Results of Public Agenda 3112

Meeting Held on Thursday, May 8, 2003 10:00 a.m.

San Francisco, California

Michael R. Peevey, President

Geoffrey F. Brown

Susan P. Kennedy

Loretta M. Lynch

Carl W. Wood

Scheduled Commission Meetings

505 Van Ness Avenue, San Francisco

Ratesetting Deliberative Meeting*

Room 5305

(1:30 p.m.)

Closed to the Public

Commission Meeting

Auditorium

(10 a.m.)

Open to the Public

Monday, May 19, 2003 (San

Francisco)

Thursday, May 22, 2003 (San

Francisco )

Thursday, June 05, 2003 (San

Francisco)

Monday, June 02, 2003 (San

Francisco)

Thursday, June 19, 2003 (San

Francisco)

Monday, June 16, 2003 (San

Francisco)

Monday, July 07, 2003 (San

Francisco)

Thursday, July 10, 2003 (San

Francisco)

Monday, August 18, 2003 (San

Francisco)

Thursday, August 21, 2003 (San

Francisco)

*Ratesetting Deliberative Meeting dates are reserved as noted but will be held only if there are ratesetting matters to be

considered and a Commissioner has requested that a Ratesetting Deliberative Meeting be held.

This location is accessible to people with disabilities.  If specialized accommodations for the disabled

are needed, e.g. sign language interpreters, please call the Public Advisor at (415) 703-2074 or TTY#

(415) 703-5282 or toll free # 1-866-836-7825 three business days in advance of the meeting.

The following items are not subject to public comment:

· All items on the closed session agenda; these are HEX and EX items.

·

CA-1

1896

Resolution approving issuance of charter-party carrier certificates pursuant to Section 5374(b) of the

Public Utilities Code.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-2

1897

Ratification of preliminary determination of category for proceedings initiated by application. The

preliminary determinations are pursuant to Article 2.5, Rules 4 and 6.1 of the Commission's Rules of

Practice and Procedure.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-3

1877

R02-08-002 - Order Instituting Rulemaking on the Commission’s own motion to examine

whether the regulations regarding prearrangement of charter-party transportation contained

in General Order 157-C should be revised.

This Rulemaking is discontinued because the Commission has determined that changes to G.O. 157-C

are not needed at this time. This proceeding is closed.

(Comr Kennedy - ALJ Rosenthal)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

CA-4

1966

This decision approves a settlement agreement between SCWD and the City of Santa Monica (City)

that conveys water rights to the City.  This proceeding is closed.

(Comr Kennedy - ALJ Evans)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-5

1986

For approval of its Updated Water Management Programs as ordered in Commission Resolution

W-4254 dated August 5, 1999.   The Commission concludes that no good cause has been shown to

modify D01-11-048, which approved Valencia's 1999 Water Management Program and authorized

certain extensions to its service area.  Sierra Club’s petition to modify D01-11-048 is denied.  This

proceeding is closed.

(Comr Brown - ALJ Patrick)

Held (5/22/03, Consent Agenda.  For analysis of the impact of a recent

court decision.)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

CA-6

2020

For approval of update to top 100 hours allocation methodology for ongoing transition costs.   This

decision closes the proceeding with the concurrence of active parties to a petition to modify

D00-06-034.

(Comr Kennedy - ALJ Malcolm)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-7

2029

For authority to continue Low Income Assistance Programs and Funding through 2000. A99-07-004,

A99-07-011, A99-07-012 - Related matters.     This decision closes the proceedings in recognition

that all outstanding issues were addressed by D00-07-020.

(Comr Wood - ALJ Gottstein)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-8

2038

A03-01-006 - Teleglobe USA Inc. (Old Teleglobe), Teleglobe USA LLC (New Teleglobe),

and TLGB Corporation (TLGB).

This decision approves the joint application of Old Teleglobe, New Teleglobe, and TLGB, for transfer

of the assets and certificate of public convenience and necessity of Old Teleglobe to New Teleglobe,

and the subsequent transfer of New Teleglobe to TLGB.  This proceeding is closed.

(Comr Lynch - ALJ O'Donnell)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-9

2056

I02-06-002 - Related matters.    This decision authorizes SCE to establish a memorandum account to

track the base rate revenue requirement that it has requested in this application during the period

between May 22, 2003 and the date a final decision on that request is adopted in this proceeding.

SCE is also authorized to establish related rate recovery provisions.

(Comr Wood - ALJ Wetzell)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

CA-10

2061

This decision grants Applicant a certificate of public convenience and necessity to provide limited

facilities-based local exchange telecommunications service.  This proceeding is closed.

(Comr Lynch - ALJ O'Donnell)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-11

2066

This decision extends the 12-month statutory deadline pursuant to Public Utilities Code Section

1701.2(d), effective immediately, until further notice.

