X. Assignment of Proceedings

All three Rulemakings are assigned to Commissioner Peevey and R.04-04-003 is assigned to ALJ Carol Brown; R.04-04-025 to ALJ Julie Halligan; and R.99-11-022 to ALJ Bruce DeBarry.

Findings of Fact

1. PG&E and IEP presented the Commission with a Joint Settlement Agreement and Associated Amendments entered into by some of the owners and/or operators of QFs that have current PPAs with PG&E.

2. The Settlement Agreement addresses issues in three open Commission proceedings, R.99-11-022, R.04-04-003, and R.04-04-025 and resolves those issues only as they relate to the settling parties, PG&E and the IEP, and those QFs who signed the Amendment.

3. The Settlement Agreement resolves all subjects at-issue as between PG&E and IEP in R.04-04-003 and R.04-04-025, with respect to those QFs that have signed the agreement.

4. The Settlement Agreement settles the following issues in R.99-11-022: (1) PG&E's claims for a retroactive adjustment of SRAC payments made to QFs from December 1, 2000 to March 31, 2001 arising from the Court of Appeal remand; (2) PG&E's claims for a retroactive adjustment of energy payments made to QF Switchers from June 1, 2000 through January 18, 2001; and (3) QF claims that PG&E should recalculate the SRAC energy payment as related to transmission line loss factors for QF Switchers.

5. The Settlement Agreement does not compromise the rights of PG&E or IEP to litigate the outstanding issues as to other parties in the three proceedings.

6. PG&E will receive RA credit, pursuant to the methodology adopted for QFs in D.04-10-035, for as-delivered capacity PG&E purchases pursuant to the Amendments.

7. The 95% line loss factor floor for Renewable QFs is adopted and approved.

8. PG&E is entitled to and shall receive full credit for all energy purchased pursuant to the Amendments from Renewable QFs in satisfaction of PG&E's RPS requirements.

9. PG&E shall fully recover in rates all payments made pursuant to the Amendments, subject only to ongoing Commission review for reasonable administration of the Amendments.

10. We find that based on the long adversarial historic relationship between PG&E and the IEP QFs, that the negotiated settlement is reasonable.

11. We find that the Settlement Agreement is consistent with federal and state law and with Commission precedent.

12. We find that the Settlement Agreement benefits the public since it results in lower payments for energy.

13. The competitive mechanism to direct future utility/QF dealings for QFs that have signed the Amendment contained in the Settlement Agreement is reasonable.

Conclusions of Law

1. The Settlement Agreement, with Associated Amendment, meets the requirements of Rule 51.1 of the Commission's Rules of Practice and Procedure and is adopted by the Commission.

2. Notwithstanding Rule 51.8, the Settlement Agreement is not binding on all parties to the underlying proceedings.

3. In accordance with Rule 51.8, our approval of the Settlement Agreement does not constitute approval of, or precedence regarding any principle or issue in the underlying proceedings or in any future proceeding.

ORDER

IT IS ORDERED that:

1. The Settlement Agreement, with Associated Amendments, entered into between Pacific Gas and Electric Company (PG&E) and the owners and/or operators of Qualifying Facilities that have current power purchase agreements with the utility and who signed the Amendments is adopted.

2. This Settlement Agreement does not compromise the respective rights of PG&E, IEP or any non-settling QF to litigate the outstanding issues that still exist as to other parties in the three proceedings, Rulemaking (R.) 99-11-022, R.04-04-003, and R.04-04-025.

This order is effective today.

Dated July 20, 2006, at San Francisco, California.

-

Previous PageTop Of PageGo To First Page