COM/MP1/hl2 Mailed 1/29/2007

Decision 07-01-024 January 25, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Rulemaking for the Purposes of Revising General Order 96-A Regarding Informal Filings at the Commission.

Rulemaking 98-07-038 (Filed July 23, 1998)

FOURTH INTERIM OPINION ADOPTING REMAINING
GENERAL RULES AND INDUSTRY RULES FOR
ENERGY AND WATER AS REVISIONS TO GENERAL ORDER 96-A

FOURTH INTERIM OPINION ADOPTING REMAINING GENERAL
RULES AND INDUSTRY RULES FOR ENERGY AND WATER
AS REVISIONS TO GENERAL ORDER 96-A 1

1. Summary 2

2. Procedural Matters 2

3. Interim Decisions 3

4. Recent Commission Policy Initiatives 4

5. Advice Letter Tiers 6

5.1 Review & Suspension Under Pub. Util. Code § 455 6

5.2 Tiers of Review 8

5.3 Concepts Underlying Tier 1 12

5.4 Tier 1 in Operation 13

5.4.1 An Advice Letter Whose Subject Matter Qualifies for
Tier 1 May Be Submitted Under Tier 2 (Effective Upon
Staff Approval) if the Utility Chooses 14

5.4.2. Industry Division Staff Will Prepare a Proposed Resolution
for the Commission's Consideration if an Issue Arises in
Advice Letter Review That the Commission Must Address 15

5.4.3 An Advice Letter Improperly Designated Tier 1 Will Be
Rejected Without Prejudice and May Require Remedial
Action 16

5.5 Advice Letters Deemed Approved 17

5.6 Review of Tier 1 Advice Letters 18

5.7 Review of Tier 2 Advice Letters 20

5.8 Review of Tier 3 Advice Letters 22

5.9 Other Advice Letter Tiers 23

5.10 Disposition of Advice Letters 23

6. Responses to Comments on General Rules 26

6.1 Introduction 27

6.2 "Overview of the General Order" (General Rules 1.1 to 1.5) 27

6.3 "Code of Ethics" (General Rule 2) 28

6.4 "Definitions" (General Rules 3.1 to 3.16) 28

6.5 "Notice, Access, Filing, and Service Procedures Generally"
(General Rules 4.1 to 4.5) 29

6.6 "Use of Advice Letters" (General Rules 5.1 to 5.5) 31

6.7 "Information-only Filings" (General Rules 6 to 6.2) 32

6.8 "Advice Letter Review and Disposition" (General
Rules 7.1 to 7.8) 32

6.9 "Tariffs" (General Rules 8.1 to 8.5.8) 35

6.10 "Confidential Treatment" (General Rule 9) 40

7. Response to Comments on Energy Industry Rules 41

7.1 "Serving Advice Letters" (Energy Industry Rule 3) 42

7.2 "Numbering Advice Letters" (Energy Industry Rule 4) 42

7.3 "Matters Appropriate to Tier 1 (Effective Pending Disposition)"
(Energy Industry Rule 5.1) 43

7.4 "Matters Appropriate to Tier 2 (Effective After Staff Approval)"
(Energy Industry Rule 5.2) 43

7.5 "Internet Publication" (Energy Industry Rule 6.1) 43

7.6 "Service Area" (Energy Industry Rule 6.2) 44

7.7 "Tariff Rules" (Energy Industry Rule 6.4) 44

7.8 "Sample Forms" 44

8. Water Industry Rules 44

8.1 "Contracts" (Water Industry Rule 1.5) 46

8.2 "Memorandum Account" (Water Industry Rule 1.8) 46

8.3 "Other Required Notice" (Water Industry Rule 3.3) 46

8.4 "Service Area Extension or Transfer of Ownership" (Water
Industry Rule 4.2) and "Withdrawal or Withholding of Service"
(Water Industry Rule 4.4) 46

8.5 "Tier Classifications for Advice Letters" (Water
Industry Rule 7.3) 47

8.6 "Advice Letter Supplements" (Water Industry Rule 6) 48

8.7 "Service Extension into Contiguous or Other Area"
(Water Industry Rule 8.1) 48

8.8 "Expense Offset" (Water Industry Rule 8.4) & "Balancing
Account Offset" Water Industry Rule 8.5) 49

8.9 "Service Area Maps" (Water Industry Rule 10) 49

9. Comments on Proposed Decision 49

9.1 Status of Telecommunications Utilities 50

9.2 Grace Period for Filings Under Tier Structure 52

9.3 Effective Date 52

9.4 Tariff Sheet Numbering 53

9.5 Notice Requirements 53

9.6 Notices to Correct Tariffs 54

9.7 Penalties and Sanctions 54

9.8 Confidentiality 54

9.9 Governmental Agency Contract Procedures 56

9.10 Other General Rules Changes 56

9.11 Comments on Water Industry Rules 57

10. Assignment of Proceeding 59

Findings of Fact 59

Conclusions of Law 62

FOURTH INTERIM ORDER 62

Attachment I: Current Version of General Rules Showing Provisions
Set Forth in February 14, 2001 Draft Decision and Provisions Adopted
in First (1^st), Second (2^nd), and Third (3^rd) Interim Decisions 65

Attachment II: Indicating Original General Rules, As Set Forth in
Draft Decision (Feb. 14, 2001), and Provisions Thereof Adopted by First
(1^st), Second (2^nd), and 3^rd Interim Decisions, as Well as Remaining
General Rules to be Adopted in this Decision 69

Appendix A: General Rules

Appendix B: Energy Industry Rules

Appendix C: Water Industry Rules

Appendix D: Service List

FOURTH INTERIM OPINION ADOPTING REMAINING

GENERAL RULES AND INDUSTRY RULES FOR

ENERGY AND WATER AS REVISIONS TO GENERAL ORDER 96-A

1. Summary

In this Fourth Interim Decision, we adopt the bulk of the previously proposed revisions to General Order (GO) 96-A, which governs utility tariffs (including their form, content, and publication) and the advice letters by which they are amended. We adopt the remainder of General Rules that complement the individual rules that we previously adopted in our three interim decisions. Collectively, these General Rules govern all utilities that file advice letters. We also adopt specific rules for utilities in the energy and water industries.

All of the adopted rules will constitute GO 96-B, which will supersede GO 96-A in its entirety. After today's decision, the last element for completing GO 96-B is adoption of the Telecommunications Industry Rules. Parties earlier commented on rules keyed to the New Regulatory Framework (NRF). With the recent replacement of NRF by the Uniform Regulatory Framework, we will publish for comment a revised set of rules tailored to the new framework.