 0 0 0 0.0% 0 0 0 0.0%
Interest on LTD (1,726,206) (1,401,448) (324,758) 23.2% (3,474,999) (2,852,901) (622,098) 21.8%
Other interest 0 (37,831) 37,831 (100.0)% (2,619) (84,654) 82,034 (96.9)%
Amort of debt issuance cost (26,355) (19,545) (6,811) 34.8% (52,711) (39,089) (13,622) 34.8%
Miscellaneous deductions (40,417) (7,067) (33,350) 471.9% (52,984) (24,660) (28,324) 114.9%
Net income 294,437 648,049 (353,612) (54.6)% 682,934 1,851,833 (1,168,899) (63.1)%
Dividends to SJW Corp. 0 0 0 0.0% 4,500,000 4,000,000 500,000 12.5%
Invested in business 294,437 648,049 (353,612) (54.6)% (3,817,066) (2,148,167) (1,668,899) 77.7%

Statement of Income
For the Periods Ended February 2017
Page 2 of 143/20/2017 1:27:03 PM
Current
12 MTD
Prior
12 MTD
Change Change %
Operating revenue
hide 314,646,419 279,440,787 35,205,633 12.6%
Operating expense
Operations
Purchased water 72,553,340 58,971,722 13,581,618 23.0%
Power 5,252,115 5,339,453 (87,338) (1.6)%
Ground water extraction 31,774,254 29,907,432 1,866,822 6.2%
Admin and general 32,695,228 31,531,898 1,163,330 3.7%
Other production costs 20,198,325 18,286,672 1,911,653 10.5%
Total operations 162,473,262 144,037,177 18,436,085 12.8%
Maintenance 17,520,981 15,616,485 1,904,496 12.2%
Taxes, other than income 10,854,586 10,550,118 304,468 2.9%
Depreciation & amortization 41,542,933 37,429,654 4,113,279 11.0%
Income taxes 25,537,983 22,427,546 3,110,437 13.9%
Total operating expense 257,929,746 230,060,981 27,868,765 12.1%
Operating income 56,716,673 49,379,806 7,336,868 14.9%
Other (expense) income
Other income 4,951,386 4,718,089 233,297 4.9%
Sale of non-utility property 123,904 1,886,489 (1,762,584) (93.4)%
Interest on LTD (17,754,722) (17,653,961) (100,761) 0.6%
Other interest (554,239) (242,553) (311,686) 128.5%
Amort of debt issuance cost (280,660) (234,534) (46,126) 19.7%
Miscellaneous deductions (410,234) (157,023) (253,211) 161.3%
Net income 42,792,107 37,696,311 5,095,796 13.5%
Dividends to SJW Corp. 16,500,000 14,500,000 2,000,000 13.8%
Invested in business 26,292,107 23,196,311 3,095,796 13.3%

Balance Sheet
February 28 2017 and February 28 2016
Page 3 of 143/20/2017 1:27:03 PM
February 28 2017 February 28 2016
ASSETS
Utility plant
Land 15,986,720 16,032,655
Depreciable plant & equip 1,452,366,905 1,353,459,422
Construction in progress 76,760,437 48,449,762
Intangible assets 1,040,137 1,040,137
. 1,546,154,199 1,418,981,976
Less accumulated depreciation 491,903,410 460,963,719
Less accumulated amortization 498,367 482,028
Net utility plant 1,053,752,422 957,536,228
Nonutility property 155,038 109,106
Current assets:
Cash and cash equivalents 19,269,186 1,891,517
Restricted cash and cash equivalents 8,000 0
Customers 15,803,714 15,669,086
Other 62,480 497,328
Accrued utility revenue 17,490,000 14,405,000
Intercompany notes 6,170,000 13,206,000
Materials & supplies 770,708 771,431
Prepaid expenses 2,420,159 3,295,522
Other current assets 12,444,897 14,420,577
Total current assets 74,439,144 64,156,460
Other assets:
Cupertino lease, net 2,768,260 3,148,745
Debt issuance costs 3,968,966 3,026,712
Regulatory asset 135,981,066 151,744,302
Miscellaneous 681,639 691,154
Total other assets 143,399,930 158,610,913
Total assets 1,271,746,535 1,180,412,708

Balance Sheet
Page 4 of 143/20/2017 1:27:03 PM
CAPITALIZATION & LIABILITIES
Capitalization
Common stock, $6.25 par value per share 6 6
Additional paid-in capital 92,588,784 90,068,667
Retained earnings 303,580,445 277,392,580
Common shareholders' equity 396,169,235 367,461,253
Long-term debt 370,000,000 301,697,214
Total capitalization 766,169,235 669,158,468
Current Liabilities:
Line of credit 0 38,500,000
Ground water extraction 4,675,378 1,860,056
Purchased water 4,230,427 3,310,235
Purchased power 434,000 347,000
Accounts payable 15,511,516 12,033,243
Accrued interest 6,376,142 5,686,115
Accrued general taxes 1,809,611 1,891,816
Post retirement benefits 1,119,638 1,043,775
Current portion of LTD 0 151,457
Income taxes payable (15,052,821) (13,820,526)
Other current liabilities 8,607,320 7,006,869
Total current liabilities 27,711,211 58,010,042
Deferred income taxes 196,478,918 183,913,242
Unamortized invest tax credit 1,184,600 1,244,600
Other noncurrent liabilities 8,630,919 6,105,195
Post retirement benefits 71,515,129 71,782,562
Advances for construction 80,349,279 72,090,083
Contr in aid of construction 117,524,250 116,706,615
Deferred revenue 2,174,993 1,401,903
Total capitalization & liabilities 1,271,738,535 1,180,412,708
CAPITALIZATION RATIOS
Common equity 51.71% 54.91%
Long term debt 48.29% 45.09%
Total capitalization 100.00% 100.00%

