5. Operating Revenue

The $15,385,000 difference in test year operating revenue between SJWC and DRA resulted from an $11,340,000 difference in operating expenses and a $46,026,000 difference in rate base. SJWC and DRA concurred on the number of customers by customer class and in the basic water consumption patterns of customers. SJWC and DRA also applied an 8.80% return on their recommended rate bases and a 1.6959 net to gross multiplier to their resultant net operating revenues to derive their recommended operating revenue. We find it reasonable to apply an 8.80% return to the rate base being adopted in this proceeding and a 1.6959 net to gross multiplier to the net operating revenue being adopted in this proceeding to derive the gross operating revenue requirement.