3. Standard of Review

The Commission has long favored the settlement of disputes. However, pursuant to Rule 12.1(d) of the Commission's Rules of Practice and Procedure, the Commission will not approve a settlement, whether contested or uncontested, unless it is found to be reasonable in light of the whole record, consistent with law, and in the public interest. Further, where a settlement agreement is contested, it will be subject to more scrutiny than an all-party settlement agreement. In this instance, the revenue allocation settlement agreement and the medium and large power rate group rate design settlement agreement were contested by Transphase and the residential and small commercial rate design settlement agreement was contested by SJVPA.

As discussed below, we find that the record supports a finding that the settlement agreements, as modified herein, including those that were contested, are reasonable, consistent with law, and in the public interest. SCE was represented by its staff and counsel in the proceeding. Parties representing all customer groups prepared and served exhibits on marginal costs, revenue allocation, and rate design issues. The record shows that the settlement agreements were reached after significant give-and-take between the parties, which occurred over a period of time.