7. Regulatory Commission Expense

The settlement proposes a regulatory commission expense of slightly more than DRA's original estimate and less than SGV's original request.

7.1. Positions of Parties

COF states that the amount should be reduced by $121,000 per year unless SGV provides a full listing of actual costs prior to the Commission's adoption of the settlement agreement.

FUSD agrees with the position taken by COF.

SGV argues that the settlement amount is reasonable.

7.2. Discussion

Regulatory commission costs are a forecast of costs during the forecast period. They are not an amortization of recorded costs. Therefore, COF's recommendation is not adopted. The record demonstrates that the amount specified in the settlement is reasonable and it will be adopted.