AS OF THE SETTLEMENT EFFECTIVE DATE, THE
CALIFORNIA PARTIES AND ADDITIONAL CLAIMANTS SHALL WITHDRAW FROM AND NOT
PROSECUTE ANY LITIGATION, ADMINISTRATIVE PROCEEDINGS OR INVESTIGATIONS WITH
RESPECT TO RELIANT INSOFAR AS SUCH PROSECUTION WOULD BE INCONSISTENT WITH THE
FOREGOING RELEASED CLAIMS.
8.7.2
RESERVATION OF CERS/RELIANT CLAIMS.
THE RELEASES SET FORTH IN
SECTIONS 8.1, 8.2, 8.3, 8.4 AND 8.5 DO NOT INCLUDE ANY CLAIMS BY CERS AGAINST
RELIANT OR BY RELIANT AGAINST CERS ARISING FROM OR RELATING TO THAT CERTAIN
LETTER AGREEMENT BY AND BETWEEN RELIANT AND CERS DATED FEBRUARY 16, 2001, SHORT
TERM PURCHASES DUE TO BILLING OR ACCOUNTING ERRORS, RECONCILIATION OF PAYMENTS
REFLECTED ON INVOICES FOR TRANSACTIONS CONDUCTED, IMBALANCE ENERGY (INCLUDING
UNPAID ISO PURCHASES) AND ACCOUNTING DISPUTES RELATING TO IMBALANCE ENERGY
PROCURED BY CERS, OR EMISSIONS CREDITS TAKEN BY RELIANT, ALL OF WHICH CLAIMS ARE
HEREBY EXPRESSLY PRESERVED AND WILL BE ADDRESSED IN A CONCURRENT SETTLEMENT
AGREEMENT BETWEEN RELIANT AND CERS WHICH SETTLEMENT SHALL ADDRESS ANY AND ALL
SUCH CLAIMS FOR THE PERIOD PRIOR TO THE EXECUTION DATE OF THE MEMORANDUM OF
UNDERSTANDING.
8.7.3
NO WAIVER BY ATTORNEYS GENERAL AS TO CRIMINAL AND CERTAIN OTHER
CLAIMS.
THE RELEASES SET FORTH IN SECTIONS 8.2, 8.3 AND 8.4 DO NOT CONSTITUTE A
WAIVER OR RELEASE OF ANY CLAIMS BY THE CALIFORNIA ATTORNEY GENERAL OR THE
ADDITIONAL CLAIMANTS FOR ANY ACTIONS OF OR OMISSIONS EITHER BEFORE OR SUBSEQUENT
TO THE SETTLEMENT EFFECTIVE DATE WHICH ARE EITHER: (I) WILLFULLY FRAUDULENT;
PROVIDED, HOWEVER, THAT THIS RELEASE DOES EXTEND TO SUCH CLAIMS (IF ANY) THAT
ARE BASED SOLELY UPON ACTS OR OMISSIONS THAT (A) OCCURRED PRIOR TO THE
SETTLEMENT EFFECTIVE DATE AND (B) ARE CURRENTLY KNOWN BY THE CALIFORNIA ATTORNEY
GENERAL'S OFFICE OR THE ADDITIONAL CLAIMANTS; OR (II) CRIMINAL.
8.7.4
PG&E V. FERC, NINTH CIRCUIT NO. 03-72874.
THE RELEASES SET FORTH
HEREIN INCLUDE A RELEASE OF ALL CLAIMS BY THE CALIFORNIA PARTIES AGAINST RELIANT
IN THE PETITION FOR REVIEW NOW PENDING BEFORE THE NINTH CIRCUIT IN PG&E V. FERC,
CASE NOS. 03-72874, ET AL.
HOWEVER, THERE IS NO SETTLEMENT OF THE PROCEEDING OR
RELEASE AS BETWEEN FERC AND THE
38
CALIFORNIA PARTIES.
THE CALIFORNIA PARTIES MAY ATTEMPT TO CONTINUE TO PURSUE
THE PROCEEDING AS AGAINST FERC.
FERC, ON THE OTHER HAND, MAY SEEK TO HAVE THE
PROCEEDING DISMISSED ENTIRELY AS THE RESULT OF THIS SETTLEMENT.
IT IS AGREED
THAT THE OUTCOME OF THE NINTH CIRCUIT PROCEEDING WILL HAVE NO BEARING ON AMOUNTS
OWED BY OR TO RELIANT, AND THAT RELIANT WILL WITHDRAW FROM THE PROCEEDING.
8.7.5
PARTICIPATION IN OTHER PROCEEDINGS.
EXCEPT AS OTHERWISE PROVIDED
HEREIN, ALL PARTIES TO THIS AGREEMENT AND THOSE MARKET PARTICIPANTS THAT AGREE
TO ACCEPT THE BENEFITS OF THIS SETTLEMENT SHALL REMAIN FREE TO PARTICIPATE,
WITHOUT LIMITATION, IN ANY EXISTING PROCEEDING WITH RESPECT TO PARTIES OTHER
THAN RELIANT, OR TO INITIATE OR PARTICIPATE IN ANY FUTURE PROCEEDING TO THE
EXTENT NOT INCONSISTENT WITH THE RELEASES SET FORTH IN SECTIONS 8.2, 8.3, 8.4,
8.5 AND 8.6, INCLUDING PROCEEDINGS ADDRESSING, PROSPECTIVELY, GENERIC ISSUES
CONCERNING MARKET STRUCTURE, SCHEDULING RULES, GENERALLY APPLICABLE MARKET
RULES, AND GENERALLY