ALJ/DKF/sid Date of issuance 7/13/2009

Decision 09-07-002 July 9, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company To Revise Its Electric Marginal Costs, Revenue Allocation, and Rate Design. (U 39 M)

Application 06-03-005 (Filed March 2, 2006; Petition for Modification filed April 3, 2009)

DECISION DENYING PETITION FOR MODIFICATION

OF DECISION 08-07-045 WITHOUT PREJUDICE

1. Summary

The Division of Ratepayer Advocates, the California Small Business Association and California Small Business Roundtable filed a Petition for Modification of Decision 08-07-045. The request that the effective date for default critical peak pricing rates for small and medium commercial and industrial customers be postponed from on, or before, February 1, 2011 to no sooner than February 2012 is denied without prejudice to the determination of such appropriate date in Pacific Gas and Electric Company's ongoing Rate Design Window proceeding, Application 09-02-022. Also, the request for bifurcation of Application 09-02-022, and consideration of rate design for small and medium commercial and industrial customers in the second phase, is moot and denied.

This Application remains open to consider the May 12, 2009 Petition of Pacific Gas and Electric Company and California City-County Street Light Association for Modification of Decision (D.) 07-09-004 and D.07-12-036.