Findings of Fact

1. All parties have agreed to settle this case.

2. No party opposes approving the proposed Settlement Agreement.

3. The Settlement Agreement is the product of extensive discussions between the Settling Parties. Settling Parties entered into these discussions after extensive discovery, a complete review of the filed testimony, and after review of SCE's filed rebuttal testimony.

4. SCE, DRA, TURN, Aglet, CAC, and CCC, the Settling Parties, fairly reflect all affected interests in this proceeding.

5. The Settlement Agreement conveys sufficient information to permit the Commission to discharge its future regulatory obligations with respect to the parties and their interests.

6. The Settlement Agreement addresses four issues to resolve all disputes among the parties: (1) the applicability of the approved KRCC Contract to other QF parties; (2) conduct by SCE for future negotiations with affiliate QF projects; (3) the allocation of any above-market costs; (4) agreement by Settling Parties that the Commission should expeditiously approve the KRCC Contract.

7. The Settlement Agreement obligates SCE to engage in good faith negotiations with Eligible QF Parties with respect to similar QF contracts, and provides for negotiation time limits and sanctions.

8. Leaving this proceeding open indefinitely is contrary to Legislative requirements.

9. Allocation of any above-market costs of the KRCC Contract, or similar QF contracts, to the ongoing CTC would involve parties who are not participating in this proceeding.

10. Conducting a further proceeding would unnecessarily consume valuable resources of the Commission, SCE and other parties, and would delay, and possibly prevent, the realization of the benefits identified above pertaining to baseload and firm power available through the KRCC Contract.