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Enron Mail |
This message is intended only for the use of the addressee and may contain
information that is PRIVILEGED, CONFIDENTIAL and exempt from disclosure. If the reader of this message is not the intended recipient or representative of the recipient, you are hereby notified that any dissemination of this communication is strictly prohibited. If you received this communication in error, please notify the sender at pgg4@pge.com or at (415) 973-6642 and delete this message from your system. If there is a problem with the format, please notify the sender in the same manner. Lindsey, et al: Attached is PG&E's revised OFO Settlement Agreement based on our discussion and agreements at yesterday's Settlement Conference. Before getting into the details, I want to thank Lindsey and the other active parties for their diligence and willingness to negotiate constructively in order to reach consensus. The following highlights the changes, which are shown as revision-marks against our September 24 proposal. We've added a couple of "clean-up" changes not specifically addressed yesterday. I don't believe these should cause any problem. * "Significantly" is added under A. and B.1. * In section B.1, we have inserted the term "Gas OFO Forum" so when we talk about this forum outside the settlement, it has a specific name we all recognize and agree to. We have made changes elsewhere in the document to include this more formal title. We also included "or customer" as being able to join the Forum. * In B.2, we used the words provided yesterday by the parties with two exceptions: * First, the language was revised to make a six-month comparison of OFO reductions, rather than a quarterly comparison as we agreed, and * Second, we added the word "other" to modify "members" in two places so it is clear that PG&E is also a member of the Forum. * In B.3, we changed the term "Settlement Parties" to "Gas OFO Forum" to reflect the intent of the agreement. * In B.4, we added the sentence at the end as requested, but, per our discussion, did not remove our last sentence. We added more specific language on the balancing account to be clearer, and noted that this issue is not fully resolved pending feedback from a couple parties. * In C.1.g, we used the language provided, removing the one sentence as agreed, and we added a comma and an "a" in the last sentence. * We did not include the proposed change from the parties for C.1.f.(3) for more data, since per yesterday's discussion we already agreed to provide that data elsewhere. * In C.3.b.(7), we modified the language to reflect our discussion that we would use a 100% Performance Factor for the first customer-specific OFO, and then an average of the actual performance for subsequent customer-specific OFOs, but not less than 50%. We also agree to post the performance data and revised factor within 14 days of each customer-specific OFO, and if another customer-specific OFO is needed in that period, to use the prior factor. We also changed "Settlement Parties" to the "Gas OFO Forum." Lastly, we changed the "next session" to "an ongoing basis" which better fits the continuous nature of the data and adjustments. * In C.4.a, although not discussed the group at the Settlement Conference, Ron Oechsler, on behalf of Palo Alto, pointed out that our description of the three days when cashouts were driven by market economics was not quite correct. We have reviewed his comment and concur, and have corrected the wording accordingly. This does not change this provision to modify the cash-out prices. * In C.5.e.(4), we added the monthly election option. * In D.3.c, we added the suggested language, but changed "Settlement Parties" to the "Gas OFO Forum." * On Appendix A, Revised Tariffs, we added the new balancing account which would be part of the Preliminary Statement in PG&E's gas tariffs. We will send you a draft of this tariff sheet with the full package next week. With the one loose end regarding the balancing account language, we believe that this document reflects our agreement with the parties. We will follow up with the motion, tariffs, and final settlement agreement after confirming with Lindsey that we have captured yesterday's discussion accurately. Again, thanks for all your active participation and support for getting this Settlement completed. Sincerely, Patrick Golden <<ofoOctober 6 Settlement Response.doc<< - ofoOctober 6 Settlement Response.doc
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