II. Background

The process leading up to the issuance of D.02-08-070 and D.03-12-061 can be traced back to the period before the expiration of the original Gas Accord.¹ According to TURN's request for compensation, prior to the filing of the above-captioned application, PG&E invited interested persons to a number of settlement meetings to discuss relevant issues concerning the Gas Accord in an attempt to reach an agreement. No settlement was reached, and PG&E filed Application (A.) 01-06-020.

A.01-06-020 sought authority to implement an open season for PG&E backbone capacity. PG&E subsequently filed a motion to withdraw A.01-06-020. In D.01-09-016, we granted PG&E's motion to withdraw the application, based in part on the uncertainty of what would happen after the expiration of the Gas Accord. (D.01-09-016, pp. 3-4.) PG&E was directed not to re-file an application for approval of an open season until PG&E filed an application proposing a market structure and rules for PG&E's intrastate gas transmission system and storage system for the period beginning January 1, 2003.

In response to D.01-09-016, PG&E filed the above-captioned application on October 8, 2001. PG&E proposed in A.01-10-011 that the existing Gas Accord structure and rates be extended for a two-year period, i.e., through the end of 2004. Protests and responses to the application were filed by various parties,² and a prehearing conference was noticed for January 7, 2002. Following the prehearing conference, a scoping memo and ruling was issued on February 26, 2002. Evidentiary hearings were scheduled for early August 2002.

After the filing of A.01-10-011, settlement discussions resumed. These settlement discussions resulted in the May 20, 2002 joint motion for approval of the Gas Accord II Settlement Agreement. D.02-08-070 granted the motion and the Settlement Agreement was adopted. The Settlement Agreement extended the Gas Accord structure and rates through December 31, 2003 for gas transmission service, and through March 31, 2004 for gas storage service.

Since D.02-08-070 extended the original Gas Accord for an additional year, from January 1, 2003 to December 31, 2003, it was still necessary to address what PG&E's gas structure and rules should look like after 2003. PG&E's Gas Accord II Amended Application was filed on January 13, 2003, and evidentiary hearings were held in April 2003.

TURN, along with other interested parties, submitted prepared testimony. Although both of TURN's witnesses were made available for cross-examination, the parties only had cross-examination questions for TURN's witness Michel Florio. (7 R.T. 697-711; 8 R.T. 849-850.) TURN's prepared testimony was admitted into evidence as Exhibits 43, 44, and 52. TURN also participated in the evidentiary hearings, filed opening and closing briefs, and filed comments on the proposed decision, and the alternate proposed decision.

D.03-12-061 was adopted by the Commission at the December 18, 2003 meeting. The decision addressed the gas market structure for PG&E for 2004 and 2005, and adopted rates for PG&E's gas transmission and storage facilities and operations for 2004. D.03-12-061 was mailed to the parties on December 23, 2003. TURN timely filed its request for compensation on February 23, 2004.

No one filed any opposition to TURN's request for compensation.

On April 22, 2004, TURN filed an amendment to page four of its request for compensation. The amendment clarifies that, although TURN was not a signatory to the `Joint Motion For Approval Of Gas Accord II Settlement Agreement And Request For Shortened Comment Time' filed on May 20, 2002, TURN did not oppose the Joint Motion. In fact, as discussed later, the Commission adopted certain of TURN's contentions in the decision approving the Gas Accord II Settlement.