VI. Allocation of Non-Contract DWR Costs

DWR's revenue requirement includes other costs and revenues, in addition to its estimate of the annual costs of its contracts. These costs are shown below:

Administrative & General Expenses	$59,000,000
Extraordinary Costs	$37,054,868
Net Operating Revenues	($320,372,326)
Interest Earnings on Fund Balance	($32,212,129)
Other Revenues (Contract Settlements, Extraordinary Receipts)	($51,896,968)

In D.04-01-028 and D.04-08-050, we allocated these costs on a pro-rata basis, using the pre-direct access sales percentages from the methodology adopted in D.02-12-045. We continue that approach here, and make it permanent. In contrast to our allocation approach regarding the above-market costs, these costs and reductions to DWR accounts are directly related to DWR's ongoing year-to-year activities, so we see no reason to change our past approach. The allocation percentages adopted in D.04-08-050 for DWR's non-contract costs are permanently fixed as follows: PG&E 40.69%, SCE 45.40%, and SDG&E 13.91%.