2. Background
Decision (D.) 07-06-013 approved a settlement agreement under which Pacific Gas and Electric Company (PG&E) will submit an annual plan to hedge the cost of natural gas, with a focus on winter gas, for its core gas procurement customers. Once an annual plan is approved, PG&E may purchase gas hedges consisting of (1) call options on monthly gas indices traded in over-the-counter markets, and (2) fixed-for-floating swaps. Ratepayers will pay for the hedges and receive all the benefits.1 Of particular relevance to today's decision, D.07-06-013 determined that PG&E's annual hedging plans are confidential and will be placed under seal for three years.2
PG&E submitted its confidential 2007-2008 Winter Hedging Plan for Commission approval in Advice Letter 2841-G, dated June 8, 2007.3 The advice letter was deemed effective on June 26, 2007, pursuant to a letter to PG&E from the Director of the Commission's Energy Division dated June 29, 2010.
1 D.07-06-013 at 10 and 12.
2 D.07-06-013 at 13, Conclusion of Law 6, and Ordering Paragraph 2.
3 Advice Letter 2841-G refers to an "Annual Core Hedge Implementation Plan for 2007," while Application 10-10-006 refers to a "2007-2008 Winter Hedging Plan." We assume that both references are to the same plan.
