The 1994 Settlement Regarding Purchased Water

An agreement was reached in 1994 which provided that the price of purchased water North American [Harris] (buyer of the company at that time) would charge would be capped at the cost of purchased electricity and the cost of payroll and outside maintenance, as limited by increases in the Gross National Product Price Index. The price would also be subject to reasonableness review from time to time by the Commission. Concluding that the settlement agreement was reasonable in light of the whole record, consistent with law, and in the public interest, the Commission issued D.94-01-042 on January 19, 1994, which approved the settlement agreement, and authorized the sale of all Searles capital stock to North American [Harris].

In all Commission proceedings subsequent to the issuance of D.94-01-042, the applicants in those proceedings have affirmed that the transfer of indirect control for which authority was sought would have no effect on the force and effect of the 1994 settlement regarding purchased water.

Joint Applicants likewise have affirmed that the transaction for which authority is sought herein will have no effect on the force and effect of the 1994 settlement regarding purchased water.