(Comr Kennedy - ALJ Maloney)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-12

2067

This decision grants Applicant a certificate of public convenience and necessity under Pub. Util. Code

§ 1001 for authority to provide resold local exchange telecommunications services.   This proceeding

is closed.

(Comr Peevey - ALJ Bemesderfer)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-13

2069

C02-12-022 - George E. Penington (Penington) vs. San Diego Gas and Electric Company

(SDG&E).

This decision denies the complaint, finding that Penington is not entitled to a refund of $6,354.00 paid

SDG&E to extend natural gas service to two residential buildings because SDG&E has charged

Penington correctly for the service extension under its tariff.  This proceeding is closed.

(Comr Wood - ALJ Vieth)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-14

2071

For authority to establish its authorized rates of return on common equity for electric utility operations

and gas distribution for test year 2003.   A02-05-025, A02-05-026, A02-05-031 - Related matters.

This decision exempts PG&E from filing a 2004 test year cost of capital application.  This proceeding

remains open.

(Comr Brown, Comr Peevey - ALJ Galvin)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

CA-15

2073

This resolution approves the request by PG&E for meter data set up and access charges for customers

who arrange for an interval meter installation on a voluntary basis. (Advice Letter (AL) 2197-E, filed

February 15, 2002, and AL 2197-E-A, filed July 2, 2002)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-16

2076

This decision grants Applicant a certificate of public convenience and necessity under Pub. Util. Code

§ 1001 for authority to provide resold local exchange and interexchange telecommunications services.

This proceeding is closed.

(Comr Peevey - ALJ Bemesderfer)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-17

2077

This decision grants the request of the City to construct the Pierson Reach Bike Path at separated

grade below the tracks and trestle of the Northwestern Pacific Railroad Authority in the City of Santa

Rosa, in Sonoma County. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-18

2078

This decision grants the request of the County for authority to widen the Lafayette Overhead, in the

City of Santa Clara, County of Santa Clara. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-19

2079

This decision authorizes ACTA to construct a new grade separation of Pacific Coast Highway over the

ACTA main tracks and the former Southern Pacific Transportation Company San Pedro Branch. This

decision constitutes permission for ACTA to construct this grade separation in accordance with the

latest revision of the plans filed with the Commission as part of ACTA’s supplemented and amended

application, and is subject to the conditions set forth in the Order.  This proceeding is closed.

(Comr Peevey - ALJ Ryerson)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-20

2082

For an order implementing Assembly Bill 265.  A01-01-044 - Related matters.    This decision finds

that Aglet Consumer Alliance, The Utility Reform Network, and The Utility Consumer Action

Network contributed substantially to D02-12-064, and awards them compensation of $15,859.92,

$5,889.02, and $36,063.30, respectively for their participation.

(Comr Wood - ALJ Wetzell)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-21

2083

For a permit to construct the Atlantic-Del Mar Reinforcement Project pursuant to General Order

131-D.     This decision modifies D03-02-007 and approves the Addendum to the Final Mitigated

Negative Declaration.  This proceeding is closed.

(Comr Kennedy - ALJ Cooke)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-22

2084

Applicant filed this application for a certificate of public convenience and necessity to provide

facilities-based and resold local exchange and interexchange telecommunications services.  By

D02-09-012, Applicant was granted authority to provide limited facilities-based and resold local

exchange and interexchange services.   The application was left open to address its proposed

construction pursuant to the California Environmental Quality Act.  Applicant has since decided not to

construct facilities at this time, except to the extent previously authorized.  At the request of Applicant,

the Commission closes this application.  This proceeding is closed.

(Comr Lynch - ALJ O'Donnell)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-23

2089

The Commission grants SCE authority to lease available land under Pub. Util. Code § 851.  The SCE

property consists of a 2.28-acre site located on a portion of SCE’s El Nido-Sepulveda-Culver

transmission right of way in the City of Hawthorne. This proceeding is closed.

(Comr Kennedy - ALJ Bemesderfer)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-24

2091

This decision grants Applicant a certificate of public convenience and necessity to provide limited

facilities-based and resold local exchange and interexchange telecommunications services. This

proceeding is closed.

(Comr Brown - ALJ O'Donnell)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-25

2093

The decision grants Gregory J. Phelps authority to establish a zone of rate freedom. This proceeding is

closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-26

2094

A02-12-041 - Related matters.    This decision authorizes Bart Mulvihill to extend his scheduled

passenger stage corporation to include service between Calabasas, Malibu, Agoura Hills and

Thousand Oaks, on the one hand , and Los Angeles International Airport, on the other hand. This

proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-27

2095

This decision authorizes Applicant to operate as a passenger stage corporation between points in

Orange County and John Wayne Airport. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-28

2096

This decision authorizes Applicant to operate a passenger stage corporation between the Counties of

San Francisco, Alameda, Contra Costa, Santa Clara, Solano, Marin, and San Mateo and the

International Airports of San Francisco, Oakland, and San Jose. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-29

2103

This decision authorizes Applicant to extend its non-scheduled vessel common carrier service between

points at and within three miles offshore of Avalon, Santa Catalina Island. This proceeding is closed.

