The Settlement is Consistent with Law
and Prior Commission Decisions

The Settling Parties assert that the Settlement Agreement is fully consistent with applicable law. We agree. Nothing in the Settlement Agreement contravenes statute or prior Commission decisions. Our approval of the Settlement Agreement provides that electric rates for SCWC's permanent domestic customers will not increase for usage at or below 130% of baseline. This provision is consistent with the mandates of AB 1X that residential usage below 130% of baseline is exempted from further electrical rate increases. Furthermore, our adoption of the Settlement Agreement will provide a residential rate design consistent with our prior decisions finding that baseline allowances do not apply to second homes.¹⁹