Avoided Cost Methodology

Paragraph 8 in the Settlement Agreement provides that no party is precluded from advocating their view of avoided cost in Commission proceedings or in the negotiations contemplated by this Settlement Agreement. In Rulemaking (R.) 04-04-025, we are considering a comprehensive policy and method for determining avoided costs. Thus, our adoption of the Settlement Agreement in this proceeding does not prejudge our determination of avoided costs in R.04-04-025, and should not be construed as establishing any precedent on this issue.