V. Terms of the Proposed Settlement
The Settlement is about two and one-half pages in length, excluding the attached customer list. In material part it provides:
10 This provision is the subject of Hillview's petition to modify the OII.1. As to Hillview's collection of supply and storage fees from customers, Hillview would refund to customers shown on the appended list a total of $247,930, plus five percent interest from the date of collection until the date of refund. A customer would have to furnish proof of payment of the fee, unless Hillview's records show that it had collected the fee. Refund of the fees (except for the interest) would be deducted from Hillview's CIAC.
2. As to the proceeds of the SDWBA loan, Hillview would deposit $35,314 into its Surcharge Savings Account, along with five percent interest from March 13, 1996, the date when Res. F-644 ordered Hillview to use excess surcharges to reduce borrowings from CoBank, until the refund of fees is made.
3. Hillview's disbursement of the refunds would be conditioned upon the receipt of a new loan. The proceeds of the new loan would be used not only to refund the supply and storage fees to customers, but also to make the refund to the Surcharge Savings Account, to refinance approximately $1.225 million on debt owed to CoBank, and to fund approximately $1,558,300 of proposed improvements to Hillview's system. Hillview would file an advice letter requesting authority to incur this debt.
4. Relating to the OII's provision requiring rate increase requests to be consolidated into this proceeding, RRB agreed to issue, within 90 days after the date of the Settlement, a report on Hillview's advice letter filed October 20, 1998, to obtain a general rate increase.10
5. As to other issues raised in the OII, the parties propose to agree (i) that RRB "accepts the statement of [Hillview]" that documents Hillview altered and submitted to RRB's auditor were not intended to mislead the Commission, and (ii) that Hillview would not be required to make a refund arising from overstatement of its ratebase in Res. W-3833, "in view of the offsetting effect" of subsequent additions.
