ALJ/MLC/hl2 DRAFT Agenda ID #4880

Ratesetting

Decision PROPOSED DECISION OF ALJ COOK (Mailed 8/19/2005)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Recovery of Pre-Deployment Costs of the Advanced Metering Infrastructure Project (U 39 M)

Application 05-03-016 (Filed March 15, 2005)

(List of Appearances is attached as Appendix A.)

DECISION APPROVING LIMITED PRE-DEPLOYMENT FUNDING

FOR PACIFIC GAS AND ELECTRIC COMPANY'S

ADVANCED METERING INFRASTRUCTURE PROJECT

1. Summary

This decision approves a limited amount of pre-deployment funding for Pacific Gas and Electric Company's (PG&E) proposed Advanced Metering Infrastructure (AMI) Project. The adopted amount of $7.0 million is less than the $49 million requested because it is limited to funding associated with activities to assess minimum functionality and investments that would provide value to ratepayers independent from the decision on whether ratepayers should invest in PG&E's proposed AMI Project. It would not be reasonable for ratepayers to fund the other activities that make up the $49 million request in advance of the determination that the proposed AMI Project is reasonable in total. This decision adopts specific ratemaking and cost recovery treatment for the authorized funds and continues PG&E's existing memorandum account to enable PG&E to record costs for activities that are not authorized in today's decision.