4. Request for Adoption of the Settlement

The Agricultural Definition Settlement is supported by those parties that expressed an interest in this particular issue and is uncontested by all other parties to this proceeding. The Settling Parties maintain that the Agricultural Definition Settlement is reasonable in light of the record, consistent with law, and in the public interest. The Settling Parties state that each portion of the Agricultural Definition Settlement is dependent upon the other portions, as changes to one portion would alter the balance of interests and mutually agreed upon compromises and outcomes. Therefore, the Settling Parties request that the Agricultural Definition Settlement be adopted as a whole by the Commission, without modification.

The Commission has previously found that it is desirable to clarify or redefine PG&E's agricultural class definition.¹¹ The current definition raises issues for the Commission and for PG&E in terms of implementation. Challenges to the current agricultural class definition have focused on the meaning of the phrases "which do not change the form of the agricultural product," "agricultural product" and "production for sale."¹² PG&E states that it is important to its customers to know whether they are or are not entitled to agricultural rates; and the company wants to tell them without having to litigate to find the answer.

¹¹ D.05-12-025, mimeo., Finding of Fact 3.

¹² In Producers Dairy Foods, Inc. v. PG&E (Decision 97-09-043), Air-Way Gins, Inc. v. PG&E (Decision 03-04-059), and Almond Tree Hulling Co., et al. v. PG&E (Decision 05-05-048), the Commission interpreted "changing the form" of the product, and "production for sale," concluding that liquid milk producers, cotton ginners, and almond hullers were eligible for agricultural rates.