Position of City

The City objects to ORA's recommendation that the Commission require the Buyer to execute and deliver any additional release and indemnity agreement. The City points out that the parties have already negotiated an extensive indemnification agreement, and that the property is being sold in its existing condition. The parties' indemnification agreement is found at Section 5.3 of the PG&E Standard Purchase and Sale Agreement (Agreement), and the provision describing the condition of the property to be sold is found at Section 5.1 of the Agreement. The City states that the terms of the Agreement are the result of extensive arms' length negotiations between the parties. The City believes that the ratepayers are protected by these two provisions, and by other provisions of the proposed Agreement. According to the City, no further indemnification or release agreement is necessary.