6. Assignment of Proceeding

Carl Wood is the Assigned Commissioner and Myra Prestidge is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. D.95-11-035 authorized funding of utility LEV programs for a six-year period, which expired on December 21, 2001.

2. Resolution G-3322 authorized interim funding for utility LEV programs pending a Commission decision on formal applications for continued funding to be filed by the utilities.

3. The interim funding authorized by Resolution G-3322 will expire on December 31, 2002.

4. D.95-11-035 and Resolution G-3322 require the utilities to record LEV program expeditures in a one-way balancing account, so that unspent funds that were included in rates would be refunded to ratepayers, and the utilities would recover the reasonable costs of their programs in rates set for the following year.

5. Our decision on the utilities' applications for continued LEV funding is necessarily delayed.

Conclusions of Law

1. The utilities must comply with federal mandates, which require that a portion of their fleet purchases must consist of alternative fuel vehicles.

2. There is a strong legislative policy in favor of the development of infrastructure and equipment necessary to promote LEVs through the cooperative efforts of the Commission, the utilities, other applicable government agencies, and the motor vehicle industry.

3. Continued interim funding of previously authorized utility LEV program activities (that would otherwise not be funded) at the level authorized in Resolution G-3322 will serve the public interest.

4. Our approval of continued interim funding for utility LEV program activities, pending our final decision in this proceeding does not prejudge the utilities' applications for any new program activities or additional funding or whether continued funding of the utilities' previously authorized LEV programs is appropriate on a prospective basis.

INTERIM ORDER

IT IS ORDERED that:

1. The interim funding for utility low-emission vehicle (LEV) program activities, as authorized in Resolution G-3322, is extended pending our final decision in this proceeding.

2. During this period of interim funding, the utilities shall comply with Resolution G-3322 and previous Commission decisions regarding utility LEV programs.

This order is effective today.

Dated December 19, 2002, at San Francisco, California.

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