Schedules Supporting Balance Sheet
UNIFORM SYSEM OF ACCOUNTS REPORT
Page 5 of 143/20/2017 1:27:04 PM
Prepaid expenses
Insurance 700,729 673,059
Rent & maintainence 1,709,430 2,601,811
Taxes other than income taxes 10,001 20,651
Total prepaid expenses 2,420,159 3,295,522
Regulatory assets
Regulatory asset - ARO 3,317,715 3,308,691
Regulatory asset - vacation 2,536,537 2,620,920
Regulatory asset - pensions 109,794,728 109,167,720
Regulatory asset - deferred tax 10,139,448 8,184,221
Regulatory asset - MCRAM 7,695,035 5,351,621
Total regulatory assets 133,483,464 128,633,174
Other assets
Cost accounts 299,297 318,527
Prelim survey & investigation charges 105,075 85,067
Total other assets 404,373 403,594
Accrued general taxes
Property 1,315,013 1,328,731
Payroll (3,201) 204,033
Local franchise 497,799 359,053
Total accrued general taxes 1,809,611 1,891,816
Other current liabilities
Accrued payroll 4,540,639 3,569,281
Work order deposits 356,770 431,280
Utility users tax 856,293 715,957
Customers' deposits 1,519,869 1,433,193
Miscellaneous other 467,682 384,390
Regulatory surcharge 662,817 472,768
Deferred Revenue-Current -203,251 0
Total other current liabilites 8,607,320 7,006,869
Deferred income taxes
Deferred tax asset - CIAC and advances (15,214,260) (15,016,875)
Deferred tax asset - ITC (644,077) (676,384)
Deferred tax asset - pensions (2,620,050) (2,693,648)
Deferred tax asset - FIT on CFT (1,722,795) (1,315,347)
Deferred tax asset - deferred comp & dir pension (791,733) (846,598)
Deferred tax asset - other (4,413,928) (3,117,526)
Deferred tax liability - assets 219,436,133 205,265,452
Deferred tax liab - deferred comp & dir pension 1,033,401 1,067,784
Deferred tax liability - debt issuance 347,057 396,629
Deferred tax liability - concession fee 0 0
Deferred tax liability - other 1,069,171 849,756
Total deferred income tax 196,478,918 183,913,242
Other noncurrent liabilities
Postretirement contracts and executive deferred comp 3,262,300 3,288,302
Reserve for injuries and damages 2,271,073 101,357
Tax uncertainity payable 1,131,667 755,005
Asset retirement obligation 1,965,879 1,960,531
Total other noncurrent liabilites 8,630,919 6,105,195

Long-term Debt
Page 6 of 143/20/2017 1:27:04 PM
Long-term debt
SDWSRF 2.39% Due 2026 0 1,021,436
SDWSRF 2.60% Due 2027 0 675,778
Private Activity Bond 5.1% Due 2040 49,335,478 50,000,000
Senior notes
Series A 8.58% Due 2022 19,950,553 20,000,000
Series B 7.37% Due 2024 29,100,674 30,000,000
Series C 9.45% Due 2020 9,973,160 10,000,000
Series D 7.15% Due 2026 14,945,639 15,000,000
Series E 6.81% Due 2028 14,918,416 15,000,000
Series F 7.20% Due 2031 19,950,906 20,000,000
Series G 5.93% Due 2033 19,934,053 20,000,000
Series H 5.71% Due 2037 19,868,894 20,000,000
Series I 5.93% Due 2037 19,907,531 20,000,000
Series J 6.54% Due 2024 9,983,511 10,000,000
Series K 6.75% Due 2039 19,930,853 20,000,000
Series L 5.14% Due 2044 49,420,747 50,000,000
Total long-term debt 297,220,415 301,697,214

