VIII. Ratemaking Treatment

In its application, PG&E states that jurisdiction for rates and services over its electric transmission system rests with the Federal Energy Regulatory Commission (FERC). Thus, revenues from a license or lease of FERC jurisdictional property are subject to FERC accounting and ratemaking rather than Commission authority. In this instance, PG&E represents that the leased electric facilities are transmission facilities subject to FERC jurisdiction. We agree that lease revenues related to PG&E's electric transmission system would be addressed by FERC.