Wong Appendix A Part 1
Wong Appendix A Part 2
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Application of Pacific Gas and Electric Company Proposing a Market Structure and Rules for the Northern California Natural Gas Industry for the Period Beginning January 1, 2003 as Required by Commission Decision 01-09-016. (U 39 G)

Application 01-10-011

(Filed October 8, 2001)

I. Summary 22

II. Background 33

III. 2004 Gas Structure and Beyond 66

IV. Winter Reliability Standard and Winter
Firm Capacity Requirement

V. Transmission Services 5656

VI. Storage Services 8989

VII. Contract Extension and Open Season 117117

VIII. Operations and Balancing 131131

IX. Operating and Maintenance Exenses 200200

X. Capital Expenditures 210210

XI. Cost of Service 223223

XII. Demand Forecast 227227

XIII. Cost Allocation and Rate Design 242242

XIV. Contingency Rate Adjustments 394394

XV. PG&E Procurement Policy and Core Procurement Services 401401

XVI. Core Aggregation Transportation Service 415415

XVII. Interconnection Services 434434

XVIII. California Gas Transmission Risk Management Program 452452

XIX. Future Gas Market Structure and Rate Filings 456456

XX. Conclusion 457457

XXI. Comments on Proposed Decision 458458

XXII. Assignment of Proceeding 458458

1 The Gas Accord market structure and rates for PG&E were originally approved in the Gas Accord Settlement Agreement that was adopted in D.97-08-055 [73 CPUC2d 754]. That settlement, and the time period covered by the settlement (through December 31, 2002), is commonly referred to as the "Gas Accord." In addition to the market structure and rates, the settlement addressed PG&E's role in gas procurement for core customers, as well as a number of issues concerning the Line 401 project. Certain provisions of the Gas Accord were modified by D.00-02-050 and D.00-05-049. 2 PG&E had originally requested $478,759,000 as its revenue requirement for 2004. This request was based in part on a higher rate of return that PG&E was seeking to litigate in this proceeding. The February 14, 2003 ALJ ruling granted a motion to strike PG&E's cost of capital testimony from being litigated in this proceeding, and stated that "the parties can use the cost of capital established in D.02-11-027 as a placeholder until a decision on the cost of capital for test year 2004 is rendered. 3 The adjustments to PG&E's revenue requirement request, to arrive at the adopted revenue requirement, are shown in Appendix A of this decision.

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