5. Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and John S. Wong is the assigned ALJ in this proceeding.

Findings of Fact

1. PG&E's October 8, 2010 motion requests that the Commission issue a decision before December 31, 2010, which either allows the revenue requirements and rates agreed to in the proposed Gas Accord V Settlement to go into effect on January 1, 2011, or to allow the revenue requirements in a subsequent decision that addresses the motion to adopt the Gas Accord V Settlement and the contested issues that were litigated, to become effective as of January 1, 2011.

2. The transmission revenue requirements and local transmission rates in the proposed Gas Accord V Settlement reflect the effect of the bill credits that the settlement parties agreed to.

3. SoCalGas and SDG&E oppose the October 8, 2010 motion because, if granted, it will result in the adoption of rates which SoCalGas and SDG&E are disputing.

4. Two of the four issues that SoCalGas and SDG&E raised in opposition to the August 20, 2010 motion to adopt the settlement, and which were litigated in October 2010, could affect some of the rates in the proposed Gas Accord V Settlement.

5. The Commission has been prevented from issuing a decision on the issues in this proceeding before the end of 2010 due to the extensions that were granted to allow the settlement parties more time to negotiate the proposed settlement and to allow SoCalGas and SDG&E to raise and litigate their contested issues.

6. Under PG&E's alternative request in its October 8, 2010 motion, the final decision would make PG&E's 2011 revenue requirements effective as of January 1, 2011 and would be fully collected in rates over the remaining months of 2011.

7. The two issues that SoCalGas and SDG&E raised, which are pertinent to the proposed Gas Accord V Settlement, make up a small portion of the other issues that the settlement parties have agreed to.

8. The compromises that the settlement parties reached on the various issues reflect a give and take by those parties, as well as a desire to have the agreed-upon revenue requirements and rates in effect on January 1, 2011.

9. The proposed Gas Accord V Settlement contains agreements as to the level of O&M expenses and capital expenditures for pipeline integrity management during the four-year rate cycle.

Conclusions of Law

10. A thorough review and analysis of the proposed Gas Accord V Settlement is warranted before the revenue requirements and rates in that proposed settlement are adopted and made effective by this Commission.

11. PG&E's request in its October 8, 2010 motion for an order before the end of December 2010, to make the revenue requirements and rates in the proposed Gas Accord V Settlement effective as of January 1, 2011, should be denied.

12. PG&E's alternative request in its October 8, 2010 motion to allow the revenue requirements (and other elements of the Gas Accord V Settlement that are inextricably linked to the revenue requirements), which are to be decided in a subsequent decision, to become effective as of January 1, 2011, should be granted.

13. Today's decision does not prejudge the Commission's decision on the motion to adopt the Gas Accord V Settlement issues or on the contested issues raised by SoCalGas and SDG&E.

INTERIM ORDER

14. The October 8, 2010 motion of Pacific Gas and Electric Company is granted insofar as to allow the revenue requirements (and other elements of the Gas Accord V Settlement that are inextricably linked to the revenue requirements), which are to be decided in a subsequent decision addressing the August 20, 2010 motion to adopt the Gas Accord V Settlement and the contested issues that were litigated, to become effective as of January 1, 2011. The first request in Pacific Gas and Electric Company's motion to make the revenue requirements and rates contained in the Gas Accord V Settlement effective as of January 1, 2011, is denied.

15. Application 09-09-013 remains open.

This order is effective today.

