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Mssrs. H:su, Collins, and Drew <br />April 21, 1994 <br />Page 4 <br />Edison notifying the Cities as to what the cost <br />will be each hour. <br />11. SONGS Disputes <br />Section 5.1.4 and Exhibit C resolve disputes <br />concerning Anaheim's and Riverside's obligations at <br />San Onfre. <br />12. Svlmar Firm Transmission Service Aqreement <br />Section 5.5 and Exhibit D provide revisions to the <br />Sylmar FTS to conform the agreements to the 1990 <br />Settlement. <br />13. Monetary Claims <br />Both Edison and Cities had monetary claims which <br />were offsetting. The 1994 Settlement provides that <br />those claims will be resolved and no payments will <br />be made by any party. <br />14. Reserved Issues <br />Section 5.7 provides for the withdrawal of two <br />issues which had been included in Appendix C of the <br />1990 Settlement Agreement as issues to be <br />subsequently resolved. The first issue concerned <br />Cities' request to expand their right to use <br />Partial Requirements energy to displace energy from <br />City Capacity resources and Replacement resources. <br />The second issue concerned a dispute over a City's <br />right to displace energy from certain resources <br />with Minimum Take Obligations. <br />The negotiating teams were not able to resolve <br />these issues. It was agreed that neither issue <br />would have any immediate impact on either Edison's <br />or Cities' resources. Therefore, we agreed to <br />withdraw the issues from the settlement as this <br />time without the parties waiving their rights to <br />seek resolution of the issues in the future. <br />Recommendation <br />The 1994 Settlement represents a reasonable resol�tion <br />of the issues. It resolves a number of technical disputes between <br />Edison ��nd Cities concerning the 1990 Integrated Operations <br />Agreemerit, the Power Sales Agreement, the Sylmar Firm <br />Transmi��sion Agreements, and the 1990 Settlement Agreement. <br />Implemeritation of the 1994 Settlement Agreement should facilitate <br />