Overhead Rates - All of the stipulated capital budget items reflect the overhead rates that GSWC requested: 21.8% in 2006, 24.9% in 2007, and 22.1% in 2008. The parties agree that these rates will be recalculated depending on the Commission's ruling on disputed items, and this will be done consistent with the methodology used by GSWC's witness. (¶¶ 2.01, 2.02, 2.15.) As noted in the Ordering Paragraphs, we conclude that when our rulings on the disputed items are taken into account, and using the methodology the parties have agreed to, the revised overhead rates for capital budget items are as follows: 24.68% in 2006, 26.06% in 2007, and 25.88% in 2008. 2
2 In its August 20, 2007 reply comments on the Proposed Decision, DRA objects to the inclusion in the Ordering Paragraphs of this decision, "the definition of zeroing out the balance in the Overhead Pool Account" described in paragraph 2.15 of the August 4, 2006 stipulation. DRA contends that to include such a requirement in the Ordering Paragraphs would be unfair, because "GSWC never discussed this idea with DRA in settlement negotiations," and because DRA would never have entered into the settlement if it had thought it would be bound by such a principle. (DRA Reply Comments, pp. 4-6.) We think that the while other provisions of the August 4 stipulation are clear, the language of paragraph 2.15 is vague. Accordingly, our solution to DRA's objection is to require GSWC to develop the zeroing-out methodology for the Overhead Pool Account in consultation with DRA. We have further ordered that the methodology may not be implemented unless and until DRA's approval of it has been obtained.
