8. Assignment of Proceeding

John A. Bohn is the assigned Commissioner and David M. Gamson is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. PG&E incurred capital costs and expenses from Wildland Fires in northern California between May and October 2008.

2. The Governor of California and/or the President of the United States declared disasters related to Wildland Fires in nine counties in PG&E's service territory in 2008.

3. PG&E and DRA entered into a Settlement on August 29, 2009 to allow total costs recoverable of $11.09 million, consisting of $8.01 million in capital costs and $3.08 million in expenses. The revenue requirement resulting from these costs is $5.92 million in electric revenue requirements, including interest through December 31, 2010, franchise fees, and uncollectibles, to be recovered in rates in 2010, with any under or over collections of these amounts accruing to the associated balancing accounts.

4. The Settling Parties comprise all active parties. The Settling Parties represent all affected interests.

5. The settlement conveys to the Commission sufficient information to permit it to discharge its future regulatory obligations with respect to the parties and their interests.

Conclusions of Law

1. Some or all of the capital costs and expenses incurred by PG&E from Wildland Fires in northern California between May and October 2008 are eligible for recovery through the Catastrophic Events Memorandum Account mechanism, consistent with § 454.9 of the Pub. Util. Code.

2. No statutory provision or prior Commission decision would be contravened or compromised by the Settlement. The Settlement does not allow recovery of costs for any counties that were not part of a disaster as declared by a competent State or Federal authority.

3. The Settlement is reasonable in light of the whole record, consistent with applicable statutes and Commission precedents, and in the public interest. The Settlement should be approved.

ORDER

IT IS ORDERED that:

1. The Joint Motion of Pacific Gas and Electric Company and the Division of Ratepayer Advocates for approval of the Settlement Agreement (attached as Appendix A of this decision) is approved.

2. Pacific Gas and Electric Company is authorized to recover $5.92 million in electric revenue requirements, including interest through December 21, 2010, franchise fees, and uncollectibles, to be recovered in rates in 2010, with any over-or under-collections of these amounts accruing to the associated balancing accounts. Pacific Gas and Electric Company is authorized to record these amounts for the Catastrophic Event Memorandum Account revenue requirement into the Distribution Revenue Adjustment Mechanism for rate recovery through its next available electric rate change in 2010 and through the Annual Electric True-up advice letter.

3. Application 09-02-020 is closed.

This order is effective today.

Dated October 29, 2009, at San Francisco, California.

Commissioners

APPENDIX A

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