IX. Discussion

In addressing the Court's remand, we have proceeded cautiously and methodically in order to make sure that we have received the necessary and sufficient evidence to reach a decision on very complex regulatory issues. We worked to ensure that the parties have provided us with all the necessary and relevant evidence, and developed a record that will not be found lacking. That evidence indicates that SRAC prices during the Remand Period were correct, and that there is no justification for retroactive application of the modified SRAC formula. Today's determination is limited in its application. Although our decision in this matter includes a determination that avoided costs equaled or exceeded SRAC prices during the Remand Period, as discussed in greater detail below, this determination should not be interpreted as a change in the Commission's position that electric prices from non-QF sources were unreasonable and unjust. Accordingly, we maintain our position that California ratepayers are entitled to refunds from wholesale generators for these unreasonable electric prices.

Our decision in the matter remanded by the Court considers the following arguments and evidence from parties.