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Prior to June 1999, under the adopted tariffs, DA customers receiving the PX credit <br />could experience, at a minimum, a monthly bill of $0. In b.99-06-058, the <br />Commission eliminated the zero minimum bill provision. The elimination of the zero- <br />minimum bill provision allowed DA customers to receive the entire PX credit even if it <br />resulted in a negative (credit) bill. Prior to market dysfunctions in mid 2000, PX <br />credits in excess of total monthly charges were generally carried over to succeeding <br />months and were netted against positive bills. <br />The dysfunction of California energy markets in 2000 through early 2001, undermined <br />the original basis for calculating the DA credit. The prices charged the utilities during <br />the waning days of the PX were substantially higher than the cost of producing the <br />energy; were regularly higher than the generation component of frozen rates; and in <br />fact, were frequently so high that the DA credit exceeded the entire amount of a DA <br />customer's bill for the services the DA customer did take from the utility and the <br />generation rate component. The PX collapsed in January 2001," <br />Upon the suspension of the Electric Program, PG&E owed ABAG POWER approximately <br />Twenty-One Million Three Hundred Thousand Dollars ($21,300,000) in unpaid Direct Access <br />Credits. ABAG POWER filed a complaint with the CPUC to collect the credits. The CPUC <br />Complaint was stayed when PG&E filed for Chapter 11 bankruptcy in April 2002. ABAG <br />POWER settled its claim against PG&E for Seventeen Million Dollars ($17,000,000) plus <br />bankruptcy required interest at the rate of 4.19% per annum. PG&E has paid Seventeen <br />Million Dollars ($17,000,000) in principal and Two Million Four Hundred Thousand Dollars <br />($2,400,000)in interest in fulfillment of the settlement. <br />Wind Up Agreement-Athnt B- vl 8 4-28-04 cln <br />