Dated December 16, 2010, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

TIMOTHY ALAN SIMON

NANCY E. RYAN

Commissioners

APPENDIX A

List of Appearances

************** PARTIES ************** Gerald L. Lahr ABAG POWER 101 EIGHTH STREET OAKLAND CA 94607 (510) 464-7908 JerryL@abag.ca.gov For: ABAG Power ____________________________________________ Seema Srinivasan EVELYN KAHL ALCANTAR & KAHL LLP 33 NEW MONTGOMERY STREET, SUITE 1850 SAN FRANCISCO CA 94105 (415) 421-4143 sls@a-klaw.com For: Chevron USA/ ConocoPhillips/Occidental Energy Marketing, Inc. ____________________________________________ R. Thomas Beach JOSEPH KARP CALIFORNIA COGENERATION COUNCIL 2560 NINTH STREET, SUITE 213A BERKELEY CA 94710-2557 (510) 549-6922 tomb@crossborderenergy.com For: Calpine Corporation and The California Cogeneration Council ____________________________________________ Mark Pinney CANADIAN ASSN. OF PETROLEUM PRODUCERS 2100, 350-7TH AVE., S.W. CALGARY AB T2P 3N9 CANADA (403) 267-1173 pinney@capp.ca For: Canadian Association of Petroleum Producers ____________________________________________ Ann L. Trowbridge CARLIN A. YAMACHIKA DAY CARTER & MURPHY LLP 3620 AMERICAN RIVER DRIVE, SUITE 205 SACRAMENTO CA 95864 (916) 570-2500 X 103 atrowbridge@daycartermurphy.com For: Gill Ranch Storage, LLC ____________________________________________	Dan L. Carroll Attorney At Law DOWNEY BRAND, LLP 621 CAPITOL MALL, 18TH FLOOR SACRAMENTO CA 95814 (916) 444-1000 dcarroll@downeybrand.com For: Lodi Gas Storage, L.L.C. ____________________________________________ Joseph Paul Senior Corporate Counsel DYNEGY-WEST GENERATION 1000LOUISIANA STREET, STE. 5800 HOUSTON TX 77002 (713) 767-0064 joe.paul@dynegy.com For: Dynegy-West Generation ____________________________________________ Francesca E. Ciliberti Counsel EL PASO CORPORATION - WESTERN PIPELINES 2 N. NEVADA AVEUE COLORADO SPRINGS CO 80903 (719) 520-4579 francesca.ciliberti@elpaso.com For: El Paso Corporation ____________________________________________ Greggory L. Wheatland ELLISON SCHNEIDER & HARRIS L.L.P. 2600 CAPITOL AVENUE, SUITE 400 SACRAMENTO CA 95816-5905 (916) 447-2166 glw@eslawfirm.com For: Clearwater Port LLC ____________________________________________ Michael B. Day GOODIN MACBRIDE SQUERI DAY & LAMPREY LLP 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 mday@goodinmacbride.com For: Wild Goose Storage, LLC ____________________________________________ Brian T. Cragg GOODIN, MACBRIDE, SQUERI, DAY & LAMPREY 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 bcragg@goodinmacbride.com For: Dynegy Moss Landing, LLC ____________________________________________
Norman A. Pedersen HANNA AND MORTON LLP 444 SOUTH FLOWER STREET, SUITE 1500 LOS ANGELES CA 90071-2916 (213) 430-2510 npedersen@hanmor.com For: Southern California Generation Coaliton ____________________________________________ Patricia M. French KERN RIVER GAS TRANSMISSION 2755 E. CONTTONWOOD PARKWAY, STE. 300 SALT LAKE CITY UT 84121 (801) 937-6000 trish.french@kernrivergas.com For: Kern River Gas Transmission Co. ____________________________________________ John W. Leslie, Esq. LUCE, FORWARD, HAMILTON & SCRIPPS, LLP EMAIL ONLY EMAIL ONLY CA 00000 (619) 699-5464 jleslie@luce.com For: Shell Energy North America (US) LP ____________________________________________ David L. Huard MANATT, PHELPS & PHILLIPS, LLP 1 EMBARCADERO CTR, STE 2900 SAN FRANCISCO CA 94111-3736 (310) 312-4247 dhuard@manatt.com For: Gas Transmission Northwest Corporation ____________________________________________ Barry F. Mccarthy MICHAEL NELSON MCCARTHY & BERLIN, LLP 100 WEST SAN FERNANDO ST., STE. 501 