IV. Issues

The majority of issues in this proceeding have been proposed for resolution by two separate settlement agreements. The first settlement, addressing revenue requirement, is discussed in Section VI of this decision. The other settlement, addressing revenue allocation and rate design, is discussed in Section VII of this decision.

The sole issue that resulted in three days of evidentiary hearings (July 26 through July 28, 2006) is whether KWUA irrigation customers located within a federal reclamation project (Project customers) are entitled to a rate credit. KWUA and Interior are in favor of a rate credit for providing a perceived benefit to PacifiCorp. PacifiCorp, DRA, PCFFA, and Siskiyou County are opposed to a rate credit.