II. DISCUSSION OF ISSUES RAISED BY SAN GABRIEL

A. Allocation of Contamination Settlement Proceeds

On November 10, 1998, San Gabriel entered into a settlement with the County of San Bernardino that resulted in compensation for damages to San Gabriel's property caused by contamination from the Mid-Valley Sanitary Landfill. San Gabriel reported receiving, from 1998 to 2004, $8,559,863 pursuant to the settlement. San Gabriel claims to have reinvested all excess proceeds in section 790 plant infrastructure. (D.07-04-046, pp. 80 - 81, referencing Public Utilities Code section 789, et seq. (also referred to as, "section 790" or "Infrastructure Act").)5 Regarding these funds, we found the settlement damage payment was not a sale of real property, nor did it result in a sale. (D.07-04-046, pp. 82, 125 Finding of Fact (FOF) 76.) We held that, rather than reinvesting the funds in utility plant pursuant to section 790, the net proceeds should be allocated 67% to ratepayers and 33% to shareholders. (D.07-04-046, pp. 83, 125. FOF 76.)

5 Unless otherwise stated, all statutory references are to the Public Utilities Code.

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