5. Conclusion

For all the foregoing reasons, we find the proposed sale of Toro to CalAm Water to be in the public interest and consistent with Pub. Util. Code § 851. Accordingly, we approve CalAm Water's application and grant the motion of CalAm Water and DRA to adopt the Settlement. Further, we grant CalAm Water's request to implement the proposed rates in Attachment 1 of the Settlement through the advice letter process once it acquires legal title and possession of Toro. CalAm Water is also authorized to establish a memorandum account to record the depreciation, carrying costs and earned interests associated with wellhead improvements, not to exceed $40,000. Finally, we grant CalAm Water and DRA's request to waive Rule 12.1(b), which requires settling parties to hold a formal settlement conference with all parties prior to signing any settlement. CalAm Water and DRA's motion represents that attorney for the Receiver does not object to the waiver of Rule 12.1(b).