IV. PRELIMINARY SCOPING MEMO

Rule 6(c)(2) of our Rules of Practice and Procedure⁶ provides that an OIR "shall preliminarily determine the category and need for hearing, and shall attach a preliminary scoping memo." This OIR is preliminarily determined to be quasi-legislative, as that term is defined in Rule 5(d). It is contemplated that this proceeding will be conducted through a written record, with no evidentiary hearing for this phase, and that an order will issue based on the comments timely filed in this docket.

The scope of this OIR is to adopt rules which will supplement, but not supplant, the existing rules and other requirements or conditions involving the above-mentioned utilities and their holding companies or affiliates. Any proposed rules should help ensure that the utilities will have sufficient capital budgets to meet their customers' needs and to mitigate potential conflicts of interest in the holding company structure that could undermine their fulfillment of their public service obligations to provide the lowest cost service to their customers. In addition, any proposed rules should preclude the utilities from anti-competitive conduct in favor of their holding companies or affiliates to the detriment of the competitors of their holding companies or affiliates.

In accordance with Rule 6.3 and 6(c)(2) we provide a preliminary schedule.

⁶ Title 20 California Code of Regulations.