STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

November 3, 2011

TO PARTIES OF RECORD IN INVESTIGATION 10-11-013, DECISION 11-11-001

On September 29, 2011, a Presiding Officer's Decision in this proceeding was mailed to all parties. Public Utilities Code Section 1701.2 and Rule 15.5(a) of the Commission's Rules of Practice and Procedure provide that the Presiding Officer's Decision becomes the decision of the Commission if no appeal or request for review has been filed within 30 days of the mailing of the Presiding Officer's Decision.

No timely appeals to the Commission or requests for review have been filed. Therefore, the Presiding Officer's Decision is now the decision of the Commission.

The decision number is shown above.

/s/ MARYAM EBKE for KVC

Karen V. Clopton, Chief

Administrative Law Judge

KVC:lil

Attachment

ALJ/POD-JSW/gd2/lil Date of Issuance 11/3/2011

Decision 11-11-001 November 1, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation on the Commission's Own Motion into the Operations and Practices of Pacific Gas and Electric Company, Regarding the Gas Explosion and Fire on December 24, 2008 in Rancho Cordova, California.

Investigation 10-11-013 (Filed November 19, 2010)

(List of Parties: See Appendix 1)

PRESIDING OFFICER'S DECISION REGARDING JOINT MOTION TO
APPROVE THE STIPULATION OF PACIFIC GAS AND ELECTRIC COMPANY
AND THE CONSUMER PROTECTION AND SAFETY DIVISION CONCERNING
RANCHO CORDOVA AND RELATED STIPULATION

TABLE OF CONTENTS

Title Page

PRESIDING OFFICER'S DECISION REGARDING JOINT MOTION TO APPROVE THE STIPULATION OF PACIFIC GAS AND ELECTRIC COMPANY AND THE CONSUMER PROTECTION AND SAFETY DIVISION CONCERNING RANCHO CORDOVA AND RELATED STIPULATION 11

1. Summary 22

2. Procedural Background 33

3. The OII and the Stipulations 66

3.1. Background of the OII 66

3.2. Background of the Rancho Cordova Events 88

3.2.1. December 24, 2008 Events 88

3.2.2. Subsequent Investigations Into Rancho Cordova Pipe 1515

3.2.3. 2006 Elk Grove Incident 1919

3.3. Pre-Stipulation Positions of CPSD, PG&E, and TURN 2323

3.3.1. CPSD Position 2323

3.3.2. PG&E Position 2424

3.3.3. TURN Position 2828

3.4. Summary of the Stipulations 2929

3.4.1. PG&E and CPSD Stipulation 2929

3.4.2. PG&E and TURN Stipulation 3232

4. Discussion 3232

4.1. Introduction 3232

4.2. OII Allegations and Stipulations 3333

4.3. Penalty Amount 3535

4.3.1. Severity or Gravity of the Violation 3737

4.3.2. PG&E's Conduct to Prevent, Detect, Disclose and
to Rectify the Violation 3939

4.3.3. Size and Financial Resources of PG&E 4040

5. Assignment of Proceeding 4444

Findings of Fact 4545

Conclusions of Law 4747

ORDER 4848

APPENDIX 1: List of Parties

APPENDIX 2: Proposed Stipulation Between PG&E and CPSD

APPENDIX 3: Proposed Stipulation Between PG&E and TURN

PRESIDING OFFICER'S DECISION REGARDING JOINT MOTION TO
APPROVE THE STIPULATION OF PACIFIC GAS AND ELECTRIC COMPANY
AND THE CONSUMER PROTECTION AND SAFETY DIVISION CONCERNING
RANCHO CORDOVA AND RELATED STIPULATION