XIV. Future Review of Project Costs

We believe that for the next few years, at least, the Commission's review of costs related to the Coastal Water Project, or alternative supply solution, should remain outside the GRC process. The reason is that the processing of GRC's for Class A water companies is on a fixed schedule, which precludes sufficient time to properly evaluate final project costs and proposed recovery mechanisms. Therefore, we agree with DRA that the Coastal Water Project, or alternative supply solution, is too important and complex a matter to be considered as part of a GRC proceeding. We will review project costs through 2007 for reasonableness each year in accordance with the schedule set forth in the ordering paragraphs below.