Results of Public Agenda 3146

Meeting Held on Thursday, January 27, 2005 10:00 a.m.

San Francisco, California

Michael R. Peevey, President

Geoffrey F. Brown

Dian M. Grueneich

Susan P. Kennedy

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

Tuesday, February 22, 2005 (San

Francisco)

Thursday, February 10, 2005 (San

Francisco)

Thursday, February 24, 2005 (San

Francisco)

Monday, March 14, 2005 (San

Francisco)

Thursday, March 17, 2005 (San

Francisco)

Monday, April 04, 2005 (San

Francisco)

Thursday, April 07, 2005 (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.

·

Re 30:

Edward Mainland, Sierra Club of California, Novato, CA

Jesse Mason, San Jose, CA

John Rizzo, Sierra Club SF Bay Chapter, San Francisco, CA

Mark Frye, Berkeley, CA

Rebekah Collins, Marin Sustainable Fairfax, Fairfax, CA

Re 39:

Elidia Arroyo, Centro Legal, Oakland, CA

Emily Clayton, CalPierg, San Francisco, CA

Gen Fujioka, Chinatown Coalition for Better Housing, San Francisco, CA

Hai Nguyen, San Jose, CA

Holly Loan Duong, San Jose, CA

Joe Ridout, Consumer Action, San Francisco, CA

June Cravett, SFDA & CDAA, San Francisco, CA

Mara Diaz, Centro Legal de la Raza, Oakland, CA

Ruben Massa, Centro Legal de la Raza, Oakland, CA

1

[3736]

For approval of its updated Water Management Program as ordered in Commission Resolution

W-4154 dated August 5, 1999.   This decision awards The Angeles Chapter of Sierra Club

$4,074.18 for its contribution to D01-11-048 and D03-10-063.  This proceeding is closed.

(Comr Brown - ALJ Patrick)

Agenda 3137, Item 23 8/19/2004 (Staff);

Agenda 3138, Item 7 9/2/2004 (Staff);

Agenda 3139, Item 3 9/23/2004 (Staff);

Agenda 3141, Item 1 10/28/2004 (Staff);

Agenda 3142, Item 3 11/19/2004 (Staff);

Agenda 3143, Item 1 12/2/2004 (Staff);

Agenda 3144, Item 1 12/16/2004 (Staff);

Agenda 3145, Item 3 1/13/2005 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

2

[4140]

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.

Approved (Comr. Grueneich recused herself from this agenda item and

was not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

3

[4085]

This decision adopts a Final Arbitrator’s Report (FAR) setting telephone pole and conduit rates to be

paid by SBC to SureWest Telephone, formerly known as Roseville Telephone.  It also approves the

full pole and conduit agreement (entitled the Support Structure Use Agreement) prepared and filed by

the parties to this arbitration, which incorporates the FAR results. This proceeding is closed.

(ALJ Thomas)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

4

[4105]

This decision denies Applicant's request for a certificate of public convenience and necessity based on

the company’s history of unlawful slamming.  If Applicant engages in no further instances of slamming

or other violations of law, it may reapply after one year. This proceeding is closed.

(Comr Kennedy - ALJ Prestidge)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

5

[4116]

This resolution authorizes BMWC a general rate increase producing additional annual revenue of

$6,548 or 78.09% in 2003.

Agenda 3144, Item 25 12/16/2004 (Staff);

Agenda 3145, Item 11 1/13/2005 (Staff)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

6

[4177]

I02-06-003 - Investigation on the Commission’s own motion into the operations, practices,

and conduct of Pacific Bell Wireless LLC dba Cingular Wireless, and related entities

(collectively Cingular) to determine whether Cingular has violated the laws, rules and

regulations of this State in its sale of cellular telephone equipment and service and its

collection of an Early Termination Fee and other penalties from consumers.

This decision awards $367,401.25 in intervenor compensation to Utility Consumers' Action Network

for its contribution to D04-09-062.

(Comr Brown - ALJ Vieth)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

7

[4190]

R-03-08-019 - Order Instituting Rulemaking on the Commission’s own motion to amend

General Order 77-K.

