V. Evidentiary Hearing

At the beginning of the May 6, 2003 EH, an additional request to participate in the Antelope Valley District rate application was received from LVTC. The ALJ granted the requests of CGA and LVTC to participate in this consolidated proceeding only to the extent that their participation is limited to the Antelope Valley District.

CGA and LVTC identified their individual concerns regarding notice, hearing schedule, and merger synergies.⁴ The EH was then recessed for three hours at the request of all parties so that they could continue settlement discussions.⁵ Upon the continuance of the EH, CWS informed the ALJ that an all-party settlement agreement had been reached.

Exhibits previously prepared by CWS and ORA presenting their initial positions on the rate applications were identified and received into the record. Thirteen separate exhibits were received into evidence.

CWS and ORA offered witnesses to identify and substantiate the all-party settlement agreement, the details of which were subsequently reduced to writing by the parties and submitted in an ORA brief filed on June 9, 2003, and late-filed Exhibit 13 received on June 17, 2003.

CWS and ORA witnesses underwent four hours of examination explaining their initial positions and how the settlement agreement is reasonable in light of the record as a whole, consistent with law, and in the public interest. The proposed settlement agreement is attached to this order as Attachment C. This matter was submitted on August 8, 2003.