Results of Public Agenda 3136

Meeting Held on Thursday, July 8, 2004 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, September 20, 2004 (San

Francisco)

Thursday, September 23, 2004 (San

Francisco)

Thursday, October 07, 2004 (San

Francisco)

Monday, October 04, 2004 (San

Francisco)

Thursday, October 28, 2004 (San

Francisco)

Monday, October 25, 2004 (San

Francisco)

Monday, November 15, 2004 (San

Francisco)

Friday, November 19, 2004 (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 48: Susie Berlin, For Mayor Frank West, City of Moreno Valley, San Jose, CA

Re 55:

Dennis Zell, Concerned Residents of Burlingame, Burlingame, CA

Gail Hahn Crawford, Lakeside, CA

Kent Jaffa, Scottish Power - PacifiCorp, Utah

Michael Kelsh, Exponent, EEI, Menlo Park, CA

Robert Kavet, Electric Power Research Institute, San Carlos, CA

Re 56:

Akira Eejima, Burlingame, CA

Barbara Broaddus, Burlingame, CA

Bob Nishimura, Bay Air Quality Management Special District, San Francisco, CA

Brian ONeill, National Park Service - GGNRA, San Francisco, CA

Burt Treanor, Burlingame, CA

Carol Eejima, Burlingame, CA

Dale Loutzenheiser, Burlingame, CA

Deborah Baltodano Tilson, Burlingame, CA

Dennis Zell, Concerned Residents of Burlingame, Burlingame, CA

Dr. George W. Davis, Bayview Senior Center, San Francisco, CA

Elizabeth Mackay, Burlingame, CA

Greg Cochrau, South San Francisco Chamber of Commerce, South San Francisco, CA

Hazel Lee, Community Alliance Portola , Silver Terrace, San Bruno, CA

Heidi Ennis, Burlingame, CA

Howard Woo, San Francisco, CA

Karen I. Olson, Burlingame, CA

Kent Jaffa, Scottish Power - PacifiCorp, Utah

Kurt Lighthouse, Burlingame, CA

Michael Kelsh, Exponent, EEI, Menlo Park, CA

Robert Kavet, Electric Power Research Institute, San Carlos, CA

Roque J. Yballa, Burlingame, CA

Sheri Saisi, Burlingame, CA

Thomas McDonagh, Solar Power, San Francisco

Vincent Couchi, Burlingame, CA

Re 57:

Catherine A. Schlicht, Mission Viejo, CA

Dan Joseph, Mission Viejo, CA

Deborah Mahan, Mission Viejo, CA

Larry Gilbert, Mission Viejo, CA

Michael Greenwood, Mission Viejo, CA

Ron Link, Mission Viejo, CA

Susan Withrow, MIssion Viejo, CA

Re 60:

Michael Kelsh, Exponent, EEI, Menlo Park, CA

Robert Kavet, Electric Power Research Institute, San Carlos, CA

Re 70:

Daniel Benjamin, San Francisco, CA

David Hurlburt, Pacifica, CA

Jay Hansen, State Building Trades Council, AFL-CIO, Sacramento, CA

Jess D. Haro, Hispanic Assoc. on Corp. Responsibility, San Diego

Jim Conran, California Small Business Association, Orinda, CA

Jose Perez, Latino Journal, Sacramento, CA

Missy Mastel, Masstel Communications, San Francisco, CA

Scott Wetch, International Brotherhood of Electrical Workers, Sacramento, CA

Tony Distefano, Arrival Communications, Orinda, CA

Re 75: Mark Nuaimi, City of Fontana, Fontana, CA

1

[3468]

This resolution authorizes DOWC, Lime Saddle District a surcharge of $2.17 per month per customer

for five years producing an annual increase in revenue of $11,889 for a total of $59,444 to recover

legal expenses.  (Advice Letter (AL) 126, filed December 24, 2003, and Supplemental AL 126-A,

filed April 8, 2004)

Agenda 3133, Item 15 5/6/2004 (Staff);

Agenda 3134, Item 11 5/27/2004 (Staff);

Agenda 3135, Item 4 6/9/2004 (Lynch)

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

No: (none)

Abstain: (none)

Absent: (none)

2

[3537]

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)

3

[3530]

This decision approves in part the Competitive Local Exchange Carriers' request for advice letter

treatment of Sections 851 through 854 matters.  This proceeding is closed.

(Comr Lynch - ALJ Galvin)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

4

[3552]

R02-06-041 - Order Instituting Rulemaking to require California natural gas and electric

utilities to preserve interstate pipeline capacity to California.

This decision grants in part and denies in part the motion to accept a late-filed notice of intent (NOI) to

claim compensation by The Utility Reform Network (TURN). This decision denies TURN's

concurrent request for an award of $32,810.41 related to D04-01-047 because TURN did not timely

file its NOI, and its motion comes after the proceeding was closed and more than 17 months after the

due date for the NOI. However, the decision grants compensation in the amount of $12,846.25 for

TURN's work that made a substantial contribution to D02-07-037 and D03-04-061 because no

prehearing conference was held relating to the issues addressed in these decisions. This proceeding is

closed.

(Comr Lynch - ALJ Brown)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

5

[3587]

Arrowhead, a privately owned water utility in Cedar Glen, California, serving approximately 500

customers, filed this application on April 25, 2003, seeking to sell and transfer ownership of the

company to Rio Plaza Water Company, Inc.  The Commission’s Water Division now moves for

dismissal of the application on grounds that Arrowhead is in receivership, with disposition of its assets

subject to the direction of the San Bernardino County Superior Court.  The motion to dismiss, which is

unopposed, is granted, without prejudice to refiling if circumstances so warrant. This proceeding is

closed.

(Comr Peevey - ALJ Walker)

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

No: (none)

Abstain: (none)

Absent: (none)

6

[3589]

C04-02-024 - Wayne Ricky Elson Rudder and Myrtle Rudder Johnson vs. MCI WorldCom

Communications, Inc.

This decision dismisses the complaint for failure to show a violation of law or order upon which the

Commission can grant relief. This proceeding is closed.

(Comr Lynch - ALJ Bushey)

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

No: (none)

Abstain: (none)

Absent: (none)

7

[3593]

I00-08-002 - Order Instituting Investigation into the functioning of the wholesale electric

market and associated impact on retail rates.

This decision closes this proceeding.

