III. This Application
On December 27, 1999, PG&E filed this application seeking approval of a settlement package containing settlements it has reached with three bidders that PG&E designated as "winning bidders," subject to the outcome of certain judicial and regulatory proceedings challenging the legality of the Update. The three settlements are between PG&E and AES, SeaWest Energy Corporation and Toyo Wind Power Corporation (SeaWest/Toyo), and Zond Systems, Inc. (Zond).6 The aggregate principal amount of the settlements is $9,525,000.7
The three settlements are conditioned on this Commission's approval of them.8 If approved, the settlements will resolve all remaining issues in PG&E's Update without further litigation before this Commission, other administrative agencies, or the courts.
On March 27, the Assigned Commissioner and ALJ held a prehearing conference. Aglet Consumer Alliance (Aglet) is the only party who continues to protest this application. On May 23, 2000, the Assigned Commissioner and ALJ issued a scoping memo which indicated that Resolution ALJ 176-3030 preliminarily stated that hearings were necessary. However, at the prehearing conference, an initial schedule was set to process this matter without hearings. Under this schedule, parties had until June 14 to request hearings. No party requested hearings. Because this application can be resolved on the parties' briefs, we determine that hearings are not necessary, and our order today makes that change to the preliminary determination in Resolution ALJ 176-3030.
The following parties filed opening or reply briefs: PG&E, AES, and Aglet. By letter dated June 14, Zond stated that it supported PG&E's opening brief and did not file a reply because no party opposed the PG&E/Zond settlement.
6 PG&E's initial application did not include a settlement with Zond. On July 12, 1998, Zond changed its name to Enron Wind Systems, Inc. On March 6, 2000, Enron Wind and PG&E agreed to settle the Zond/Enron Wind claim on the basis set forth in this decision. On April 12, 2000, PG&E filed an amendment to the application which included the Zond settlement. 7 Kenetech Windpower, Inc. (Kenetech) was also a claimant in PG&E's Update auction, but PG&E's resolution of Kenetech's claim did not involve the payment of money by PG&E to Kenetech. 8 The PG&E/AES settlement will terminate automatically if the Commission does not approve the settlement by December 31, 2000, or if PG&E or AES do not find acceptable any condition that the Commission might attach to approval.
