Conclusions of Law
1. The settlement agreement filed by Cal Am and DRA is reasonable in light of the whole record, consistent with the law, in the public interest and should be adopted.
2. The settlement should not be construed as precedent or policy of any kind in this or future proceedings.
3. An ROE of 10.15% is reasonable in light of the whole record, consistent with the law, in the public interest and should be adopted.
4. Cal Am's figures for employee pensions and benefits expenses and regulatory expenses are reasonable in light of the whole record, consistent with the law, in the public interest and should be adopted.
IT IS ORDERED that:
1. The Motion of California American Water Company and the Division of Ratepayer Advocates for adoption of the settlement agreements as to certain issues on the revenue requirements for Coronado and Village districts filed on July 6, 2007, and attached as Attachment A, is granted.
2. The Coronado and Village districts' revenue requirement tables, attached as Attachment B, are adopted.
3. This proceeding remains open for Phase II, the rate design phase.
This order is effective today.
Dated March 13, 2008, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
