6. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Timothy J. Sullivan is the assigned Administrative Law Judge in this proceeding.

1. The $34.8 million in costs that PG&E incurred to prepare for the appraisal, sale, or divestiture of its hydroelectric facilities are transition costs.

2. It is reasonable to authorize PG&E to transfer the balance from the Costs Deemed Reasonable subaccount of the GDTCMA (including interest at the 90-day commercial paper rate calculated from the date of this Application to the date of transfer plus franchise fees and uncollectibles) to the MTCBA for recovery in rates as part of PG&E's next Annual Electric True-up advice letter.

3. It is reasonable to include Point 3 of the Stipulation in this decision.

4. Authorizing recovery of these costs does not carry an unacceptable risk of "double recovery" by PG&E of these costs.

1. D.03-02-028 deemed the $34.8 million in costs that PG&E incurred to prepare for the appraisal, sale, or divestiture of its hydroelectric facilities reasonable.

2. D.03-02-028 deemed the $34.8 million in costs that PG&E incurred to prepare for the appraisal, sale, or divestiture of its hydroelectric facilities to be transition costs pursuant to Pub. Util. Code § 367(a).

3. D.07-95-026 deemed it consistent with the law to permit the recovery of transition costs arising from preparation for a planned divestiture or market valuation of generation facilities by transferring these costs to the MTCBA.

4. It is consistent with the law to authorize PG&E to transfer the balance from the Costs Deemed Reasonable subaccount of the GDTCMA (including interest at the 90-day commercial paper rate calculated from the date of this Application to the date of transfer plus franchise fees and uncollectibles) to the MTCBA for recovery in rates as part of PG&E's next Annual Electric True-up advice letter.

5. It is consistent with the law and the Commission's Rules of Practice and Procedure to permit any party to petition to modify this decision approving PG&E's application if, subsequent to today's decision approving PG&E's application, facts develop that indicate that PG&E has previously collected some or all of the $46.9 million in rates prior to this application. In the event of such a petition, any party signing the Stipulation is free to support or oppose such a petition for modification.

ORDER

IT IS ORDERED that:

1. Pacific Gas and Electric Company (PG&E) is authorized to transfer the balance deemed reasonable in Decision 03-02-028 attributed to preparing for the sale, appraisal, or divestiture of hydroelectric generation facilities from the Costs Deemed Reasonable subaccount of the Generation Divestiture Transaction Cost Memorandum Account (including interest at the 90-day commercial paper rate calculated from the date of this Application to the date of transfer plus franchise fees and uncollectibles) to the Modified Transition Cost Balancing Account for recovery in rates as part of PG&E's next Annual Electric True-up advice letter.

2. Any party is authorized to petition to modify this decision approving PG&E's application if, subsequent to today's decision approving PG&E's application, facts develop that indicate that PG&E has previously collected some or all of the $46.9 million in rates prior to this application. If more than one year has elapsed from the time of this decision to the filing of a petition, the petition must also explain why the petition could not have been presented within one year of the effective date of the decision. In the event of such a petition, any party, including those signing the Stipulation, is free to support or oppose such a petition for modification.

This order is effective today.

Dated April 16, 2009, at San Francisco, California.

Previous PageTop Of PageGo To First Page