CRC/DKF/hl2 5/25/2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company To Revise Its Electric Marginal Costs, Revenue Allocation, and Rate Design. (U 39 M)

Application 06-03-005 (Filed March 2, 2006)

ASSIGNED COMMISSIONER'S RULING AND SCOPING MEMO

1. Summary

Pursuant to Article 2.5 of the Commission's Rules of Practice and Procedure (Rules), and following the prehearing conference (PHC) held on May 3, 2006, this ruling determines the scope, schedule, category, need for hearings, principal hearing officer, and other procedural matters related to this application, which is referred to as Phase 2 of Pacific Gas and Electric Company's (PG&E's) Test Year 2007 General Rate Case (GRC).