Assignment of "Gain-on-Sale" Proceeds

The only significant contested question in the proceeding is whether PG&E's shareholders or ratepayers should benefit from the estimated $20,342 in "gain-on-sale" proceeds. In cases of transmission-related property, a threshold issue is whether we have jurisdiction to make this allocation or assignment of proceeds. If we do have jurisdiction, we then must decide whether we apply federal or state law to make this allocation and determine what the applicable federal or state decision rule requires in terms of allocating "gain-on-sale" proceeds. Because we anticipate commencing a rulemaking proceeding to address this issue, we defer and do not decide these jurisdictional and allocation issues today. Since these issues have been well briefed in this proceeding, we do continue to discuss them here in order to inform participants in the anticipated rulemaking proceeding.