ALJ/MFG/jyc Date of Issuance 9/15/2009

Decision 09-09-020 September 10, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company to Establish a Retirement Plan Funding Mechanism and to Increase Gas and Electric Revenue Requirements, Rates and Charges for a Retirement Plan Contribution, Effective January 1, 2011. (U39M)

Application 09-03-003 (Filed March 2, 2009)

Pacific Gas and Electric Company, by Deborah S. Shefler,

Attorney at Law, applicant.

Adams, Bradwell, Joseph & Cardozo, by Marc D. Joseph,

Attorney at Law, for Coalition for California Utility.

Employees; and, Laura J. Tudisco, Attorney at Law,

for Division of Ratepayer Advocates,

interested parties.

DECISION APPROVING ALL PARTY SETTLEMENT AGREEMENT

ON A PENSION COST RECOVERY MECHANISM

1. Summary

This decision approves an All-Party Settlement Agreement on a pension cost recovery mechanism between Pacific Gas and Electric Company (PG&E), the Coalition of California Utility Employees, and the Division of Ratepayer Advocates that sets a 100% pension funding goal over a reasonable period of years and retains PG&E's Pension Contribution Balancing Account. The revenue requirement impact in 2011 is $140.5 million, 2012 is $177.2 million, and 2013 is $215.7 million with the 2013 pension contribution level continuing in subsequent years until a new General Rate Case or application is resolved.