ALJ/TIM/jt2 Mailed 5/29/2007

Decision 07-05-058 May 24, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company (U 39-M) for Authorization, Among Other Things, to Increase Rates and Charges for Electric and Gas Service Effective on January 1, 2007.

Application 05-12-002
(Filed December 2, 2005)

Order Instituting Investigation on the Commission's Own Motion into the Rates, Operations, Practices, Service, and Facilities of Pacific Gas and Electric Company (U 39-M).

Investigation 06-03-003
(Filed March 2, 2006)

OPINION ADOPTING A SETTLEMENT AGREEMENT REGARDING THE CLOSURE OF NINE FRONT COUNTERS

TABLE OF CONTENTS

Title Page

1. Summary 2 2

2. Procedural Background and Chronology 2 2

3. Summary of the Settlement Agreement 4 4

3.1. The Settling Parties' Litigation Positions 4 4

3.2. Summary of the Settlement Terms 5 5

3.3. Declarations in Support of the Settlement Agreement 7 7

4. Discussion 8 8

4.1. Standard of Review 8 8

4.2. Reasonable in Light of the Whole Record 9 9

4.3. Consistent with the Law 13 13

4.4. The Public Interest 13 13

4.5. Conclusion and Implementation 16 16

5. Compliance with § 1701.5 17 17

6. Waiver of the Comment Period 17 17

7. Assignment of Proceeding 17 17

Findings of Fact 18 18

Conclusions of Law 18 18

ORDER 19 19

Appendix A: List of Appearances

Appendix B: Settlement Agreement

OPINION ADOPTING A SETTLEMENT AGREEMENT REGARDING THE CLOSURE OF NINE FRONT COUNTERS

1. Summary

This Opinion adopts an uncontested Settlement Agreement (Settlement) that allows Pacific Gas and Electric Company (PG&E) to close nine of its 84 front counters where customers can pay their bills and perform other transactions. The Settlement requires PG&E to provide customers with notice of the closure and to take certain steps to mitigate the impact of the closure on customers. PG&E will reduce its gas and electric rates by a total of $2,757,000 through 2010 to reflect cost savings from the closure.

This Opinion resolves all remaining issues identified in the Scoping Memo and is being issued within 18 months of the Scoping Memo as mandated by Pub. Util. Code § 1701.5.¹ However, this proceeding cannot be closed at this time because of pending applications to rehear a prior decision in this proceeding.

¹ All statutory references pertain to the Public Utilities Code.