12. Comments on Proposed Decision

The proposed decision of the ALJ (PD) in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code, and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Suburban and DRA timely filed comments on December 8, 2008, and reply comments on December 15, 2008.

Suburban generally supports the PD. Suburban initially requested a general post-settlement rate increase for 2009 of 11.08%. In its comments, Suburban identified certain computational errors regarding its payroll expenses that reduced its general increase for 2009 to 11.01%.

In its comments, DRA argues that: many of the expenses related to Southwest should be disallowed; Suburban's RHP should not be considered as excess capacity; Suburban should be directed to file a formal application to establish a holding company; and, Suburban should not be authorized to file an Advice Letter at a later date with respect to Project Cornerstone. DRA also identified a minor technical error in the settlement agreement document that we correct on the cover sheet of Attachment B.

We found all of these comments to be helpful, and, for the most part, have either addressed or incorporated them into today's decision.