4. Description of the Proposed Settlement Agreement

The proposed settlement agreement provides that the Emmetts will pay $10,000 to Cal Water within 10 days of the effective date of a Commission decision approving the agreement. Upon receipt of the Emmetts' payment, Cal Water will pass that $10,000 through to Nelson. The settlement also provides for Cal Water to provide water service to the Emmetts or any other owner of the Trend Homes parcel pursuant to the ordinary terms and conditions of Cal Water's tariffs.

Under the terms of the settlement, Cal Water will also "refund the sum of $20,000 (without interest) to Nelson over a period of 10 years, provided that the Commission approves" treatment of these payments as a "refundable developer's advance."

The Moving Parties intend that this agreement will fully resolve all issues in this proceeding and completely dispose of Nelson's claim. Cal Water also requests approval to include the $20,000 in its revenue requirement in its next general rate case.