STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 8, 2004 Agenda ID #3641

TO: PARTIES OF RECORD IN RULEMAKING 03-08-019

This is the draft decision of Administrative Law Judge (ALJ) Kenneth L. Koss. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:tcg

Attachment

ALJ/KLK/tcg DRAFT Agenda ID #3641

Quasi-legislative

Decision DRAFT DECISION OF ALJ KOSS (Mailed 6/8/2004)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion to Amend General Order 77-K.

Rulemaking 03-08-019 (Filed August 21, 2003)

OPINION ADOPTING GENERAL ORDER 77-L

AND EXPANDING SCOPE OF RULEMAKING

Summary

By this decision we adopt General Order (GO) 77-L, with revised rules for filing utility employee compensation data. GO 77-L supercedes GO 77-K and contains three substantive revisions:

1. Increases the annual employee compensation levels that trigger reporting under the GO to $125,000 for large utilities (those with at least $1 billion annual revenue) and to $85,000 for all other utilities required to report.

2. Exempts certificated Competitive Local Exchange Carriers (CLECs) and Nondominant Interexchange Carriers (NDIECs) from the provisions of the GO.

3. Allows utilities to file information on employee names as confidential material, subject to Pub. Util. Code § 583, on the condition a redacted version of the report be provided for public inspection.

The joint petition to modify the scope of this rulemaking, filed by Pacific Gas and Electric Company (PG&E) and the Greenlining Institute/Latino Issues Forum (G/LIF), is granted to the extent of expanding the scope of the rulemaking to include the issues of reporting of utility holding company executive compensation and reporting executive compensation and bonuses awarded but not paid in the reporting year.