FINDINGS

1. PG&E filed Advice Letter 1972-E pursuant to D.00-02-046 Ordering Paragraph 1a requesting approval to revise its electric tariff sheets.

2. PG&E proposes to establish an Electric Supply Cost Memorandum Account to track adopted revenue requirements associated with the electric portion of the Gas & Electric Supply UCC.

3. D.00-02-046 finds that the electric portion of the Gas and Electric Supply UCC be reassigned from a distribution to a generation function.

4. Aglet filed a timely protest on March 21, 2000.

5. Aglet protested PG&E's Uncollectibles Factor and the establishment of a new ESCMA.

6. PG&E responded to Aglet's protest on March 28, 2000.

7. Aglet's protest of PG&E's Uncollectibles Factor is denied without prejudice as the issue has been raised in a rehearing application and will be resolved by further order of the Commission.

8. The revised tariffs and schedule incorporates the final GRC (D.00-02-046) and the 1998 RAP (D.99-06-058) decisions.

9. Aglet's protest regarding the establishment of the ESCMA is denied.

10. The ESCMA should be effective upon adoption of this Resolution consistent with Commission's policies concerning prospective ratemaking.

THEREFORE, IT IS ORDERED that:

1. Advice Letter 1972-E is approved as modified in Ordering Paragraphs 2, 3, 4 and 5.

2. PG&E's electric and gas rates are approved subject to refund pending further order of the Commission regarding uncollectible factors.

3. PG&E shall remove 5b from its proposed Preliminary Statement Part BT (Cal. P.U.C. Sheet No. 16813-E).

4. PG&E shall establish an Electric Supply Cost Memorandum Account to track the electric portion of the Gas & Electric Supply UCC revenue requirement as adopted in D.00-02-046 only on a forward going basis.

5. PG&E shall record to the ESCMA, in each month, one-twelfth of the electric portion of the Gas & Electric Supply UCC revenue requirement as adopted in D.00-02-046 only on a forward going basis.

6. PG&E shall make a showing in its next RAP or by separate application before the Commission to demonstrate the reasonableness and necessity of recovering the proposed expenditures.

7. PG&E shall adopt the Tariffs and Schedules as proposed.

8. PG&E shall file a supplemental advice letter with such revisions with the Commission within ten (10) days. The advice letter shall be effective today subject to Energy Division review for compliance with this resolution.

This Resolution is effective today.

I hereby certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on July 20, 2000; the following Commissioners voting favorably thereon:

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