THE FERC REFUND ALLOCATION MATRIX SHALL BE PAID IN CASH OR AS
DEEMED DISTRIBUTIONS (AS DESCRIBED IN SECTION 6.4.2) TO THOSE ENTITIES ENTITLED
TO RECEIVE FUNDS IN ACCORDANCE WITH THE FERC REFUND ALLOCATION MATRIX AND WHICH
ARE EITHER PARTIES TO THIS AGREEMENT OR WHICH ARE OPT-IN PARTICIPANTS AS DEFINED
IN SECTION 9.1.
REFUNDS WITH RESPECT TO THE PRE-OCTOBER PERIOD SHALL BE
ALLOCATED ONLY WITH RESPECT TO PURCHASES DURING THE PERIOD MAY 1, 2000 THROUGH
OCTOBER 1, 2000.
THE ADDITIONAL AMOUNT SHOWN ON THE FERC REFUND ALLOCATION
MATRIX AS BEING PAYABLE TO THE CALIFORNIA PARTIES' ACCOUNT SHALL BE ALLOCATED
PURSUANT TO A SEPARATE AGREEMENT AMONG THE CALIFORNIA PARTIES.
6.4.2
DEEMED DISTRIBUTIONS TO DEEMED DISTRIBUTION PARTICIPANTS.
CERTAIN
SETTLING PARTICIPANTS, INCLUDING PG&E, OWE PRE-REFUND AMOUNTS TO THE PX OR ISO
FOR TRANSACTIONS DURING THE PERIOD FROM JANUARY 1, 2000 THROUGH JUNE 20, 2001 OR
OWE REFUNDS TO THE MARKET AS CALCULATED IN EXHIBIT NOS. CPX-51 AND ISO-30 IN THE
FERC REFUND PROCEEDINGS FOR THAT PERIOD AND ARE LISTED IN EXHIBIT C AS DEEMED
DISTRIBUTION PARTICIPANTS.
DISTRIBUTION OF SETTLEMENT PROCEEDS TO DEEMED
DISTRIBUTION PARTICIPANTS UNDER THIS AGREEMENT WILL TAKE THE FORM OF A REDUCTION
(A "DEEMED DISTRIBUTION") AGAINST SUCH AMOUNTS OWED AND SHALL BE REFLECTED ON
THE BOOKS OF THE ISO AND PX.
THE PARTIES AGREE, AND THE FERC SETTLEMENT ORDER
SHALL CONSTITUTE FERC'S DETERMINATION, THAT THE PG&E PLAN ESCROW MAY BE REDUCED
IN AN AMOUNT EQUAL TO PG&E'S DEEMED DISTRIBUTIONS UNDER THIS AGREEMENT.
OTHER
SETTLING PARTICIPANTS WHO DO NOT QUALIFY AS NET REFUND RECIPIENTS SHALL ALSO
RECEIVE THEIR ALLOCABLE REFUNDS IN THE FORM OF AN OFFSET AGAINST THEIR
OUTSTANDING MARKET OBLIGATIONS.
6.4.3
NET REFUND RECIPIENTS.
EXCEPT AS PROVIDED FOR DEEMED DISTRIBUTION
PARTICIPANTS, THE NET REFUNDS TO BE PAID TO EACH SETTLING PARTICIPANT AS SHOWN
ON EXHIBIT B SHALL BE PAID FROM THE RELIANT REFUND ESCROW IN THE FORM OF CASH.
6.4.4
FUEL COST ALLOWANCES AND EMISSIONS OFFSETS.
THE SETTLEMENT AND THE
FERC REFUND ALLOCATION MATRIX REFLECT AN AGREED UPON EMISSIONS OFFSET OF
$14,604,291 AND AN AGREED UPON FUEL COST ALLOWANCE OF $63,250,845.
THE RELIANT
PARTIES SHALL NOT SEEK ANY ADDITIONAL FUEL COST ALLOWANCE OR ANY ADDITIONAL
EMISSIONS OFFSET AS AGAINST THE SETTLING PARTICIPANTS FOR THE PERIOD BEGINNING
JANUARY 1, 2000 THROUGH JUNE 20, 2001.
SETTLING PARTICIPANTS ARE RESPONSIBLE
FOR THEIR ULTIMATE ALLOCABLE SHARE OF THE AGREED UPON FUEL COST ALLOWANCE AND
EMISSIONS OFFSET, WITH THE ALLOCATION BASED ON THE FERC ALLOWANCES
DETERMINATION.
THE FUEL COST ALLOWANCE AND EMISSIONS OFFSET PROVIDED FOR HEREIN
SHALL, AS TO THE TOTAL AMOUNTS APPLICABLE TO THE MARKET AS A WHOLE, REMAIN FIXED
AS TO THE PARTIES AND THE
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OPT-IN SETTLING PARTICIPANTS.
THE PROPOSED ALLOCATION OF CHARGES FOR SUCH
ALLOWANCE TO INDIVIDUAL MARKET PARTICIPANTS, WHICH IS CURRENTLY BASED ON GROSS
LOAD, SHALL BE SUBJECT TO ADJUSTMENT AND "TRUE-UP" TO COMPLY WITH THE FERC
ALLOWANCES DETERMINATION.
BECAUSE THE CHARGES FOR FUEL COST ALLOWANCES AND
EMISSIONS OFFSETS CAN EXCEED THE REFUNDS DUE TO A MARKET PARTICIPANT, SOME
MARKET PARTICIPANTS MAY BE SHOWN AS OWING MONEY IN THE FERC REFUND