General Order (GO) 77-L will not be amended.  Large utilities are directed to provide an electronic

copy of future GO 77-L reports and SEC Proxy Statement reports for publication on the

Commission’s website.

(Comr Peevey - ALJ Koss)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

8

[4191]

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 cost responsibility obligations for 2001 through 2003 applicable to Direct Access

and Departing Load Customers pursuant to the methodology adopted in D02-11-022.

(Comr Brown - ALJ Pulsifer)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

9

[4199]

I04-07-003 - Order Instituting Investigation and Order to Show Cause on the Commission's

own motion into the operations and practices of Fan Ding (aka Ding Fan or Lisa Ding), an

individual doing business as Lucky Moving Co., Lucky Movers, Jixiang Moving Co.,

Northam Immigration Services, and Northman Immigration Service.

This decision approves a settlement between Respondent Fan Ding and the Commission's Consumer

Protection and Safety Division in resolution of allegations of violations of laws and regulations

respecting household goods carriers. This proceeding is closed.

(Comr Kennedy - ALJ Yacknin)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

10

[4201]

This decision approves the sale and conveyance by PG&E of a certain parcel of land located in Shasta

County to Lehigh Southwest Cement Company.  The decision also approves an agreement between

PG&E and the Commission’s Office of Ratepayer Advocates to refer the issue of proceeds of this sale

to the gain-on-sale proceeding, R04-09-003.  This proceeding is closed.

(Comr Kennedy - ALJ Walker)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

11 (Rev.)

[4204]

This decision approves a transfer of control over Union Pipeline Company to ConocoPhillips Pipe Line

Company pursuant to Public Utilities Code Sections 854(a) and 851.  This transaction is exempted

from the California Environmental Quality Act. This proceeding is closed.

(Comr Peevey - ALJ Long)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

12

[4205]

This resolution approves the request of Verizon to grandfather Dial Datalink service. (Advice Letter

10900, filed July 8, 2004)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

13

[4206]

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

facilities-based and resold local exchange telecommunications services in the service territories of

SureWest Telephone, and Citizens Telecommunications Company of California, Inc.  Applicant was

previously authorized to provide such services in the service territories of Pacific Bell Telephone

Company, Verizon California Inc.  This proceeding is closed.

(Comr Kennedy - ALJ O'Donnell)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

14

[4207]

This resolution approves Consumer Protection and Safety Division's Rail Transit Safety Section

(RTSS) final audit report concerning the 2004 Safety Audit of The Port of Los Angeles Waterfront

Red Car Line (POLA RCL). The resolution also orders POLA RCL to: (1) submit Corrective Action

Plans/Schedules to RTSS; (2) complete and implement all recommended corrective actions contained

in the report; and (3) prepare and provide quarterly corrective action status reports until all

recommended corrective actions are completed and implemented.

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

15

[4208]

A04-09-021 - Pacific Gas and Electric Company (PG&E), and Leonard Soloniuk and Linda

Ruckle-Soloniuk.

This decision approves the sale and conveyance by PG&E of a certain parcel of land located in Shasta

County to Leonard Soloniuk and Linda Ruckle-Soloniuk.  The decision also approves an agreement

between PG&E and the Commission’s Office of Ratepayer Advocates to refer the issue of proceeds

of this sale to the gain-on-sale proceeding, R04-09-003. This proceeding is closed.

(Comr Kennedy - ALJ Walker)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

16

[4209]

UNOCAP seeks authorization to remove its Line #352 from public utility service and to modify its

tariff to reflect the removal. The application is unopposed. The application is granted. This proceeding

is closed.

(Comr Kennedy - ALJ Walker)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

17

[4210]

(ECP) C04-10-016 - Frances Ann Myers vs. Pacific Bell Telephone Company, dba SBC

California.

Complaint for poor service.  Held:  Defendant provided adequate service.  Complainant’s difficulty

with her phone service was not caused by defendant.  This proceeding is closed.

(Comr Peevey - ALJ Barnett)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

18

[4211]

(ECP) C04-07-052 - John Dickey and Luanne Aulenback-Dickey vs. Southern California

Edison Company.

Complainants seek relief from high bills. Held: Relief denied.  Complainants’ meter is accurate and their

bills are correct. This proceeding is closed.

