ALJ/TRP/jyc Date of Issuance 5/8/2009

Decision 09-05-002 May 7, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of PACIFIC GAS AND ELECTRIC COMPANY to increase its authority to finance short-term borrowing needs and procurement-related collateral costs by $1.5 billion to an aggregate amount not to exceed $4.0 billion. (U39M)

Application 08-12-014 (Filed December 18, 2008)

DECISION AUTHORIZING INCREASE

IN SHORT-TERM BORROWING LIMITS

1. Summary

We hereby approve the application of Pacific Gas and Electric Company (PG&E) for authority to increase its short-term borrowing authority by an additional $1.5 billion subject to conditions set forth herein. PG&E contends that it needs authority to issue up to an additional $1.5 billion of short-term debt for the purposes outlined below. No party opposes the request. The increased short-term borrowing limits will provide PG&E with the flexibility to meet collateral requirements relating to its energy procurement hedging activities, and to facilitate the efficient financing of its authorized capital spending program.

Through Decision (D.) 04-10-037, as modified by D.06-11-006, PG&E was previously authorized to issue up to $2.5 billion of short-term debt for working capital fluctuation and energy procurement-related purposes including
$500 million which was restricted to certain contingencies. PG&E was thereby authorized to issue a variety of types of short-term debt securities, including direct loans, revolving credit facilities and letter of credit facilities, accounts receivable financing, commercial paper, and extendible commercial notes. In this proceeding, PG&E requests authority to issue up to $1.5 billion of additional unrestricted short-term debt using the same types of debt instruments and on the same conditions as authorized by D.04-10-037. With this additional authority, PG&E's aggregate short-term debt authorization will be $4.0 billion, including the $500 million which is restricted to certain contingencies.