5. Standard of Review
ORA suggests that the cost allocation issues in this proceeding should be straightforward in light of the settlement of the prior rate design window. 5 However, as described in Rule 51.8., the adoption of a settlement in a prior proceeding does not constitute approval of, or precedent regarding any issue in a subsequent proceeding.6 Thus the settlement in the last rate design window is not determinative of the issues presented in this proceeding. The scoping memo reminded parties that, to be viewed as credible, a party must demonstrate that it has performed sufficient current analysis to have an informed basis for the position it may advocate now, regardless of whether it supports the applicant, is in opposition, or proposes to enter into a negotiated settlement.
In order for the Commission to consider any proposed settlement in this proceeding as in the public interest, it must be convinced that the parties had a sound and thorough understanding of the application and all of the underlying assumptions and data included in the record. This level of understanding of the application and development of an adequate record is necessary to meet our requirements for considering any settlement.7
5 Transcript, p. 34, lines 23-26: "(W)e did reach a settlement that covered the calculation of marginal customer and distribution costs. And that is not an issue that we need to look at (sic) this proceeding."
6 (Rule 51.8) Adoption Binding, Not Precedential: "Commission adoption of a stipulation or settlement is binding on all parties to the proceeding in which the stipulation or settlement is proposed. Unless the Commission expressly provides otherwise, such adoption does not constitute approval of, or precedent regarding, any principle or issue in the proceeding or in any future proceeding." (Note: Authority and reference cited: Section 1701, Public Utilities Code.) There is no such express provision applicable to this proceeding.
7 (Rule 51.1) Proposal of Settlements or Stipulations part (e): "The Commission will not approve stipulations or settlements, whether contested or uncontested, unless the stipulation or settlement is reasonable in light of the whole record, consistent with law, and in the public interest."
