IX. Frequency of Subsequent Reviews and
Readjustments of DA CRS Caps

Because forecasts are inherently subject to uncertainty, we must provide a means for ongoing periodic review of the DA CRS undercollection level and expected payback period to assure that bundled customers are fully reimbursed by no later than the end of the DWR contract term. Accordingly, we shall require annual reevaluations of the DA CRS cap concurrently with the annual redetermination of DWR revenue requirement. If we conclude that the existing cap remains sufficient to meet our established goals for payback by the end of the contract term, we shall continue to leave the caps in place. To the extent that updated review of expected payback period indicates that a revision in the DA CRS cap is necessary to keep the repayment schedule on track, we shall adjust the cap of one or more of the utilities, as necessary.