ALJ/JSW/eap Mailed 12/20/2004

Decision 04-12-035 December 16, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company Proposing a Market Structure and Rules for the Northern California Natural Gas Industry for the Period Beginning January 1, 2003 as Required by Commission Decision 01-09-016. (U 39 G)

Application 01-10-011 (Filed October 9, 2001)

OPINION REGARDING PACIFIC GAS AND ELECTRIC
COMPANY'S PETITIONS TO MODIFY DECISION 03-12-061

I. Summary

Today's decision addresses Pacific Gas and Electric Company's (PG&E) two petitions to modify Decision (D.) 03-12-061, and PG&E's Supplement to the Second Petition. D.03-12-061 addressed PG&E's natural gas market structure for 2004 and 2005. PG&E's petitions to modify seek to make various changes to D.03-12-061 regarding the Line 401 at-risk adjustment that was adopted in that decision.

This decision grants PG&E's "Second Petition" for modification of D.03-12-061, as changed by PG&E's reply to its Supplement to the Second Petition, by adding the paragraph that we have tailored to be inserted at page 292 of D.03-12-061. Since PG&E is no longer seeking to change its natural gas transmission rates for 2004, PG&E's original petition to modify D.03-12-061 is moot.