(Comr Peevey - ALJ Barnett)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

19

[4212]

This decision authorizes DOWC to secure a loan not to exceed $500,000 to finance the cost of

engineering studies and capital improvements to be conducted in its Pine Flat and Pine Mountain

service areas. This proceeding is closed.

(Exam Coughlan)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

20

[4213]

This decision authorizes SJWC to enter into a $1,660,250 loan contract with the Department of Water

Resources and to impose a surcharge to repay the

loan. This proceeding is closed.

(Exam Coughlan)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

21

[4214]

This decision authorizes NRG to establish a new rate schedule for partial requirements and standby

customers. This proceeding is closed.

(Comr Peevey - ALJ McVicar)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

22

[4215]

This resolution authorizes PSR an interim general rate increase subject to refund, producing an increase

in gross annual revenues of $31,615 or 109%.

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

23

[4222]

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

facilities-based/UNE-P and resold local exchange telecommunication services. This proceeding is

closed.

(Comr Kennedy - ALJ Prestidge)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

24

[4224]

This resolution approves PG&E's request to make revisions to its Advanced Metering and Demand

Response Account (AMDRA) and to transfer the 2004 AMDRA balance of $4.79 million for rate

recovery to its Distribution Revenue Adjustment Mechanism.  (Advice Letter 2569-E, filed October

15, 2004)

Approved (Comr. Grueneich recused herself from this agenda item and

was not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

25

[4228]

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

exchange and interexchange services. This proceeding is closed.

(Comr Kennedy - ALJ Prestidge)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

26

[4229]

I04-08-022 - In the Matter of the Order Instituting Investigation and Order to Show Cause

on the Commission's own motion into the operations and practices of All State Moving  and

Storage, Inc., a California coporation doing business as California Transportation Systems,

dba Prime Movers, dba All State Moving & Storage, dba City Transportaton System, and its

President, Jacob (aka Yacov) Sudai, and Secretary, Israel Lerner; Washington

Mini-Storage, Inc., a Maryland corporation dba Prime Movers, et al.

This decision approves settlement and grants application for household goods carrier authority.

(Comr Brown - ALJ Bushey)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

27

[4237]

R04-04-026 - Order Instituting Rulemaking to implement the California Renewables

Portfolio Standard Program.

This decision awards Green Power Institute $104,864.25 in compensation for its contribution to

D04-06-014, D04-06-015, and D04-07-029.

(Comr Peevey - ALJ Allen)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

28

[3929]

This decision adopts a joint SCE and Office of Ratepayer Advocates (ORA) recommendation to

reduce the Energy Resource Recovery Account by a net amount of $3,574,000 to reconcile certain

audit issues.  In all other respects, the decision finds SCE’s procurement related and other operations

were reasonable for the record period September 1, 2001 through June 30, 2003.  The decision also

defines the scope and standard of review for least cost dispatch and orders SCE and ORA to

implement a master data request process.  This proceeding is closed.

(Comr Peevey - ALJ Fukutome)

Agenda 3141, Item 37 10/28/2004 (Peevey);

Agenda 3142, Item 35 11/19/2004 (Kennedy);

Agenda 3144, Item 37 12/16/2004 (Kennedy);

Agenda 3145, Item 42 1/13/2005 (Peevey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

28a

[4235]

This alternate defines the scope of least-cost dispatch review in the ERRA to include Edison’s

decisions to dispatch the resources under its control in the daily, hourly and real-time markets.

Additionally, the standard of review for least-cost dispatch is compliance with Standard of Conduct #4

(SOC 4), which is an element of Edison’s procurement plan.

(Comr Kennedy)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

29

[4103]

For authority to institute a rate stabilization plan with a rate increase and end of rate freeze tariffs.

A00-11-056, A00-10-028 - Related matters. This decision awards The Utility Reform Network

(TURN) $1,043,871.80 in compensation for its further participation in the federal district court

proceedings in which SCE and Pacific Gas and Electric Company challenged the Commission's

jurisdiction to limit the utilities' recovery of increased wholesale procurement costs, and for its efforts in

the judicial review of D02-06-070, which awarded TURN intervenor compensation for its earlier

participation in those federal proceedings.

