C. Procedural History

Notice of this application appeared in the Commission's Daily Calendar on October 25, 2006. There were no protests. PG&E filed a timely response indicating that it did not oppose the application. The Commission preliminarily categorized the application as ratesetting in Resolution ALJ 176-3182, dated November 9, 2006. There was no scoping ruling to confirm the categorization as ratesetting, and the determination that no hearings were needed. This decision affirms the initial categorization and that hearings are not required. The record in this proceeding is composed of all documents filed and served on parties.