VIII. SERVICE BY ELECTRONIC MAIL

Pursuant to Rule 2.3(a) and Rule 2.3.1 of the Commission's Rules of Practice and Procedure, service of all documents is to be made by electronic means and will be used in lieu of paper mail where an electronic address has been provided. The assigned Administrative Law Judge and Commissioner are to be served electronically at xjv@cpuc.ca.gov and ___@cpuc.ca.gov. Any party on the service list who has not provided an electronic mail address shall serve and take service by way of paper mail. Service by mail is described in Rule 2.3(a).

Therefore, IT IS ORDERED that:

1. A rulemaking is initiated on the Commission's own motion to consider whether new, additional rules and regulations should be adopted to ensure that the California energy utilities retain sufficient capital and the ability to access such capital in order to meet their customers' needs, and to address the potential conflicts between the utilities' ratepayers' interests and the parent holding companies' and affiliates' interests in order to ensure that these conflicts do not undermine the utilities' ability to meet their public service obligations at the lowest possible cost.

2. California's largest natural gas and electric utilities, Southern California Gas Company, San Diego Gas & Electric Company, Pacific Gas and Electric Company, and Southern California Edison Company and each of their parent holding companies, Sempra Energy, PG&E Corporation and Edison International are made respondents to this proceeding.

3. The Executive Director shall cause this Order Instituting Rulemaking (OIR) to be served on respondents and on the service list for Investigation (I.) 01-04-002.

4. An initial service list for this proceeding shall be created by the Process Office and posted on the Commission's website ( www.cpuc.ca.gov) as soon as it is practicable. We direct the Process Office to add all respondents to the service list as appearances. Other persons or entities who wish to be placed on the new service list shall follow the directions below.

(a) Appearance category. Those, other than respondents, who wish to participate in this proceeding as a party must contact the assigned administrative law judge in writing, by email (xjv@cpuc.ca.gov) or at CPUC, 505 Van Ness Ave., San Francisco, CA 94102 and describe their interest in the proceeding, indicate how the person or entity intends to participate, and list all relevant contact information (name; person or entity represented; mailing address; telephone number; email address).

(b) Information only category or state service category. Those who intend only to monitor this proceeding, must contact the Commission's Process Office in writing, by email at (Process_Office@cpuc.ca.gov) or at CPUC, Process Office, 505 Van Ness Ave., San Francisco, CA, 94102), specify the service category desired and list the same contact information detailed in Ordering Paragraph 4(a).

5. The category of this rulemaking is preliminarily determined to be "quasi-legislative" as that term is defined in Rule 5(d) of the Commission's Rules of Practice and Procedure.

6. Respondents shall file reports including 2006-2010 projected capital budgets by November 30, 2005 with the Chief Administrative Law Judge (three copies), the General Counsel (two copies), the Director of the Energy Division and the Director of the Office of Ratepayer Advocates. Respondents may request that these reports shall be considered confidential information submitted under Public Utilities Code Section 583.

7. This filing deadline and the schedule under section V are preliminarily approved and adopted, but may be changed, if necessary, by an Assigned Commissioner Ruling or an ALJ Ruling.

This order is effective today.

Dated ____________________ 2005, at San Francisco, California.