ALJ/DUG/hkr Mailed 1/12/07

Decision 07-01-003 January 11, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Joint Application of Southern California Edison Company and San Diego Gas & Electric Company for the 2005 Nuclear Decommissioning Cost Triennial Proceeding to Set Contribution Levels for the Companies' Nuclear Decommissioning Trust Funds and Address Other Related Decommissioning Issues.	Application 05-11-008 (Filed November 10, 2005)
Application of Pacific Gas and Electric Company in Its 2005 Nuclear Decommissioning Cost Triennial Proceeding.	Application 05-11-009 (Filed November 10, 2005)

(See Appendix A (Service List) for Appearances.)

FINAL OPINION
ON THE TRIENNIAL REVIEW OF NUCLEAR DECOMMISSIONING TRUSTS AND RELATED DECOMMISSIONING ACTIVITIES FOR SOUTHERN CALIFORNIA EDISON COMPANY, SAN DIEGO GAS & ELECTRIC COMPANY,
AND PACIFIC GAS AND ELECTRIC COMPANY

TABLE OF CONTENTS

Title Page

FINAL OPINION ON THE TRIENNIAL REVIEW OF NUCLEAR DECOMMISSIONING TRUSTS AND RELATED DECOMMISSIONING ACTIVITIES FOR SOUTHERN CALIFORNIA EDISON COMPANY, SAN DIEGO GAS & ELECTRIC COMPANY, AND PACIFIC GAS AND ELECTRIC COMPANY 22

I. Summary 22

II. Requests 22

A. Edison and SDG&E 22

B. PG&E 55

III. Procedural History 55

IV. Scope and Issues 66

V. Standard of Review 77

VI. Discussion of Settlements 88

A. Standard for Approval of a Settlement 88

B. Reasonable in Light of the Whole Record 99

C. Consistent With Law 1010

D. In the Public Interest 1010

E. Uncontested Settlement 1010

VII. Settlement Provisions 1111

A. Edison and SDG&E 1111

B. PG&E 1717

VIII. Independent Board of Consultants 1919

A. PG&E's Position 2020

B. Fielder's Position 2121

C. Discussion 2121

D. Conclusion 2525

IX. Waste Storage Facilities and Cost 2626

A. Discussion 2626

X. Contingency 2828

XI. PG&E's Settlement is Reasonable 2929

XII. Comments on Proposed Decision 2929

XIII. Assignment of the Proceedings 2929

Findings of Fact 3030

Conclusions of Law 3030

FINAL ORDER 3232

APPENDIX A: SERVICE LIST

APPENDIX B: SETTLEMENTS FOR NUCLEAR DECOMMISSIONING

FINAL OPINION
ON THE TRIENNIAL REVIEW OF NUCLEAR DECOMMISSIONING TRUSTS AND RELATED DECOMMISSIONING ACTIVITIES FOR SOUTHERN CALIFORNIA EDISON COMPANY, SAN DIEGO GAS & ELECTRIC COMPANY, AND PACIFIC GAS AND ELECTRIC COMPANY

I. Summary

This decision adopts an all-party settlement for Southern California Edison Company (Edison) and San Diego Gas & Electric Company (SDG&E) which resolves all issues in a Joint Application (A.) 05-11-008. We also adopt a separate settlement for Pacific Gas and Electric Company (PG&E) in A.05-11-009 which resolves all ratemaking issues exclusive of the issues litigated by PG&E and a customer-intervenor, Scott Fielder. We decline to create an Independent Board of Consultants to oversee or advise on the decommissioning of Humboldt Unit 3. We do, however, provide guidelines applicable to all three applicants concerning the necessity to ensure that the utilities employ sufficient well-trained and experienced personnel to plan and direct the complex task of decommissioning a retired nuclear generating facility. We do not adopt Fielder's proposals concerning the storage costs of radioactive waste materials or contingency factors. We do, however, direct the parties to perform in-depth analyses of storage costs and contingencies for the next triennial proceedings for all three utilities.