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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 23, 2004 Agenda ID #3387

TO: PARTIES OF RECORD IN APPLICATION 03-05-039, PETITION 03-05-040

This is the proposed decision of Administrative Law Judge (ALJ) Glen Walker. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:tcg

Attachment

ALJ/GEW/tcg DRAFT Agenda ID #3387

Decision PROPOSED DECISION OF ALJ WALKER (Mailed 3/23/2004)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application for Ex Parte Approval of an Interim Alternative Plan for Protection of the Public Pursuant to General Order 120-C, Sections 3(E) and 6.

Application 03-05-039

(Filed May 30, 2003)

Petition to Adopt, Amend, or Repeal a Regulation Pursuant to Public Utilities Code Section 1708.5.

Petition 03-05-040

(Filed May 30, 2003)

Carol Ann Rogers and Christine Kalakuka, for Professional Balloon Pilots Association, et al., Petitioners.

Robert C. Welker, for Protestant.

Patrick S. Berdge, Attorney at Law, for Transportation Enforcement Section of the Consumer Protection and Safety Division.

DECISION RESOLVING PETITION BY MANNED BALLOON

OPERATORS TO AMEND GENERAL ORDER 120-C

1. Summary

In these two proceedings, hot air balloon operators in California (Petitioners) sought action by the Commission for relief from insurance requirements of General Order (GO) 120-C. Interim Decision (D.) 03-07-047, issued on July 22, 2003, provided a Modified Interim Plan intended to enable balloon operators to obtain insurance that complied with California law. Today's decision, following hearings ordered by the Commission, responds to the petition to amend GO 120-C and replaces the Modified Interim Plan authorized in D.03-07-047. We conclude that insurance complying with GO 120-C has now become available to balloon operators and, therefore, major revision of GO 120-C is unnecessary. Nevertheless, based on the evidence at hearing, we make permanent some of the relief put forward in D.03-07-047 and we adopt a recommendation by staff regarding insurance for property damage and injury to persons on the ground. The revisions to GO 120-C are intended to encourage other insurers to provide coverage to this important tourist-oriented industry. These proceedings are closed.

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