Gross Revenue and Taxes Other than Income Taxes
Page 7 of 143/20/2017 1:27:04 PM
Current
YTD
Prior
YTD
Change Change %
Metered
Residential 10,331,986 10,165,789 166,197 1.6% 21,769,801 20,572,447 1,197,355 5.8%
Business 7,980,318 6,213,468 1,766,850 28.4% 16,089,248 12,546,332 3,542,917 28.2%
Industrial 109,085 80,753 28,332 35.1% 218,984 154,541 64,443 41.7%
Public authorities 695,229 523,141 172,088 32.9% 1,338,015 1,055,054 282,961 26.8%
Other water utilites 69,619 47,635 21,984 46.2% 141,031 102,969 38,062 37.0%
Other sales & service 42,222 42,895 (673) (1.6)% 166,409 88,237 78,172 88.6%
Reclaimed water 120,196 100,060 20,136 20.1% 252,168 192,154 60,014 31.2%
Balance/ Memo accounts (1,127,797) (32,234) (1,095,563) 3,398.8% (2,482,440) (149,690) (2,332,750) 1558.4%
Total metered 18,220,858 17,141,508 1,079,350 6.3% 37,493,216 34,562,043 2,931,174 8.5%
Flat rate
Private fire protection 294,190 257,009 37,181 14.5% 586,906 511,226 75,681 14.8%
Miscellaneous services 21,471 15,075 6,396 42.4% 36,790 37,855 (1,065) (2.8)%
Total flat rate 315,661 272,084 43,578 16.0% 623,696 549,080 74,616 13.6%
Total revenue 18,536,519 17,413,592 1,122,927 6.4% 38,116,912 35,111,123 3,005,789 8.6%
Unbilled revenue adjustment (2,806,000) (650,000) (2,156,000) 331.7% (6,155,000) (2,571,000) (3,584,000) 139.4%
Revenue Statistics
Residential customers
Number of customers 200,565 199,025 1,540 0.8% 401,139 398,060 3,079 0.8%
Average usage - CCF 4.81 6.27 (1.46) (23.3)% 10.54 12.72 (2.18) (17.1)%
Budget- average usage 0.00 0.00 0.00 0.00 0.00 0.00
Average revenue 49.39 48.26 1.13 2.3% 103.23 96.35 6.88 7.1%
Business customers
Number of customers 18,439 19,965 (1,526) (7.6)% 36,844 40,053 (3,209) (8.0)%
Average usage - CCF 52.52 49.67 2.85 5.7% 109.34 104.54 4.80 4.6%
Budget usage - CCF 0.00 0.00 0.00 0.00 0.00 0.00
Average revenue 365.05 288.85 76.20 26.4% 742.82 594.63 148.19 24.9%
Production Statistics
Water delivered to system (MG)
Purchased - Contract 1,077.4 891.4 186.1 20.9% 2,266.4 1,829.2 437.1 23.9%
Non-contract 41.0 124.2 (83.2) (67.0)% 171.1 178.5 (7.5) (4.2)%
Surface 25.9 309.8 (283.9) (91.6)% 69.5 469.2 (399.7) (85.2)%
Ground 689.4 663.5 26.0 3.9% 1,397.6 1,550.1 (152.5) (9.8)%
Reclaimed 15.1 15.9 (0.8) (4.8)% 33.1 29.8 3.3 11.2%
Total 1,848.9 2,004.7 (155.8) (7.8)% 3,937.6 4,056.8 (119.2) (2.9)%
Taxes other than income taxes
Property taxes 652,436 646,606 5,829 0.9% 1,304,871 1,221,435 83,436 6.8%
Payroll taxes 204,338 328,184 (123,846) (37.7)% 539,936 669,900 (129,964) (19.4)%
Business license taxes 1,667 2,732 (1,065) (39.0)% 16,211 5,464 10,747 196.7%
Local franchise taxes 49,247 40,336 8,911 22.1% 201,841 84,555 117,286 138.7%
Total 907,688 1,017,858 (110,170) (10.8)% 2,062,859 1,981,354 81,505 4.1%

Gross Revenue and Taxes Other than Income Taxes
Page 8 of 143/20/2017 1:27:04 PM
Current
12 MTD
Prior
12 MTD
Change Change %
Metered
Residential 184,090,138 159,805,255 24,284,883 15.2%
Business 103,315,735 86,178,911 17,136,824 19.9%
Industrial 1,264,541 1,010,410 254,131 25.2%
Public authorities 14,691,644 11,954,710 2,736,934 22.9%
Other water utilites 1,122,860 1,015,654 107,207 10.6%
Other sales & service 810,483 714,376 96,107 13.5%
Reclaimed water 3,477,805 2,688,502 789,303 29.4%
Balance/ Memo accounts 2,406,229 12,818,261 (10,412,033) (81.2)%
Total metered 311,179,435 276,186,079 34,993,356 12.7%
Flat rate
Private fire protection 3,319,039 3,061,400 257,639 8.4%
Miscellaneous services 147,945 193,308 (45,363) (23.5)%
Total flat rate 3,466,984 3,254,708 212,277 6.5%
Total revenue 314,646,419 279,440,787 35,205,633 12.6%
Unbilled revenue adjustment 3,089,000 602,000 2,487,000 413.1%
Revenue Statistics
Residential customers
Number of customers 2,396,713 2,386,218 10,495 0.4%
Average usage - CCF 112.47 115.72 (3.25) (2.8)%
Budget- average usage 0.00 134.25 (134.25) (100.0)%
Average revenue 856.20 763.01 93.19 12.2%
Business customers
Number of customers 231,839 241,500 (9,661) (4.0)%
Average usage - CCF 803.40 760.50 42.90 5.6%
Budget usage - CCF 0.00 779.40 (779.40) (100.0)%
Average revenue 4,848.55 4,033.07 815.48 20.2%
Production Statistics
Water delivered to system (MG)
Purchased - Contract 18,677.9 17,809.3 868.6 4.9%
Non-contract 1,916.3 2,042.3 (125.9) (6.2)%
Surface 2,065.0 1,585.0 480.0 30.3%
Ground 10,282.8 11,525.6 (1,242.8) (10.8)%
Reclaimed 640.4 631.3 9.1 1.4%
Total 33,582.5 33,593.6 (11.1) 0.0%
Taxes other than income taxes
Property taxes 7,675,694 7,422,513 253,181 3.4%
Payroll taxes 2,295,771 2,424,997 (129,226) (5.3)%
Business license taxes 43,575 32,838 10,737 32.7%
Local franchise taxes 839,546 669,770 169,776 25.3%
Total 10,854,586 10,550,118 304,468 2.9%

