13. Suburban's ROE Settlement

DRA and Suburban agree in the ROE settlement that they will not seek a downward or upward adjustment to Suburban's ROE while the adopted conservation rate design and Monterey-style WRAM is in effect until the next GRC. The Monterey-style WRAM does not fully decouple sales and revenues; it is consistent with Suburban's conservation rate design and does not require a downward adjustment. The Monterey-style WRAM tracks the difference between revenues Suburban achieves and revenues Suburban would have achieved through a single quantity charge, assuming the same level of sales. It has no impact on other aspects of Suburban's revenue requirement, including the impact of conservation programs. The settlement is unopposed.

The settlement promotes our conservation goals, is reasonable in light of the record, consistent with the law and in the public interest. Thus, we will adopt it.