III. Procedural Matters

The utilities requested that their respective ROE application be classified as a ratesetting proceeding within the meaning of Rule 5(c). By Resolution ALJ 176-3153, dated May 26, 2005, the Commission preliminarily determined that the applications of SCE and PG&E were ratesetting proceedings and that hearings were expected. This ratesetting classification was subsequently affirmed in the Assigned Commissioner's June 22, 2005 Scoping Memo and Ruling.

That Scoping Memo and Ruling, among other matters, designated ALJ Galvin as the principal hearing officer, established an evidentiary hearing schedule and determined the issues of this proceeding. Those issues encompassed all estimates, including debt equivalence, upon which the utilities proposed capital structure and rate of return for the test year 2006.

An evidentiary hearing was held on September 7, 2005 and continued through September 9, 2005. Each of the utilities, Federal Executive Agencies (FEA), Office of Ratepayer Advocates (ORA), and jointly Aglet Consumer Alliance, The Utility Reform Network and Utility Consumers' Action Network (ATU), submitted testimony and evidence. The proceeding was submitted upon the receipt of October 6, 2005 reply briefs.