4. Need for Evidentiary Hearings

This Ruling affirms the preliminary determination in Resolution 176-3154, issued on June 16, 2005, that there is a need for evidentiary hearings in this proceeding. The scope of the hearings will be kept as narrow as practical. The hearings will start at 10:00 a.m., on Tuesday, October 4, 2005, and continue as necessary through Friday, October 7, 2005.

The Merced and Modesto Irrigation Districts have identified two issues requiring an evidentiary hearing. These issues are (1) whether alternate methods should be used to determine the benchmark price of electric power used to forecast the ongoing CTC, and (2) PG&E's forecast of municipal departing load (MDL). Regarding the first issue, this Ruling determines, supra, that an update of the CEC's CCGT will be used to determine the benchmark price for electricity. Accordingly, there is no need for hearings on alternate methods.

Regarding the second issue, Merced and Modesto did not identify any factual disputes regarding PG&E's forecast of MDL. Rather, they state that evidentiary hearings might be necessary if PG&E does not respond adequately to Merced and Modesto's discovery requests. In light of the pending discovery, Merced and Modesto will have an opportunity to raise factual issues regarding PG&E's forecast of MDL, if necessary, at the scheduled evidentiary hearings.

Several other parties have indicated that there is a need for evidentiary hearings but did not identify specific factual issues. Parties will have an opportunity to address factual issues at the scheduled evidentiary hearings, but parties will also have to provide advance notice of the specific factual issues they intend to pursue at the evidentiary hearings.

On September 27, 2005, PG&E shall coordinate an all-party conference for the purpose of reaching an agreement on the following: (1) a joint stipulation of facts and contested issues, (2) the order of witness, and (3) the order of cross examination. PG&E shall produce documents showing (1) the joint stipulation of facts and contested issues, and (2) the agreed-upon order of witnesses and order of cross examination. PG&E shall serve these documents on the parties and the assigned Administrative Law Judge (ALJ) by September 28, 2005.

Finally, parties must comply with the Hearing Room Ground Rules set forth in Appendix A of this Ruling.