5. Partial Settlement Agreement

A partial settlement filed on January 25, 2008 resulted in SGV reducing its requested LA Division test year 2008 net operating revenue by $1,424,000 to $14,150,000 from $15,574,000 and its rate base by $12,963,000 to $128,773,000 from $141,736,000. DRA increased its recommended test year 2008 net operating revenue for LA Division by $978,000 to $11,863,000 from $10,885,000 and rate base by $10,803,000 to $127,505,000 from $116,702,000. These amounts include allocations of General Division expenses and rate base, as addressed in our General Division discussion in Section 9 of this decision.

The settlement also changed test year 2008 allocation of General Division expenses and rate base to Fontana Division. SGV reduced its test year 2008 allocation of General Division operating expenses to Fontana Division by $691,000 to $2,888,000 from $3,579,000 and rate base by $19,000 to $225,000 from $244,000. DRA increased its recommended allocation of General Division operating expenses to Fontana Division by $240,000 to $2,736,000 from $2,496,000 and rate base by $48,000 to $225,000 from $177,000.

These revised test year estimates resulted from a review of initial positions, correction of errors, and a better understanding of the other party's estimates. Many of those agreements stemmed from the availability of more recent data to DRA after SGV filed its application.

Upon careful analysis of the record and consideration of reasons for the parties' initial and revised estimates, we find that the partial settlement agreement is a reasonable resolution of the issues, consistent with the law, and in the public interest. Pursuant to Rule 12.5, the adoption of this partial settlement does not constitute approval of any principle or issue in this proceeding and should not be cited as precedent in any future proceeding.