DEGREE OF FAIRNESS O F PROJECT- SPECIFIC NEGOTIATION S Sample Clauses

DEGREE OF FAIRNESS O F PROJECT- SPECIFIC NEGOTIATION S. Xxxxxx acknowledges three major issues with the negotiation of the contract amendment that could represent unfair treatment of BFP or of its competitors. A fourth issue, of whether the negotiations were fair to PG&E’s ratepayers, is addressed in the next chapter. Fairness to competitors. One issue is whether it was fair to PG&E to provide short- term price relief to BFP but not to other biomass-fueled QFs currently under contract. PG&E did not treat all biomass-fueled sellers consistently, and not all sellers were allowed to advance discussions towards short-term price relief amendments. BFP and two other QFs were allowed to move their proposals forward while this opportunity was denied to others. PG&E did provide analogous but not identical pricing extensions to Pacific Ultrapower Chinese Station and Rio Bravo Fresno earlier in 2016. Xxxxxx expressed an opinion in the IE report for those transactions that PG&E’s choice to provide a price extension to Rio Bravo Fresno but not to its competitor was less than fully fair. , Rio Bravo Fresno, and BFP had all received contract amendments for price relief from PG&E in 2011. closer in proximity to High Hazard Zones than Rio Bravo Fresno. Unlike other QF-contracted biomass facilities such as that had previously obtained price relief but subsequently shut down, had continued to operate and arguably provided project viability comparable to Rio Bravo Fresno and BFP. A case could be made that PG&E’s choice to provide price relief to BFP and not to was unfair. There are factors that could mitigate concerns that PG&E’s favorable treatment of BFP compared to its competitors was unfair. At the time that PG&E embarked on negotiations for the price extension, the utility already knew that This would provide an economic motivation for PG&E to seek ways to influence BFP . Providing a price extension that would allow BFP to continue to operate economically until the point in time when a new five-year BioRAM contract took effect would seem to be a powerful incentive to influence BFP’s decisions. Other biomass-fueled QFs did not offer this attractive opportunity for PG&E’s ratepayers. Another mitigating factor is that did not submit an offer to PG&E’s BioRAM solicitation, asserting instead its preference to obtain a long-term contract with PG&E through bilateral negotiations. Xxxxxx has no evidence that is currently burning HHZ fuel or would be well-positioned to do so during a hypothetical price extension. Xxxxxx views as ranki...
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