Procedural History

Hillview initially filed its request for this rate increase on October 20, 1998. On January 28, 2000, Hillview revised its request. Hillview has since filed Advice Letters 60, 61, 63, and 65 requesting various increases in rates. This decision addresses all of these requests together.

The assigned administrative law judge (ALJ) held a public participation hearing (PPH) on Hillview's proposal in Oakhurst on March 14, 2001. Approximately 50 people attended, 22 of whom offered comments for the record. Most of the speakers expressed concerns about water quality and supply. Although these issues do not pertain directly to approval of the rate increase under the current settlement proposal, we have taken the comments into account in determining whether the negotiated resolution of the rate issues is in the public interest. A few speakers specifically opposed the rate increase.

On March 20, 2001, the ALJ held a formal evidentiary hearing (EH) in San Francisco on the proposed rate increase. The assigned Commissioner attended this EH. At the outset of the hearing the parties reported that they had negotiated a settlement which would reconcile their differences on the disputed issues. Their agreement had not been reduced to written form at that time, and the ALJ consequently continued the hearing at their request so they could do so, and so they could file a written motion proposing adoption of the settlement.²