(ALJ Rosenthal)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

CA-30

2122

Pub. Util. Code § 1701.2(d) provides that adjudicatory cases shall be resolved within 12 months of

initiation unless the Commission makes findings why that deadline cannot be met and issues an order

extending that deadline.  In this proceeding, the 12-month deadline for resolving this matter is

November 5, 2003.  This decision extends the deadline at the request of all parties, in order to allow

adequate time for discovery and preparation for the evidentiary hearings in this matter, commensurate

with the complexity and importance of the issues in the case.

(Comr Brown - ALJ Simon)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-31

2127

A02-07-036 - Advanced TelCom, Inc. dba Advanced TelCom Group (ATG), aka Delaware

Advanced TelCom, Inc. and GE Business Productivity Solutions, Inc. (GEBPS).

This decision grants petition for modification of D02-10-049, regarding the transfer of control from

ATG to GEBPS.  This proceeding is closed.

(Comr Peevey - ALJ Evans)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-32

2134

This decision grants Hillview the authority to secure an additional planning loan in the amount not to

exceed $76,327.77 under the Safe Drinking Water State Revolving Fund. This proceeding is closed.

(Exam Jackson)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-33

2136

This resolution grants MUNI authority to deviate from certain overhead clearance requirements of

General Order 26-D where its proposed Third Street Line tracks would cross tracks of conventional

railroads.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-34

2137

This decision grants PBLCA authority to construct a private at-grade highway-rail crossing of the Los

Angeles to Pasadena Metro Gold Line (formerly Pasadena Metro Blue Line) at the power plant

owned by City of Pasadena Water & Power Department. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-35

2138

This decision grants VTA authority to relocate its existing heavy rail tracks operated on by Union

Pacific Railroad, at Hamilton Avenue in Campbell, Santa Clara County. This project is in conjunction

with VTA's Vasona light rail line extension. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-36

(Rev.)

2139

Res W-4391 - Alisal Water Corporation (ALCO), Normco Division (Normco) and Moss

Landing Division (MLD).

This resolution authorizes a surcharge to recover an increase in water testing costs producing an

increase in annual revenue for Normco of $47,121 or 24.4% and for MLD of $16,810 or 14.5%.

(Advice Letter 90, filed December 11, 2002)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-37

2140

This resolution authorizes a surcharge to recover under-collection in the balancing account producing

additional annual revenues of $1,279,996 or 9.51% for this district. (Advice Letter 1537, filed

February 4, 2003)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-38

2141

Res W-4393 - California Water Service Company (Livermore, Los Altos-Suburban, Chico,

Hermosa-Redondo, Bear Gulch, Selma, and Marysville Districts).

This resolution authorizes surcharges in each district of Livermore, Los Altos-Suburban, Chico,

Hermosa-Redondo, Bear Gulch, Selma, and Marysville to recover under-collections in purchased

water and purchased power balancing accounts producing additional annual revenues of $4,212,967

or 4.2% for those combined districts. (Advice Letters 1525, 1526, 1527, 1528, 1529, 1533, and

1534, filed between December 18, 2002 and January 2, 2003)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-39

(Rev.)

2142

This resolution authorizes a one-time surcharge to recover an increase in water testing costs and

Department of Health Services fees producing an increase in annual revenue of $5,121 or 3.2%.

(Advice Letter 44, filed February 24, 2003)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-40

2143

This resolution authorizes a rate base offset and a cost of living rate increase producing additional

annual revenue of $16,304 or 13.44% in 2003.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-41

2144

This resolution authorizes a one-time surcharge to recover an increase in water testing costs and

Department of Health Services fees producing an increase in annual revenue of $1,522 or 0.56%.

(Advice Letter 63, filed March 3, 2003)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-42

2145

This resolution authorizes a purchase power and cost of living rate increase producing additional annual

revenue of $9,493 or 16.9% in 2003. (Advice Letter 31, filed November 19, 2002)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-43

2152

R93-04-003 - Rulemaking on the Commission’s own motion to govern open access to

bottleneck services and establish a framework for network architecture development of

dominant carrier frameworks.

I93-04-002, R95-04-043, I95-04-044 - Related matters.    This decision grants The Utility Reform

Network an award of $84,104.84 in compensation for substantial contributions to D02-09-050 and

D02-12-081.  Those decisions paved the way for SBC Pacific Bell to begin long distance service in

California.

(Comr Brown - ALJ Reed)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-44

2153

This decision grants the request of the CCSF for authority to construct 18 at-grade crossings along 3rd

Street, in the City and County of San Francisco. This proceeding is closed.

(Exam Clark)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-45

2155

For revision of its electrical marginal costs, revenue allocation and rates at the end of the rate freeze.

This decision grants The Utility Reform Network $83,780.68 for its contributions to D03-01-012.

