2. PG&E's Request

On December 21, 2009, Pacific Gas and Electric Company (PG&E) filed Application (A.) 09-12-020 requesting a test year 2011 general rate case (GRC) revenue requirement increase of $1,048 million (18.6%) over the then current authorized GRC level of $5,641 million. The requested increase is comprised of $525 million for electric distribution, $213 million for gas distribution, and
$310 million for electric generation. Based on its proposed methodology for calculation of post-test year attrition year revenue requirements, PG&E estimated further revenue requirement increases totaling $276 million for attrition year 2012 and $344 million for attrition year 2013.

The electric distribution revenue requirement request is based on the costs PG&E forecasts it will incur in 2011 to: (1) own, operate and maintain (a) its distribution plant; (b) a portion of its transmission plant providing service directly to specific customers and connecting to specific generation resources; and (c) a portion of its common and general plant; as well as (2) provide services to its electric customers.

The gas distribution revenue requirement request is based on the costs PG&E forecasts it will incur in 2011 to: (1) own, operate, and maintain its distribution plant and a portion of common and general plant; (2) perform the transactions necessary to acquire gas supplies for core gas customers; and
(3) provide services to its gas customers.

The generation revenue requirement request is based on the costs PG&E forecasts it will incur in 2011 to: (1) own, operate and maintain its electric generating plant; and (2) perform the transactions necessary to procure electricity for its bundled-service electric customers.

PG&E requests that the Commission authorize post-test year attrition adjustments for 2012 and 2013 in order to provide PG&E with the funds it deems necessary for those years to continue to provide safe and reliable service to customers, while offering PG&E a reasonable opportunity to earn the rate of return found reasonable by the Commission.