(Comr Brown - ALJ Allen)

Agenda 3144, Item 48 12/16/2004 (Kennedy);

Agenda 3145, Item 45 1/13/2005 (Brown)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

30

[4107]

R01-08-028 - Order Instituting Rulemaking to examine the Commission's future energy

efficiency policies, administration, and programs.

This decision addresses the threshold issues related to the administrative structure for energy efficiency

programs beyond 2005.  In particular, it resolves the issues of (1) what entity or entities should be

responsible for selecting individual energy efficiency programs and managing the portfolio of selected

programs during implementation and (2) what entity or entities should manage and contract for

evaluation, measurement and verification (EM&V) of program results. Certain implementation issues

related to the Commission's adopted approach to EM&V administration will be addressed in

subsequent workshops.

(Comr Kennedy - ALJ Gottstein)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration. Comr. Brown will file a

concurrence. Comr. Kennedy reserves the right to file a concurrence.

Comr. Peevey will file a concurrence.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

30a

[4236]

This alternate makes the following changes:

1.  Adopts Office of Ratepayer Advocates recommendations to identify, track and oversee

administrative costs.

2.  Directs Energy Division to work with parties and Pacific Gas and Electric Company to develop a

pilot independent administration program with Northern California governments.

(Comr Brown)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

31

[4196]

R04-01-025 - Order Instituting Rulemaking to establish policies and rules to ensure reliable,

long-term supplies of natural gas to California.

This decision addresses The Utility Reform Network’s request for compensation regarding

D04-09-022.

(Comr Kennedy, Comr Peevey - ALJ Fukutome, ALJ Wong)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

32

[4197]

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

demand response, and dynamic pricing.

This decision approves Summer 2005 day-ahead notification demand response programs that focus on

providing peak demand reduction driven by day ahead high temperature, price, or demand level

forecasts. It also approves reliability-triggered programs that focus on providing quick response load

reduction capability, technology and technical assistance programs to automate customer response to

demand reduction signals, and programs to educate customers about their power to reduce their bills

by driving their load off peak.

(Comr Peevey - ALJ Cooke)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

33

[4182]

PG&E proposes to modify Schedules E-DEPART and E-EXEMPT to extend their expiration dates,

and to revise Schedule E-DEPART to permit billing departing load customers for the Regulatory Asset

charge. Approved with modifications. (Advice Letter (AL) 2043-E, filed October 19, 2000, and

Supplemental AL 2043-E-A, filed Feburary 18, 2004)

Approved (Comr. Grueneich recused herself from this agenda item and

was not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

34

[4186]

SCE requests authorization to implement Test Year 2003 General Rate Case (GRC) revenue

requirements, 2004 GRC Post Test Year revenue requirements, 2004 consolidated rate level changes

and adopted ratemaking mechanisms in accordance with Commission Decision D04-07-022.  This

resolution approves SCE's requests with modifications.  (Advice Letter 1808-E, filed July 16, 2004)

Approved (Comr. Grueneich recused herself from this agenda item and

was not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

35

[4225]

SDG&E seeks approval of: (1) the contract with Ramco to acquire a 46 MW combustion turbine

(CT) and related equipment as approved by the Commission in D04-06-011; (2) an exemption from

Public Utilities (PU) Code Section 851, as permitted by PU Code Section 853, for Commission

approval of the temporary transfer of a portion of SDG&E's Miramar property to Ramco for the

purpose of siting its CT; (3) SDG&E's first year revenue requirement for ownership and operation of

the Ramco CT; and (4) an annual update mechanism for the Ramco CT that will be in place until

SDG&E's next general rate case/cost of service procceeding. (Advice Letter 1621-E, filed September

8, 2004)

Approved (Comr. Grueneich recused herself from this agenda item and

was not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

36

[4226]

SDG&E submits notification of actions it has taken to implement California Public Utilities Commission

Decision 04-07-028, which are consistent with its approved short-term procurement plan. SDG&E

developed a new Operating Procedure in cooperation wth the California Independent System

Operator to help congestion mitigation by using effectiveness factors in procurement and scheduling

activities. Approved.