(Comr Wood - ALJ Wetzell)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

8

[3594]

This resolution approves PG&E Amendment No. 7 of the Qualified Decommissioning Trust

Agreement and Amendment No. 4 of the Non-qualified Decommissioning Trust Agreement. (Advice

Letter 2503-E, filed April 30, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

9

[3600]

CWSC - Bakersfield, Bear Gulch, Chico, Dixon, Dominguez-South Bay, East Los Angeles,

Hermosa-Redondo, King City, Livermore, Los Altos, Marysville, Mid-Peninsula, Salinas, Selma,

South San Francisco, Stockton, Palos Verdes, Westlake, Willows, Visalia Districts - Resolution

recording status of reserve account recovery filings and results of earnings tests.  (Advice Letter (AL)

1622 and AL 1624, filed March 25, 2004, and AL  1642, AL 1643, AL 1647, AL 1648, AL 1649,

and AL 1650, filed April 1, 2004)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

10

[3607]

C03-07-031 - Pacific Gas and Electric Company (PG&E) vs. Calpine Corporation, CPN

Pipeline Company, Calpine Energy Services, L.P., Calpine Natural Gas Company, and Lodi

Gas Storage, LLC.

This decision approves a settlement between PG&E, complainant, and defendants Lodi Gas Storage,

LLC, Calpine Corporation, CPN Pipeline Company, Calpine Energy Services, L.P., and Calpine

Natural Gas Company. The terms of the settlement provide that PG&E will dismiss the complaint in

exchange for payments and other agreements by defendant. The Commission finds the settlement

meets all of the Commission's requirements, and should be approved. This proceeding is closed.

(Comr Brown - ALJ Thomas)

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

No: (none)

Abstain: (none)

Absent: (none)

11

[3608]

This decision dismisses PG&E's application to market value its Humboldt Bay Power Plant

non-nuclear fossil units for the reason that the application is moot. This proceeding is closed.

(Comr Lynch - ALJ Patrick)

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

No: (none)

Abstain: (none)

Absent: (none)

12

[3620]

This decision grants the application of the City of Sacramento to relocate the existing crossing at 12th

and 16th Streets 200 feet to the east in the City and County of Sacramento. This proceeding is closed.

(Exam Clark)

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

No: (none)

Abstain: (none)

Absent: (none)

13

[3621]

Pursuant to the limited rehearing of D03-12-039 granted by D04-03-043, this decision approves

Great Oaks’ County Park Project, a maximum of $448,280.90 for Test Year 2003, subject to Great

Oaks filing an advice letter deviation. This proceeding is closed.

(Comr Brown - ALJ Grau)

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

No: (none)

Abstain: (none)

Absent: (none)

14

[3631]

For authority to lower and adjust retail electric rates for all customer classes upon completion of full

recovery of procurement related obligations account.   Visalia Senior Housing dba Town Meadows

(Petitioner) seeks modification of D03-07-029, SCE’s most recent rate allocation decision on the

ground that although it received its California Alternate Rates for Energy Program (CARE) discount, its

rates increased.  No other customers receiving the CARE discount had a rate increase.  Held:  Petition

denied without prejudice.  Petitioner should present its issue in the current SCE rate allocation

proceeding.  This proceeding is closed.

(Comr Brown - ALJ Barnett)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

99

[3670]

Order disposing of application for rehearing of D04-03-037 filed by the Navajo Nation. In

D04-03-037, the Commission approved changes to a previously approved Power Purchase

Agreement  between Southern California Edison Co. and Mountainview Power Co., LLC. FERC had

conditioned its approval of the PPA upon the changes that were approved in D04-03-037.

Yes: (Brown, Kennedy, Peevey, Wood)

No: (Lynch)

Abstain: (none)

Absent: (none)

100

[3680]

Disposes of the applications for rehearing of D03-03-031 filed by Verizon California, Inc. and

Southern California Edison.  D03-03-031 modified D01-09-045, which resolved intervenor

compensation requests by The Utility Reform Network, the Greenlining Institute and Latino Issues

Forum, and Public Advocates, Inc. for substantial contributions to D03-03-031.

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

No: (none)

Abstain: (none)

Absent: (none)

101

[3682]

Disposition of Application of Sound Energy Solutions for Rehearing of I04-04-024 and/or disposition

of Request for Stay of I04-04-024. The Order institutes an investigation into the proposal of SES filed

with the Federal Energy Regulatory Commission to construct a liquefied natural gas terminal in Long

Beach, California.

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

No: (none)

Abstain: (none)

Absent: (none)

102

[3684]

Disposition of Applications for Rehearing of Decision D03-12-060 filed by Women’s Energy Matters

(WEM), Residential Energy Service Companies’ United Effort (RESCUE), and joint application of

Consortium for Energy Efficiency, Inc. et al. R01-08-028 examines the Commission’s future energy

efficiency policies, administration and programs. D03-12-060 is an interim opinion adopting funding for

the 2004-2005 energy efficiency programs and studies. D03-12-060 was modified in part by

D04-02-059.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

103

[3695]

Disposition of Application of AT&T Wireless Services of California, LLC, Pacific Bell Wireless, LLC

dba Cingular Wireless, Nextel of California, Inc., Sprint Spectrum S.P. d/b/a Sprint, Omnipoint

Communications, Inc. dba T-Mobile, and Verizon Wireless apply for rehearing of D04-04-038.

D04-04-038 resolves petitions to excuse utilities from the list of Respondents to a Rulemaking to

consider rules governing utility construction contract process.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

108

[3650]

Consideration of appointment, employment, evaluation of performance, or dismissal of a public

employee or to hear complaints or charges brought against that employee by another person or

employee, including the appointment or employment of Executive Director.

Approved (Discussed and voted in Executive Session; reconvened Public

Session to announce the appointment of Steve Larson to Executive

Director effective 7/15/04.)

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

No: (none)

Abstain: (none)

Absent: (none)

82

[3708]

Telecommunications: selling or licensing lists of subscribers.

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

No: (none)

Abstain: (none)

Absent: (none)

83

[3706]

Water corporations.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

84

[3503]

Agenda 3133, Item 79 5/6/2004 (Staff);

Agenda 3134, Item 69 5/27/2004 (Staff);

Agenda 3135, Item 51 6/9/2004

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

85

[3709]

Wireless telephones: directories.

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

No: (none)

Abstain: (none)

Absent: (none)

86

[3612]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

87

[3506]

Agenda 3133, Item 82 5/6/2004 (Staff);

Agenda 3134, Item 76 5/27/2004 (Staff);

Agenda 3135, Item 60 6/9/2004 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

88

[3653]

Federal Legislation:  Proposed Liquefied Natural Gas (LNG) Import Terminal Development Act of

2004.

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

No: (none)

Abstain: (none)

Absent: (none)

89

[3583]

Agenda 3134, Item 78 5/27/2004 (Staff);

Agenda 3135, Item 62 6/9/2004 (Staff)

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

No: (none)

Abstain: (none)

Absent: (none)

90

[3659]

Discussion of and action on the Electric Retail Market Reform Policy Statement, proposed by a

subcommittee of the Energy Resources Conservation and Development Commission, the Consumer

Power and Conservation Financing Authority, and the PUC. The Policy Statement articulates the basic

framework of a core/noncore retail electric market structure that the three agencies can support before

the Legislative and Executive Branches.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

91

[3712]

Selection of alternate for the Pacific Gas and Electric Company Stewardship Council.