Other Operations Expense
Page 9 of 143/20/2017 1:27:04 PM
Current
YTD
Prior
YTD
Change Change %
Other operations expense
Source of supply
Supervision & engineering 193 6,170 (5,977) (96.9)% 193 16,357 (16,164) (98.8)%
Operations labor & expense 42,427 38,790 3,637 9.4% 69,900 54,622 15,278 28.0%
Miscellaneous expense 33,254 67,934 (34,681) (51.1)% 151,603 130,233 21,370 16.4%
Total 75,873 112,894 (37,021) (32.8)% 221,696 201,212 20,484 10.2%
Water treatment & quality
Supervision & engineering 120,759 55,832 64,927 116.3% 218,218 102,449 115,770 113.0%
Operations labor & expense 161,986 124,838 37,148 29.8% 289,075 199,895 89,179 44.6%
Miscellaneous expense 40,494 74,429 (33,935) (45.6)% 57,243 140,330 (83,087) (59.2)%
Chemical & filter materials 582 18,622 (18,040) (96.9)% 5,002 47,711 (42,709) (89.5)%
Total 323,821 273,721 50,099 18.3% 569,537 490,385 79,153 16.1%
Pumping
Supervision & engineering 69,537 44,361 25,176 56.8% 135,461 83,849 51,612 61.6%
Pumping labor & expense 111,033 98,195 12,839 13.1% 205,694 209,439 (3,746) (1.8)%
Miscellaneous expense 85,142 105,733 (20,591) (19.5)% 198,812 184,156 14,655 8.0%
Total 265,713 248,289 17,424 7.0% 539,966 477,445 62,521 13.1%
Transmission & distribution
Supervision & engineering 30,003 32,042 (2,039) (6.4)% 46,147 64,443 (18,296) (28.4)%
Storage facilities exp 3,517 1,292 2,224 172.2% 3,517 1,292 2,224 172.2%
Trans & distr line expense 1,072 7,090 (6,018) (84.9)% 1,072 5,386 (4,314) (80.1)%
Backflow 59,155 52,000 7,155 13.8% 97,877 90,750 7,128 7.9%
Flushing 2,996 10,905 (7,909) (72.5)% 11,829 15,036 (3,207) (21.3)%
Other meter expense 0 0 0 0 0 0
Field customer service 178,059 174,484 3,575 2.0% 337,154 309,879 27,275 8.8%
Total 295,248 326,296 (31,048) (9.5)% 590,804 595,619 (4,815) (0.8)%
Customer accounts
Supervision 31,237 21,463 9,774 45.5% 60,808 39,188 21,620 55.2%
Meter read - salary & expene 86,629 92,083 (5,454) (5.9)% 179,178 190,461 (11,284) (5.9)%
Coml office - salary & expense 104,581 89,671 14,911 16.6% 233,262 196,168 37,094 18.9%
Billing - salary & expense 227,232 192,243 34,989 18.2% 442,614 392,785 49,829 12.7%
Postage 121,752 156,811 (35,060) (22.4)% 164,250 202,882 (38,632) (19.0)%
Collection - salary & expense 2,760 17,893 (15,134) (84.6)% 7,433 20,691 (13,259) (64.1)%
Miscellaneous expense 160,421 68,169 92,252 135.3% 286,289 138,662 147,627 106.5%
Uncollectible accounts 30,198 19,346 10,852 56.1% 62,874 40,523 22,351 55.2%
Total 764,810 657,680 107,130 16.3% 1,436,707 1,221,359 215,348 17.6%
Total 1,725,464 1,618,880 106,585 6.6% 3,358,710 2,986,021 372,690 12.5%

