Findings of Fact

1. There is an adequate record composed of all filed and served documents.

2. Golden State failed to exercise reasonable internal control over its procurement process with Richardson Engineering Company.

3. There is evidence that Golden State overpaid for services received from Richardson Engineering Company.

4. Golden State withheld material information from the Commission, thereby violating its duty to inform the Commission.

5. The proposed settlement redresses the continued exposure to
over-charging of customers.

6. The three audits over the next ten years will redress Golden State's failure to exercise adequate internal control.

7. Detailed testimony on internal control in subsequent general rate cases will inform the Commission on the current status of Golden state's internal control system.