Conclusion

As discussed above, PG&E is asking that it be allowed to recover franchise fee costs associated with revenues collected to repay RRBs, on a prospective basis, consistent with the GRC-adopted factor for franchise fees generally. This is fair to both PG&E's customers and PG&E's shareholders, as the analysis in the record supporting the decision authorizing PG&E to move forward with the RRB transaction anticipated that PG&E's customers would bear these costs. Furthermore, the bankruptcy Settlement Agreement does not bar PG&E from requesting recovery of ongoing RRB revenue franchise fee costs for 2006 and thereafter. Accordingly, PG&E's request should be granted.