Other Operations Expense
Page 10 of 143/20/2017 1:27:04 PM
Current
12 MTD
Prior
12 MTD
Change Change %
Other operations expense
Source of supply
Supervision & engineering 19,127 76,990 (57,863) (75.2)%
Operations labor & expense 589,293 341,609 247,684 72.5%
Miscellaneous expense 852,536 694,557 157,980 22.7%
Total 1,460,956 1,113,156 347,800 31.2%
Water treatment & quality
Supervision & engineering 1,062,148 646,824 415,325 64.2%
Operations labor & expense 1,372,962 1,027,753 345,209 33.6%
Miscellaneous expense 1,037,542 1,175,474 (137,932) (11.7)%
Chemical & filter materials 241,011 296,001 (54,990) (18.6)%
Total 3,713,663 3,146,052 567,612 18.0%
Pumping
Supervision & engineering 592,128 554,093 38,035 6.9%
Pumping labor & expense 1,191,504 1,354,160 (162,656) (12.0)%
Miscellaneous expense 1,266,579 1,134,651 131,928 11.6%
Total 3,050,212 3,042,905 7,307 0.2%
Storage facilities exp 17,902 64,035 (46,133) (72.0)%
Trans & distr line expense 18,049 51,335 (33,286) (64.8)%
Backflow 647,424 709,762 (62,338) (8.8)%
Flushing 120,501 152,516 (32,015) (21.0)%
Other meter expense 0 4,624 (4,624) (100.0)%
Field customer service 2,047,146 1,931,497 115,649 6.0%
Miscellaneous expense 549,711 478,269 71,442 14.9%
Total 3,718,126 3,752,391 (34,265) (0.9)%
Customer accounts
Supervision 277,665 252,613 25,052 9.9%
Meter read - salary & expene 1,148,049 1,128,494 19,556 1.7%
Coml office - salary & expense 1,360,728 1,341,667 19,061 1.4%
Billing - salary & expense 2,789,955 2,468,123 321,832 13.0%
Postage 629,538 677,159 (47,621) (7.0)%
Collection - salary & expense 75,416 75,377 39 0.1%
Miscellaneous expense 1,484,575 918,308 566,267 61.7%
Uncollectible accounts 489,442 370,428 119,014 32.1%
Total 8,255,368 7,232,168 1,023,199 14.1%
Total 20,198,325 18,286,672 1,911,653 10.5%

Administrative and General Expense
Page 11 of 143/20/2017 1:27:04 PM
Current
YTD
Prior
YTD
Change Change %
Administrative and general expense
Admin & general salaries 679,976 748,406 (68,429) (9.1)% 1,494,153 1,396,966 97,187 7.0%
Office services & supplies 133,088 142,373 (9,284) (6.5)% 271,976 213,925 58,051 27.1%
Travel & incidental 40,589 28,946 11,643 40.2% 43,621 33,472 10,150 30.3%
Property & liability insurance 90,764 92,748 (1,984) (2.1)% 181,529 184,052 (2,523) (1.4)%
Workers compensation insurance 59,077 56,031 3,047 5.4% 118,155 112,062 6,093 5.4%
Pensions, unfunded 77 77 0 0.0% 154 154 0 0.0%
Retirement benefits 771,148 889,579 (118,431) (13.3)% 1,529,160 1,717,736 (188,577) (11.0)%
Group insurance 544,217 530,861 13,356 2.5% 1,117,595 1,062,758 54,837 5.2%
Other employee benefits 24,629 13,341 11,288 84.6% 60,246 50,469 9,777 19.4%
Regulatory commission 320,450 220,287 100,163 45.5% 662,817 472,049 190,768 40.4%
Legal 16,441 443 15,998 3,610.1% 15,817 5,815 10,002 172.0%
Other OS services 281,445 228,489 52,956 23.2% 426,007 442,972 (16,965) (3.8)%
Company dues 52,836 44,539 8,297 18.6% 116,311 92,279 24,032 26.0%
General corporate 120,279 60,068 60,211 100.2% 178,547 92,866 85,681 92.3%
Miscellaneous general 27,030 28,496 (1,466) (5.1)% 46,327 44,233 2,094 4.7%
Rent 40,332 40,332 0 0.0% 80,665 80,665 0 0.0%
Admin expense transfer (570,523) (682,711) 112,188 (16.4)% (1,151,234) (1,275,589) 124,355 (9.7)%
Total 2,631,857 2,442,304 189,553 7.8% 5,191,845 4,726,882 464,962 9.8%

Administrative and General Expense
Page 12 of 143/20/2017 1:27:04 PM
Location: Documents001 Global1 FinancialFinancialsPUC ReportsPUC Admin Expense-12 mo
Current
12 MTD
Prior
12 MTD
Change Change %
Administrative and general expense
Admin & general salaries 9,587,521 9,159,807 427,715 4.7%
Office services & supplies 1,703,412 1,404,331 299,081 21.3%
Travel & incidental 430,319 390,731 39,588 10.1%
Property & liability insurance 1,431,725 1,307,702 124,023 9.5%
Workers compensation insurance 686,900 646,540 40,361 6.2%
Pensions, unfunded 924 924 0 0.0%
Retirement benefits 9,203,669 10,289,224 (1,085,555) (10.6)%
Group insurance 6,705,195 6,486,637 218,558 3.4%
Other employee benefits 437,361 405,586 31,775 7.8%
Regulatory commission 3,997,570 4,461,025 (463,455) (10.4)%
Legal 666,144 460,315 205,829 44.7%
Other OS services 2,660,318 2,152,677 507,641 23.6%
Company dues 609,511 561,379 48,132 8.6%
General corporate 1,057,176 961,661 95,514 9.9%
Miscellaneous general 327,676 291,892 35,784 12.3%
Rent 484,288 485,038 (750) (0.2)%
Admin expense transfer (7,294,480) (7,933,570) 639,090 (8.1)%
Total 32,695,228 31,531,898 1,163,330 3.7%

