ALJ/CMW/avs Mailed 9/13/2005

Decision 05-09-002 September 8, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company Proposing Cost of Service and Rates for Gas Transmission and Storage Services for 2005 and Backbone Level Service and Rates Starting January 1, 2005, as Required by Commission Decision 03-12-061.

Application 04-03-021 (Filed March 19, 2004)

OPINION GRANTING INTERVENOR COMPENSATION
TO THE UTILITY REFORM NETWORK

This decision awards The Utility Reform Network (TURN) $36,385.45 as compensation for its substantial contribution to Decision (D.) 04-12-050.

I. Background

D.04-12-050 adopted a comprehensive settlement and related tariff changes that continues the basic natural gas market structure for Pacific Gas and Electric Company (PG&E), for the three-year period beginning January 1, 2005. This settlement, the "Gas Accord III Settlement Agreement" (Gas Accord III), follows the Gas Accord II, adopted in D.03-12-061, and the initial Gas Accord, adopted in D.97-08-055.

The Gas Accord III involved many parties with interests in all segments of the natural gas industry. All active parties in this proceeding, including TURN, are included in the agreement, and no protests on the settlement were received. The major elements of Gas Accord III are: eligibility standards and cost allocation methodology for backbone-level end-use service; increased access to PG&E's backbone transmission system by transport agents and storage providers; a process for bidding on incremental gas storage needs; 2005-2007 backbone load factor; and a phase-in on "direct assignment" cost allocation. TURN participated in all phases of this proceeding.