3. The Settlement Agreements

Each proposed settlement agreement resolves the issues identified in the respective Assigned Commissioner Rulings and Scoping Memos. Following is a description of the main terms of each of the settlement agreements.

3.1. The CPSD and SDG&E Settlement Agreement6

SDG&E acknowledges and understands its obligation and duty to respond promptly to Commission requests for access to information and utility employees. SDG&E admits that its efforts fell short of meeting this obligation and duty in connection with CPSD's investigation into the Witch, Rice, and Guejito fires, and apologizes for permitting this to happen. SDG&E agrees that it will conduct additional training in this area.

SDG&E admits that it failed to provide the Commission with a 20-day follow-up letter required by the Accident Reporting Requirements for the Witch, Rice, and Guejito fires. SDG&E agrees that it will conduct additional training in this area.

SDG&E does not admit to any violations of the safety General Order provisions or related statutory requirements.

SDG&E and CPSD state that they enter into the Settlement Agreement, without prejudice to any positions, including positions connected to OII-related evidence that any party may want to introduce, in any other Commission proceeding. They also enter into the Agreement without prejudice to positions that any party, including civil plaintiffs, might take in the civil litigation related to the Witch, Rice, and Guejito fires.

A. SDG&E will conduct additional training regarding vegetation management to ensure familiarity with tree inspection/trimming and vegetation management processes.

B. SDG&E will also conduct additional training regarding identification and repair of safety hazards, including clearance violations and broken lashing wires.

C. SDG&E conducted inspections pursuant to the recommendation in the CPSD Report.

D. SDG&E will conduct Supplemental Quality Assurance/Quality Control inspections for its distribution and transmission systems in the Highest Risk Fire Areas (HRFAs) until the end of 2016.

E. SDG&E shall adopt, on a going forward basis, design criteria for steel poles and supported facilities in the HRFAs that ensure facilities are designed to withstand the wind load associated with a basic wind speed of 85 miles per hour.

F. For 69 kilovolt transmission lines, three-dimensional laser scanning surveys focused on ensuring compliant conductor clearances in the HRFAs shall be conducted by SDG&E on a three-year cycle.

G. SDG&E will develop and implement protocols to improve communication and coordination with Communications Infrastructure Providers (CIPs) regarding inspection and maintenance of facilities on joint use poles.

Under the Agreement, SDG&E will pay $14, 350,000 to the General Fund of the State of California. SDG&E will also reimburse CPSD up to an additional $400,000 to implement a computer work module designed to assist CPSD in future audits and investigations of utility safety hazards and incidents. SDG&E shall remit any unused balance of the $400,000 established for that purpose to the General Fund of the State of California within 60 days of being directed to do so by CPSD.

3.2. The CPSD and Cox Settlement Agreement

Under the CPSD-Cox Agreement, Cox agrees to implement additional inspection, maintenance, documentation, and reporting measures, which in certain respects exceed the requirements adopted by the Commission for other CIPs in Decision (D.) 09-08-029 in Phase 1 of Rulemaking (R.) 08-11-005, and to make a settlement payment to the General Fund of the State of California. In general, it agrees to the following terms.

Cox shall develop and implement further enhanced inspection policies and practices, in addition to its existing inspections, including additional Patrol Inspections throughout its service territories in California7 and annual Detailed Inspections in Extreme and Very High Fire Threat Areas and Southern California, through an independent, dedicated General Order 95/128 inspection program.

Cox shall develop and implement additional enhanced maintenance policies and practices that require corrective actions to remedy safety issues within specific time periods reflecting the relative significance and priority of the condition.

Cox shall develop and implement additional documentation, record keeping, and reporting requirements regarding maintenance and inspection activities.

Cox shall develop and implement additional, enhanced training for employees and contractors.

Cox shall implement the additional enhanced inspection, maintenance, documentation, record keeping, and reporting measures set forth in the Settlement Agreement for a period of seven years, irrespective of whether and the extent to which less stringent measures may be adopted by the Commission for other CIPs in R.08-11-005.8

Cox shall seek to develop and implement enhanced communication and coordination measures with SDG&E regarding General Order 95 issues on joint use poles.

Cox agrees not to seek recovery of the costs it incurs in implementing the Settlement Agreement through a surcharge on its customer bills.

Cox shall cooperate with CPSD in any further investigation regarding SDG&E's alleged failure to cooperate with CPSD's investigation of the Guejito Fire in I.08-11-007 or a subsequent proceeding.

Cox shall make a settlement payment in the amount of $2,000,000 to the General Fund of the State of California, within 60 days of the issuance of a final non-appealable decision by the Commission approving the Settlement Agreement without material change.

Cox shall take no position inconsistent with the express terms of the CPSD-Cox Settlement Agreement in either Phase I or Phase II of R.08-11-005.

Finally, Cox agrees that the Settlement Agreement is without prejudice to the rights of Cox or any other person or party in any other potential or pending civil litigation.

6 The CPSD-SDG&E Settlement Agreement is appended as Attachment I to this decision.

7 Cox completed its initial Patrol Inspections by October 31, 2009. Under D.09-08-029, in contrast, other CIPs are not required to complete their initial Patrol Inspections in the Extreme and Very High Fire Threat Areas of Southern California until September 30, 2010. (D.09-08-029, mimeo. at 52-53 (Ordering Paragraph 1).)

8 However, Cox is required to comply with any requirements that the Commission may adopt in R.08-11-005, or in a subsequent proceeding, that are more stringent than the measures required by the Settlement Agreement. See CPSD-Cox Settlement Agreement at § 2.3.

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