This proceeding is closed.

(Comr Lynch - ALJ Mattson)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CA-46

(Rev.)

2072

For an order authorizing it to increase general rates charged for water service in order to realize

increased annual revenues of $2,496,685 in Test Year 2003, $143,286 in Test Year 2004, and

$43,439 in Attrition Year 2005, to apply a surcharge calculated to generate a further $614,737 in

Year 2003 revenues, to establish a low income ratepayer assistance program, and to make further

changes and additions to its tariff for water service.   This decision approves settlement agreement

between Valencia and the Office of Ratepayer Advocates after addressing all issues raised by Sierra

Club. This proceeding is closed.

(Comr Brown - ALJ Bushey)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

H-1

1500

This decision approves the arbitrated interconnection agreement filed by Pacific and Pac-West

Telecomm, Inc., under Rule 4.2 of the Commission's revised rules governing filings made pursuant to

the Telecommunications Act of 1996, pursuant to Subsection 252(e) of that Act.  This proceeding is

closed.

(Comr Wood - ALJ Ryerson)

(Agenda 3103, Item 11 12/17/2002 (Brown); Agenda 3105, Item H-8 1/16/2003 (Brown);

Agenda 3107, Item H-8 2/13/2003 (Peevey); Agenda 3108, Item H-8 2/27/2003

(Kennedy); Agenda 3109, Item H-6 3/13/2003 (Kennedy); Agenda 3110, Item H-2

4/3/2003 (Peevey); Agenda 3111, Item H-1 4/17/2003 (Wood))

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-1a

1798

This alternate decision approves with modification the arbitrated interconnection agreement between

SBC-California and Pac-West Telecomm, Inc. Issue number 14 of the Final Arbitrator's Report is

modified to comport with prior Commission decisions, such that transport charges are applicable to

VNXX traffic terminating outside of the originating local calling area.

(Comr Brown)

(Agenda 3108, Item H-8a 2/27/2003 (Kennedy); Agenda 3109, Item H-6a 3/13/2003

(Kennedy); Agenda 3110, Item H-2a 4/3/2003 (Peevey); Agenda 3111, Item H-1a

4/17/2003 (Wood))

Yes: (Brown, Kennedy, Wood)

No: (Lynch, Peevey)

Abstain: (none)

Absent: (none)

H-2

1836

PG&E seeks authorization pursuant to Pub. Util. Code §§ 367(b) and 851, to market value by sale

certain generation-related parcels of land in Rodeo, Martinez, and Antioch.  The Commission

concludes that the application is barred under § 377 and the application is dismissed without prejudice.

This proceeding is closed.

(Comr Lynch - ALJ Patrick)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-3

1838

PG&E seeks authorization pursuant to Pub. Util. Code §§ 367(b) and 851, to market value by sale a

generation-related property at Bridgehead Road in Antioch.  The Commission concludes that the

application is barred under § 377 and the application is dismissed without prejudice. This proceeding is

closed.

(Comr Lynch - ALJ Patrick)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-4

1914

For a certificate of public convenience and necessity for a 500kV Inter-Connect Project known as

Valley-Rainbow.     This decision denies SDG&E's Petition to Modify D02-12-066.

(Comr Kennedy - ALJ Cooke)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-5

1970

This decision approves the arbitrated interconnection agreement (ICA) filed by Verizon and Pac-West

Telecomm, Inc., under Rule 4.2 of the Commission's revised rules governing filings made pursuant to

the Telecommunications Act of 1996, pursuant to Subsection 252(e) of the Act.  The Commission

finds that the ICA does not violate the requirements of Section 251 of that Act, the Federal

Communications Commission’s implementing regulations therefor, or the pricing standards set forth in

Subsection 252(d) of the Act.  This proceeding is closed.

(Comr Brown - ALJ Ryerson)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-5a

1983

This decision approves with modification the arbitrated interconnection agreement filed by Verizon and

Pac-West Telecomm.  Issue number 3 of the Final Arbitrator's Report is modified to comport with

prior Commission decision, such that transport charges are applicable to VNXX traffic terminating

outside of the originating local calling area.

(Comr Brown)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-6

2023

R01-10-024 - Order Instituting Rulemaking to establish policies and cost recovery

mechanisms for generation procurement and renewable resource development.

This draft decision grants in part Southern California Edison Company’s (SCE) February 3, 2003

Petition for Modification of D02-12-074.   In all other respects, SCE’s petition is denied.

(Comr Peevey - ALJ Walwyn)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-6a

2057

This alternate order applies the disallowance cap to a different amount of procurement costs than the

administrative law judge's draft decision.

(Comr Peevey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

H-7

2054

For authority to increase rates in San Bernardino, Placer, El Dorado, and Nevada Counties. Interim

Opinion authorizing Southwest to establish a memorandum account to record margin revenue shortfalls

due to delay in the proceeding.

