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ALJ/JSW/avs Date of Issuance 7/15/2011

Decision 11-07-004 July 14, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company Proposing Cost of Service and Rates for Gas Transmission and Storage Services for the period 2011-2014 (U39G).

Application 09-09-013

(Filed September 18, 2009)

(See Attachment A for List of Appearances)

DECISION ON THE SAFETY PHASE PROTOCOLS AND PROCEDURES ADOPTED FOR PACIFIC GAS AND ELECTRIC COMPANY

TABLE OF CONTENTS

Title Page

DECISION ON THE SAFETY PHASE PROTOCOLS AND PROCEDURES ADOPTED FOR PACIFIC GAS AND ELECTRIC COMPANY 22

Findings of Fact 2323

Conclusions of Law 2525

ORDER 2626

ATTACHMENT A - List of Appearances

DECISION ON THE SAFETY PHASE PROTOCOLS AND PROCEDURES ADOPTED FOR PACIFIC GAS AND ELECTRIC COMPANY

1. Summary

Today's decision addresses the issues raised by the safety phase portion of this proceeding. This safety phase was opened as a result of the September 9, 2010 San Bruno explosion and fire (San Bruno explosion). Since this proceeding addresses the natural gas transmission and gas storage facilities and operations of Pacific Gas and Electric Company (PG&E) for the period from 2011 through 2014, this decision requires PG&E to incorporate a series of actions into its existing protocols and procedures to avoid some of the problems that have been highlighted as a result of the San Bruno explosion, and to ensure the safety and reliability of PG&E's gas transmission and storage system during the period covered by this rate cycle and beyond.

Among other things, this decision does the following: (1) formalizes the requirement that PG&E offer maps of the gas transmission lines, gas storage facilities, and associated shut-off valves to all of the fire departments and agencies in PG&E's service territory; (2) incorporates into PG&E's existing public safety and training efforts: (a) additional information about PG&E's gas transmission locations, gas operations, and shut-off valve information; (b) how to recognize or detect natural gas leaks in the absence of a fire; (c) evacuation procedures for a natural gas leak or fire; and (d) how best to coordinate PG&E's emergency response efforts with the responding fire departments or agencies; (3) incorporates additional procedures into PG&E's existing dispatch procedures; (4) requires PG&E to provide the inspection records of its gas transmission and gas storage shut-off valves; (5) requires PG&E to send annual bill insert information to its customers about the precautions to take before digging or excavating so as to avoid damage to gas pipelines, and where to call in the event the odor of natural gas is detected; and (6) requires PG&E to expand its customer outreach activities to promote awareness of the general locations, and to promote confidence in the safety, of the gas transmission facilities located in urban and high consequence areas.

Today's decision builds on other actions this Commission has ordered PG&E to take to ensure the safety of PG&E's facilities and operations. In addition, the Commission has opened Rulemaking 11-02-019 to address natural gas safety issues on a statewide basis, Investigation (I.) 11-02-016 to look into PG&E's recordkeeping policies and practices, and I.10-11-013 into the December 24, 2008 gas explosion in Rancho Cordova. The Commission also approved the formation of the Independent Review Panel to gather and review the facts of the San Bruno explosion, and to make recommendations to improve the safe management and operation of PG&E's gas transmission lines. The release of the Independent Review Panel's report was announced on June 9, 2011. The Commission is also waiting for the report of the National Transportation Safety Board before deciding if additional actions should be taken.

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