Approved (Appointed Barbara Hale to replace Bill Ahern as alternate

representative to Comr. Brown; Dan Adler appointed alternate to

Barbara Hale.)

Yes: (Brown, Kennedy, Peevey, Wood)

No: (none)

Abstain: (none)

Absent: (Lynch)

92

[3696]

Request for Attorney General's opinion concerning the applicability of the California Environmental

Quality Act to certain decisions pursuant to Public Utilities Code Section 851.

Yes: (Lynch, Wood)

No: (Brown, Kennedy, Peevey)

Abstain: (none)

Absent: (none)

94

[3467]

Disposition of Application for Rehearing of D03-10-088, filed by ORA and TURN.  On October 30,

2003, the Commission issued an interim opinion regarding NRF Phase 2B Service Quality issues in

regard to Pacific and Verizon.  In this decision, the Commission found that neither Pacific’s service

quality nor Verizon’s service quality had deteriorated under NRF.

Agenda 3133, Item 85 5/6/2004 (Kennedy);

Agenda 3134, Item 81 5/27/2004 (Kennedy)

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

No: (none)

Abstain: (none)

Absent: (none)

95

[3565]

Disposition of Applications for Rehearing of D04-01-050 filed by Cogeneration Association of

California/Energy Producers and Users Coalition, Southern California Edison Company (SCE), San

Diego Gas & Electric Company, Alliance for Retail Energy Markets, Constellation NewEnergy, Inc.,

and California Wind Energy Association, and Application for Rehearing of D03-12-062 filed by SCE.

In D04-01-050 and D03-12-062, the Commission adopted a long-term regulatory framework under

which California’s electric utilities will plan for and procure the energy resources and demand-side

investments necessary to ensure their customers receive reliable service at low and stable prices.

Agenda 3134, Item 82 5/27/2004 (Staff);

Agenda 3135, Item 64 6/9/2004 (Peevey)

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

No: (none)

Abstain: (none)

Absent: (none)

96

[3572]

Disposition of Application of The Utility Reform Network for Rehearing of D04-02-025. The Decision

authorized Southern California Edison Company to recover costs associated with certain capital

additions added to rate base in 1997 and early 1998 for divested non-nuclear generation plant.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

97

[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.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

98

[3606]

A02-12-028, I03-03-016 - Related matters.   Disposition of the application for rehearing of

D03-12-058 filed by Southern California Edison Company (SCE).  D03-12-058 found Local 483

Utility Workers Union of America eligible for intervenor compensation under Chapter 9, Article 5,

Section 1801, et seq., of the Public Utilities Code.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

15

[3632]

Pinnacles has installed equipment that would allow its customers' Calling Party Number (CPNs) to be

transmitted on calls between states. In order to ensure that Pinnacles' customers fully understand the

privacy implication of CPN and Calling Party Number Identification Service, Pinnacles requests

Commission authority to implement a Customer Notification and Education Plan. (Advice Letter 202,

filed April 28, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

16

[3635]

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 Kennedy - ALJ O'Donnell)

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

No: (none)

Abstain: (none)

Absent: (none)

17

[3637]

This resolution adopts a surcharge rate of 0.16% from the current rate of zero % for the California

Teleconnect Fund program.  The new surcharge rate is effective August 1, 2004.

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

No: (none)

Abstain: (none)

Absent: (none)

18

[3638]

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

mechanisms for generation procurement and renewable resource development.

This decision dismisses without prejudice the Petition to Modify Decision 04-01-050 filed by Western

Power Trading Forum on May 14, 2004 and suspends the filing of responses to the petition.

(Comr Peevey - ALJ Walwyn)

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

No: (none)

Abstain: (none)

Absent: (none)

19

[3639]

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

facilities-based and resold local exchange, and limited facilities-based interexchange

telecommunications services.  Applicant was previously authorized to resell interexchange services.

This proceeding is closed.

(Comr Kennedy - ALJ O'Donnell)

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

No: (none)

Abstain: (none)

Absent: (none)

20

[3648]

R04-02-006 - Rulemaking for purposes of implementing certain statutory requirements set

forth in AB 1735 for extending the deadline for completing ratesetting or quasi-legislative

proceedings.

AB 1735 (Pub. Util. Code §§1701.5 and 1701.6) allows the 18-month period for completing

ratesetting and quasi-legislative proceeding to be extended (1) in the Scoping Memo, or (2) during the

proceeding, by Commission order.  This decision amends Rules of Practice and Procedure 77.7 to

exempt the extension order from public review and comment, which would further delay the

proceeding.  This proceeding is closed.

(Comr Brown - ALJ Thorson)

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

No: (none)

Abstain: (none)

Absent: (none)

21

[3649]

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 Kennedy - ALJ O'Donnell)

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

No: (none)

Abstain: (none)

Absent: (none)

22

[3651]

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

limited facilities-based local exchange telecommunications services within California. This proceeding is

closed.

(Comr Kennedy - ALJ Galvin)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

23

[3655]

This decision grants MTA authority to construct the proposed two-track grade-separated crossing

above and across tracks beneath the First Street Bridge as part of the Eastside Corridor Light Rail

Transit Line project in the City of Los Angeles, Los Angeles County.  This proceeding is closed.

(Exam Clark)

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

No: (none)

Abstain: (none)

Absent: (none)

24

[3660]

This resolution authorizes HWC to implement Schedule No. 14.1, mandatory water conservation and

rationing. (Advice Letter 74, filed May 24, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

25

[3661]

This resolution authorizes SJWC an offset rate increase producing additional annual revenues of

$4,558,134 or 3.62% for increase in the cost of purchased water and pump tax. (Advice Letter 348,

filed May 7, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

26

[3662]

LAWC's request to secure a loan in the amount of $1,037,554, and to add a surcharge to water rates

to repay the loan principal and interest. (Advice Letter 65, filed June 9, 2003)

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

No: (none)

Abstain: (none)

Absent: (none)

27

[3663]

This decision authorizes Cal Water to issue $250 million of common shares, preferred shares or debt

securities. Debt issues of $20 million or less are exempted from the Competitive Bidding Rule. This

proceeding is closed.

(Exam Jackson)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

28

[3664]

A03-12-014 - Antelope Valley Bus, Inc. and CUSA CC, LLC dba Airport Bus of Bakerfield

and Antelope Valley Bus.

This decision authorizes Antelope Valley Bus, Inc. to transfer its passenger stage corporation

certificates to CUSA CC, LLC, dba Airport Bus of Bakerfield and Antelope Valley Bus. This

proceeding is closed.

(Exam Clark)

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

No: (none)

Abstain: (none)

Absent: (none)

29

[3665]

This decision authorizes Applicant to extend its passenger stage corporation service to include the

transportation of passengers and their baggage between Napa, Vallejo, and Sonoma, on the one hand,

and Oakland International Airport, on the other hand. This proceeding is closed.

