III. Background

In January 1998, PG&E applied to the Commission to sell four fossil-fueled plants, including HPPP.² Subsequently, PG&E amended its application to withdraw HPPP from the power plant auction in accordance with an agreement with CCSF. Pursuant to this agreement, PG&E agreed to (1) withdraw HPPP from the auction; (2) permanently shut down the plant as soon as it is no longer needed for reliability; (3) begin decommissioning the plant and remediating the site within one year of shutting the plant down; and (4) restrict any other party from using the site for purposes of power generation. This agreement made PG&E responsible for non-environmental as well as environmental costs of decommissioning HPPP. The agreement was approved by the Commission in D.98-10-029.