SAN JOSE CA 95113 (408) 288-2080 bmcc@mccarthylaw.com For: Northern California Generation Coalition ____________________________________________ Sean P. Beatty MIRANT CALIFORNIA, LLC 696 WEST 10TH STREET PITTSBURG CA 94565 (925) 427-3483 Sean.Beatty@mirant.com For: Mirant California, LLC and Mirant Delta, LLC ____________________________________________	Kerry C. Klein Attorney At Law PACIFIC GAS AND ELECTRIC COMPANY PO BOX 7442 SAN FRANCISCO CA 94120 (415) 973-3251 kck5@pge.com For: Pacific Gas and Electric Company ____________________________________________ Marion Peleo Legal Division RM. 4107 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-2130 map@cpuc.ca.gov For: DRA Steve Cohn SACRAMENTO MUNICIPAL UTILITY DISTRICT 6301 S. STREET SACRAMENTO CA 95817 (916) 732-6121 scohn@smud.org For: Sacramento Municipal Utility District ____________________________________________ Michael Rochman Managing Director SCHOOL PROJECT UTILITY RATE REDUCTION 1850 GATEWAY BLVD., STE. 235 CONCORD CA 94520 (916) 483-9955 rochmanm@spurr.org For: School Project for Utility Rate Reduction (SPURR) ____________________________________________ Johnny Pong SEMPRA ENERGY 555 WEST FIFTH STREET NO. 1400 LOS ANGELES CA 90013-1011 (213) 244-2990 JPong@SempraUtilities.com For: SDG&E/SoCal Gas ____________________________________________ Ken Ziobler SPARK ENERGY GAS, LP. 2105 CITYWEST BLVD., SUITE 100 HOUSTON TX 77042 (713) 977-5634 kziobler@sparkenergy.com For: Spark Energy Gas, LP. ____________________________________________
Keith R. Mccrea Attorney At Law SUTHERLAND ASBILL & BRENNAN LLP 1275 PENNSYLVANIA AVE, NW WASHINGTON DC 20004-2415 (202) 383-0705 keith.mccrea@sutherland.com For: California Manufacturers and Technology Association (CMTA) ____________________________________________ Michel Peter Florio MARCEL HAWIGER THE UTILITY REFORM NETWORK 115 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94104 (415) 929-8876 X302 mflorio@turn.org For: The Utility Reform Network ____________________________________________ Ken Bohn TIGER NATURAL GAS AND IN-HOUSE ENERGY 337 ALEXANDER PLACE CLAYTON CA 94517 (925) 215-0822 ken@in-houseenergy.com For: Tiger Natural Gas and In-House Energy ____________________________________________ Joseph M. Karp Attorney WINSTON & STRAWN LLP 101 CALIFORNIA STREET, 39TH FL SAN FRANCISCO CA 94111-5894 (415) 591-1529 jkarp@winston.com For: The Calpine corp/The Calif. Cogeneration council ____________________________________________ ********** STATE EMPLOYEE *********** Eugene Cadenasso Energy Division AREA 4-A 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-1214 cpe@cpuc.ca.gov Dra DIVISION OF RATEPAYER ADVOCATES CPUC - ENERGY COST OF SRVC & NAT'L GAS ROOM 4102 SAN FRANCISCO CA 94102 (415) 703-1079	Anthony Fest Division of Ratepayer Advocates RM. 4205 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-5790 adf@cpuc.ca.gov Kelly C. Lee Division of Ratepayer Advocates RM. 4102 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-1795 kcl@cpuc.ca.gov Richard A. Myers Energy Division AREA 4-A 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-1228 ram@cpuc.ca.gov Ramesh Ramchandani Division of Ratepayer Advocates RM. 4102 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-2765 rxr@cpuc.ca.gov Thomas M. Renaghan Division of Ratepayer Advocates RM. 4205 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-2107 tmr@cpuc.ca.gov Pearlie Sabino Division of Ratepayer Advocates RM. 4209 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-1883 pzs@cpuc.ca.gov Karen M. Shea Executive Division RM. 5303 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 355-5506 kms@cpuc.ca.gov
