4. Schedule

Prior to the PHC, PG&E developed a proposed procedural schedule based on a meet and confer session with many of the other parties.¹ That proposal, with minor modifications, will be used for this proceeding. At the PHC, PG&E indicated there was some flexibility in the evidentiary hearing and briefing dates for the proposed agricultural definition issue schedule. Also the representative for the California Rice Millers stated a preference for more time to prepare its related testimony. Therefore, the separate schedule for the agricultural definition issue will be extended by an additional two weeks as indicated in the adopted schedule in Appendix A.

Appendix A also provides the procedural schedule to address the remaining marginal cost, revenue allocation, and rate design testimony and issues. Additional time for briefing, as discussed at the PHC, has been incorporated in that schedule.

Consistent with the procedures adopted for A.05-12-002, PG&E shall arrange the mandatory settlement conference. The arrangements shall include the ability for parties to participate by telephone.

All parties that submit written testimony and/or intend to cross examine witnesses at the evidentiary hearings that are scheduled to begin on December 4, 2006 shall jointly prepare a Case Management Statement and Settlement Conference Report. PG&E shall file and serve this document on behalf of the parties. The contents of this document shall include:

· A report on the results of the Mandatory Settlement Conference.

· The status of any ongoing settlement discussions.

· The order of witnesses and cross examination at the evidentiary hearings.

· Any other matters that the parties deem relevant.

The parties are encouraged to settle as many issues as possible. At a minimum, the parties should try to reach a joint stipulation on material facts.

The scheduled evidentiary hearings will take place in San Francisco. Requests for the Assigned Commissioner's presence at specific hearings should be made in accordance with Rule 8(c) at least 10 days prior to the beginning of the evidentiary hearings.

The Assigned Commissioner or Administrative Law Judge (ALJ) may modify the schedule as necessary. The goal is to resolve this matter as soon as possible after it is submitted. However, in no event will resolution exceed 18 months from the date of this scoping memo, pursuant to the requirements of Public Utilities Code Section 1701.5.

¹ PG&E indicates that the proposed schedule reflects input and agreement from Division of Ratepayer Advocates, California Manufacturers & Technology Association, California Large Energy Consumers Association, California City-County Street Light Association, California Farm Bureau Federation, Cogeneration Association of California/Energy Producers and Users Coalition, East Bay Municipal Utility District, Energy Users Forum, Federal Executive Agencies, JC Penny Company, Inc., Modesto Irrigation District, Utility Cost Management Wal-Mart Stores, Inc., and Western Mobilehome Association.