ALJ/MLC/sid Mailed 5/26/2006

Decision 06-05-038 May 25, 2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Authority to Implement Default CPP Rate Options For Large Customers.	Application 05-01-016 (Filed January 20, 2005)
Application of San Diego Gas & Electric Company (U902-E) for Adoption of a 2005 Default Critical Peak Pricing Structure for Commercial and Industrial Customers with Peak Demands Exceeding 300 kW.	Application 05-01-017 (Filed January 20, 2005)
Southern California Edison Company's (U338-E) Application for Approval of Rate Design Proposals for Large Customers.	Application 05-01-018 (Filed January 20, 2005)

(See Appendix A for a list of appearances.)

DECISION ADOPTING DEFAULT CRITICAL PEAK PRICING FOR 2007

1. Summary

This decision declines to adopt the proposed settlements presented by the parties. The Settling Parties rejected the modified terms in the proposed decision and, therefore, we close the applications without adopting new critical peak pricing rates. Instead, we direct the utilities to incorporate default critical peak pricing tariffs for all eligible customers 200 kilowatts (kW) and above into their next comprehensive rate design proceeding or other appropriate proceeding if directed by the Commission.