6. Burden of Proof Under Statute and Rate Case Plan

The applicant, Golden State, bears the burden of proving that its proposed rate increases are "justified." Pursuant to Pub. Util. Code § 454(a), before implementing a rate increase, Golden State must make a "showing before the commission," and the Commission must find that the proposed increase is "justified."

In adopting the revised RCP, the Commission further articulated the required showing for a water utility's GRC: "The utility's application for a rate increase must identify, explain, and justify the proposed increase." Specifically, the application must include testimony, with supporting analysis and documentation, describing the components of the utility's proposed increase, e.g., results of operations, plant in service. All significant changes from the last adopted and recorded amounts must be explained, and all forecasted amounts must include an explanation of the forecasting method.

In considering each remaining disputed issue, we evaluate whether Golden State's showing meets our standards for justifying a rate increase.

As set out below, we resolve the issues that remain in dispute between Golden State and DRA.