ALJ/DKF/avs Mailed 12/4/2006

Decision 06-11-030 November 30, 2006

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)

(See Appendix A for a list of appearances.)

INTERIM OPINION ADOPTING

AGRICULTURAL DEFINITION SETTLEMENT

1. Summary

This decision grants the motion of Pacific Gas and Electric Company (PG&E), Agricultural Energy Consumers Association (AECA), California Farm Bureau Federation (CFBF) and California Rice Millers (CRM) (collectively the Settling Parties) requesting adoption of the "Agricultural Definition Settlement in Application 06-03-005" (Agricultural Definition Settlement). The Agricultural Definition Settlement is uncontested, reasonable in light of the whole record, consistent with law, in the public interest, and adopted without modification. This proceeding remains open to consider all other issues related to PG&E's electric marginal cost, revenue allocation and rate design application.