5. Evidentiary Hearing

An evidentiary hearing was held on July 6, 2009. The prepared direct testimony of PG&E and DRA were identified and received into the record after their witnesses' responded to clarifying questions of the Administrative Law Judge (ALJ).

At the evidentiary hearing, PG&E informed the ALJ that all parties to the proceeding have come to a settlement in principle. The parties requested and received additional time so that the final terms of the settlement could be reduced to a written agreement for review and approval of each party's management prior to filing in this proceeding. The parties also requested and received a waiver of Rule 12.1 of the Commission's Rules of Practice and Procedure (Rules), which requires at least one noticed-settlement conference prior to signing any settlement.