IV. Discussion

In order for a settlement to be approved by the Commission, the settlement must be: (1) reasonable in light of the whole record, (2) consistent with law, and (3) in the public interest. Rule 51.1(e).⁴

A. Reasonable in Light of the Whole Record

The record of this proceeding shows that the ten defendant mobile parks were not in compliance with Section 739.5, in that Gas Refund Credits were not passed on to defendants' sub-metered customers. After being informed of the requirements of Section 739.5, the defendants have complied with that provision, and all rebates have been fully disbursed to the sub-metered customers served by the defendants.

The parties agreed that defendants would not calculate or pay interest charges for the period beginning June 1, 2000, until the date the payments or credits were made. We find that it is not reasonable for the mobile home parks to avoid the payment of interest; this leads to unjust enrichment on the part of the mobile home parks. We order that interest be paid at the rate of 7% per annum, compounded monthly, beginning 30 days from the receipt of the rebates and extending to the time when the rebates were disbursed to defendants' sub-metered customers.

The modified settlement is reasonable in light of the whole record.

B. Consistent with the Law

The terms of the settlement demonstrate that the defendants are now in compliance with Public Utilities Code Section 739.5, in that all of the Gas Refund Credits have been passed on to the defendants' sub-metered customers. Further, defendants agree to comply with Section 739.5 within a reasonable timeframe, if additional rebates are issued in the future.

C. In the Public Interest

The settlement would serve the public interest because the defendant mobile home parks have now passed the rebates on to their sub-metered customers and made a commitment to pass any future rebates on in a timely manner. There are no outstanding violations of the Public Utilities Code by the defendants. Therefore, the stipulation which is set forth as Appendix A, satisfies all claims raised in the complaint against the named defendants under Section 739.5. Also, it is consistent with the public interest that the sub-metered customers receive interest on the rebate money paid to them by the mobile home parks.

For these reasons, the Commission finds that the settlement, as modified, is reasonable in light of the whole record, is consistent with the law, and is in the public interest. The settlement, as modified, is approved pursuant to Rules 51 through 51.10.