III. COLA Adjustments for 2006

We solicited comments on whether to adopt a general COLA for work performed in 2006. We suggested that a 3% increase was appropriate above rates previously authorized for 2005. As mentioned in the OIR, this increase was calculated based on federal and other cost-of-living data generally available to the public.

In comments, the utilities generally agree a 3% COLA is reasonable. Intervenors argue a 4-6% COLA is more appropriate, noting that no general increases were authorized for work performed in 2005. In D.05-11-031, we discussed the reasons no general hourly rate increases were adopted for 2005, and we will not revisit the issue here.

After reviewing the available data relating to COLA's, and the comments from the parties, we find the 3% increase for 2006 suggested in the OIR is appropriate, and adopt it here.