ALJ/TRP/sid Mailed 5/4/2007

Decision 07-05-005 May 3, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Regarding the Implementation of the Suspension of Direct Access Pursuant to Assembly Bill 1X and Decision 01-09-060.

Rulemaking 02-01-011 (Filed January 9, 2002)

OPINION REGARDING PETITION

FOR MODIFICATION OF DECISION 06-07-030

FILED BY PACIFIC GAS AND ELECTRIC COMPANY

I. Introduction

By this decision, we grant in part, and deny in part, the Petition for Modification of Decision (D.) 06-07-030 (Decision), filed by Pacific Gas and Electric Company (PG&E).

The Decision resolved various outstanding issues related to the cost responsibility surcharge (CRS) methodology application to non-bundled customers, including Direct Access (DA) and Municipal Departing Load (MDL) customers within the territories of the investor-owned utilities (IOUs). PG&E requests that the Commission modify the Decision, however, to resolve certain disputes relating to the interpretation of its requirements, as noted below.