John S. Wong Administrative Law Judge Division RM. 5106 505 VAN NESS AVENUE San Francisco CA 94102 3298 (415) 703-3130 jsw@cpuc.ca.gov ********* INFORMATION ONLY ********** Karen Terranova ALCANTAR & KAHL 33 NEW MONTGOMERY STREET, SUITE 1850 SAN FRANCISCO CA 94105 (415) 421-4143 filings@a-klaw.com Evelyn Kahl ALCANTAR & KAHL, LLP 33 NEW MONTGOMERY STREET, SUITE 1850 SAN FRANCISCO CA 94015 (415) 421-4143 ek@a-klaw.com For: Chevron USA/ ConocoPhillips/Occidental Energy Marketing, Inc ____________________________________________ Mike Cade ALCANTAR & KAHL, LLP 1300 SW 5TH AVE, SUITE 1750 PORTLAND OR 97201 (503) 402-8711 wmc@a-klaw.com Catherine E. Yap BARKOVICH & YAP, INC. PO BOX 11031 OAKLAND CA 94611 (510) 450-1270 ceyap@earthlink.net Beth Vaughan CALIFORNIA COGENERATION COUNCIL 4391 NORTH MARSH ELDER CT. CONCORD CA 94521 (925) 408-5142 beth@beth411.com Hilary Corrigan CALIFORNIA ENERGY MARKETS 425 DIVISADERO ST. SUITE 303 SAN FRANCISCO CA 94117-2242 (415) 963-4439 cem@newsdata.com	Avis Kowalewski CALPINE CORPORATION 4160 DUBLIN BLVD, SUITE 100 DUBLIN CA 94568 (925) 557-2284 kowalewskia@calpine.com Jay Dibble CALPINE CORPORATION 717 TEXAS AVENUE, SUITE 1000 HOUSTON TX 77002 (713) 570-3514 jdibble@calpine.com Gary Baum City Attorney CITY OF PALO ALTO 250 HAMILTON AVENUE PALO ALTO CA 94301 (650) 329-2171 Grant.kolling@CityofPaloAlto.org For: City of Palo Alto ____________________________________________ Grant Kolling CITY OF PALO ALTO 250 HAMILTON AVENUE, PO BOX 10250 PALO ALTO CA 94303 (650) 329-2171 Grant.Kolling@cityofpaloalto.org For: City of Palo Alto ____________________________________________ Karla Dailey CITY OF PALO ALTO UTILITIES DEPARTMENT BOX 10250 PALO ALTO CA 94303 (650) 329-2523 karla.Dailey@CityofPaloAlto.org Doug Van Brunt CREDIT SUISSE 11000 LOUISIANA STREET, STE. 4600 HOUSTON TX 77002 (713) 890-1602 doug.vanbrunt@credit-suisse.com Peter G. Esposito CRESTED BUTTE CATALYSTS LLC PO BOX 668 / 1181 GOTHIC CORRIDOR CR317 CRESTED BUTTE CO 81224 (970) 349-2080 peteresposito@earthlink.net
Edward W. O'Neill DAVIS WRIGHT TREMAINE 505 MONTGOMERY STREET, SUITE 800 SAN FRANCISCO CA 94111-6533 (415) 276-6500 edwardoneill@dwt.com Ralph R. Nevis DAY CARTER & MURPHY LLP 3620 AMERICAN RIVER DR., SUITE 205 SACRAMENTO CA 95864 (916) 570-2500 X109 rnevis@daycartermurphy.com Gregory Klatt Attorney At Law DOUGLASS & LIDDELL 411 E. HUNTINGTON DRIVE, SUITE 107-356 ARCADIA CA 91007 (626) 294-9421 klatt@energyattorney.com Cassandra Sweet DOW JONES NEWSWIRES EMAIL ONLY EMAIL ONLY CA 00000 (415) 439-6468 cassandra.sweet@dowjones.com William W. Tomlinson EL PASO CORPORATION 2 NORTH NEVADA AVE. COLORADO SPRINGS CA 80919 (719) 520-4579 william.tomlinson@elpaso.com Brian Biering Attorney At Law ELLISON SCHNEIDER & HARRIS 2600 CAPITOL AVENUE, SUITE 400 SACRAMENTO CA 95816-5905 (916) 447-2166 bsb@eslawfirm.com Jeffery D. Harris ELLISON, SCHNEIDER & HARRIS LLP 2600 CAPITOL AVENUE, SUITE 400 SACRAMENTO CA 95816-5905 (916) 447-2166 jdh@eslawfirm.com	Eva N. Neufeld Associate General Counsel GAS TRANSMISSION NORTHWEST CORPORATION 717 TEXAS STREET, SUITE 26260 HOUSTON TX 77002-2761 (832) 320-5623 eva_neufeld@transcanada.com Jeanne B. Armstrong GOODIN MACBRIDE SQUERI RITCHIE & DAY LLP 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 jarmstrong@gmssr.com Julie Morris IBERDROLA RENEWABLES INC 1125 NW COUCH STREET, SUITE 700 PORTLAND OR 97209 (503) 796-7078 Julie.Morris@iberdrolaren.com William Marcus JBS ENERGY, INC. 311 D STREET, SUITE A WEST SACRAMENTO CA 95605 (916) 372-0534 bill@jbsenergy.com James J. Heckler LEVIN CAPITAL STRATEGIES 595 MADISON AVENUE NEW YORK NY 10022 (212) 259-0851 jheckler@levincap.com Tara S. Kaushik MANATT, PHELPS & PHILLIPS, LLP ONE EMBARCADERO CENTER, 30TH FLOOR SAN FRANCISCO CA 94111 (415) 291-7409 tkaushik@manatt.com For: Gas Transmission Northwest Corporation ____________________________________________ MRW & ASSOCIATES, LLC EMAIL ONLY EMAIL ONLY CA 00000 (510) 834-1999 mrw@mrwassoc.com