(Exam Clark)

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

No: (none)

Abstain: (none)

Absent: (none)

30

[3666]

A04-04-020 - Aloysius Dimude and Caroline I. Okeke, dba Travelers Shuttle Express

(Applicant).

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

Francisco, Alameda, Contra Costa, and San Mateo Counties, on the one hand, and San Francisco,

Oakland, and San Jose International Airports, on the other hand; and 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)

31

[3668]

I91-08-029 - Investigation on the Commission's own motion into the causes of recent

derailments of Southern Pacific Transportation Company trains, compliance of Southern

Pacific with applicable laws, rules and regulations, the existence of any local safety hazards,

and recommendations for improvements in state and federal laws or regulations.

This decision closes docket upon finding that there are no further matters requiring it to remain open.

(Comr Kennedy - ALJ Weismehl)

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

No: (none)

Abstain: (none)

Absent: (none)

32

[3669]

This resolution authorizes AMWC an offset rate increase of $46,971 of 14.15% in additional revenue

due to contract work and purchased water costs. (Advice Letter 57-W, filed March 1, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

33

[3671]

This resolution approves an Interconnection Agreement between CTC-Tuolumne and AT&T

Wireless, in accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice

Letter 149, filed April 29, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

34

[3672]

Res T-16852 - Citizens Telecommunications Company of the Golden State (CTC-Golden

State).

This resolution approves an Interconnection Agreement between CTC-Golden State and AT&T

Wireless, in accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice

Letter 159, filed April 29, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

35

[3673]

This resolution approves an Interconnection Agreement between CTC-California and AT&T Wireless,

in accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice Letter

841, filed April 29, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

36

[3674]

This resolution approves an Interconnection Agreement between CTC-California and SureWest

Wireless, in accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice

Letter 838, filed April 28, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

37

[3675]

This resolution limits liability of utility related to outages or the provision commercial power when the

provision of commercial power is necessary to provide service to the customer. (Advice Letter (AL)

10845, filed April 26, 2004. Supplemented by AL 10845A, filed May 5, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

38

[3676]

This resolution approves an Interconnection Agreement between Verizon and Paxio, Inc., in

accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice Letter

10849, filed April 30, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

39

[3677]

This resolution grants YBWC's request to secure a loan in the amount of $50,000 and to encumber its

assets in connection with the loan. (Advice Letter 28, filed May 6, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

40

[3678]

Res W-4483 - Suburban Water Systems (SWS), San Jose Hills and Whittier La Mirada

Districts.

This resolution authorizes SWS, San Jose Hills and Whittier La Mirada Districts surcharges in each

district to recover under-collections in purchased water, pump tax, and purchased power balancing

accounts producing additional annual revenues of $3,035,681 for those combined districts. (Advice

Letter (AL) 232-W, filed March 17, 2003, supplemented by AL 232-W-A, filed June 16, 2003 and

AL 232-W-B, filed June 1, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

41

[3679]

This resolution authorizes a general rate increase producing additional annual revenues of $2,823 or

16.67% in 2003, a 1.9% increase in rates based on the 2003 Consumer Price Index, a one-time

surcharge of $415 for Department of Health Services fees in each district, and the establishment of a

late payment charge.

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

No: (none)

Abstain: (none)

Absent: (none)

42

[3683]

This decision approves the rate case stipulation and decides the one remaining issue.  This proceeding

is closed.

(Comr Wood - ALJ Bushey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

43

[3686]

This resolution extends three biomass energy contracts for PG&E that were previously authorized by

the Commission in Resolution E-3853.  (Advice Letter 2506-E, filed Marach 10, 2004)

Approved (Comr. Lynch reserves the right to file a dissent. Comr. Wood

reserves the right to join Comr. Lynch's dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

44

[3687]

PG&E requests approval of Adoption of Proposed Summer Demand Response Reduction Programs

in response to Assigned Commissioner's Ruling on June 4, 2004.  (Advice Letter 2523-E, filed June

14, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

45

[3692]

This decision grants Frazier Mountain Internet Service, Inc. a certificate of public convenience and

necessity to provide resold and UNE-P facilities-based local exchange telecommunications services.

This proceeding is closed.

(Comr Kennedy - ALJ Prestidge)

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

No: (none)

Abstain: (none)

Absent: (none)

46

[3698]

This resolution authorizes designated employees of the Consumer Protection and Safety Division to

exercise the powers of arrest of a peace officer and the power to serve warrants pursuant to Penal

Code §830.11 and Public Utilities Code §308.5.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

47

[2910]

PG&E seeks Commission approval pursuant to Pub. Util. Code §851 of certain licenses and leases of

PG&E property already in effect (the “agreements” or “transactions”).  In total PG&E seeks approval

of 256 transactions.  Most of these agreements were entered into several years ago.  Each permits

various uses of PG&E property by third parties.  The transactions did not have prior approval of the

Commission pursuant to Pub. Util. Code §851.  PG&E states that it discovered many of these

agreements in various branch office files while conducting an extensive search in the PG&E bankruptcy

proceeding. Because the 256 transactions may implicate environmental review or may not meet the

criteria for General Order (GO) 69-C transactions, PG&E states that it decided it would be prudent to

seek formal approval of the transactions under Section 851.  In addition, PG&E asserts that

Commission environmental review under the California Environmental Quality Act (CEQA) is

unnecessary because the majority of the transactions fit within CEQA exemptions, nine received

adequate local CEQA review, and six pre-date CEQA and are thus not subject to its requirements.

This decision grants Section 851 approval for 255 of the transactions on a prospective basis.  The

Commission notes one of the transactions fits within recent Commission decisions finding agreements

allowing floating boat docks as appropriate under GO 69-C.  Therefore, Commission's approval here

is not required.  The decision declines to impose a penalty for failure to obtain prior approval of the

transactions.  With respect to CEQA, the Commission notes that because all of the agreements are

several years old, any activity which may have warranted Commission's environmental review has long

since occurred. Accordingly, Commission's CEQA review at this time has little value for practical

purposes.  Nevertheless, the Commission will address the CEQA issues raised by PG&E and

determine where possible, the applicability of the claimed exemptions.  This proceeding is closed.

(Comr Kennedy - ALJ Walker)

Agenda 3124, Item 42 12/4/2003 (Kennedy);

Agenda 3127, Item 18 1/22/2004 (Wood);

Agenda 3128, Item 30 2/11/2004 (Wood);

Agenda 3130, Item 36 3/16/2004 (Lynch);

Agenda 3131, Item 24 4/1/2004 (Lynch);

Agenda 3133, Item 34 5/6/2004 (Kennedy);

Agenda 3135, Item 19 6/9/2004 (Peevey)

Signed (Comr. Kennedy will file a concurrence. Comr. Lynch reserves

the right to file a dissent. Comr. Wood will file a dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

47a

[3306]

This alternate differs from the Proposed Decision in the manner in which CEQA concerns are resolved

and in its retroactive treatment of the leases. The Proposed Decision approved the leases on a

going-forward basis, while declaring them to be void for periods prior to the approval. In response to

comments, the ALJ reversed that position, proposing that the Commission grant a retroactive

exemption for the leases, pursuant to Section 853. The alternate adheres to the ALJ's original position

on this issue.

