2. Procedural Background

In response to customer concerns regarding PG&E's storm performance and system reliability following a series of storms occurring in December 2002, the Assigned Commissioner in Application (A.) 02-11-017, PG&E's TY 2003 GRC application issued an Assigned Commissioner's Ruling (ACR) seeking supplemental testimony concerning PG&E's electric distribution service during both normal and storm conditions and establishing a separate phase of the GRC proceeding to evaluate PG&E's response to the storms and its readiness for them.

In establishing a separate storm and reliability phase, the ACR explained that this phase of the proceeding was "not designed to focus only on PG&E's performance in the December 2002 storms or in individual circuits, but rather to allow us to gain a fuller understanding of the resources PG&E invests in reliability, maintenance, and emergency response efforts and how resources are prioritized in order to allow us to provide additional direction, through the creation of relevant standards or metrics, by which its performance should be judged."¹ Appendix A to the ACR provided a list of topics to be addressed in this phase of the proceeding. The ruling also scheduled hearings on the storm and reliability issues.

PG&E filed supplemental testimony on these matters on March 17, 2003. On May 2, 2003, storm and reliability testimony was submitted by ORA, CUE, and The Utility Reform Network (TURN). In order to assist in their review of PG&E's supplemental testimony, ORA retained the services of Stone and Webster Management Consultants. ORA's testimony submitted on May 2, 2003 consisted of two volumes of testimony, including a review of PG&E's supplemental testimony by Stone and Webster. In addition, on May 9, 2003, Stone and Webster submitted a third volume of testimony, consisting of its final report on the reliability performance of PG&E at the division level.

The Commission held five days of evidentiary hearings on the storm and reliability issues from May 28 to June 4, 2003. PG&E, ORA, CUE, TURN and Aglet Consumer Alliance (Aglet) participated during the hearings by presenting testimony, cross-examining witnesses, or both. On July 10, 2003, several weeks after the hearings on the storm and reliability issues, PG&E and CUE filed jointly sponsored testimony addressing issues raised by CUE's testimony. PG&E and ORA also filed jointly-sponsored testimony that represented a compromise they had reached on the issues raised by ORA's testimony and the Stone and Webster reports. Also on July 10, 2003, TURN filed a response to both sets of jointly sponsored testimony. An additional day of hearing on the joint testimony and TURN's response was held on July 14, 2003.

Opening Briefs on the Storm and Reliability issues were timely filed by PG&E, ORA, CUE, TURN, and Aglet on July 21, 2003. Reply briefs were filed by PG&E, ORA, CUE, TURN, and Aglet on August 11, 2003. The Storm Response and Reliability Phase of the GRC was submitted upon receipt of reply briefs.