Maintenance Expense
Page 13 of 143/20/2017 1:27:04 PM
Current
YTD
Prior
YTD
Change Change %
Maintenance expense
Source of supply plant
Structure and improvements 5,774 5,417 357 6.6% 11,548 10,809 739 6.8%
Collect & impound res 0 125 (125) (100.0)% (692) 125 (818) (653.2)%
Lakes, rivers & intakes 4,264 (118) 4,382 (3,714.4)% 4,070 2,810 1,260 44.8%
Wells 0 37 (37) (100.0)% 0 5,434 (5,434) (100.0)%
Supply mains 0 0 0 0 0 0
Total 10,038 5,461 4,577 83.8% 14,925 19,177 (4,252) (22.2)%
Pumping plant
Supervision & engineering 519 8,332 (7,814) (93.8)% (642) 12,908 (13,550) (105.0)%
Pumping labor & expense (384) 46,365 (46,749) (100.8)% 1,110 47,239 (46,130) (97.7)%
Other pumping plant 774 345 429 124.5% 1,983 345 1,639 475.5%
Total 68,047 270,843 (202,796) (74.9)% 104,683 393,942 (289,259) (73.4)%
Water treatment plant
Supervision & engineering 0 0 0 0 0 0
Structures & improvements 164 475 (312) (65.5)% 262 941 (679) (72.2)%
Water treatment equipment 8,853 16,864 (8,011) (47.5)% 31,904 22,885 9,019 39.4%
Total 9,016 17,339 (8,323) (48.0)% 32,166 23,826 8,340 35.0%
Supervision & engineering 67,756 67,246 509 0.8% 122,779 136,184 (13,405) (9.8)%
Structures & improvements (21,422) 27,178 (48,600) (178.8)% 77,502 57,488 20,014 34.8%
Reservoirs & tanks 116 4,799 (4,684) (97.6)% 116 (2,923) 3,038 (104.0)%
Trans & distr'n mains 317,025 412,691 (95,666) (23.2)% 715,004 717,077 (2,073) (0.3)%
Services 52,510 128,118 (75,608) (59.0)% 143,232 258,223 (114,990) (44.5)%
Meters 50,079 66,224 (16,145) (24.4)% 102,784 118,449 (15,665) (13.2)%
Hydrants 45,520 32,150 13,371 41.6% 74,788 70,581 4,207 6.0%
Other 339,423 350,817 (11,394) (3.2)% 640,475 601,070 39,406 6.6%
Total 851,007 1,089,223 (238,217) (21.9)% 1,876,681 1,956,149 (79,468) (4.1)%
General plant
Structures & improvements (12,161) 27,248 (39,409) (144.6)% 42,383 43,057 (674) (1.6)%
Equipment 121,416 98,500 22,915 23.3% 230,153 196,836 33,317 16.9%
Total 109,255 125,748 (16,493) (13.1)% 272,536 239,894 32,643 13.6%
Total maintenance expense 1,047,363 1,508,615 (461,252) (30.6)% 2,300,992 2,632,988 (331,996) (12.6)%

Maintenance Expense
Page 14 of 143/20/2017 1:27:04 PM
Current
12 MTD
Prior
12 MTD
Change Change %
Maintenance expense
Source of supply plant
Structure and improvements 68,629 66,166 2,464 3.7%
Collect & impound res 21,988 5,969 16,019 268.4%
Lakes, rivers & intakes 17,444 12,174 5,269 43.3%
Wells 5,048 36,536 (31,488) (86.2)%
Supply mains 0 403 (403) (100.0)%
Total 113,110 121,248 (8,139) (6.7)%
Pumping plant
Pumping labor & expense 326,356 240,452 85,904 35.7%
Miscellaneous expense 864,561 1,177,269 (312,708) (26.6)%
Other pumping plant 15,692 5,333 10,359 194.2%
Total 1,268,068 1,515,903 (247,834) (16.3)%
Water treatment plant
Supervision & engineering 0 128 (128) (100.0)%
Structures & improvements 8,160 18,374 (10,214) (55.6)%
Water treatment equipment 174,413 105,672 68,741 65.1%
Total 182,573 124,174 58,398 47.0%
Structures & improvements 413,175 342,279 70,896 20.7%
Reservoirs & tanks 38,778 53,728 (14,950) (27.8)%
Trans & distr'n mains 4,489,454 4,319,962 169,492 3.9%
Services 1,241,668 1,573,142 (331,474) (21.1)%
Meters 748,997 753,825 (4,828) (0.6)%
Hydrants 452,855 411,876 40,979 9.9%
Other 6,181,133 4,112,096 2,069,037 50.3%
Total 14,357,837 12,467,890 1,889,947 15.2%
General plant
Structures & improvements 372,046 429,763 (57,717) (13.4)%
Equipment 1,228,081 957,507 270,574 28.3%
Total 1,600,127 1,387,270 212,857 15.3%
Total maintenance expense 17,521,715 15,616,485 1,905,230 12.2%

