ALJ/RAB/lil Date of Issuance 8/16/2010

Decision 10-08-003 August 12, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Approval of Ratepayer Funding to Perform Additional Seismic Studies Recommended by the California Energy Commission. (U39E.)

Application 10-01-014 (Filed January 15, 2010)

DECISION GRANTING THE APPLICATION

1. Summary

Pacific Gas and Electric Company (PG&E) requests approval of funding to perform additional seismic studies in the area at and around the Diablo Canyon Power Plant recommended by the California Energy Commission (CEC) in the CEC's November 2008 report titled, "An Assessment of California's Nuclear Power Plants: AB 1632 Report" (AB 1632 Report). Specifically, PG&E requests the Commission (1) find that PG&E should proceed with the CEC-recommended additional seismic studies, and (2) authorize PG&E to establish a new balancing account to record and recover in rates the actual costs of those seismic studies, estimated at approximately $16.73 million. We grant the application.