4. Positions of Parties

In its application, PG&E claims a series of Wildland Fires from May 22 through October 2008 caused $12.97 million in restoration and repair costs to PG&E's electric distribution system. On June 11 and June 30, 2008, Governor Schwartzenegger issued State of Emergency Proclamations for 10 counties in northern and central California in response to the Wildland Fires. On June 28, 2008, President Bush issued a Presidential declaration of emergency, proclaiming a state of emergency in several counties in PG&E's service territory. PG&E states that it sustained damage in nine of the 10 counties covered by one or both of these declarations.

Pursuant to D.07-07-041, PG&E requests review of and authorization to recover $11.72 million of costs arising from the 2008 Wildland Fires in the counties that PG&E contends had disaster declarations by competent state or federal authorities. These represent nine of the 13 counties where 2008 Wildland Fires occurred and PG&E sustained damages. PG&E's request for recovery of costs included $3.68 million in expense and $8.04 million in capital costs arising from the restoration of service and repairs following the 2008 Wildland Fires. The $11.72 million of costs included in the Application translate to a total revenue requirement of $6.56 million to be recovered in 2010.

In its testimony, DRA recommends disallowances of $599,090 in expense and $60,000 in capital from the original costs requested by PG&E because of lack of evidence of a disaster declaration for one county. DRA argues that $588,000 in straight-time labor and $11,090 in employee appreciation gifts are not CEMA-eligible expenses. DRA also argues that $60,000 in capital costs incurred in Solano County are not CEMA-eligible. PG&E in its rebuttal testimony argues that the costs in its Application are justified.