(Comr Peevey - ALJ DeBerry)

Signed (Comr. Brown reserves the right to join Comr. Lynch's dissent.

Comr. Lynch reserves the right to file a dissent.)

Yes: (Kennedy, Peevey, Wood)

No: (Brown, Lynch)

Abstain: (none)

Absent: (none)

H-7a

2151

Using the same rationale described in the ALJ's decision, this alternate finds it reasonable to grant an

earlier effective date for establishment of a memorandum account to record revenue shortfalls.

(Comr Peevey)

Yes: (Kennedy, Peevey)

No: (Brown, Lynch, Wood)

Abstain: (none)

Absent: (none)

1

1878

I00-11-001 - Order Instituting Investigation into implementation of Assembly Bill 970

regarding the identification of electric transmission and distribution constraints, actions to

resolve those constraints, and related matters affecting the reliability of electric supply.

A01-04-012 - Related matters.   This decision considers the economic need of upgrades to Path 15,

the major transmission interface between northern and southern California.  Based on the record in this

proceeding, the Commission finds that the proposed upgrades are not cost-effective to ratepayers.

This evaluation considers the project on a "stand-alone" basis--i.e., without considering the

participation of PG&E and other entities in the project.  The Commission will be examining the

proposed ratemaking treatment for project costs, as well as the allocation of project benefits and costs

among project participants in further evidentiary hearings.  The Commission will also consider at that

time any updates to the estimated project costs.  The Commission may revisit today's findings if that

information changes the project economics significantly.

(Comr Lynch - ALJ Gottstein)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

1a (Rev.)

1879

A01-04-012 - Related matters.   This alternate decision differs from the proposed decision of the

administrative law judge in that it finds the proposed improvements to the Path 15 transmission system

to be economic, and approves the construction of the Path 15 project.

(Comr Lynch)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

2

1969

This decision permits SCE to recover approximately $20,000,000 in costs accruing prior to August

31, 2001, in four accounts.  It finds that the release of claims by SCE in the Settlement Agreement

between SCE and this Commission did not release the claims which are the subject of this decision.

This proceeding is closed.

(Comr Brown - ALJ Barnett)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

3

1987

The Commission adopts PG&E’s estimate of $65.1 million for the future decommissioning and site

remediation of Hunters Point Power Plant for inclusion in the Transition Cost Balancing Account.  This

proceeding is closed.

(Comr Brown - ALJ Patrick)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

4

2016

A01-11-017 - DSLnet Communications, LLC. (DSLnet) and VantagePoint Venture Partners

(VPVP).

This decision approves, on a prospective basis, the indirect transfer of control of DSLnet to VPVP.

Retroactive approval of the indirect transfer of control is denied.  DSLnet and VPVP are fined $5,000

for failure to obtain prior Commission approval for this transfer of control, as required by Pub. Util.

Code § 854(a).  This proceeding is closed.

(Comr Kennedy - ALJ Duda)

Yes: (Brown, Kennedy, Lynch, Peevey)

No: (Wood)

Abstain: (none)

Absent: (none)

5

2032

For verification, consolidation, and approval of costs and revenues in the Transition Revenue Account.

This decision orders PG&E and Southern California Edison (SCE) to implement bottoms-up billing for

Direct Access customers.  The utilities bill only for distribution and transmission service.  This decision

finds reasonable the Direct Access credit method used by PG&E and SCE since the demise of the

Power Exchange.

(Comr Wood - ALJ Barnett)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

6

2068

R02-06-001 - Order Instituting Rulemaking on policies and practices for advanced metering,

demand response, and dynamic pricing.

This decision addresses the interagency vision for advancing statewide demand response goals, links

the task of meeting those goals with utility procurement requirements, and adopts an initial set of

voluntary tariffs and programs for large customers whose electricity usage exceeds 200 kW per month.

The decision also sets annual megawatt targets to be met through demand response and included in

IOU procurement plans.

(Comr Peevey - ALJ Carew)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

7

2070

R02-01-011 - Order Instituting Rulemaking regarding the implementation of the suspension

of direct access pursuant to Assembly Bill 1X and Decision 01-09-060.

This decision adopts rules regarding the rights and obligations of Direct Access (DA) customers to

return to bundled service and subsequently switch back to DA service.  These issues include

consideration of legality of the “switching exemption” pursuant to the limited rehearing of D02-03-055

granted by D02-04-067.

(Comr Brown, Comr Wood - ALJ Pulsifer)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

7a

2074

This alternate rejects a proposal for “switching exemptions” which would have permitted certain

customers to switch between bundled service and direct access after the September 20, 2001

suspension date.  As provided by the Legislature, this alternate clarifies that the resumption of bundled

service terminates direct access service, irrespective of the September 20, 2001 suspension date.

(Comr Wood)

Yes: (Lynch, Wood)

No: (Brown, Kennedy, Peevey)

Abstain: (none)

Absent: (none)

9

2156

R01-10-024 - Order Instituting Rulemaking to establish policies and cost recovery

mechanisms for generation procurement and renewable resource development.

