II. Background

On April 1, 2003, Citizens filed its NRF review application. It asks for modification of various NRF monitoring report requirements, and elimination of the requirement to share with ratepayers 50% of its earnings between specified rates of return. On May 5, 2003, ORA filed a protest to the application. At a prehearing conference held on June 3, 2003, various issues were addressed. The parties agreed to postpone review of all issues, except monitoring report requirements, until after a final decision in R.01-09-001 and I.01-09-002. Citizens asked, and ORA agreed, to keep this proceeding open, rather than closing it and requiring the filing of another application when a final decision is reached in R.01-09-001 and I.01-09-002. ORA proposed to perform an audit of Citizens in connection with this proceeding. Citizens did not oppose the audit, but opposed ORA's proposal to have Citizens reimburse the Commission for ORA's consultant costs. Citizens contended that the Commission does not have the authority to order it to reimburse the costs of ORA's consultants. The assigned administrative law judge (ALJ) ordered the parties to brief the issue of whether the Commission could require Citizens to reimburse the Commission for ORA's consultant costs.

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