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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Legal Division San Francisco, California

R E S O L U T I O N

SUMMARY

The Commission ordered the reduction of pressure by 20% in Pipeline 132 in Resolution L-403 following the natural gas explosion and fire in San Bruno, California, on September 9, 2010. The Commission noted in Resolution L-405 that with winter approaching, it will be necessary for the Commission to investigate and determine, with the assistance of the Independent Review Panel as well as Commission staff, the safety of increasing the pressure of Pipeline 132 to its normal operating pressure prior to the San Bruno explosion to meet the normal natural gas requirements for PG&E's San Francisco and San Francisco Peninsula customers. This Resolution authorizes the President of the Commission to take all safe and necessary steps to ensure sufficient gas supplies for Pacific Gas and Electric ("PG&E") customers in San Francisco and the San Francisco Peninsula. This Resolution further requires the preparation of a resolution for the Commission's consideration regarding the actions taken by the President of the Commission to ensure sufficient gas supplies for PG&E customers in San Francisco and the San Francisco Peninsula.

JURISDICTION AND AUTHORITY

As noted in Resolution L-403, the Commission has plenary and broad powers over PG&E and other gas utilities under, inter alia, the California Constitution and the Public Utilities Code section 451, which mandates the following: "Every public utility shall furnish and maintain such adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities ... as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public." (Pub. Util. Code, § 451.) In our broad grant of jurisdiction over public utilities in California, we are authorized to "do all things, whether specifically designated in ... [the Public Utilities Code] or in addition thereto, which are necessary and convenient" to our regulation of public utilities, including, though not limited to, adopting necessary rules and requirements in furtherance of our constitutional and statutory duties to regulate and oversee public utilities operating in California. (Pub. Util. Code, § 701.)

THE NEED TO AUTHORIZE THE PRESIDENT OF THE COMMISSION TO TAKE IMMEDIATE ACTION

The Commission ordered a 20% reduction in the normal operating pressure of Pipeline 132 in Resolution L-403 until such time as the Commission permits PG&E to return to the pre-incident normal operating pressure of the Pipeline. This reduction in gas pressure will impair delivery of normal natural gas quantities to PG&E customers on the San Francisco Peninsula and in the City and County of San Francisco. To the degree that this pressure reduction and natural gas supply reduction will affect these customers in the winter of 2010 through 2011, it constitutes an emergency requiring immediate action by the President of the Commission to determine whether it is safe to increase the pressure in Pipeline 132 or, if not, to take other necessary steps to ensure adequate gas supplies to PG&E customers in San Francisco and the Peninsula. A resolution shall be prepared for the Commission's consideration regarding the emergency actions taken by the President of the Commission.

WAIVER OF COMMENT PERIOD

The tragic San Bruno explosion and the need to immediately take action to ensure adequate gas supplies to PG&E customers in San Francisco and the San Francisco Peninsula is an unforeseen emergency of local and statewide importance requiring immediate action by the Commission. The normal 30-day comment period for the issuance of an order or resolution may be waived in circumstances such as these. (Pub. Util. Code §§ 311, subds. (d) & (g)(2); see also Resolution E-3731, Pacific Gas and Electric Company (April 3, 2001) 2001 Cal. PUC LEXIS 659.) The Commission's Rules of Practice and Procedure also permit such a waiver.1

FINDINGS OF FACT

CONCLUSIONS OF LAW

ORDER

This Order is effective today.

I certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting of October 28, 2010. The following Commissioners approved it:

1 "In an unforeseen emergency situation, the Commission may reduce or waive the period for public review and comment on proposed decision, draft resolutions, and alternates. "Unforeseen emergency situation" means a matter that requires action or a decision by the Commission more quickly than would be permitted if advance publication were made on the regular meeting agenda. Examples include, but "are not limited to... [a]ctivities that severely impair or threaten to severely impair[,] public health or safety[,]...[c]rippling disasters that severely impair public health or safety[,]...[u]nusual matters that cannot be disposed of by normal procedures if the duties of the Commission are to be fulfilled." (Cal. Code of Regs., tit. 20, § 14.6, subds. (1), (2) and (8).)

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