Ray Welch Associate Director NAVIGANT CONSULTING, INC. ONE MARKET PLAZA, SUITE 1200 SAN FRANCISCO CA 94105 (415) 399-2176 ray.welch@navigantconsulting.com Michael G. Nelson EMAIL ONLY EMAIL ONLY CA 00000 (408) 288-2080 MNelson@MccarthyLaw.com Carl Orr PACIFIC GAS & ELECTRIC COMPANY 245 MARKET STREET, MC N15A SAN FRANCISCO CA 94105 CDO1@pge.com Case Administration PACIFIC GAS & ELECTRIC COMPANY 77 BEALE STREET, MC B9A SAN FRANCISCO CA 94177 RegRelCPUCCases@pge.com Roger Graham PACIFIC GAS & ELECTRIC COMPANY 245 MARKET STREET, MC N15A SAN FRANCISCO CA 94105 RAG5@pge.com William Stock PACIFIC GAS & ELECTRIC COMPANY 77 BEALE STREET, MC B10C SAN FRANCISCO CA 94105 WCS3@pge.com Case Coordination PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE ST., PO BOX 770000 MC B9A SAN FRANCISCO CA 94105 (415) 973-2776 RegRelCPUCCases@pge.com Kenneth Brennan PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MC N15A SAN FRANCISCO CA 94177 KJBh@pge.com	Kristina M. Castrence PACIFIC GAS AND ELECTRIC COMPANY OPERATIONS PROCEEDINGS 77 BEALE ST., PO BOX 7442, MC B10A SAN FRANCISCO CA 94120 (415) 973-1479 kmmj@pge.com Mark D. Patrizio PACIFIC GAS AND ELECTRIC COMPANY PO BOX 7442, B30A SAN FRANCISCO CA 94120 MDP5@pge.com For: Pacific Gas and Electric Company ____________________________________________ Nicolas Klein PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, MC B9A SAN FRANCISCO CA 94105 NXKI@pge.com Wendy Lei Rate Case Coordinator PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, ROOM 978, MAIL CODE B9A SAN FRANCISCO CA 94105 (415) 973-6406 WMLb@pge.com Tom Roth ROTH ENERGY COMPANY EMAIL ONLY EMAIL ONLY CA 00000 (213) 622-6700 rothenergy@sbcglobal.net Marcie A. Milner (1374) SHELL ENERGY NORTH AMERICA (US), L.P. 4445 EASTGATE MALL, STE. 100 SAN DIEGO CA 92121 (858) 526-2106 marcie.milner@shell.com Sandra Moorman SMUD 6301 S STREET SACRAMENTO CA 95817 (916) 732-6951 smoorma@smud.org
Michael S. Alexander Energy Supplly And Management SOUTHERN CALIFORNIA EDISON 2244 WALNUT GROVE AVE ROSEMEAD CA 91006 (626) 302-2029 michael.alexander@sce.com Jeffrey L. Salazar SOUTHERN CALIFORNIA GAS COMPANY 555 WEST FIFTH STREET, GT14D6 LOS ANGELES CA 90013 JLSalazar@SempraUtilities.com Brandi E. Day SPARK ENERGY GAS, LP 2105 CITYWEST BLVD., SUITE 100 HOUSTON TX 77042 (713) 977-5634 bday@sparkenergy.com Julien Dumoulin-Smith Associate Analyst UBS INVESTMENT RESEARCH 1285 AVENUE OF THE AMERICAS NEW YORK NY 10019 (212) 713-9848 julien.dumoulin-smith@ubs.com Jason A. Dubchak WILD GOOSE STORAGE LLC 607 8TH AVENUE S.W., SUITE 400 CALGARY AB T2P OA7 CANADA (403) 513-8647 jason.dubchak@niskags.com Lisa A. Cottle THOMAS A. SOLOMON WINSTON & STRAWN LLP 101 CALIFORNIA STREET, 39TH FLOOR SAN FRANCISCO CA 94114 (415) 591-1579 lcottle@winston.com For: Mirant California, LLC and Mirant Delta, LLC ____________________________________________ Thomas W. Solomon LISA A. COTTLE Attorney At Law WINSTON & STRAWN LLP 101 CALIFORNIA STREET, 39TH FLOOR SAN FRANCISCO CA 94111-5894 (415) 591-1000 tsolomon@winston.com For: Mirant California, LLC/Mirant Delta, LLC ____________________________________________	Andrew Yim ZIMMER LUCAS PARTNERS 535 MADISON AVE., 6TH FLOOR NEW YORK NY 10022 (212) 440-0761 Yim@ZimmerLucas.com

(END OF APPENDIX A)