A July 20 opinion by the California Public Utilities Commission grants the Independent Energy Producers and Pacific Gas & Electric a plan settling what the commission called "a long and vitriolic dispute" over short-run avoided-cost pricing. PG&E has been battling the contracts at issue, particularly those with cogeneration contractors. The utility wants the commission to bring the price of cogen contracts to market level. The plants have been getting about a 25 percent premium on their electricity, plus a capacity payment that runs between $60 and $200 per kilowatt-year, according to the utility (Circuit, March 3, 2006). Instead of the old short-run avoided-cost calculations, the new payment methodology has both a variable energy price option and a fixed price option. It retains an as-delivered capacity price of $50\/kW-year. PG&E claims that it has made the new deal with 121 QF projects - representing 28 percent of its cogeneration portfolio and 83 percent of its natural gas-fired plant portfolio. Cogen accounts for about 3,000 MW of the utility's QF portfolio.