3. Discussion

Unless extended by the Commission, both of these reporting requirements are to terminate with the reports ending for month of September 30, 2002. Much has changed since these reporting requirements were first instituted and then extended. During that time, we have experienced the implementation of direct access, the energy crisis and out-of-control electricity prices, the procurement of power by the California Department of Water Resources, and the prohibition against direct access by new customers.

Due to the suspension of direct access, PG&E does not believe that it is justified to continue the monthly reporting requirements. With the suspension of direct access, PG&E expects that the number of direct access service requests, and the number of requests to install meters will decline. If the Energy Division needs information on direct access, PG&E recommends that the utilities be directed to respond to reasonable periodic requests by the Energy Division.

Although PG&E's expectation that direct access service requests and direct access meter installations are likely to decline, these monthly reports continue to provide the Commission with valuable data about the number of customers participating in the direct access market, the installation of direct access meters, and which company is performing the billing of electricity services. The Energy Division's request to continue these reporting requirements should be granted. Accordingly, we shall extend the requirement that the UDCs continue submitting the monthly report on their respective direct access implementation activities through the month ending September 30, 2004, unless further extended by the Commission. The UDCs shall continue to report the information in the format requested by the Energy Division. We shall also extend the UDC reporting requirement regarding which entities are installing direct access meters and which entities are performing the billing of electricity, in the format requested by the Energy Division, through the month ending September 30, 2004, unless further extended by the Commission.