Adopted Results of Operations

The comparison of PG&E, ORA, and adopted results of operations is:

					PG&E		ORA's	ORA's		Adopted
					Requested		Primary	Secondary
					2001		Recommendation	Recommendation
							for 2001	for 2001
		A			B		C	D		E
1	REVENUES
2	General Rate Case Revenue				2,088,338		2,088,838	2,088,838		2,088,838
3	Increase				184,196		0	112,940		150,838
4	General Rate Case Revenue				2,272,533		2,088,838	2,201,778		2,239,676
5
6	OPERATING EXPENSES
7	Transmission				723		552	552		6904
8	Distribution				414,862		373,460	373,460		397,6295
9	Customer Accounts				193,468		173,169	173,169		186,5256
10	Uncollectibles				7,643		7,024	7,405		7,532
11	Administration & General				191,158		187,177	187,177		186,7267
12	Franchise Requirements				14,335		11,629	13,293		13,851
13	Subtotal Expenses				822,189		753,011	755,055		792,953
14
15	Depreciation				417,617		416,891	416,891		416,891
16
17	TAXES
18	Property				83,417		83,417	83,417		83,417
19	Payroll				32,194		32,194	32,194		32,194
20	Business				335		335	335		335
21	Subtotal other taxes				115,946		115,946	115,946		115,946
22
23	Subtotal expenses				1,355,752		1,285,848	1,287,892		1,325,790
24
25	Income basis for State Taxes				916,781		802,990	913,886		913,886
26	State Corporation Franchise Tax				37,156		27,097	36,900		36,900
27	Income basis for Federal Taxes				879,625		775,894	876,986		876,986
28	Federal Income Tax				212,862		176,556	211,938		211,938
29	Net for Return				666,763		599,338	665,048		665,047
30
					PG&E		ORA's	ORA's		Adopted
					Requested		Primary	Secondary
					2001		Recommendation	Recommendation
							for 2001	for 2001
		A			B		C	D		E
31
32	Total Revenues				2,272,533		2,088,838	2,201,778		2,239,676
33	Total Operating Expenses				1,605,770		1,489,500	1,536,730		1,574,629
34	Net for Return				666,763		599,338	665,048		665,047
35
36	Rate Base				7,309,012		7,292,186	7,292,186		7,292,186
37
38	Rate of Return on Rate Base				9.122%		8.219%	9.120%		9.120%8

In reaching our adopted results of operation electric revenue requirement increase, we started with authorized expenses of 1999 (see Appendix A, Col. A), omitted inflation for 2000, used the 2001 escalation factors shown on the results of operations table (above), and used the current rate of return of 9.12%. This results in an electric revenue requirement increase of $150,838,000. This is a reasonable increase based on the rate base, escalators and the rate of return adopted in this decision, as discussed above.

⁴ Escalation, year 2001 - 2.95% (Ex. 11, p. 1-15, L. 15-17.) (continued on next page)

⁵ Escalation, year 2001 - 3.29% (Ex. 11, p. 1-15, L. 15-17.)

⁶ Escalation, year 2001 - 3.62% (Escalation for customer accounts is the same as for A&G, Ex. 5, p. 1-18, L. 17-18, L. 25-26).

⁷ Escalation, year 2001 - 3.62% (Ex. 11, p. 1-11, L. 15-17).

⁸ A 9.12% rate of return was authorized in PG&E's recent cost of capital decision (D.00-06-040 in A.99-11-003). Ordering Paragraph 2 of D.00-06-040 states that "PG&E's adopted cost of capital is effective February 17, 2000 as authorized by D.00-02-049." (At p. 23.)