6. Comments on Proposed Decision

The proposed decision of ALJ Farrar in this matter was mailed on April 23, 2012 to the parties in accordance with Pub. Util. Code § 311 and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Comments were filed on May 23, 2012 by PG&E and Rio Bravo.

1. Rio Bravo sells energy and capacity to PG&E under a SO4 Long-Term Energy and Capacity Power Purchase Agreement signed by PG&E on December 12, 1984, with a term that expires in 2020.

2. The Settlement Agreement was reached after extensive discovery and review of the issues presented by this case.

3. The Settlement Agreement represents a significant compromise in the respective litigation positions of the parties.

4. PG&E and Rio Bravo seek a protective order for certain portions of the Settlement Agreement on the grounds that dissemination of the contents would harm PG&E's ratepayers.

5. No hearing is necessary.

1. The Settlement Agreement is reasonable in light of the record as a whole.

2. The Settlement Agreement is consistent with the law.

3. The Settlement Agreement is in the public interest.

4. The May 27, 2011, Settlement Agreement should be adopted.

5. PG&E's payment to Rio Bravo should be recoverable by PG&E through rates subject only to PG&E's prudent administration of the settlement agreement.

6. The May 27, 2011, motion for protective order should be granted.

7. This order should be effective immediately.

ORDER

IT IS ORDERED that:

1. The May 27, 2011, Settlement Agreement entered into by Pacific Gas and Electric Company and Rio Bravo Rocklin is adopted in full, without modification.

2. Pacific Gas and Electric Company (PG&E) is authorized to recover the full settlement amount in its Energy Resource Recovery Account proceeding, subject to PG&E's prudent administration.

3. The Complaint is dismissed with prejudice.

4. The May 27, 2011, motion for a protective order is granted as set forth below.

a. The Settlement Agreement which was filed under seal, shall remain under seal for a period of two years from the date of this decision. During that period, the foregoing documents or portions of documents shall not be made accessible or be disclosed to anyone other than Commission staff except on the further order or ruling of the Commission, the Assigned Commissioner, the Assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge.

b. If Pacific Gas and Electric Company believes that further protection of this information is needed after two years, it may file a motion stating the justification for further withholding the material from public inspection, or for such other relief as the Commission may then provide. This motion shall be filed no later than 30 days before the expiration of this protective order.

5. Hearings are not necessary.

6. Case 10-07-020 is closed.

This order is effective today.

Dated May 24, 2012, at San Francisco, California.

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