9. Categorization and Need for Hearings

These proceedings were initially categorized as Ratesetting and it was preliminarily determined that hearings are required. We affirm the categorization.

Findings of Fact

1. The Agreement is the product of good-faith, arms' length negotiation between Parties reflecting all of the affected interests.

2. Each of the financial terms of the Agreement is the result of good faith compromise.

Conclusions of Law

1. The Agreement is reasonable in light of the record as a whole.

2. The Agreement does not violate any laws or prior Commission decisions.

3. The Agreement taken as a whole is in the public interest.

4. The Agreement meets the criteria for approval of settlements in Rule 12(1)(d).

5. The Agreement should be approved.

6. San Jose should be required to file a Tier 1 advice letter as suggested in the comments.

ORDER

Therefore IT IS ORDERED that:

1. The Settlement Agreement by and among Golden State Water Company, California Water Service Company, San Jose Water Company, California-American Water Company, and the Division of Ratepayer Advocates, as set forth in Appendix A, is approved.

2. The capital costs and capital structures set out in Table I of this decision are approved.

3. The dispositions of Temporary Interest Rate Balancing Accounts balances summarized in Table II of this decision are approved subject to each company filing an advice letter as directed in Table II.

4. No later than March 31, 2014, Golden State Water Company, California Water Service Company, San Jose Water Company and California-American Water Company shall file new applications for approval of their costs of capital for the three-year period beginning January 1, 2015.

5. San Jose Water Company shall file a Tier 1 advice letter to implement revised rates consistent with the capital costs and capital structure approved herein to be effective as of September 1, 2012.

6. Applications 11-05-001, 11-05-002, 11-05-003 and 11-05-004 are closed.

This order is effective today.

Dated July 12, 2012 at San Francisco, California.

 

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