The Settlement
The settlement is included as Attachment A to this decision.
The settlement includes a comparison of Applicants' and RRB's initial positions on revenue requirement increases for test years 2001 and 2002 and attrition year 2003 with what they propose in the settlement. The proposed revenue requirement increases are as follows:
Revenue Requirement Increases
Applicant Requested |
RRB Recommended |
Settlement | ||||
$ |
% |
$ |
% |
$ |
% | |
2001 |
1,938,500 |
12.22 |
(53,400) |
(0.33) |
890,000 |
5.60 |
2002 |
782,100 |
4.92 |
375,900 |
2.37 |
387,800 |
2.31 |
2003 |
642,800 |
3.46 |
233,100 |
1.40 |
416,900 |
2.43 |
The settlement indicates the major differences between the parties' initial positions and summarizes how those differences were resolved. The settlement yields returns on rate base of 8.89% for 2001, and 8.88% for 2002 and 2003. Applicant and RRB propose that the Commission adopt the summaries of earnings set forth in the settlement to produce those returns, and the underlying quantities supporting them.
