Federal Energy Regulatory Commission Approves Settlement Agreement and Replacement Interconnection Agreements

Strategic Insights -

The Federal Energy Regulatory Commission has approved a settlement agreement and two replacement interconnection agreements between Pacific Gas and Electric Company (PG&E) and the Turlock Irrigation District and the Modesto Irrigation District. The approval resolves all issues in dispute in Docket No. EL15-55 and settles all issues set for hearing in Docket Nos. ER24-306 and ER24-1137.

Key Takeaways:

  • The Commission approved the settlement agreement and the two replacement interconnection agreements, which resolve all issues in dispute between PG&E and the Turlock Irrigation District and the Modesto Irrigation District.
  • The settlement agreement addresses PG&E's breach of interconnection agreements with the districts, and the district will conduct adverse impact studies according to certain parameters.
  • The Commission's approval of the settlement agreement and the two replacement interconnection agreements does not constitute approval of or precedent regarding any principle or issue in the proceedings.
  • PG&E is directed to make two compliance filings, one in Docket No. ER24-306 and another in Docket No. ER24-1137, with revised tariff records in eTariff format, within 30 days of the order.
  • The Commission plans to implement the Mobile-Sierra "public interest" presumption standard of review for modifications to the settlement agreement proposed by third parties or the Commission.
  • The Certified Settlements in Docket Nos. ER24-306-001 and ER24-1137-001 provide that any contested provision must be shown to be contrary to the just and reasonable standard of review before any changes can be made.
  • The ER25-1978 Settlement resolves all issues in dispute in Docket No. EL15-55, and the Certified Settlements resolve all issues set for hearing in Docket Nos. ER24-306 and ER24-1137.

Statistics:

  • The Commission's approval of the settlement agreement and the two replacement interconnection agreements resolves all issues in dispute between PG&E and the Turlock Irrigation District and the Modesto Irrigation District.
  • PG&E is directed to make two compliance filings within 30 days of the order.
  • The Commission plans to implement the Mobile-Sierra "public interest" presumption standard of review for modifications to the settlement agreement proposed by third parties or the Commission.
  • The settlement agreement addresses PG&E's breach of interconnection agreements with the districts, which was found by the Commission to be a breach of agreement between PG&E and the districts.
  • The settlement agreement provides that any modification to the settlement agreement proposed by a party after the agreement has become effective will be subject to the "public interest" standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Corp.

Sources:

  • Federal Energy Regulatory Commission, "Pacific Gas and Electric Company; Modesto Irrigation District; Turlock Irrigation District," Order No. ER25-1978, August 4, 2025.
  • Federal Energy Regulatory Commission, "Pacific Gas and Electric Company; Modesto Irrigation District; Turlock Irrigation District," Order No. ER24-306, August 4, 2025.
  • Federal Energy Regulatory Commission, "Pacific Gas and Electric Company; Modesto Irrigation District; Turlock Irrigation District," Order No. ER24-1137, August 4, 2025.
  • United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956).
  • Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956).