This decision modifies D02-08-071 to allow the Commission the flexibility, upon a showing of good

cause, to allow for a departure from the requirement that new renewable resources procured by the

three respondent utilities through a set-aside during the transitional period process be required to come

online and begin delivering electricity before the end of 2003.

(Comr Peevey - ALJ Walwyn)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

10

2161

R02-01-011 - Order Instituting Rulemaking regarding the implementation of the suspension

of Direct Access pursuant to Assembly Bill 1X and D01-09-060.

This order grants the petition to modify filed on November 18, 2002, by San Diego Gas & Electric

Company, seeking clarification of whether D02-11-022 exempts the 80 megawatts of United States

Navy load referenced in the Decision from the components of the direct access cost responsibility

surcharge. The order assigns a zero share of Department of Water Resources bond and power

charges to the 80 MW.

(Comr Brown, Comr Wood - ALJ Pulsifer)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

10a

2162

This order grants the petition to modify filed on November 18, 2002, by San Diego Gas & Electric

Company, seeking clarification of whether D. 02-11-022 exempts the 80 megawatts (MW) of United

States Navy Load referenced in the Decision from the components of the direct access cost

responsibility surcharge.  The order determines that the 80 MW of Navy Load shall bear the same

share of Department of Water Resources bond and power charges as is applicable to other direct

access load.  The alternate order adopts the same result as the original version of the ALJ’s Draft

Decision mailed to parties on March 3, 2003, updated to incorporate comments on the modeling

impacts on the DA CRS payback period resulting from the treatment of the 80 MW.

(Comr Brown)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

E-1

1750

SCE seeks Commission approval of one power purchase agreement contributing toward procurement

of at least an additional one percent of the utility's annual electric sales from renewable energy

resources irrespective of the utility's residual net short. (Advice Letter 1680-E, filed January 14, 2003)

(Agenda 3107, Item E-3 2/13/2003 (Brown); Agenda 3108, Item E-3 2/27/2003 (Staff);

Agenda 3109, Item E-1 3/13/2003 (Brown); Agenda 3110, Item E-1 4/3/2003 (Kennedy);

Agenda 3111, Item E-1 4/17/2003 (Kennedy))

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-2

1771

For approval of one power purchase agreement (PPA) contributing toward procurement of at least an

additional one percent of the utility's annual electric sales from renewable energy resources irrespective

of the utility's residual net short. Consideration of this PPA had previously been deferred from

Resolution E-3809 and is now being addressed here. (Advice Letter 1676-E, filed December 24,

2002)

(Agenda 3108, Item E-4 2/27/2003 (Staff); Agenda 3109, Item E-2 3/13/2003 (Staff);

Agenda 3110, Item E-2 4/3/2003 (Kennedy); Agenda 3111, Item E-2 4/17/2003

(Kennedy))

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-2a

1844

This altenate resolution differs from the proposed resolution in that it denies approval of one power

purchase agreement (PPA) which Southern California Edison Company (SCE) requests to enter into in

2003 to contribute toward procurement of at least an additional one percent of the utility's annual

electric sales from renewable energy resources.  Consideration of this PPA had previously been

deferred from Resolution E-3809 and is now being addressed here.

(Comr Wood)

(Agenda 3109, Item E-2a 3/13/2003 (Staff); Agenda 3110, Item E-2a 4/3/2003

(Kennedy); Agenda 3111, Item E-2a 4/17/2003 (Kennedy))

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-2b

2045

This alternate resolution differs from the proposed resolution in that it grants Southern California Edison

Company's request for approval of one power purchase agreement (PPA) contributing toward

procurement of at least an additional one percent of the utility's annual electric sales from renewable

energy resources irrespective of the utility's residual net short and exempts the PPA from the required

online date.  Consideration of this PPA had previously been deferred from Resolution E-3809 and is

now being addressed here.  By Advice Letter 1676-E  Filed on December 24, 2002.

(Comr Kennedy)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-2c (Rev.)

2163

This alternate resolution grants Southern California Edison Company's request for approval of one

remaining power purchase agreement (PPA) which would contribute toward procurement of at least

an additional one percent of the utility's annual electric sales from renewable energy resources

irrespective of the utility's residual net short, in accordance with modified online date requirements.

Consideration of this PPA had previously been deferred from Resolution E-3809 and is now

addressed here.  By Advice Letter 1676-E  Filed on December 24, 2002.

(Comr Kennedy)

Yes: (Brown, Kennedy, Lynch, Peevey)

No: (Wood)

Abstain: (none)

Absent: (none)

E-3

1778

This resolution approves with modifications PG&E's tariff revisions to implement a flexible pricing

option in accordance with Public Utilities Code Section 454.1. (Advice Letter 2276-E, filed August

26, 2002)

(Agenda 3109, Item E-3 3/13/2003 (Staff); Agenda 3110, Item E-3 4/3/2003 (Lynch);

Agenda 3111, Item E-3 4/17/2003 (Brown))

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-3a

1962

PG&E submits revisions to implement a flexible pricing option in accordance with PUC Code 454.1.