(Comr Wood)

Agenda 3130, Item 36a 3/16/2004 (Lynch);

Agenda 3131, Item 24a 4/1/2004 (Lynch);

Agenda 3133, Item 34a 5/6/2004 (Kennedy);

Agenda 3135, Item 19a 6/9/2004 (Peevey)

Yes: (Lynch, Wood)

No: (Brown, Kennedy, Peevey)

Abstain: (none)

Absent: (none)

48

[3268]

I02-06-002 - Related matters.   SCE’s test year revenue requirement is established, a late payment

charge and adjustments to other service charges are approved, a post-test year ratemaking mechanism

is approved, 1997-98 capital additions are approved, and proposals for performance incentives are

denied.

(Comr Wood - ALJ Wetzell)

Agenda 3130, Item 41 3/16/2004 (Wood);

Agenda 3131, Item 29 4/1/2004 (Kennedy);

Agenda 3132, Item 37 4/22/2004 (Kennedy);

Agenda 3133, Item 36 5/6/2004 (Peevey);

Agenda 3134, Item 34 5/27/2004 (Wood);

Agenda 3135, Item 20 6/9/2004 (Peevey)

Yes: (Brown, Lynch)

No: (Kennedy, Peevey, Wood)

Abstain: (none)

Absent: (none)

48a

[3269]

This alternate differs from the Proposed Decision in 3 ways, none of which affect the revenue

requirement:

1. It modifies Section 5.5 Service Guarantees to adopt ORA’s proposed 8-part service standard.

2. It modifies Section 6.2.7 Employee Compensation Issues to point out weaknesses in the current

Total Compensation Study methodology, order SCE to develop a new study for the next GRC, and

adopt Greenlining’s proposal to require SCE to annually report to the Commission on total

compensation to its ten most highly-compensated employees.

3. It modifies Section 13.2 The Case for Performance Incentives. CCUE had proposed benchmarks

and incentives.  SCE and CCUE then reached a settlement adopting modified benchmarks and

incentives. The PD rejects both, stating that incentives are inconsistent with Cost of Service

ratemaking. The alternate adopts CCUE’s proposal.

There are changed Findings, Conclusions and Ordering Paragraphs to match these text changes. In all

other respects, the drafts are the same.

(Comr Wood)

Agenda 3130, Item 41a 3/16/2004 (Wood);

Agenda 3131, Item 29a 4/1/2004 (Kennedy);

Agenda 3132, Item 37a 4/22/2004 (Kennedy);

Agenda 3133, Item 36a 5/6/2004 (Peevey);

Agenda 3134, Item 34a 5/27/2004 (Wood);

Agenda 3135, Item 20a 6/9/2004 (Peevey)

Yes: (Lynch, Wood)

No: (Brown, Kennedy, Peevey)

Abstain: (none)

Absent: (none)

48b

[3516]

I02-06-002 - Related matters. This Alternate Decision of Commissioner Kennedy makes changes to

the Proposed Decision of ALJ Wetzell and does not incorporate any modifications from Commissioner

Wood's Alternate Decision.  Additionally, the changes made to ALJ Wetzell's PD represent an

increase in SCE's current rate base of $129 million.  Specifically, this Alternate Decision would change

the Proposed Decision by:

Modifying Section 4.5 to increase Transmission and Distribution Operation and Maintenance Expenses

by $1.9 million.

Modifying Section 5.2.3.4 to fully fund the Economic and Business Development Program - $2.514

million.

Modifying Section 5.4.2 to grant Edison's request to recover $10.8 million associated with Real Time

Energy Metering;

Modifying Section 6.5.2 to increase Information Technology Expenses by $9.969 million.

Modifying Section 6.5.3 to increase Information Technology Capital Expenditures by $6 million.

Modifying Section 8.5 to reduce TURN's proposal to treat customer deposits as an offset to rate base

to the 1996 - 2001 five-year average of $80 million rather than the PD's use of a 2000 - 2001, 13

month average of $117 million.

Modifying Section 9.2 to approve SCE's request for an increase in depreciation rates for certain

accounts.

(Comr Kennedy)

Agenda 3133, Item 36b 5/6/2004 (Peevey);

Agenda 3134, Item 34b 5/27/2004 (Wood);

Agenda 3135, Item 20b 6/9/2004 (Peevey)

Signed (Comr. Lynch reserves the right to file a dissent. Comr. Wood

will file a concurrence.)

Yes: (Brown, Kennedy, Peevey, Wood)

No: (Lynch)

Abstain: (none)

Absent: (none)

49

[3366]

This decision concludes the reasonableness review of PG&E’s Safety and Reliability Enhancement

Funds Balancing Account. It allows PG&E to recover a portion of the charges as provided by Pub.

Util. Code §368(e).  This proceeding is closed.

(Comr Kennedy - ALJ Long)

Agenda 3132, Item 42 4/22/2004 (Kennedy);

Agenda 3133, Item 40 5/6/2004 (Kennedy)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

50

[3431]

For authority, among other things, to increase revenue requirements for electric and gas service and to

increase rates and charges to gas service effective on January 1, 2003.  I03-01-012, A02-09-005 -

Related matters. This interim decision addresses Storm and Reliability issues raised in PG&E's Test

Year 2003 General Rate Case.

(Comr Peevey - ALJ Halligan)

Agenda 3133, Item 42 5/6/2004 (Wood);

Agenda 3134, Item 37 5/27/2004 (Wood)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

50a

[3697]

This alternate differs from the proposed decision in only one respect. It approves, with modifications,

the Joint Proposal by PG&E/CUE for a reliability performance incentive mechanism.

(Comr Wood)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

51

[3442]

This decision grants Section 851 approval on a prospective basis for 78 agreements and denies

Section 851 approval for 27 agreements that have terminated or relate to property that has been sold.

This proceeding is closed.

(Comr Wood - ALJ Kenney)

Agenda 3133, Item 45 5/6/2004 (Kennedy);

Agenda 3135, Item 23 6/9/2004 (Kennedy)

Yes: (Brown, Kennedy, Peevey, Wood)

No: (Lynch)

Abstain: (none)

Absent: (none)

52

[3591]

R02-10-001 - Order Instituting Rulemaking on the establishment of a public purpose

program surcharge pursuant to Assembly Bill (AB) 1002.

This decision implements Assembly Bill 1002, establishing a natural gas surcharge to fund public

purpose programs.  This decision addresses matters including customer exemptions, formulas for

calculating surcharge rates, accrual of interest on surcharge revenues, and accounting matters.  The

decision approves, subject to modifications, Pacific Gas and Electric Company’s Advice Letter

2440-G, identifying surcharge balancing accounts. This decision also initiates a public interest research

and development (R&D) program for gas that appoints the California Energy Commission as

administrator, establishes criteria for R&D projects, and sets R&D funding at an initial amount of $12

million for 2004, with the potential for R&D budget increases in later years.  This proceeding is closed.