(Advice Letter 1641-E, filed December 3, 2004)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

37

[4039]

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 networks.

I93-04-002 - Related matters. This decision grants a petition by Verizon California to modify the

interim unbundled network element (UNE) rates adopted in D03-03-033 based on recent increases in

UNE rates for Verizon New Jersey.  The changes include a decrease in the shared and common cost

markup from 22% to 10%.

(Comr Peevey - ALJ Duda)

Agenda 3144, Item 56 12/16/2004 (Peevey);

Agenda 3145, Item 51 1/13/2005 (Brown)

Yes: (Brown, Grueneich, Peevey)

No: (Kennedy)

Abstain: (none)

Absent: (none)

37a

[4198]

I93-04-002 - Related matters. This decision grants a petition by Verizon California to modify the

interim unbundled network element (UNE) rates adopted in D03-03-033, based on recent increases in

UNE rates for Verizon New Jersey. The alternate is identical to the draft decision of Administrative

Law Judge Duda as originally mailed for comment on November 5, 2004.

(Comr Peevey)

Yes: (Kennedy, Peevey)

No: (Brown, Grueneich)

Abstain: (none)

Absent: (none)

38

[4184]

A01-02-035, A02-02-031, A02-02-032, A02-02-034, A02-03-002 - Related matters. This

decision resolves outstanding issues in this proceeding relating to the adjustment, or “true-up,” of

interim unbundled network element rates to permanent rate levels.  This order lifts the stay of billing

adjustments established through Ordering Paragraph 4 of D04-09-063, and orders immediate

payment of billing adjustments by 10 carriers whose cash or cash equivalents indicate they possess

cash at least 10 times the amount of their true-up debt.  All other carriers shall pay in equal installments

over 12 months, subject to interest and late payment penalties.  True-up payments should be

calculated based on a 10% shared and common cost markup. These proceedings are closed.

(Comr Peevey - ALJ Duda)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

39

[4203]

R00-02-004 - Order Instituting Rulemaking on the Commission’s Own Motion to Establish

Consumer Rights and Consumer Protection Rules Applicable to All Telecommunications

Utilities.

Modification of D04-05-057 to stay effective date of decision.

(Comr Kennedy)

Signed (Comr. Brown will file a dissent. Comr. Grueneich reserves the

right to file a concurrence. Comr. Kennedy reserves the right to file a

concurrence.)

Yes: (Grueneich, Kennedy, Peevey)

No: (Brown)

Abstain: (none)

Absent: (none)

40

[4155]

This resolution requires Citizens to apply a CHCF-B permanent surcredit rate of 3.63% and an

additional surcredit rate of 2.95% to true up the provisional permanent surcredit, totaling 6.58%, for

one year. Subsequently, Citizens will continue to apply the 3.63% permanent surcredit on the first day

of the month after the twelve-month implementation period of the 6.58% total CHCF-B surcredit on

all intrastate billings, with certain exceptions. (Advice Letter (AL) 722, filed October 24, 2001, and

Supplement A, filed April 13, 2004. AL 732, filed November 29, 2001, and Supplements A, B, and

C, filed December 10, 2001, August 1, 2002, and April 13, 2004, respectively)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

41

[4163]

This resolution authorizes SBC to decrease its annual revenues by $8.822 million effective February 1,

2005, subject to modification. ORA filed a protest regarding gain on sale of land.  Telecommunications

Division recommends that the gain on sale of land be subject to modification in the upcoming New

Regulatory Framework review. This resolution is in accordance with the provisions of General Order

96-A and Resolution ALJ-181. (Advice Letter 25578, filed October 1, 2004)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

42

[4176]

This resolution authorizes Verizon to grandfather a part of custom calling services in Schedule Cal.

P.U.C. Nos. A-40, Custom Calling Service; K-1, Competitive Services; and K-5 Resale Service.

(Advice Letter 10925, filed July 26, 2004)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

44

[3601]

C98-06-003; C98-06-027; C98-06-049; I90-02-047 - Related matters.   Disposition of

Applications for Rehearing of D03-11-021 filed by The Latino Issues Forum (LIF), The Utility Reform

Network, and SBC California.  On November 13, 2003, the Commission issued D03-11-021,

awarding intervenor compensation to The Greenlining Institute and LIF for its contribution to

D01-09-058.

