Background

One of the issues raised in Application (A.) 01-10-011, the proceeding in which a post-Gas Accord market structure and rates for PG&E was being examined, was the fire that occurred at PG&E's Gerber Compressor Station on November 6, 2001. In D.03-12-061, we discussed PG&E's comments to the proposed decision, in which PG&E stated that after the close of the evidentiary hearings in A.01-10-011, PG&E had negotiated a $6 million settlement with its insurers over the Gerber fire. We adjusted the capital expenditure for the Gerber replacement to reflect the receipt of these insurance proceeds. (D.03-12-061, p. 210.)

Due to the uncertainty of whether there were any more outstanding insurance claims associated with the Gerber fire, we ordered PG&E to file an application describing "the status of any remaining insurance claims with respect to the fire at the Gerber Compressor Station, and if so, what should be done with any remaining insurance proceeds...." (D.03-12-061, p. 210.)

PG&E filed its verified application on February 24, 2004. No one filed any protest or response to the application. On April 5, 2004, PG&E filed its "Reply In Support of Application By [PG&E] Addressing the Status of Remaining Insurance Claims Related to the Gerber Compressor Station Fire." PG&E's application and reply request that the Commission find that no other insurance proceeds are available from PG&E's insurer related to the Gerber fire, and that this issue be closed.