12. Water Quality Litigation Memorandum Account

SGV requested authority to amortize the recorded balance in the LA Division's defense-related component of its Water Quality Litigation Memorandum Account (WQLMA). Pursuant to a partial settlement agreement, SGV and DRA agreed that LA Division would seek recovery of further costs recorded in this balancing account by advice letter.⁹³ However, the agreement was silent on how the current costs recorded in the defense-related component of the WQLMA should be treated.

Consistent with an agreed intent by SGV and DRA to allow SGV to recover costs recorded in the WQLMA, SGV should file an advice letter with the Water Division for authority to amortize the remaining balance in its defense-related component within its WQLMA. Further costs recorded in the WQLMA should be recovered through the advice letter process as agreed to by SGV and DRA.

⁹³ Settlement Agreement Section II. (E.), 1.