Common use of Fuel Cost Verification and Settlement Clause in Contracts

Fuel Cost Verification and Settlement. Exhibit B provides a detailed discussion concerning Utility’s responsibility for fuel management. DWR will continue to pay fuel suppliers and others involved in providing fuel management services for the delivery of fuel for those DWR Contracts where the Fuel Option has been elected. Utility will comply with the requirements contained in Exhibit F to provide DWR with the necessary information to apply appropriate procedures and controls to ensure that fuel payments and payments for fuel management services are made accurately and in a timely manner and to allow DWR to settle disputes in an appropriate manner. (END OF EXHIBIT C) EXHIBIT D ISO SCHEDULING COORDINATOR CHARGES The financial obligation for ISO costs incurred after the effective date will be allocated to the Utility, unless otherwise extended under the existing letter agreement with DWR related to the ISO charges and any future Applicable Commission Orders. Unless specifically provided in Exhibit C hereto, all ISO costs incurred after the effective date attributable to load and resources shall be the responsibility of Utility. The Utility’s obligation to pay for ISO charges should not result in double recovery of these charges. Any refunds, reruns or credits through the ISO attributable to costs incurred by DWR for trade dates beginning HE 2200, January 17, 2001, up to the effective date shall belong to DWR and Utility shall take all necessary action to remit such refunds or credits to DWR within reasonable time. (END OF EXHIBIT D) EXHIBIT E CONTRACT MANAGEMENT AND ADMINISTRATION PROTOCOLS DWR will retain all contract management, administration and monitoring responsibilities for the Contracts, including due diligence, performance testing, contract performance assessment, formal correspondence and notifications with Suppliers, exercise of contract options, contract interpretation and dispute resolution, and financial reporting. In the event Utility and DWR agree in the future to transition the Due Diligence and Performance Test Monitoring functions set forth in this Exhibit E from DWR to the Utility, the Parties will first develop a mutually acceptable plan of performance, a transition schedule, and a transition plan for transfer of such functions from the DWR to the Utility for review and approval by the Commission. Upon agreement of the Parties to an acceptable plan and completion of the transition period, the agreed upon functions will transfer from DWR to the Utility (“the Transition Date”).

Fuel Cost Verification and Settlement. Exhibit B provides a detailed discussion concerning Utility’s responsibility for fuel management. DWR will continue to pay fuel suppliers and others involved in providing fuel management services for the delivery of fuel for those DWR Contracts where the Fuel Option has been elected. Consistent with the above, Utility will perform settlements activities to reconcile quantities and associated charges, and DWR will perform verification, audit and monitoring to support its disbursement of funds. Utility will comply with the requirements contained in Exhibit F to provide DWR with the necessary information to apply appropriate procedures and controls to ensure that fuel payments and payments for fuel management services are made accurately and in a timely manner and to allow DWR to settle disputes in an appropriate manner. (END OF - 7 SDG&E EXHIBIT C) D ISO SCHEDULING COORDINATOR CHARGES EXHIBIT D ISO SCHEDULING COORDINATOR CHARGES The financial obligation for ISO costs charges incurred after the effective date Effective Date will be allocated to the Utility, unless otherwise extended under the existing letter agreement with DWR related to the ISO charges and any future Applicable Commission Orders. Unless specifically provided in Exhibit C hereto, all ISO costs charges incurred after the effective date Effective Date attributable to load and resources shall be the responsibility of Utility. The Utility’s obligation to pay for ISO charges should not result in double recovery of these charges. Any Utility agrees that any refunds, reruns or credits through the ISO attributable to costs incurred by DWR for trade dates beginning HE 2200February 7, January 17, 2001, 2001 up to the effective date Effective Date shall belong to DWR and Utility shall take all necessary action to remit such refunds or credits to DWR within reasonable time. (END OF In addition, DWR shall be responsible for any ISO charges incurred during this period pursuant to the existing letter agreement between the Parties. Utility shall invoice DWR for such ISO charges within a reasonable period of time and DWR shall pay Utility for such ISO charges within 10 days of receipt of such invoice. Without making any assurances as to Commission action, DWR agrees to take appropriate action to ensure that such refunds or credits are applied consistent with DWR’s Revenue Requirement cost allocation method for the same trade dates. -1 SDG&E EXHIBIT D) E CONTRACT MANAGEMENT AND ADMINISTRATION PROTOCOLS EXHIBIT E CONTRACT MANAGEMENT AND ADMINISTRATION PROTOCOLS DWR will retain all contract management, administration and monitoring responsibilities for the Contracts, including due diligence, performance testing, contract performance assessment, formal correspondence and notifications with Suppliers, exercise of contract options, contract interpretation and dispute resolution, and financial reporting. In the event Upon development by Utility and DWR agree in the future to a transition plan that transfers the Due Diligence and Performance Test Monitoring functions set forth in this Exhibit E from DWR to the Utility, the Parties will first develop a mutually acceptable plan of performance, including a transition schedule, and a transition plan for transfer of , Utility agrees to submit such functions from the DWR transition plan to the Utility Commission as an amendment to this Exhibit E for review and approval by the Commission. Upon agreement of the Parties to an acceptable transition plan and completion the Commission approval of the Utility submitted transition periodplan, the agreed upon functions will transfer from DWR to the Utility (“the Transition Date”).

