6.3.3. Bond Charge Remittance Information and Confidentiality Concerns

DWR states that the confidentiality of the negotiations in connection with bilateral agreements and the nondisclosure requirements in bilateral agreements do not permit DWR to determine the remittances and discounts provided under the agreements related to DWR Bond Charges. DWR requests that, if the nondisclosure provisions of the NBC Agreement prohibit DWR from receiving basic remittance information, the Commission should require PG&E to work with its counterparty to ensure DWR receives the remittance records associated with the NBC Agreement that are sufficient for DWR to accurately determine its Bond Charge revenue requirement.

Applicants state that they do not oppose providing basic remittance information to DWR. However, Applicants oppose providing information concerning the level of discounts provided in the NBC Agreement because Applicants assert this information is highly confidential.

The confidentiality provisions of the NBC Agreement state that the parties agree that the information and documents in connection with NBC Agreement are confidential and subject to Rule 12.6 of the Commission's Rules of Practice and Procedure.³² However, the Servicing Order provides that PG&E and DWR:

"may acquire information and material that is the other party's confidential, proprietary or trade secret information . . . In all cases, Confidential Information includes proprietary or confidential information of any third party disclosing such information to either Party in the course of such third party's business or relationship with such Party...DWR agrees, and it is ordered with respect to Utility, that all Confidential Information disclosed by the disclosing Party ("Discloser") will be considered Confidential Information by the receiving Party ("Recipient") if identified as confidential and received from Discloser."³³

Thus, pursuant to the Servicing Order, any information DWR may receive from PG&E and the Districts needed to assist DWR determine the remittances related to DWR Bond Charges is protected from disclosure, including information Applicants assert is highly confidential. With Applicants' consent, DWR may receive information that is sufficient for DWR to determine the remittances related to DWR Bond Charges in connection with the NBC Agreement.

Therefore, as a condition of approval of this Application, we require Applicants to establish arrangements, consistent with the nondisclosure provisions of the Servicing Order, NBC Agreement, and Rule 12.6, to provide DWR with sufficient information for DWR to determine the remittances related to DWR Bond Charges provided in the NBC Agreement so that DWR may accurately determine its Bond Charge revenue requirements.³⁴

³² Rule 12.6 provides, in part, that no discussion, admission, concession or offer to settle made during any negotiation on a settlement shall be subject to discovery, or admissible in any evidentiary hearing against any participant who objects to its admission, and that participating parties must hold such discussions, admissions, concessions, and offers to settle confidential and not disclose them outside the negotiations without the consent of the parties participating in the negotiations.

³³ D.07-03-025, Appendix A, Section 6.1 at 19-20. Emphasis added.

³⁴ Because, pursuant to the Servicing Order, DWR is already bound to maintain confidentiality of any information obtained from PG&E and the Districts, no additional nondisclosure arrangements between Applicants and DWR are necessary.