Approved with modifications.

(Comr Peevey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-4

1874

This resolution approves with modifications Sierra's tariff revisions to reinstate an Energy Cost

Adjustment Clause "Offset" Balancing Account Mechanism. (Advice Letter (AL) 294-E, filed January

8, 2003 and AL 294-E-A, filed February 6, 2003)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-5

1931

PG&E requests authority to revise tariffs and establish various balancing and memorandum accounts in

compliance with D02-04-016, pertaining to Utility Retained Generation cost recovery in 2002 and

withdraw certain previously filed advice letters. The request is approved with modifications.

(Supplemental Advice Letter (AL) 2240-E-A, filed January 6, 2003, replacing AL 2240-E, filed May

6, 2001, in its entirety.)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

E-6

1941

This resolution denies Sierra's proposed tariff revisions to terminate the 10% discount for residential

and eligible small commercial customers required under AB 1890. Advice Letter 295-E, filed January

20, 2003)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

E-7

2062

PG&E submits an Advice Letter to adjust the Diablo Canyon Units 1 and 2 Nuclear Decommissioning

Cost-of-service amounts. Approved. (Advice Letter (AL) 2177-E, filed November 21, 2001 and AL

2177-E-A, filed December 2, 2001)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

E-8

2075

Res G-3344 - San Diego Gas and Electric Company (SDG&E) and Southern California Gas

Company (SoCalGas).

SDG&E and SoCalGas request authority to establish the Fumigation Turn-off/Turn-on Service

Memorandum Account. The utilities also request authority to revise their Rules to add a new

Termination of Service for Fumigations section. The utilities' request are partly approved and partly

denied. (SDG&E Advide Letter (AL) 1351-G and SoCalGas AL 3210, both filed November 22,

2002)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

C-1 (Rev.)

2063

This resolution implements portions of Senate Bill 1863 and provision of D02-10-060.  It  expands the

California Teleconnect Fund discount levels and types and quantities of services qualifying CBOs and

health care facilities may receive.  It adds community technology centers to the list of qualifying CBO

activities, and adds hospital district owned and operated hospitals to the list of qulafying health care

facilities.  The resolution also specifically names Digital Subscriber Line as a CTF-eligible service. It

also streamlines the CTF aplication process and requires carriers to file annual claims forecasts.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

C-2

2064

This resolution approves California Communications Access Foundation as the entity awarded the

contract to operate and manage the Deaf and Disabled Telecommunications Equipment and Services

Program. Further, this resolution directs the Commission Executive Director to request approval from

the Department of General Services (DGS) a multi-year contract, execute all contract originals, and

submit the contract to DGS for review and approval.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

C-3

2065

This resolution adopts a budget augmentation for the Deaf and Disabled Telecommunications Program

(DDTP) for fiscal year 2002-2003 in the amount of $3,091,700.  These funds will cover the necessary

costs of transition-related events associated with the transition of the DDTP to comply with Public

Utilities Code Sections 270.1, 278, 278.5 and 2881.4.  The transition-related costs adopted in this

resolution are not included in the current adopted fiscal year 2002-2003 DDTP budget, approved in

Resolution T-16663.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

HLEG-1

2048

Approved (Legislative Subcommittee Recommendation:  Support bill, if

amended. Comr. Kennedy will file a concurrence. Comr. Lynch will file

a dissent. Comr. Wood will file a dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

HLEG-2

2049

Approved (Legislative Subcommittee Recommendation:  Support bill, if

amended. Comr. Wood will file a dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

HLEG-3

1977

(Agenda 3110, Item LEG-3 4/3/2003 (Staff); Agenda 3111, Item HLEG-1 4/17/2003

(Staff))

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

LEG-1

2102

Public Utilities: electrical restructuring.

Approved (Legislative Subcommittee Recommendation:  Support bill, if

amended. Comr. Lynch reserves the right to file a concurrence. Comr.

Wood will file a concurrence.)

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

CR-1

1898

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

CR-2

1985

Discussion of and action on the Energy Action Plan proposed by a subcommittee of the Energy

Resources Conservation and Development Commission, the Consumer Power and Conservation

Financing Authority, and the PUC. The Plan establishes shared goals and specific actions to ensure

adequate, reliable, and resonably-priced electrical power and natural gas supplies are achieved and

provided through policies, strategies, and actions that are cost-effective and

environmentally sound for California's consumers and taxpayers.

