2. Settled Issues Not Approved in this Decision

The settled issues we do not approve include:

· Regulatory Expenses

· Special Request #31 - Walerga Special Facilities Fees (moved to Phase 2 for consideration);

· Non-revenue water reporting as volumes only;

· Non-revenue water reporting for the Monterey County District;

· Revisions to the Penalty/Reward Mechanism for the Monterey County District;

· Special Request #5 to establish a Water Revenue Adjustment Mechanism (WRAM) for the Sacramento District (moved to Phase 2 for consideration);

· Irrigation Rates for Larkfield, San Diego, Ventura, and Toro in the Monterey County District;

· Billing format changes;

· Advanced Metering Infrastructure;

· Volumetric rate structure for wastewater; and,

· Low-income surcredit increase (moved to Phase 2 for consideration).

A more detailed discussion of the settlement issues not approved is contained in section 7.