Findings of Fact

1. The agreed upon amounts for 1998 recorded electric distribution plant additions reflect PG&E's initial calculations as set forth in the February 8, 2002 letter to the ALJ and the Supplemental Submission of March 1, 2002, adjusted to recognize certain accounting errors identified by ORA during its extensive discovery and review of PG&E's records.

2. In addition to the $76.12 million reduction in 1998 electric distribution net plant additions that would flow from PG&E's initial calculations, the Stipulation provides for a further reduction of $12.255 million, or a total reduction of

$88.375 million from the adopted net plant additions for 1998.

3. The Stipulation's reductions to PG&E's 1998 electric distribution plant figures are consistent with, and give effect to, D.01-10-031.

4. The Stipulation is in the public interest because it reduces the revenue requirement that PG&E's ratepayers must pay through rates and reasonably reflects PG&E's actual electric distribution plant additions in 1998.

5. Detailed RO modeling must be performed in order to properly reflect factors such as depreciation expense, depreciation reserve, tax depreciation expense, and deferred taxes requires that detailed RO modeling be performed in the overall revenue requirement. D.01-10-031 requires that a final RO analysis shall be performed to incorporate the plant additions adjustments and all other outstanding matters relevant to an ultimate outcome in this proceeding.

6. With the issuance of this decision, all pending matters in this GRC will have been resolved.