III. Joint Stipulation
Valencia and DRA signed a Joint Stipulation (Stipulation) on November 28, 2006, providing for agreement on most, but not all of the differences between them.2 Paragraphs 2.1 through 9.1 as well as Paragraphs 10.4 and 10.5 of the Stipulation describe the basis for the stipulated outcomes to which Valencia and DRA have agreed. In particular, Paragraphs 3.3 and 3.4 indicate the parties' agreement that Purchased Water expense and Purchased Power expense should be calculated using the "latest available rates" being charged to Valencia by its suppliers at the time the decision tables are calculated to accompany the final decision in this GRC. Valencia and DRA show these expenses in the Comparison Exhibit, filed concurrently with their reply briefs, based on the latest available rates as of that date. Paragraph 4.6 indicates the parties' agreement that Valencia should be authorized to replace its current billing system with an investment not to exceed $400,000 to be included in rate base by advice letter or in Valencia's next GRC.
Paragraphs 10.1 through 10.3 of the Stipulation describe the unresolved issues that were addressed at the evidentiary hearings, except that the Escalation Factors issue was not specifically addressed in the Stipulation.3 Paragraphs 10.4 and 10.5 of the Stipulation address aspects of Regulatory Commission expense for which the parties agreed to certain procedures in the event that certain contingencies were to arise.
Paragraph 10.4 addresses Valencia's request for $400,000 in Regulatory Commission expense for potential additional costs required to respond to issues raised by any intervening parties in this GRC. The parties agreed that if no such intervenors had raised additional issues by the end of the evidentiary hearings, this $400,000 should be removed from Valencia's Regulatory Commission expense. However, the parties further agreed that Valencia should be authorized to establish a memorandum account to track any future expenses resulting from an application for rehearing, petition for modification, or other participation by intervenors in this GRC.4 No third-party intervenors having participated in this GRC, we remove $400,000 of proposed Regulatory Commission expense from the GRC application and authorize a memorandum account for the purpose noted above.
Paragraph 10.5 of the Stipulation removes Valencia's requested recovery of $62,727 of past intervenor compensation payments from this GRC provided Valencia is able to recover these expenses by advice letter. Advice letter recovery of those payments was approved by the Commission on December 26, 2006, and became effective January 1, 2007. Accordingly, the requested recovery of $62,727 is removed from this GRC.
2 Exhibit 39 (Joint Stipulation), ¶ 1.6.
3 The Escalation Factors issue was identified only shortly before the Stipulation was signed, for reasons noted at Tr. 288:25-289:14 (Statement of Valencia counsel).
4 Exhibit 39 (Joint Stipulation), ¶ 10.4.
