4. Issues Before the Commission

The April 21, 2011 scoping memo and ruling of the assigned Commissioner and ALJ identified the following issues to be determined in this proceeding:

1. Are the Amendments just and reasonable? In deciding this overarching issue, we will consider the following factors:

a. Will the Amendments reduce customer costs by providing better market value?

b. Will the negotiated heat rate result in customer savings?

c. Will the Amendments provide operational benefits?

2. Should GHG emissions resulting from the Amendments count towards PG&E's GHG Emissions Reduction Target in the QF/CHP Settlement?

3. Should PG&E be authorized to recover the costs of the Amendments through the Electric Revenue Recovery Account and allocate stranded costs, if any, consistent with Section 13.1 of the QF/CHP Settlement Term Sheet?