As discussed above, Cal Water's service territory is organized into districts, and rates are set on a district-specific basis. The revenue requirement for each district is comprised of costs incurred in the district plus a share of the costs of administrative and engineering services provided by Cal Water's general office. Accordingly, certain issues affect a specific district while other "general office" issues affect all districts. We begin this decision with a discussion of the applicable legal standards. We then address the issues affecting all districts, and finally address the district-specific issues.