6. Jurisdiction and Standard of Review

PG&E's application requests Commission approval of proposed natural gas transportation arrangements pursuant to Pub. Util. Code §§ 701, 702, and 2821. PG&E has the burden of proof to support its application through a preponderance of evidence.

Among other things, the application requests authority for PG&E to recover the rates and charges it incurs to transport gas on the Ruby Pipeline and the Redwood Path. Pub. Util. Code § 451 requires all utility rules, rates, and charges to be just and reasonable. Pub. Util. Code § 454 requires the Commission to determine whether a rate increase is justified. Thus, the Commission should approve PG&E's application only if it finds that PG&E has demonstrated that the proposed gas transportation arrangements are just and reasonable. For the reasons set forth below, we conclude that PG&E's application satisfies these requirements and should be granted.