Background and Procedural History

Decision (D.) 97-12-088 adopted rules governing the relationship between Commission-regulated gas and electric utilities and certain of their corporate affiliates. The rules, known as the Affiliate Transaction Rules, create nondiscrimination, disclosure and information, and separation standards aimed at fostering competition and protecting consumers' interests.

PG&E's application seeks an exemption from certain of these Affiliate Transaction Rules for Fuelco, an entity in which PG&E currently has a 4% interest through its wholly-owned affiliate, Pacific Energy Fuels Company (PEFCO). Because this ownership interest is below the 5% threshold at which the Affiliate Transaction Rules take effect, the Rules are inapplicable at present. However, PG&E intends to increase its ownership interest.

By ruling on February 7, 2005, the assigned administrative law judge (ALJ) requested more information about the application. PG&E responded on February 28 by filing a document containing supplemental information (Supplemental Information). Thereafter, by motion on March 9, ORA requested leave to file a protest out of time. PG&E stipulated that it would not oppose the motion and the ALJ granted leave. On March 25, the ALJ held a PHC and on April 4, the Assigned Commissioner's scoping memo issued.

By joint motion filed June 29, 2005, PG&E and ORA now ask for approval of the Settlement Agreement, which resolves all disputed issues between them. The Settlement Agreement is Attachment A to this opinion. Confidentiality issues pertaining to select portions of ORA's workpapers, offered in evidence as part of ORA's prepared testimony, were resolved by ALJ ruling on July 26, 2005. As described therein, the July 26 ruling also admitted the parties' prepared testimony into evidence in this proceeding.