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coo? ve <br />APPROVED BY <br />CITY COUt CIU <br />UNITED STATES OF AMERICA Date as <br />BEFORE THE I Item # 1-7 <br />FEDERAL ENERGY REGULATORY COMMISSION <br />Cities of Anaheim, Azusa, Banning, <br />Colton, and Riverside, California, <br />Complainants <br />California Independent System Operator <br />Corporation, <br />Respondent <br />Salt River Project Agricultural <br />Improvement and Power District <br />Complainant <br />V. <br />California Independent System Operator <br />Corporation, <br />Respondent <br />Docket No. EL00-111-002 <br />-& <br />Docket No. EL01-84-000 <br />(Not Consolidated) <br />OFFER OF SETTLEMENT AND SETTLEMENT AGREEMENT <br />Pursuant to Rule 602 of the Rules of Practice and Procedure of the Federal <br />Energy Regulatory Commission ("Commission" or "FERC"), 18 C.F.R. § 385.602 <br />(2001), the California Independent System Operator Corporation ("California ISO"), <br />Cities of Anaheim, Azusa, Banning, Colton, and Riverside, California ("Southern <br />Cities"), Salt River Project Agricultural Improvement and Power District ("SRP"), City of <br />Vernon, California ("Vernon") and California Department of Water Resources ("CDWR") <br />(collectively, the "Settling Parties"), hereby offer and agree to the terms of this <br />Settlement Agreement as the full and final resolution of all issues in the above- <br />