INDEPENDENT EVALUATOR’S OBSERVATIONS OF NEGOTIATIONS BETWEEN DG FAIRHAVEN Sample Clauses

INDEPENDENT EVALUATOR’S OBSERVATIONS OF NEGOTIATIONS BETWEEN DG FAIRHAVEN. AND PG&E Xxxxxx observed several negotiation sessions between PG&E's and DG Xxxxxxxxx’s staffs over the course of more than a year. Xxxxxx was also able to review several draft versions of the contract amendment in order to identify specific proposals and counterproposals the two parties previously made regarding terms in the course of discussion. Based on this review, Xxxxxx did not identify any situations where PG&E provided DG Fairhaven with concessions in contract terms that Xxxxxx considered to be materially unfair to other counterparties that own and operate renewable QFs. At this point in time, Xxxxxx believes that information provided to DG Fairhaven has generally been made available to other competing counterparties that are renewable QF generators actively seeking contract amendments. Xxxxxx’x opinion is that DG Xxxxxxxxx has not been unfairly advantaged by PG&E providing unique confidential information that has not been provided to these others.13 Xxxxxx believes that PG&E stands open to pursue discussions with other renewable QFs with issues similar to those of DG Fairhaven, with the qualification that Xxxxxx is not directly involved in all contacts the utility has with all owners of renewable QFs. The executed amendment provides ratepayers with several specific protections not provided in the existing QF contract. The QF contract as amended shifts certain risks towards DG Fairhaven from ratepayers that the project does not bear in the existing contract. Xxxxxx believes that the QF contract amendment falls somewhat short of the ratepayer protections provided by modern short-term RPS contracts that PG&E has entered, though there are provisions in the amendment that significantly mitigate concerns about these variances. Xxxxxx does not believe that, given the situation where a 1980’s-era QF agreement is amended for a short portion of the remaining term, rather than a fully new long-term RPS contract being executed, these variances create a serious level of concern about the fairness to ratepayers of the amendment, especially given the new protections given to ratepayers compared to the unamended contract. These issues are discussed in detail in the confidential appendix to this report. Xxxxxx’x review of the contract amendment suggests that in most respects the contract amendment does not provide DG Fairhaven with terms and conditions that are materially more advantageous to the seller than could have been the case had the parties used the short-...
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