3. Compliance with Rule 51

SoCalGas and SDG&E did not make a timely filing of the partial settlements in Phase II in compliance with Rule 51.2, but our policy interest in considering all reasonable settlements leads us to grant the motion to allow for late filing as discussed above. Generally we will defer to the parties where they are able to demonstrate to us that they knowingly, and with adequate information available to all parties, entered into a settlement where they accept compromises to their litigated positions. This settlement was offered after evidentiary hearings in Phase II of the proceeding and therefore offered no saving in time or effort to the parties or the Commission. It would be perfectly reasonable for the Commission to decide the affected portion of the proceeding on the litigated record, but we will defer to the partial settlements because they are reasonable outcomes within the very wide range of outcomes available to us on the record.

Pursuant to Rule 51.1(e), we reach this conclusion after finding that the Base Margin Settlement is reasonable in light of the whole record, consistent with the law, and in the public interest. The Settlement is supported by all active parties who made recommendations in this phase of the proceeding and therefore complies with the Commission guidelines and relevant precedents for all-party settlements. When opposing parties agree to a settlement, it may be one indication of the reasonableness of the settlement.

The parties assert that the Base Margin Settlement is fully consistent with law and prior Commission decisions. We agree. We are not aware of any policy rule or order that would be contravened by the Settlement.

We find the Settlement is in the public interest. Like many settlements, this is the result of compromises to accommodate and balance the interests of all the parties and the public. We find that the parties have compromised their litigation positions and have arrived at a reasonable result in light of the extensive record.

This Settlement, as with all settlements, is not binding precedent for any future proceeding.