Joint Petition to Modify Rulemaking by PG&E and G/LIF

The petition to modify the rulemaking, filed jointly by PG&E and G/LIF on January 30, 2004, is granted to the extent of expanding its scope. The petition seeks to add the following two requirements to GO 77 executive compensation reports, applicable only to Tier 1 utilities (those over $1 billion annual operating revenue): reporting the total compensation paid to officers and employees of the utility holding company; and reporting compensation and bonuses awarded in the prior reporting period (year), but not yet paid.

The issue of holding company executive compensation was addressed and denied in the rulemaking. The issue of including executive compensation awarded in the prior year, but not yet received, is not within the scope of the rulemaking. Six parties filed timely comments on the petition and all opposed it for these same reasons. However, due to recent events and circumstances brought to the Commission's attention by the petition and those in other proceedings relating to the reporting of executive compensation and the role of utility holding companies, it is proper that the subject rulemaking be expanded to include these issues for further consideration.

We anticipate that hearings will not be required and herein solicit comments on whether GO 77 should be further amended by adding the following requirements for Tier 1 utilities (those with annual operating revenues over $1 billion).

1. Reporting the compensation of utility holding company executives.

2. Reporting executive compensation and bonuses awarded in the reporting year, but not yet paid.

The proposed timetable will be:

Opening Comments 30 days after the effective

date of this order.

Reply Comments 10 days after Opening

comments

Proposed Decision By November 15, 2004

The assigned ALJ may issue rulings to adjust the timetable as necessary. As required by Rule 6(c)(2) of the Rules of Practice and Procedure (Rules), this rulemaking will continue to be preliminarily determined as quasi-legislative, as defined in Rule 5(d). Any person who objects to the categorization, the need for hearing or to the schedule may file a motion with their objections within 30 days of the effective date of this order. Pursuant to Rules 7(a) and 7(d), ex parte communications are permitted in this proceeding without restrictions or reporting requirements.