(Comr Lynch - ALJ DeBerry)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

53

[3602]

This decision grants SoCalGas' unopposed application for authorization pursuant to Pub. Util. Section

851 to convey an easement to Southern California Edison Company on property located in Santa

Clarita, California, which is the site for the SoCalGas Honor Rancho underground gas storage field.

This proceeding is closed.

(Comr Kennedy - ALJ Prestidge)

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

No: (none)

Abstain: (none)

Absent: (none)

54

[3640]

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 denies Petition to Modify D03-04-057 filed by SBC Services, University of California,

and California Large Energy Consumers Association.  This decision also denies Petition to Modify

D02-03-055 filed by Southern California Edison.  This decision adopts Direct Access Load Growth

Principles based on workshop held March 11, 2004.

(Comr Brown, Comr Wood - ALJ Pulsifer)

Signed (Comr. Lynch reserves the right to file a dissent. Comr. Wood

reserves the right to file a dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

55

[3644]

This decision certifies the Final Environmental Impact Report as the Environmental Impact Report

(EIR) for the transmission line facilities that are the subjects of this application.  The decision certifies

the EIR for use by responsible agencies in considering subsequent approvals for the project, or for

portions thereof.  This proceeding is closed.

(Comr Lynch - ALJ Malcolm)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

55a

[3701]

This alternate adopts the Miguel Mission transmission project proposed by SDG&E.  It accepts the

current Commission policy regarding Electric Magnetic Fields.

(Comr Kennedy)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

56

[3645]

This decision grants a CPCN for PG&E’s 230 kV Jefferson-Martin transmission project. The

authorized route is a hybrid combination of the underground Route Option 1B, a portion of PG&E’s

proposed above ground segment, and PG&E’s proposed underground segment with Route Option

4B, subject to alteration of the northern segment based on additional environmental review. This

proceeding is closed.

(Comr Lynch - ALJ TerKeurst)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

56a

[3667]

This alternate differs from the proposed decision in that it limits consideration of alternate transmission

routes to routes that already have been reviewed in the Final Environmental Impact Report.  In

addition, the alternate decision accepts the current Commission policy regarding Electric Magnetic

Fields.

(Comr Peevey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

57

[3657]

SCE requests a Permit to Construct a new substation in the City of Lake Forest and certain new

transmission facilities through the City of Mission Viejo.  SCE refers to the proposed new facilities as

the Viejo System Project.  This order grants the permit as the project described in the Final Mitigated

Negative Declaration (FMND) and certifies the FMND. This proceeding is closed.

(Comr Kennedy - ALJ Malcolm)

Signed ((Vote to hold the this item was defeated 3-2; Lynch and Wood

voted in favor.) Comr. Lynch will file a dissent. Comr. Wood will file a

dissent.)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

58

[3690]

R04-04-003 - Order Instituting Rulemaking to promote policy and program coordination and

integration in electric utility resource planning.

This decision addresses transmission congestion and reliability issues specified in the Assigned

Commissioner's Ruling filed June 10, 2004.

(Comr Peevey)

Signed (Comr. Lynch reserves the right to file a dissent. Pres. Peevey

reserves the right to join Comr. Wood's concurrence. Comr. Wood

reserves the right to file a concurrence.)

Yes: (Brown, Kennedy, Peevey, Wood)

No: (Lynch)

Abstain: (none)

Absent: (none)

59

[3691]

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

Portfolio Standard Program.

This decision adopts least-cost, best-fit evaluation criteria for use in the 2004 RPS solicitation and

directs the utilities to issue revised requests for offers for eligible renewable resources consistent with

this decision and their approved renewable procurement plans.

(Comr Peevey - ALJ Halligan)

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

No: (none)

Abstain: (none)

Absent: (none)

60

[3699]

R _________ - Order Instituting Rulemaking to update the Commission’s policies and

procedures related to electromagnetic fields emanating from regulated utility facilities.

The Commission’s current policies and procedures in this area predate research findings recently

submitted to the Commission by the California Department of Health Services as well as a decision of

the California Supreme Court concerning the extent of the Commission’s jurisdiction related to

electromagnetic field issues.  This proceeding will reconsider the Commission’s policies and

procedures in light of these events and in light of the utilities’ experiences in implementing existing

policy.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

112 (Rev.)

[3715]

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 Ratepayers for Affordable Clean Energy's appeal of categorization of

Phase I of R04-01-025 as a quasi-legislative proceeding.This matter is added to the agenda pursuant

to Govt. Code §11125.3(a)(2) and Public Utilities Code §306(b).

(Comr Kennedy, Comr Peevey - ALJ Wong)

07/07/2004 - This revision was not shown on the Agenda mailed to the public.

06/30/2004 - This item was not listed on the agenda distributed to the public.

Signed ((Voted 5-0 to add this item to the agenda late pursuant to Govt.

Code Section 11125.3(a)(2) and PUCode Section 306(b).) Comr. Lynch

reserves the right to file a dissent. Comr. Wood reserves the right to file

a concurrence.)

Yes: (Brown, Kennedy, Peevey, Wood)

No: (Lynch)

Abstain: (none)

Absent: (none)

61

[3544]

Certification to the Securities and Exchange Commission (SEC) whether the California Public Utilities

Commission has the resources and authority to safeguard the interests of California customers of

PacifiCorp, an indirect utility subsidiary of ScottishPower plc, a holding company registered with the

SEC under the Public Utility Holding Company Act of 1935, as amended (PUHCA or the Act), 15

U.S.C. §§79a, et seq.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

61a

[3588]

The Commission certifies to the Securities and Exchange Commission (SEC) that the California Public

Utilities Commission has the resources and authority to safeguard the interests of California customers

of PacifiCorp, an indirect utility subsidiary of ScottishPower plc, a holding company registered with the

SEC under the Public Utility Holding Company Act of 1935, as amended (PUHCA or the Act), 15

U.S.C. §§79a, et seq. pursuant to the conditions imposed.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

62

[3617]

Res E-3831 - Pacific Gas and Electric Company (PG&E), Southern California Edison

Company (SCE), and San Diego Gas & Electric Company (SDG&E).