Agenda 3136, Item 97 7/8/2004 (Staff);

Agenda 3137, Item 97 8/19/2004 (Staff);

Agenda 3138, Item 48 9/2/2004 (Staff);

Agenda 3139, Item 53 9/23/2004 (Staff);

Agenda 3141, Item 53 10/28/2004 (Staff);

Agenda 3142, Item 60 11/19/2004 (Staff);

Agenda 3143, Item 48 12/2/2004 (Staff);

Agenda 3144, Item 65 12/16/2004 (Kennedy);

Agenda 3145, Item 56 1/13/2005 (Staff)

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

45

[3979]

Disposition of Applications for Rehearing of D04-07-034 filed by the Office of Ratepayer Advocates,

City of Fontana and the Fontana Unified School District. D04-07-034 authorizes a rate increase for

the San Gabriel Valley Water Company (San Gabriel), Fontana Water Company Division.  Among

other things, the decision removes $2.6 million from the ratebase, finding that is the amount of money

the County of San Bernardino reimbursed San Gabriel for its water treatment facility, Plant F-10. The

decision also finds that the Fontana Division is experiencing growth that is expected to continue and

that it was barely able to meet its 2003 summer peak-day demand following four years of drought and

closure of various contaminated wells.  Further, the decision finds that it is not reasonable to defer

addition for new plant in the Fontana Division until outside funding for contamination cleanup becomes

available and finds that the utility has justified its proposed construction program including plans for

needed plant additions that would increase its rate base at a rate of 10% per year.  The decision

advises that the utility to open a water quality memorandum account for any reimbursements from

polluters or proceeds ultimately received.  The decision permits the utility to purchase land for its new

office building but requires it to defer building the new office building at this time.  Because the utility

has not, in the past, hired new personnel when funded to do so, the decision requires it to file an advice

letter for inclusion of the costs of each new position authorized by it. In addition, the decision finds that

that the utility’s executive salaries  are not unreasonable.

Agenda 3143, Item 52 12/2/2004 (Staff);

Agenda 3144, Item 68 12/16/2004 (Staff);

Agenda 3145, Item 60 1/13/2005 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

46

[4130]

Order disposing of applications for rehearing of D04-07-026, in which the Commission certified the

Final Environmental Impact Report and granted a CPCN for SDG&E’s Miguel Mission 230kV

transmission project.  Applications for rehearing were filed by the City of Santee, Santee Citizens for

Safe Power, San Diegans for Fair Power, and the Eucalyptus Hills Landowners Association. The

Commission will also consider related matters, including a petition for modification of D04-07-026

filed by the City of Santee, and pending motions.

Agenda 3144, Item 74 12/16/2004 (Staff);

Agenda 3145, Item 62 1/13/2005 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

47

[4131]

Disposition of the request for leave to file an application for rehearing and application for rehearing of

D04-07-027 filed by NOPE.  D04-07-027 granted Southern California Edison a permit to construct a

new substation in the City of Lake Forest and certain new transmission facilities through the City of

Mission Viejo, as described in the Final Mitigated Negative Declaration (FMND).  D04-07-027 also

certified the FMND.

Agenda 3144, Item 75 12/16/2004 (Staff);

Agenda 3145, Item 63 1/13/2005 (Staff)

Signed (Comr. Grueneich recused herself from this agenda item and was

not part of the quorum in its consideration.)

Yes: (Brown, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

48

[4227]

Disposes of the application for rehearing of D04-05-058 filed by Verizon California, Inc.

D04-05-058 granted Verizon’s request to re-categorize its residential and business Billable Repair

Service (BRS), and its residential, landlord, business and CentraNet Inside Wire Maintenance Plan

(IWMP) service offerings from Category II to Category III.  The decision also capped Verizon’s

residential IWMP rate of $1.75 for one year, and thereafter the rate is capped at $2.99.

Yes: (Brown, Grueneich, Kennedy, Peevey)

No: (none)

Abstain: (none)

Absent: (none)