5. Comments on Settlements

No party opposes any Settlement. The California Clean DG Coalition (CCDC), however, filed comments on both the May 13, 2005 Settlement and the Supplemental Light and Power Settlement.

CCDC seeks Commission coordination of distributed generation (DG) issues in these settlements with DG tariff matters before the Commission in the DG Order Instituting Rulemaking (R.04-03-017). Specifically, CCDC requests that the Commission either modify the Settlements, or include an ordering paragraph in this decision, providing that the eligibility period for standby charge exemptions authorized by statute (§ 353 et seq.) and extended by the Commission (D.03-04-060) remain in effect until the Commission issues a decision regarding establishment of DG rates in R.04-03-017 (or any other proceeding where DG tariffs are considered), and such rates become effective, notwithstanding any approved standby rates in this proceeding (A.04-06-024).

Applicant responded in opposition to modifying the settlements. We agree. The relief CCDC seeks is a Commission affirmation of exemptions authorized by statute and extended by the Commission. Such language more appropriately comes from the Commission than via a modified settlement.

Applicant does not oppose an ordering paragraph similar to that recommended by CCDC, but suggests rewording to better identify matters in various proceedings. CCDC proposes refined language in its comments on the Supplemental Light and Power Settlement that is compatible with PG&E's. We adopt the ordering paragraph largely as worded by PG&E to reflect the matters before us.

PG&E argues that we might decline to include the ordering paragraph since it is outside the scope of this proceeding. To the contrary, rate design in general is before us in this proceeding, and standby rates are specifically addressed. (For example, see Attachment E, § V.12.) We think the assurance sought by CCDC is not unreasonable.