PG&E, SCE, and SDG&E filed tariffs in compliance with Ordering Paragraph 17 of D03-04-030 to

implement the Departing Load Customer Generation Cost Responsibility Surcharge effective on filing

subject to post-filing review by the Energy Division.  These Advice Letters are approved with

modifications. (PG&E Advice Letter (AL) 2375-E, filed April 17, 2003, Supplemental AL 2375-E-A,

filed May 5, 2003; SCE AL 1700-E, filed April 17, 2003; and SDG&E AL 1488-E, filed April 17,

2003)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

63

[3633]

SDG&E requests approval of its Low Income Energy Efficiency funding for assistance with Cool Zone

Centers.  Request granted as modified. (Advice Letter 1584-E, filed April 9, 2004)

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

No: (none)

Abstain: (none)

Absent: (none)

64

[3642]

SDG&E submits an Advice Letter to increase electric transmission rates effective October 1, 2003,

pursuant to the Federal Energy Regulatory Commission's May 2, 2003 order in Docket

ER03-601-000. SDG&E's request is approved with modifications and requires bill credits.  (Advice

Letter 1526-E, filed September 26, 2003)

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

No: (none)

Abstain: (none)

Absent: (none)

65

[3646]

Res E-3875 - Pacific Gas & Electric Company (PG&E), Southern California Edison

Company (SCE) and San Diego Gas & Electric Company (SDG&E).

PG&E, SCE, and SDG&E request approval of Agency Agreements with the California Department of

Water Resources for the implementation of the California Consumer Power and Conservation

Financing Authority Demand Reserves Partnership Program. (PG&E Advice Letter (AL) 2505-E,

SCE AL 1720-E-A, and SDG&E AL 1512-E-A, filed May 10, 2004)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

66

[3685]

SCE request approval of Modifications to the Demand Response Goals and Programs for Large

Customers as authorized by Administrative Law Judge Ruling issued on June 2, 2004. (Advice Letter

1805-E, filed June 14, 2004)

Approved as Modified ((Voted 3-2 to strike direct access buy down

language; Pres. Peevey and Comr. Kennedy dissented.  Clanon to work

with Comr. Brown on language change.) Comr. Wood will file a

concurrence.)

Yes: (Brown, Kennedy, Peevey, Wood)

No: (Lynch)

Abstain: (none)

Absent: (none)

67

[3688]

This resolution addresses SCE's request to re-open schedule 20/20 for commercial and industrial

customers on time-of-use rate schedules, expand the AB970 Smart Thermostat Program and increase

enrollment in the Residential Air Conditioning Cycling Program to mitigate peak demand during the

Summer of 2004. (Advice Letter 1804-E, filed June 8, 2004)

Approved (Comr. Lynch will file a concurrence. Comr. Wood will file a

concurrence.)

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

No: (none)

Abstain: (none)

Absent: (none)

68

[2636]

R01-09-001 - Order Instituting Rulemaking on the Commission’s own motion to assess and

revise the new regulatory framework for Pacific Bell (Pacific) and Verizon California

Incorporated.

I01-09-002 - Related matters.    This proposed decision addresses Phase 2B audit issues. The

proposed decision sustains most of the findings of an audit of Pacific's intrastate financial results for the

period 1997-1999 that were considered during Phase 2B. Despite the audit adjustments, this decision,

read in combination with the findings reached by the Commission in Phase 2A of this proceeding, does

not increase Pacific's earnings to a level requiring it to make refunds to its ratepayers.

(Comr Kennedy - ALJ Thomas)

Agenda 3123, Item 40 11/13/2003 (Staff);

Agenda 3125, Item 70 12/18/2003 (Staff);

Agenda 3126, Item 57 1/8/2004 (Kennedy);

Agenda 3129, Item 31 2/26/2004 (Wood);

Agenda 3131, Item 39 4/1/2004 (Staff);

Agenda 3134, Item 45 5/27/2004 (Staff);

Agenda 3135, Item 30 6/9/2004 (Kennedy)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

68a

[2637]

I01-09-002 - Related matters.  This alternate resolves Phase 2B audit issues.  This alternate, read in

combination with the findings in D04-02-063, does not increase Pacific’s earnings to a level requiring it

to make refunds to its ratepayers.  The alternate proposed decision accepts Pacific’s claim of

lawyer-client confidentiality concerning certain information, but prohibits the booking of contingent

liability accruals that rely on that information.  The alternate proposed decision denies Pacific’s request

to recover audit costs because of its failure to cooperate with the audit.  The alternate orders

corrections to the regulatory accounts concerning the booking of Local Number Portability costs and

reducing the levels of authorized “Cash Working Capital.”  The alternate also orders Pacific to make

other error-correcting adjustments, with the timing of the adjustments consistent with GAAP (which

was previously adopted by this Commission to guide telecommunications accounting).

(Comr Kennedy)

Agenda 3123, Item 40a 11/13/2003 (Staff);

Agenda 3125, Item 70a 12/18/2003 (Staff);

Agenda 3126, Item 57a 1/8/2004 (Kennedy);

Agenda 3129, Item 31a 2/26/2004 (Wood);

Agenda 3131, Item 39a 4/1/2004 (Staff);

Agenda 3134, Item 45a 5/27/2004 (Staff);

Agenda 3135, Item 30a 6/9/2004 (Kennedy)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

69

[3199]

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 customers.

This modified decision finds that Cingular’s corporate practice and policy from January 2000 to April

31, 2002 violated (1) Pub.Util.Code §451 and D95-04-028 because it allowed no trial of its wireless

service and prohibited early termination of wireless service contracts unless the customer paid an early

termination fee of $150 or more, even though testing wireless service by using the phone is the best

way for a customer to ascertain whether the service meets his or her needs, and (2) violated §§451,

702 and 2896 and D95-04-028 because it failed to disclose known network problems during 2001

and, in spite of these problems, continued to prohibit refunds/returns and require early termination fees

for early cancellation of wireless service contracts.  Decision orders a penalty of $12,140,000 and

requires reparations to customers.  This modified decision addresses the issues raised by the

Commission's Consumer Protection and Safety Division, Utility Consumers Action Network, and

Cingular in their appeals to the Presiding Officer’s Decision filed October 9, 2003.  This proceeding is

closed.

(Comr Wood - ALJ Vieth)

Agenda 3128, Item 48 2/11/2004 (Kennedy);

Agenda 3131, Item 45 4/1/2004 (Kennedy);

Agenda 3133, Item 50 5/6/2004 (Staff);

Agenda 3134, Item 47 5/27/2004 (Peevey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

70

[3523]

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

decision adopts revised monthly recurring unbundled network element (UNE) rates for several UNEs

that Pacific Bell Telephone Company dba SBC-California sells to competitive local exchange carriers.

The UNEs for which revised monthly recurring rates are adopted are loops (including 2-wire, DS-1

and DS-3), switching, dedicated transport, signaling system 7 (SS7) links, and the DS-3 entrance

facility without equipment.  The rates in today’s order replace interim rates for loops and switching that

were set in D02-05-042 and replace rates for other UNEs originally adopted in D99-11-050.  This

order adopts a statewide average 2-wire loop rate of $12.92 and a flat rate for switching usage of

$2.64 per port.  These rates result in a UNE-Platform rate of $16.90 per month.  The Commission

sets these rates based on the average of the results of the models proposed by SBC-CA and the HAI

Model, Version 5.3, proposed by AT&T Communications of California and WorldCom, Inc.  An

average of the two competing models is used based on the finding that both models are flawed.  These

proceedings are closed.

