BILL NUMBER:  AB 2838
  ITEM VETO DATE: 09/30/2002




SEP 30, 2002

To the Members of the California State Assembly:

I am signing Assembly Bill 2838, but reducing the appropriation from
the Public Utilities Commission Utilities Reimbursement Account from
$445,000 to $222,500.

This bill requires the Public Utilities Commission (PUC) to act on
water utilities' rate applications within specified timelines and
allows water utilities to enact interim rates at the rate of
inflation when their rate cases are delayed, subject to refunds by
the PUC.  The bill also requires water utilities to file a rate
application with the PUC every three years.

Sincerely,



GRAY DAVIS