Comments on Proposed Decision

The proposed decision of the Assigned Commissioner in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(d) and Rule 77.1 of the Rules of Practice and Procedure. Comments were received from CEC and UC, filing jointly, and PG&E, Sempra, BOE, SCGC, and The Utility Reform Network.

We have carefully considered the comments on the issues addressed in today's decision. In response to comments, we have modified the draft decision to clarify certain accounting and implementation instructions, and provided R&D definitions. We have also carefully considered parties' comments regarding the R&D program, and concluded that CEC should act as administrator, although we have not modified the R&D funding mechanism or oversight by this Commission.

Due Dates for AB 1002 Implementation Program

The following table summarizes certain dates and deadlines actions are to be undertaken on an ongoing basis. Refer to the discussion in the decision and ordering paragraphs for further details on the instructions to be followed.

Due Date:	Party responsible:	Action:
Quarterly	Energy Division	Disperse remittances deposited in the Fund to utilities less adjustments for Commission and BOE administrative costs, R&D funding and BOE refunds.
Quarterly	BOE	Provide Energy Division with copies of Natural Gas Surcharge Returns from utilities and consumers and identify amounts paid.
Quarterly	Utilities	Provide Energy Division and R&D Administrator copies of BOE returns showing amounts collected and remitted for R&D program funding.
Quarterly	Utilities	Provide Energy Division copies of BOE returns showing amounts collected and remitted for Commission and BOE administrative expenses.
March 31	R&D Administrator	Provide Energy Division with Annual Report on R&D activities and spending.
July 31 (except for program Year 2005)	R&D project developers	Provide descriptions of potential R&D projects to Energy Division and R&D Administrator for consideration in upcoming year.
August 31	BOE	Unless previously submitted, provide copies of Natural Gas Surcharge Returns for utilities and consumers showing gas volumes used to calculate remittances.
August 31 (except for program Year 2005)	R&D Administrator	Provide proposed annual R&D program to the Energy Division.
September 30	Energy Division	Obtain Commission and BOE costs for administering AB 1002 recoverable through the surcharge.
Prior to October 31	Energy Division	Provide utilities with allocation of R&D, Commission and BOE administrative costs, and interstate pipeline customer gas volumes used for setting surcharge rates.
October 31	Utilities	File ALs with proposed surcharge rates with requested effective date of January 1. Energy Division to promptly notify BOE of approved surcharge rates.
Annually	Utilities	Review customer accounts for collections received from exempt customers and issue refunds according to instructions discussed in decision.
Annually	Third Party Gas Storage	Submit customer lists to BOE and the Commission.