PG&E 2011 Annual Report Download - page 116

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NOTE 15: COMMITMENTS AND CONTINGENCIES (Continued)
responsible parties are not financially able to contribute to these costs, and could increase further if the Utility
chooses to remediate beyond regulatory requirements.
Recoveries of Environmental Remediation Costs
The CPUC has authorized the Utility to recover 90% of its hazardous substance remediation costs from
customers without a reasonableness review for certain approved sites (excluding any remediation costs associated
with the Hinkley natural gas compressor site). The Utility expects to recover $393 million through this ratemaking
mechanism. The CPUC has historically authorized the Utility to recover 100% of its remediation costs for
decommissioning fossil fuel-fired generation facilities and sites through decommissioning funds collected in rates, and
the Utility believes it is probable that it will continue to recover these costs in the future. The Utility expects to
recover $50 million through this ratemaking mechanism and an additional $68 million from other ratemaking
mechanisms. Finally, the Utility also recovers these costs from insurance carriers and from other third parties
whenever possible. Any amounts collected in excess of the Utility’s ultimate obligations may be subject to refund to
customers.
112