(Comr Wood - ALJ Duda)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

70a

[3524]

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

alternate decision adopts revised monthly recurring unbundled network element (UNE) rates for

several UNEs that Pacific Bell Telephone Company dba SBC-California sells to competitive local

exchange carriers.  The alternate adopts a statewide average 2-wire loop rate of $13.26 and a flat rate

for switching usage of $2.77 per port.  These rates result in a UNE-Platform rate of $17.38 per

month.  The rates are based on the average of the results of the models proposed by SBC-CA and the

HAI Model, Version 5.3, proposed by AT&T Communications of California and WorldCom Inc.  An

average of the two competing models is used based on the finding that both models are flawed.  This

alternate incorporates inflation factors into the SBC-CA model and it assumes the use of 60%

Integrated Digital Loop Carrier equipment as a modeling input.

(Comr Wood)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

71 (Rev.)

[3641]

R03-08-019 - Order Instituting Rulemaking on the Commission’s own motion to amend

General Order 77-K.

This decision adopts General Order (GO) 77-L. GO 77-L supersedes GO 77-K with revised rules

for filing utility employee compensation data. The joint petition of Pacific Gas and Electric Company

and the Greenlining Institute/Latino Issues Forum to modify the rulemaking is granted to the extent of

expanding the scope of the rulemaking, as described in the order.

(Comr Wood - ALJ Koss)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

72

[3099]

In Interim Decision 03-05-001 on May 8, 2003, the Commission approved a settlement between the

City of Santa Monica (City) and SCWC that conveyed SCWC water rights to the City and relieved

SCWC from its participation in a number of pending lawsuits related to the Charnock Groundwater

Basin.  The issue of ratemaking treatment of the settlement proceeds and the issue of contamination

payments made to SCWC by oil companies were deferred to this phase of the proceeding.  This

decision resolves those issues.  The application is closed.

(Comr Kennedy - ALJ Walker)

Agenda 3127, Item 42 1/22/2004 (Lynch);

Agenda 3129, Item 37 2/26/2004 (Lynch);

Agenda 3131, Item 50 4/1/2004 (Wood);

Agenda 3132, Item 54 4/22/2004 (Staff);

Agenda 3133, Item 57 5/6/2004 (Wood);

Agenda 3134, Item 52 5/27/2004 (Brown);

Agenda 3135, Item 36 6/9/2004 (Brown)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

72a

[3459]

This Alternate Decision directs the Southern California Water Company to refund to ratepayers the net

proceeds received from the City for SCWC’s Charnock Basin cause of action, to remove relevant

Charnock Basin assets from rate base in its current general rate case for the region, Application (A.)

03-10-006, to transfer net proceeds received from Potentially Responsible Parties (PRPs) with

respect to the Charnock Basin contamination from Account 704 (purchased water) to Account

704.02 (purchased water balancing account) for later refund to ratepayers of the excess shown in

Account 704.02, and to book future net proceeds to be received from PRPs with respect to the

Charnock Basin contamination to Account 704.02 for later refund to ratepayers of the excess shown

in Account 704.02.

(Comr Lynch)

Agenda 3132, Item 54a 4/22/2004 (Staff);

Agenda 3133, Item 57a 5/6/2004 (Wood);

Agenda 3134, Item 52a 5/27/2004 (Brown);

Agenda 3135, Item 36a 6/9/2004 (Brown)

Yes: (Lynch, Wood)

No: (Brown, Kennedy, Peevey)

Abstain: (none)

Absent: (none)

73

[3630]

A04-01-024 - F. Patrick Flynn & Joyce H. Flynn and California-Michigan Land and Water

Company.

This decision grants authority to F. Patrick Flynn and Joyce H. Flynn to sell their outstanding shares of

common stock of Mesa Crest Water Company (Mesa Crest), and to transfer the Mesa Crest water

system to MCWC, Inc., a wholly owned subsidiary of California-Michigan Land and Water Company

(Cal-Mich).  Mesa Crest serves 710 connections in an area near the City of La Canada Flintridge in

Los Angeles County.  Cal-Mich operates the East Pasadena Water Company, which serves 2,802

connections in an area contiguous to Pasadena and San Marino in Los Angeles County.  This

application is closed.

(Comr Wood - ALJ Walker)

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

No: (none)

Abstain: (none)

Absent: (none)

74

[3643]

This decision grants Cal Water a rate increase in the Salinas District and imposes penalties for three

unauthorized service area acquisitions. This proceeding is closed.

(Comr Kennedy - ALJ Bushey)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

75

[3689]

The Commission authorizes San Gabriel  a general rate increase.  The Commission also removes $2.6

million from ratebase related to the F-10 Treatment Plant for which San Gabriel received

reimbursement from the County of San Bernardino.  This proceeding is closed.

(Comr Peevey - ALJ Patrick)

Yes: (Brown, Kennedy, Peevey)

No: (Lynch, Wood)

Abstain: (none)

Absent: (none)

75a

[3693]

This alternate decision differs from the ALJ Proposed Decision in two ways:  1) It adopts a cap using a

3 year average of the company's recorded plan additions for the period 2001-2003 and 2) The

condemnation proceeds from the County of San Bernardino will be subject to an audit by Water

Division staff and will be addressed in San Gabriel Fontana District's next GRC.

(Comr Brown)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

75b

[3694]

This alternate decision grants an effective date of January 1, 2004 for rates that ultimately will be

adopted in this proceeding for the San Gabriel Valley Water Company (Fontana Division).

(Comr Kennedy)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

76

[3702]

This decision addresses CalAm's application to increase certain water rates in its Monterey Division to

promote water conservation and avoid State Water Resources Control Board order violations.  This

proceeding is closed.

(Comr Peevey - ALJ McVicar)

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

No: (none)

Abstain: (none)

Absent: (none)

77

[3360]

Agenda 3132, Item 60 4/22/2004 (Staff);

Agenda 3133, Item 60 5/6/2004 (Kennedy);

Agenda 3134, Item 57 5/27/2004 (Kennedy)

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

No: (none)

Abstain: (none)

Absent: (none)

78

[3354]

This resolution adopts an annual process for setting and updating hourly rates for use by intervenors in

seeking compensation for substantially contributing to a Commission decision, as provided in the

statutory intervenor funding program.  The hourly rates that the Commission establishes through this

process will govern intervenors and their representatives who have recently participated in Commission

proceedings, and will provide guidance to other intervenors and representatives.

Agenda 3132, Item 61 4/22/2004 (Staff);

Agenda 3133, Item 61 5/6/2004 (Wood);

Agenda 3134, Item 58 5/27/2004 (Wood);

Agenda 3135, Item 42 6/9/2004 (Peevey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

79

[3705]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

80

[3707]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

81

[3704]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)