7. Final Categorization and Review and Comment Period

Based on our review of this application, we conclude that there is no need to alter the preliminary determination as to the ratesetting categorization made in Resolution ALJ 176-3107 (February 13, 2003). We modify our preliminary determination that a hearing is necessary, because no hearing was necessary in this proceeding.

The draft decision of ALJ Prestidge was mailed to the parties in accordance with § 311(g)(1) and Rule 77.7 of the Rules of Practice and Procedure on February 9, 2004. Timely comments were received from the parties.

We have reviewed the comments received from the parties and make no changes to the draft decision.

We have revised the draft decision on our own initiative to clarify that PG&E must track revenues resulting from the sale of distribution facilities to MOD in its Real Property Gain/Loss on Sale Memorandum Account, pending the outcome of the gain on sale rulemaking.