(U-168-W)
SUMMARY OF EARNINGS
Cost Of Capital
Exhibit B
($ Amounts in Thousands)
2017 2018 Proposed Proposed
Escalation Projected Revenue Percentage
Year COC Increase Increase
AL 506
358,250.1 365,800.1
487.0 487.0
358,737.1 366,287.1 7,550 2.10%
PURCHASED WATER 82,937.9 82,937.9
PURCHASED WATER RECYCLED 1,621.3 1,621.3
PUMP TAX 50,936.9 50,936.9
PURCHASED POWER 8,941.7 8,941.7
OTHER OPERATION AND MAINTENANCE 770.3 770.3
CHEMICALS 469.6 469.6
UNCOLLECTIBLES 542.7 554.2
O&M PAYROLL 19,217.6 19,217.6
TRANSPORTATION 3,387.2 3,387.2
PURCHASED SERVICES 10,854.9 10,854.9
CONSERVATION 2,872.8 2,872.8
OTHER ADMIN AND GEN. EXP. 4,227.0 4,227.0
A&G PAYROLL 7,954.3 7,954.3
PENSION 6,807.2 6,807.2
BENEFITS 3,265.4 3,265.4
HEALTH CARE & DENTAL 6,336.8 6,336.8
RENTS 507.0 507.0
PROPERTY INSURANCE 238.2 238.2
LIABILITY INSURANCE 2,085.9 2,085.9
A&G PURCHASED SERVICES 3,387.9 3,387.9
A&G TRANSFERRED SERVICES -7,633.6 -7,633.6
TOTAL O. & M., A. & G., & MISC. EXP. 209,729.0 209,740.5
AD VALOREM TAXES 8,788.2 8,788.2
LOCAL FRANCHISE TAXES & BUS. LICENSE 862.8 895.5
PAYROLL TAXES 2,038.1 2,038.1
TOTAL GENERAL TAXES 11,689.1 11,721.8
Depreciation 46,862.5 46,862.5
S U B -- T O T A L -- OPERATING EXPENSES 268,280.7 268,324.8
STATE INCOME TAX 4,874.2 5,740.7
FEDERAL INCOME TAX 24,563.7 27,165.5
297,718.5 301,231.0
NET REVENUE 61,018.6 65,056.1
RATE BASE 753,877.1 753,877.1
RETURN ON RATE BASE 8.09% 8.63%

(To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.)
Advice No. 506
Dec. No. D.13-07-028
PALLE JENSEN
Senior Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 1822-W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No. 1802-W
Schedule No. 1
GENERAL METERED SERVICE
APPLICABILITY
Applicable to general metered water service.
TERRITORY
Portions of Cupertino, San Jose, and Santa Clara, and in Campbell, Los Gatos,
Monte Sereno, and Saratoga and in contiguous territory in the County of Santa Clara.
RATES
Quantity Rate Per 100 cu. ft. (Ccf):
Residential Customers with 5/8 x 3/4-inch, 3/4–inch, 1-inch, 1 1/2-inch or 2-inch meter
For Total Monthly Usage from 0 to 3 Ccf. $4.2878 (I)
For Total Monthly Usage from 4 to 18 Ccf. $4.7642 I
For Total Monthly Usage over 18 Ccf. $5.2406 (I)
All Other Customers
For all water delivered, per 100 cu. ft. $4.7642 (I)
Service Charges: Per Meter Per Month
All Customers:
For 5/8 x 3/4-inch meter ……………………… $ 25.45 (I)
For 3/4-inch meter ……………………… $ 25.45 l
For 1-inch meter ……………………… $ 42.37 l
For 1-1/2-inch meter ……………………… $ 84.78 l
For 2-inch meter ……………………… $ 135.68 l
For 3-inch meter ……………………… $ 254.37 l
For 4-inch meter ……………………… $ 423.96 l
For 6-inch meter ……………………… $ 847.91 l
For 8-inch meter ……………………… $ 1356.67 l
For 10-inch meter ……………………… $ 1950.24 (I)
The service charge is a readiness-to-serve charge which is applicable to all metered service
and to which is added the charge for water used computed at the Quantity Rate.
(Continued)

Proposed tariffs
SAN JOSE WATER COMPANY (U-168-W)
PROPOSED RATES
Schedule No. 1
GENERAL METERED SERVICE
APPLICABILITY
Applicable to general metered water service.
TERRITORY
Portions of Cupertino, San Jose, and Santa Clara, and in Campbell, Los Gatos, Monte Sereno, and
Saratoga and in contiguous territory in the County of Santa Clara.
RATES
Quantity Rate Per 100 cu. ft. (Ccf):
Residential Customers with 5/8 x 3/4-inch, 3/4–inch, 1-inch, 1 1/2-inch or 2-inch meter
For Total Monthly Usage from 0 to 3 Ccf. $4.3822
For Total Monthly Usage from 4 to 18 Ccf. $4.8691
For Total Monthly Usage over 18 Ccf. $5.3560
All Other Customers
For all water delivered, per 100 cu. ft. $4.8691
Service Charges: Per Meter Per Month
For 5/8 x 3/4-inch meter . . . . . . . . . . . . . . . . . $26.05
For 3/4-inch meter . . . . . . . . . . . . . . . . . 26.05
For 1-inch meter . . . . . . . . . . . . . . . . . 43.37
For 1-1/2-inch meter . . . . . . . . . . . . . . . . . 86.79
For 2-inch meter . . . . . . . . . . . . . . . . . 138.89
For 3-inch meter . . . . . . . . . . . . . . . . . 260.39
For 4-inch meter . . . . . . . . . . . . . . . . . 433.99
For 6-inch meter . . . . . . . . . . . . . . . . . 867.97
For 8-inch meter . . . . . . . . . . . . . . . . 1388.76
For 10-inch meter . . . . . . . . . . . . . . . . 1996.37
The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to
which is added the charge for water used computed at the Quantity Rates.
(No Other Changes Proposed)

