The only Party opposing this proposed Partial Settlement of the OPEB issue was Mr. Poulin who, as stated above, apparently proposed a one-year waiting period prior to reflection of the ARC amount in rates. March 6 letter. 2. ALJ Recommendation The ALJ concluded that the proposed resolution of the OPEB in the Partial Settlement, which would disallow rate recognition of the additional ARC amount until an irrevocable trust fund is established and certain conditions are met, is in the public interest and should be recommended to be approved. According to the ALJ, the Partial Settlement does not immediately provide for a rate increase sufficient to fund the ARC amount, but instead, places the burden on the City to first establish the Irrevocable Trust and provide proof to the Commission and the active Parties that the Trust Agreement has been finalized. The ALJ states that this satisfies Mr. Poulin’s concern who, as an active party, would be provided a copy of that Irrevocable Trust Agreement when it is filed with the Commission. R.D. at 28-29. In addition, according to the ALJ, the Partial Settlement sets funding and reporting requirements and Mr. Poulin, as an active party to this case, would be provided copies of the quarterly reports and yearly summary of deposits for the initial five year period. If, in any year, the required contribution is not made, the active Parties would have the right, under the Partial Settlement, to take action before the Commission to enforce the provisions of the Partial Settlement and request penalties. As a result, the ALJ found the above protections in the Partial Settlement to be sufficient to safeguard ratepayers and assure that the appropriate trust fund is established and that required contributions are made and utilized for their intended purpose. R.D. at 29.
The only Party opposing this proposed Partial Settlement of the OPEB issue was Mr. Poulin who, as stated above, apparently proposed a one-year waiting period prior to reflection of the ARC amount in rates. March 6 letter. 2. ALJ Recommendation The ALJ concluded that the proposed resolution of the OPEB in the Partial Settlement, which would disallow rate recognition of the additional ARC amount until an irrevocable trust fund is established and certain conditions are met, is in the public interest and should be recommended to be approved. According to the ALJ, the Partial Settlement does not immediately provide for a rate increase sufficient to fund the ARC amount, but instead, places the burden on the City to first establish the Irrevocable Trust and provide proof to the Commission and the active Parties that the Trust Agreement has been finalized. The ALJ states that this satisfies Mr. Poulin’s concern who, as an active party, would be provided a copy of that Irrevocable Trust Agreement when it is filed with the Commission. R.D. at 28-29. In addition, according to the ALJ, the Partial Settlement sets funding and reporting requirements and Mr. Poulin, as an active party to this case, would be provided copies of the quarterly reports and yearly summary of deposits for the initial five year period. If, in any year, the required contribution is not made, the active Parties would have the right, under the Partial Settlement, to take action before the Commission to enforce the provisions of the Partial Settlement and request penalties. As a result, the ALJ found the above protections in the Partial Settlement to be sufficient to safeguard ratepayers and assure that the appropriate trust fund is established and that required contributions are made and utilized for their intended purpose. R.D. at 29.
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