5. Settlement Criteria

The Settlement is an uncontested "all-party" settlement. In such cases, the Commission applies two complementary standards to evaluate the proposed agreement. The first standard, set forth in Rule 51.1(e) and applicable to both contested and uncontested agreements, requires that the "settlement is reasonable in light of the whole record, consistent with law, and in the public interest." The second standard, articulated in San Diego Gas & Electric, 46 CPUC 2d 538 (1992), applies to all-party settlements. As a precondition to approving such a settlement, the Commission must be satisfied that:

a. The proposed all-party settlement commands the unanimous sponsorship of all active parties to the proceeding.

b. The sponsoring parties are fairly representative of the affected interests.

c. No settlement term contravenes statutory provisions or prior Commission decisions.

d. Settlement documentation provides the Commission with sufficient information to permit it to discharge its future regulatory obligations with respect to the parties and their interests.

SCWC and ORA are the only parties to this proceeding and both are signatories to the Settlement. Each party actively participated in all aspects of the proceeding, developing comprehensive prepared testimony and conducting discovery of the prepared testimony of the other. Settlement discussions did not commence until both parties' positions were public. SCWC was represented by knowledgeable officers and employees and by counsel. ORA, whose mandate is to represent ratepayer interests, likewise assigned knowledgeable staff and counsel. We conclude that the affected utility and ratepayers interests were fairly represented. Thus, the Settlement meets the first and second criteria of the all-party settlement guidelines. We examine the third and fourth criteria and the Rule 51.1(e) standard below, in connection with our review of the Settlement, itself.