SETTLEMENT AGREEMENT
This Settlement Agreement (Agreement) is made among the Agricultural
Energy Consumers Association, the California Department of General Services, the
California Farm Bureau Federation, the California Large Energy Consumers
Association, the California Manufacturers Association, the Department of the
Navy on behalf of the Federal Executive Agencies, the Division of Ratepayer
Advocates (DRA) of the California Public Utilities Commission (CPUC), Industrial
Users, Pacific Gas and Electric Company (PG&E), and the Attorney General of the
State of California, collectively referred to as the "Parties." This Agreement,
if approved and adopted by the CPUC, would modify the prices for Diablo Canyon
Nuclear Power Plant (Diablo Canyon) power as provided in Paragraphs 3 and 4 of
Appendix C and Paragraph 4 of Appendix D of Decision 00-00-000. With the
exception of the pricing modifications made herein, Appendices C and D of
Decision 00-00-000 remain in full effect.
1. The Parties agree that the prices for Diablo Canyon power shall be reduced
in the following manner:
a) The fixed price portion of the Diablo Canyon price shall remain at the
current level of 3.15 cents/kwh.
b) The escalating price portion of the Diablo Canyon price shall be no
greater than:
January 1, 1995 7.85 cents/kwh
January 1, 1996 7.35 cents/kwh
January 1, 1997 6.85 cents/kwh
January 1, 1998 6.35 cents/kwh
January 1, 1999 5.85 cents/kwh
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c) After December 31, 1999, the escalating price portion of the Diablo
Canyon price will increase using the same formula specified in D.88-
12-083, Appendix D, Paragraph 4.
d) PG&E may reduce the fixed and/or escalating price portions of the
Diablo Canyon price at any time at its sole discretion. Such a
reduction of the Diablo Canyon price below the fixed and escalating
price ceilings specified in Paragraph 1 above shall be excluded from
all reasonableness reviews.
2. The difference between PG&E's revenue requirements under the original
Diablo Canyon prices and the new prices specified in this Agreement will be
applied to the Energy Cost Adjustment Clause (ECAC) balancing account until
the undercollection as of December 31, 1995, is fully amortized.
3. This Agreement resolves all issues relating to the reasonableness of the
pricing of Diablo Canyon power raised in DRA's Petition to Modify Decision
00-00-000 in Application Nos. 00-00-000 and 00-00-000, dated August 26,
1994.
4. The Parties agree that the prices for the period through December 31, 1999,
as provided in Paragraphs l.a and l.b, are reasonable and shall be the
basis for the recovery of PG&E's ECAC revenue requirements pursuant to the
pricing of Diablo Canyon power.
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5. The Parties shall jointly request, and use their best efforts to obtain,
prompt Commission approval of the Agreement, without change.
6. If the Commission conditions approval of the Agreement on a change,
modification, severance, deletion or new term to the Agreement, the Parties
agree to promptly negotiate in good faith to achieve a resolution
acceptable to all Parties and to promptly seek Commission approval of the
resolution so achieved. Failure to resolve such change, modification,
severance, deletion or new term to this Agreement to the satisfaction of
all Parties shall terminate this Agreement.
7. The Parties agree that nothing contained in this Agreement shall serve as
precedent in future proceedings.
8. This Agreement represents the complete understanding and agreement of the
Parties with respect to the pricing of Diablo Canyon power as described
herein.
9. Pending a final and unappealable order by the CPUC approving and adopting
it, this Agreement may be amended or changed only by a written agreement
signed by all Parties.
DATED: December 16, 1994 AGRICULTURAL ENERGY CONSUMERS
--
ASSOCIATION
By XXXXXXX XXXXXXXXX
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Xxxxxxx Xxxxxxxxx
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DATED: December 14, 1994 CALIFORNIA DEPARTMENT OF
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GENERAL SERVICES
By XXXXXXX X. XXXXXX
---------------------------
Xxxxxxx X. Xxxxxx, Chief, Office
of Energy Assessment
DATED: December 22, 1994 CALIFORNIA FARM BUREAU FEDERATION
--
By XXXXXX XXXXXXXX
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Xxxxxx Xxxxxxxx, Attorney
DATED: December 14, 1994 CALIFORNIA LARGE ENERGY
--
CONSUMERS ASSOCIATION
By XXXXXXX X. XXXXX
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Xxxxxxx Xxxxx, Attorney
DATED: December 19, 1994 CALIFORNIA MANUFACTURERS
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ASSOCIATION
By XXXXXX X. XXXXX
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Xxxxxx Xxxxx, Attorney
DATED: December 15, 1994 DEPARTMENT OF THE NAVY for
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FEDERAL EXECUTIVE AGENCIES
By XXXXXX XXXXXX
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Xxxxxx Xxxxxx, Attorney
DATED: December 14, 1994 DIVISION OF RATEPAYER ADVOCATES
--
By XXXXXX X. XXXXXXX
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Xxxxxx X. Xxxxxxx, Director
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DATED: December 15, 1994 INDUSTRIAL USERS
--
By XXXXXX X. XXXXX
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for Xxxxxx Xxxxxxx, Attorney
DATED: December 16, 1994 XXXXXX X. XXXXXXX
--
ATTORNEY GENERAL
By XXXX X. XXXXX
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Xxxx X. Xxxxx, Dep. Atty. Gen.
DATED: December 13, 1994 PACIFIC GAS AND ELECTRIC COMPANY
--
By XXXXXXX X. XXXXXXX
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Xxxxxxx X. Xxxxxxx, President and
Chief Executive Officer
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