IV. PG&E's Application

On September 1, 1999, PG&E filed its 1999 ATCP requesting that the Commission:

1. approve the revenues and costs recorded to the TCBA and TCBA-related memorandum accounts from July 1, 1998 through June 30, 1999;

2. approve the adjustments to the TCBA reflecting recovery of 1996, 1997 and the first quarter of 1998 non-nuclear generation capital additions;

3. approve PG&E's proposed method for calculating and applying the rate of return and divestiture bonus incentive rate of return to uneconomic generation assets;

4. approve the entries in connection with 48-month accelerated depreciation of generation assets;

5. approve PG&E's scheduled amortization of regulatory assets through the TCBA;

6. find reasonable PG&E's environmental and non-environmental decommissioning cost estimates for Hunters Point Power Plant;

7. find reasonable PG&E's divestiture transaction costs associated with the sale of PG&E's fossil and geothermal power plants and the market valuation of Hunters Point Power Plant;

8. find reasonable PG&E's activities related to Qualifying Facilities (QFs) and other power purchase agreements (PPAs), including Western Area Power Administration (WAPA), and approve recovery of all the costs (including PG&E's actual administrative and litigation costs) associated with these contracts as recorded in the TCBA; and

9. approve recovery of $0.55 million in QF shareholder incentives related to eight renegotiated/restructured QF contracts from July 1, 1998 through June 30, 1999;

10. find reasonable PG&E's geothermal and Helms pumped storage operations, and water purchases for power; and

11. approve recovery of $13.6 million in employee-related transition costs recorded in the TCBA.

A. Motion to Strike

In its report, ORA recommends that authorization for recovery of Post Retirement Benefits Other than Pensions transition obligations and Long-Term Disability regulatory assets be postponed until compliance with previous Commission decisions is demonstrated. On March 16, 2000, PG&E, SDG&E, and Edison jointly moved to strike that recommendation and Chapter 8 of ORA's Report, which supported the recommendation. On April 27, 2000, the presiding ALJ granted the utilities' motion to strike.