ALJ/TRP/avs Date of Issuance 12/5/2008

Decision 08-12-009 December 4, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company and PG&E Corporation for Limited Exemption from Rule V.E of the Commission's Affiliate Transaction Rules. (U39M)

Application 08-07-014 (Filed July 9, 2008)

DECISION EXTENDING THE TEMPORARY AUTHORIZATION

FOR WAIVER FROM AFFILIATE TRANSACTION RULE V.E.

On July 9, 2008, Pacific Gas and Electric Company (PG&E) and PG&E Corporation (Applicants)¹ filed an application for a limited exemption from Rule V.E of the Commission's Affiliate Transaction Rules, which precluded the sharing of "key officers" by the utility and the holding company. Applicants sought the limited exemption to allow Peter A. Darbee, PG&E Corporation President and Chief Executive Officer (CEO), to serve also as President and CEO of the PG&E public utility company, while Applicants continue to share regulatory affairs, lobbying and legal services. Applicants asked that the exemption continue as long as PG&E Corporation does not have significant non-Commission-regulated subsidiaries.

Applicants concurrently filed a motion for a temporary waiver of Rule V.E., in order to allow Darbee to serve as President and CEO of both companies from September 1, 2008, until the date of a final Commission decision on the application.

In Decision (D.) 08-09-013 (Decision), Applicants were granted a temporary waiver of Rule V.E of the Commission's Affiliate Transaction Rules, subject to the conditions as set forth in the Decision. The Commission granted the temporary waiver of Rule V.E, for a limited period not to exceed 120 days from the effective date of D.08-09-013, or upon the adoption of a final decision on this application, whichever occurs sooner.

Subsequent to the issuance of D.08-09-013, the assigned Commissioner granted joint requests of the active parties for extensions in the schedule to provide additional time for parties to prepare testimony. As a condition of supporting the request for the schedule extensions, because the extensions in the schedule that were granted preclude the issuance of a final decision in this application within 120 days of the effective date of D.08-09-013, the active parties agreed that an extension in the temporary waiver was appropriate.

Accordingly, in view of the extensions in the procedural schedule that have been authorized, it is appropriate to extend the duration of the temporary waiver from Rule V.E. to continue until a final decision on the application is issued.

Comments on Proposed Decision

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Section 311(g)(2) of the Pub. Util. Code and Rule 14.6(c)(2) of the Commission's Rules of Practice and Procedure, the otherwise applicable 30-day period for public review and comment is waived.

¹ PG&E is an operating public utility organized under the laws of the State of California, and is engaged principally in the business of furnishing gas and electric service in California. PG&E Corporation is a holding company organized under the laws of the State of California, whose principal business is the ownership of the common stock of PG&E.