THEREFORE IT IS ORDERED THAT:

1. The tariff changes proposed by PG&E in AL 2581-G/2568-E are approved with modifications. The tariff changes approved by this Order are consistent with existing CPUC policy and requirements as set forth in D.86-06-035 and with existing PG&E tariffs. Within 7 days PG&E shall supplement AL 2581-G/2568-E to make the tariff changes required by this resolution. The supplemental advice letter shall replace the original advice letter in its entirety and shall be effective today subject to Energy Division determining that it complies with this Order. The tariff changes that PG&E shall make are as follows:

a. Add the following language to gas and electric Rule 17.1:

"Billing error shall also include failure to issue a gas, electric, or combined commodity bill, actual or estimated, in a timely manner in accordance with Rule 9A. Failure to issue a bill due to a natural or man-made disaster such as a fire, earthquake, flood, or severe storms shall not be considered billing error for purposes of this Rule."

b. Modify gas and electric Rule 9C so that they read as follows:

"If for reasons beyond the meter reading entity's control, the customer's meter cannot be read on the scheduled reading date, or if for any reason accurate usage data are not available, PG&E will bill the customer for estimated consumption during the billing period. Estimated consumption for this purpose will be calculated considering the customer's prior usage, PG&E's experience with other customers of the same class in that area, and the general characteristics of the customer's operations.

Unless estimated bills result from inaccessible roads, the customer, the customer's agent, other occupant, animal or physical condition of the property preventing access to PG&E's facilities on the customer's premise, other causes within control of the customer, or a natural or man-made disaster such as a fire, earthquake, flood, or severe storms, the issuance of estimated bills shall be considered "billing error" for the purposes of applying Rule 17.1."

c. Add the following to gas and electric Rule 17.B.5:

"Unless estimated bills result from inaccessible roads, the customer, the customer's agent, other occupant, animal or physical condition of the property preventing access to PG&E's facilities on the customer's premise, other causes within control of the customer, or a natural or man-made disaster such as a fire, earthquake, flood, or severe storms, the issuance of estimated bills shall be considered "billing error" for the purposes of applying Rule 17.1."

d. Modify gas Rule 17.2.A.5 and electric Rule 17.2.A.6 so that they read as follows:

"Using PG&E service without compensation to PG&E in violation of applicable tariffs and/or statutes, except for meter and billing errors as defined under Rules 17 and 17.1. If it is found that a meter or billing error has occurred, those tariffs, and not Rule 17.2, shall apply. Examples of using PG&E service without compensation include, but are not limited to, the customer, its agent, or other occupant reconnecting service after it has been discontinued in accordance with Rule 11."

e. Modify the first sentence of the paragraph immediately following gas Rule 17.2.A.5, and modify the first sentence of the paragraph immediately following electric Rule 17.2.A.6 such that they read as follows:

"Where PG&E determines there has been unauthorized use, PG&E shall have the legal right to recover, from the person who benefited from such unauthorized use, the estimated undercharges for the full period of that person's unauthorized use. "

2. Within 15 days PG&E shall file a report in A.02-11-017, et. al., explaining the reasons for the large number of delayed and estimated bills over the past five years and a plan for reducing the number of these bills. PG&E's report shall also contain its good faith estimate of the numbers of customers affected by delayed and estimated bills and the associated dollar amounts over the last five years, i.e., calendar years 2000 through 2004. PG&E's past billing practices may be reviewed in A.02-11-017, et. al., pending a ruling on TURN's motion in that application. If this review is undertaken it may include consideration of whether PG&E should be ordered to make refunds on, or adjustments to, previously rendered bills, as well as any other issues specified by the assigned Commissioner and ALJ in their disposition of TURN's pending motion in A.02-11-017, et. al.

3. On estimated bills, PG&E shall include a message that identifies the reason for requiring that the bill be estimated. When the meter reader coded a message in the field, the estimated bill shall reflect the same reason coded by the meter reader. If PG&E requires an extension of time to comply with this requirement, it shall make a request for an extension of time by letter to the Executive Director within 10 days of today's date. The request for extension shall otherwise be submitted in accordance with the requirements of Rule 48(b) of the Commission's Rules of Practice and Procedure.

This Resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on January 13, 2005, the following Commissioners voting favorably thereon:

_______________

STEVE LARSON

Executive Director

MICHAEL R. PEEVEY

PRESIDENT

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners