4. Conclusion

In summary, we find it reasonable to grant PG&E's application to recover the costs of preparing for the sale, appraisal or divestiture of its hydroelectric generation facilities that were deemed reasonable in D.03-02-028. We find that these costs are transition costs. It is also reasonable and lawful for PG&E to recover these costs through the MTCBA, a practice previously used in D.07-05-026.

This decision protects consumers by incorporating language that makes it clear that it is reasonable for parties to petition to modify this decision should new facts come to light that indicate that PG&E has already collected a portion of these costs. The decision further finds that gain on sale regulatory proceedings avoid any unacceptable risk of a future double recovery of sale-related costs.

Finally, having resolved all outstanding issues, we close this proceeding.