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R 1837 RESOLU'I10N NO. 1837 A RESOLUTION OF THE CITY ooUNCIL OF THE CITY OF ARROYO GRANDE OFl'08ING THE PROPOSED RATE INCREASE OF THE PACIFIC GAS AND ELECIRIC ooMPANY 10 REOOVER ALL 0081'8 OF DIABLO CANYON NUCLEAR POWER PLANT. WHEREAS, Pacific Gas and Electric COmpIIny has annotmced its intention to recover the fund3 invested in the Diablo Canyon Nuclear Po\Wl' Plant; and WHEREAS, the overall OO!t incurred by Pacific Gas and Electric COmpIIny in the construction of this nuclear facility may contain OO!ts due to errors of Pacific Gas and Electric COmpIIny and not attributable to any other parties; and WHEREAS, Pacific Gas and Electric CaqJany cannot pass on to consumers the costs of the plant tmtil the plant has reached full comnercial operation; and WHEREAS, the California Public Utilities Qxnni;;sion is required by law to review and IIlIthorize any rate increases; and WHEREAS, Pacific Gas and Electric ContJany has filed an application with the California Public Utilities ComnisBion to recover these OO!ts; and WHEREAS, ap(rOval by the California Public Utilities ComnisBion for recovery of costs will Jead to a consumer rate increase; NOW, THEREFORE, BE IT RESOLVED that the Qty of Arroyo Grande, County of San Luis Obispo, is requesting the California Public Utilities Qmrission to analyze all OO!ts assigned to the Diablo Canyon Nuclear Po\Wl' Plant, as contained in the Pacific Gas and Electric COmp8ny application, to detennine such OO!ts that are attributable to Pacific Gas And Electric ContJany contractors', officers', agents', or en:pioyees' design and deveJo(X11l!llt error; and BE IT FURTHER RESOLVED that Pacific Gas and Electric ContJany be authorized to recover, in rates only, those OO!ts fotmd to bereasonabJe and not attributable to Pacific Gss and Electric ContJany contractors', officers', agents', or eJq)Ioyees' design and develo(X11l!llt error. On IIDtion of Council MenDer Jolmson, seconded by Council MenDer Gallagher, and on the following roll call vote, to wit: AYES: Cbtmcil MenDers Gallagher, Jolmson, Moots, Porter and Mayor Smith. NOES: None. ABSENT: None. the foregoing Resolution MIS passed and adopted on the 211th day of March, 1985. 13'~~ MAYOR A~"" D TY CITY CLERK I, Robert Mack, DeIXltY aty aerk of the aty of, Arroyo Grande, County of San Luis Obispo, State of California, do hereby certlfythat the foregoing Resolution No. 1837 is a true, full and correct copy of said Resolution passed and adopted at a regular meeting of said Cbtmcil on the 211th day of March, 1985. WITNESS my hand and the Seal of the aty of Arroyo Grande affiXed this 211th day of March, 1985. ~A - DEPUTY CITY CLERK