ALJ/ANG/lil Date of issuance 10/16/2009

Decision 09-10-017 October 15, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Approval of a Power Purchase Agreement with Mariposa Energy, LLC. (U39E)

Application 09-04-001 (Filed April 1, 2009)

DECISION ADOPTING ALL-PARTY SETTLEMENT AGREEMENT REGARDING PACIFIC GAS AND ELECTRIC COMPANY'S REQUEST FOR POWER PURCHASE AGREEMENT WITH MARIPOSA ENERGY, LLC

1. Summary

In this decision, we adopt an all-party Settlement Agreement and approve the first long-term power purchase agreement to procure 184 megawatts of new generation resources resulting from Pacific Gas and Electric Company's 2008 Long-Term Request for Offers. We also adopt ratemaking mechanisms for the recovery of the reasonable costs of the approved power purchase agreement, as provided for in the proposed Settlement Agreement. We find that the Settlement Agreement is reasonable in light of the whole record, is consistent with the law, and is in the public interest.