Background

D.96-07-036 in this matter authorized rate increases for SJWC and disposed of all issues except for the issue of treatment of IDC on CWIP. As a result, SJWC was authorized to establish a memorandum account to track the difference between revenues collected using the staff's treatment of IDC during construction, and SJWC's treatment of IDC on CWIP in rate base for calendar years 1988 through 1995. For prospective ratesetting, SJWC would use the method of including IDC in rate base but excluding CWIP reflected in the Stipulation. The disposition of the memorandum account was ordered determined in this, Phase 2 of the proceeding.