Notification of Cost of Capital Filing by San Jose Water Company
As required by the California Public Utilities Commission (CPUC) on April 3, 2017, San
Jose Water Company (SJWC) filed Application A.17-04-xxx (Application) with the
CPUC requesting authority to increase its authorized Cost of Capital for the period from
January 1, 2018 through December 31, 2020. If approved by the CPUC, SJWC’s
revenues would increase by $7,550,000 or 2.10% in 2018.
Cost of Capital, or COC, is a financial term defining how much a corporation is allowed
to recover in water rates its return on invested capital. In this proceeding the CPUC will
determine SJWC’s reasonable costs of long-term debt and common stock that are part of
the authorized Cost of Capital. The authorized COC will be applied to the capital
investments authorized by the CPUC for SJWC.
The purpose of this notice is to inform customers of the filing of the Application and to
provide instructions on how to provide input to the process.
Summary of Key Reasons for SJWC’s Request
• SJWC believes approval of this request is necessary for it to attract capital
to fund water system investments that allow the company to meet its
obligations to safely and reliably serve its customers.
• SJWC’s proposal will assist it in maintaining an investment-grade rating,
thereby reducing the overall financing costs and contribute to SJWC’s
ability to provide safe, high quality, and reliable water service at
reasonable rates.
CUSTOMER IMPACT
With this Cost of Capital filing, SJWC is requesting an increase of $0.1049 per CCF of
water per month above estimated rates to become effective January 1, 2018. If SJWC’s
proposal is adopted, a typical residential metered customer with a 3/4" meter using 15
CCF of water per month would see a monthly water bill increase of $2.14 or 2.10% from
$101.82 at currently estimated rates to $103.96 in 2018.
The rates shown on your monthly water bill may vary from the existing rates shown
above due to surcredits or surcharges currently in effect in your area.

CPUC PROCESS
As a party of record, the Office of Ratepayer Advocates (ORA) will review this
application. ORA is the independent consumer advocate within the CPUC with a
legislative mandate to represent investor-owned utility customers. ORA has a multi-
disciplinary staff with expertise in economics, finance, accounting and engineering. Other
parties of record will also participate in the CPUC’s proceeding to consider this
application. For more information about ORA, please call (415) 703-1584, e-mail
ora@cpuc.ca.gov or visit the Office of Ratepayer Advocate’s website at
http://ora.ca.gov/default.aspx.
This application will be assigned to an Administrative Law Judge (Judge) who will
determine how to receive evidence and other related documents, necessary for the CPUC
to establish a record upon which to base its decision. Evidentiary hearings may be held
where utilities, consumer advocacy groups, and other entities which have been given
official status as “parties,” will present their testimony and may be subject to cross-
examination by other parties. These evidentiary hearings are open to the public, but only
those who are parties may participate. The hearings and documents submitted in the
proceeding, become part of the formal record that the Judge relies upon when writing a
proposed decision to present to the Commissioners for their consideration.
After considering all proposals and all evidence presented during the formal hearing
process, the assigned Judge will issue a proposed decision, determining whether to adopt
SJWC’s request, modify it, or deny it. Any of the CPUC’s Commissioners may sponsor
an alternate decision. The proposed decision, and any alternate decisions, will be
discussed and voted upon at a scheduled Commission Voting Meeting.
The CPUC’s Office of Ratepayer Advocates (ORA) will review the Application and
submit its independent analysis and recommendations in written reports for the CPUC's
consideration. Other parties may also participate.
Evidentiary hearings may be held whereby parties of record will present their testimony
and are subject to cross-examination before an Administrative Law Judge (ALJ). These
evidentiary hearings are open to the public, but only those who are parties of record can
present evidence or cross-examine witnesses during evidentiary hearings.
After considering all proposals and evidence presented during the formal hearing process,
the assigned ALJ will issue a proposed decision. When the CPUC issues a final decision
on this application it may adopt all or part of the ALJ’s proposed decision as written,
amend or modify it, or deny the Application. The CPUC’s final decision may be
different from SJWC’s proposal.
STAY INFORMED
If you would like to follow this proceeding, or any other issue before the CPUC, you may
use the CPUC's free subscription service. Sign up at: http://subscribecpuc.cpuc.ca.gov/.
If you would like to learn how you can participate in the proceeding, or if you have
informal comments or questions about the CPUC processes, you may access the CPUC's
Public Advisor's webpage at www.cpuc.ca.gov/puc and click on "Public Advisor" from
the CPUC Information Menu. You may also contact the Public Advisor as follows:

Write: CPUC Public Advisor’s Office, Room 2103
505 Van Ness Avenue
San Francisco, CA 94102
Email: public.advisor@cpuc.ca.gov
Phone: 1-866-849-8390 (toll-free) or 1-415-703-2074
1-866-836-7825 (toll-free) or TTY 1-415-703-5282
Please reference SJWC Application No. 17-04-xxx in any communications you have with
the CPUC regarding this matter. All public comments will become part of the public
correspondence file for this proceeding and made available for review for the assigned
Judge, the Commissioners, and appropriate CPUC staff.

San Jose
Water
Company

SJWC A.17 04-001 endorsed application

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