2. Background

2.1. Historical

In Decision (D.) 08-02-009, the Commission approved a settlement agreement between Pacific Gas and Electric Company (PG&E), Division of Ratepayer Advocates (DRA), and The Utility Reform Network (TURN), in Application (A.) 07-04-009. D.08-02-009 authorized PG&E to implement a SmartAC^TM Program and Budget, as modified by the approved settlement. In part, the settlement required PG&E to file a new application in the second quarter of 2009, "to address and update or request a change to the Budget and address any refinements to the SmartAC^TM Program." The settlement also stated that "PG&E may request funding for the AC Program for the period June 1, 2011 through December 31, 2011."

2.2. Procedural

On March 30, 2010, PG&E, on behalf of itself, DRA, and TURN (Joint Parties), sent an e-mail to the assigned Administrative Law Judge (ALJ) requesting a suspension of the schedule set out in the Amended Assigned Commissioner's Ruling and Scoping Memo in order for them to continue with ongoing settlement discussions and permission to set a telephonic status meeting with the assigned ALJ and interested parties on April 14, 2010. On March 30, 2010, the assigned ALJ, via e-mail, granted the Joint Parties' request for suspension of the schedule and required them to file a joint progress report no later than April 14, 2010 and every two weeks thereafter, until either a settlement is reached or they determined that the case needs to be resolved through briefs.

The Joint Parties filed joint progress reports on April 14, April 28, May 12, May 26, June 9, June 23, July 7, July 21, August 4, August 18, September 1, and September 15, 2010. On August 17, 2010, the assigned ALJ issued a ruling requiring the Joint Parties to file a settlement or individual opening briefs by October 15, 2010. On September 17, 2010, the Joint Parties filed a Joint Motion for Approval of a Settlement Agreement, with the settlement attached. Also on September 17, 2010, the Joint Parties filed: 1) a Joint Motion to Offer Written Testimony into Evidence; 2) a Notice of Availability of Exhibits to Joint Motion of PG&E, DRA, and TURN to Offer Written Testimony into Evidence; and 3) a Joint Motion to Seal the Evidentiary Record.

On January 14, 2011, the Joint Parties filed two motions - one requesting modification of the Proposed Decision and another requesting modification of their previously filed Settlement Agreement (referred to as Revised Settlement Agreement herein). Joint Parties also requested a shortened response time to both motions, which the assigned ALJ granted. No responses were received.