Fuel Cost Verification and Settlement. Exhibit B provides a detailed discussion concerning Utility’s responsibility for fuel management. DWR will continue to pay fuel suppliers and others involved in providing fuel management services for the delivery of fuel for those DWR Contracts where the Fuel Option has been elected. Consistent with the above, Utility will perform settlements activities to reconcile quantities and associated charges, and DWR will perform verification, audit and monitoring to support its disbursement of funds. Utility will comply with the requirements contained in Exhibit F to provide DWR with the necessary information to apply appropriate procedures and controls to ensure that fuel payments and payments for fuel management services are made accurately and in a timely manner and to allow DWR to settle disputes in an appropriate manner. (END OF PG&E EXHIBIT C) D ISO SCHEDULING COORDINATOR CHARGES EXHIBIT D ISO SCHEDULING COORDINATOR CHARGES The financial obligation for ISO costs charges incurred after as of the effective date Effective Date will be allocated to the Utility, unless otherwise extended under the existing letter agreement with DWR related to the ISO charges and any future Applicable Commission Orders. Unless specifically provided in Exhibit C hereto, all ISO costs charges incurred after the effective date Effective Date attributable to load and resources shall be the responsibility of Utility. The Utility’s obligation to pay for ISO charges should not result in double recovery of these charges. Any Utility agrees that any refunds, reruns or credits through the ISO attributable to costs incurred by DWR for trade dates beginning HE Hour Ending 2200, January 17, 2001, 2001 up to the effective date Effective Date, which are separate from ISO charges subject to Commission Decision No. 00-00-000, shall belong to DWR and Utility shall take all necessary action to remit such refunds or credits to DWR within reasonable time. (END OF In addition, DWR shall be responsible for any ISO charges incurred during this period pursuant to the existing letter agreement between the Parties. Utility shall invoice DWR for such ISO charges within a reasonable period of time and DWR shall pay Utility for such ISO charges within 10 days of receipt of such invoice. Without making any assurances as to Commission action, DWR agrees to take appropriate action to ensure that such refunds or credits are applied consistent with DWR’s Revenue Requirement cost allocation method for the same trade dates. DWR agrees that any refunds, reruns, or credits through the ISO attributable to ISO charges invoiced to DWR under the November 7, 2001 order of the Federal Energy Regulatory Commission and subsequent orders but which are further subject to Commission Decision No.00-00-000, which directs Utility to directly reimburse DWR for such ISO charges incurred starting Hour Ending 2200, January 17, 2001 up to the Effective Date, shall belong to Utility and DWR shall take all necessary action to remit such refunds or credits directly to Utility within reasonable time. PG&E EXHIBIT D) E CONTRACT MANAGEMENT AND ADMINISTRATION PROTOCOLS EXHIBIT E CONTRACT MANAGEMENT AND ADMINISTRATION PROTOCOLS DWR will retain all contract management, administration and monitoring responsibilities for the Contracts, including due diligence, performance testing, contract performance assessment, formal correspondence and notifications with Suppliers, exercise of contract options, contract interpretation and dispute resolution, and financial reporting. In the event Utility and DWR agree in the future to transition the Due Diligence and Performance Test Monitoring functions set forth in this Exhibit E from DWR to the Utility, the Parties will first develop a mutually acceptable plan of performance, a transition schedule, and a transition plan for transfer of such functions from the DWR to the Utility for review and approval by the Commission. . Upon agreement of the Parties to an acceptable plan and completion of the transition period, the agreed upon functions will transfer from DWR to the Utility (“the Transition Date”).