5.3. The Agreement Is In the Public Interest

The Agreement is in the public interest. The Commission has explained that a settlement which "commands broad support among participants fairly reflective of the affected interests" and "does not contain terms which contravene statutory provisions or prior Commission decisions" well serves the public interest. Re San Diego Gas & Elec., D.92-12-019, 46 CPUC 2d 538, 552.

Together, the Parties fairly represent the affected interests: Applicants provide water service to customers in districts throughout California, and DRA is statutorily mandated to represent all ratepayers in California. The primary public interest affected by this proceeding is the delivery of safe and reliable water service at reasonable rates. The terms of the Agreement as described above advance this interest because they fairly balance each Applicant's opportunity to earn a reasonable rate of return against the needs of consumers for reasonable rates and safe, reliable water service. In addition, Commission approval of the Agreement will provide speedy resolution of contested issues, avoid unnecessary litigation expense, and conserve Commission resources. As the Commission has stated, "[t]here is a strong public policy favoring the settlement of disputes to avoid costly and protracted litigation." Re PG&E, D.88-12-083, 30 CPUC 2d 189, 221.