Approved (Comr. Lynch will join Comr. Wood's dissent. Comr. Wood

will file a dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

M-1

1899

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

HEX-1

2017

Disposition of Application for Rehearing of D02-08-065, filed by the Southern California Generation

Coalition.  The Commission issued an interim opinion authorizing new rules for eligibility and conditions

of core and wholesale gas service for the Southern California Gas Company and San Diego Gas &

Electric Company.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

HEX-2

2025

A02-05-025, A.02-05-026, A.02-05-031 - Related matters.   Disposes of applications for rehearing

by Pacific Gas & Electric Company (PG&E) and San Diego Gas & Electric Company (SDG&E) of

D02-11-027.  This interim decision established the 2003 rate of return and return on common equity

for the above two utilities.  Each applicant challenges the adopted return on equity (ROE) granted to it.

PG&E contends that the 11.22% ROE adopted in the decision fails to comply with controlling legal

precedent, and is arbitrary and capricious in setting its ROE below that adopted for Southern

California Edison Co.  SDG&E contends that the adopted 10.90% ROE for it fails to contain separate

findings on all material issues in violation of Public Utilities Code Sec. 1705, and that it is not supported

by the evidence in the record.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

HEX-4

2041

Disposition of the applications for rehearing of D02-12-066 filed by San Diego Gas & Electric

Company (SDG&E) and the California Independent System Operator (ISO) on January 23, 2003.

D02-12-066 denied without prejudice SDG&E’s application for a certificate of public convenience

and necessity to construct the proposed Valley-Rainbow Interconnect Project.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

EX-6

2128

Disposition of applications for rehearing of D02-08-071 filed by Pacific Gas and Electric Company

(PG&E) and Southern California Edison Company (Edison).  In D02-08-071, the Commission: (1)

authorized PG&E and Edison to enter into interim contracts for procurement of capacity in

participation with DWR; (2) adopted a procedural process to review and approve these interim

contracts; and (3) established the requirements for procurement of renewable and QF power between

the effective date of the D02-08-071 and January 1, 2003.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

EX-7

2129

Disposes of the applications by Southern California Edison (SCE), Pacific Gas & Electric (PG&E),

San Diego Gas & Electric Co. (SDG&E), and Sempra Energy Resources for the rehearing of

D02-09-053.  The decision is an interim opinion in the Commission’s rulemaking to establish

ratemaking mechanisms and procedures that would enable the utilities to resume responsibility for

procuring power for their retail customers.  The decision allocates existing California Department of

Water Resources long-term contracts to PG&E, SCE and SDG&E.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

EX-8

2130

Disposes of the applications by Pacific Gas & Electric (PG&E), and San Diego Gas & Electric Co.

(SDG&E) for the rehearing of D02-12-069, which adopts the Operating Order under which PG&E,

SDG&E, and SCE will perform the operational, dispatch, and administrative functions for the

California Department of Water Resources' long-term power purchase contracts, as of January 1,

2003.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

EX-9

2131

Order disposing of applications for rehearing of D02-10-062 filed by

Pacific Gas and Electric Company (PG&E), Southern California Edison Company (Edison), San

Diego Gas and Electric Company (SDG&E), Sempra Energy Resources, and Cogeneration

Association of California.  D02-10-062 adopts a regulatory framework under which PG&E, Edison,

and SDG&E were to resume full procurement responsibilities effective January 1, 2003.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

EX-10

2132

Order disposing of applications for rehearing of D02-12-074 filed by

Pacific Gas and Electric Company (PG&E), Southern California Edison Company (Edison), San

Diego Gas and Electric Company (SDG&E), and Sempra Energy Resources.  D02-12-074 approved

short-term procurement plans for PG&E, Edison, and SDG&E and modified the cost recovery

mechanisms and standards of conduct adopted in D02-10-062.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

EX-11

2148

Disposition of Application for Rehearing, filed by Kern Oil & Refining Company, of D03-04-030, in

which the Commission adopted cost responsibility surcharge mechanisms for Customer Generation

Departing Load.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

EX-12

2149

Disposes of the joint application by Southern California Gas Company and San Diego Gas & Electric

Company for rehearing of I02-11-040, which initiates an examination of the gas market activities of the

major gas utilities regulated by the Commission and the impact of those activities on the gas price

spikes experienced from March 2000 through May 2001.

Yes: (Brown, Kennedy, Lynch, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (none)

EX-13

2150

Disposition of Application for Rehearing of D02-12-053, filed by Santa Clara Valley Transportation

Authority (VTA).  In January 2001, VTA filed an application for an at-grade crossing for a light rail

transit line in the City of Campbell.  VTA filed a motion to dismiss this application on the grounds that

the Commission’s jurisdiction over light rail crossings is limited to regulation of safety appliances and

procedures and post-construction safety review, and does not include the location, construction, or

separation of light rail crossings of roadways.  The Commission denied VTA’s motion to dismiss.  On

December 17, 2002, the Commission in D02-12-053 issued an order denying the application of VTA

for an at-grade crossing at Hamilton Avenue in Campbell, County of Santa Clara.  Moreover, the

Commission found that it has jurisdiction to review and approve the construction and placement of

VTA’s light rail/street crossing.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)