I. Summary

In this decision, we consider the "emergency motion" that was filed on January 8, 2001 by the Coalition of California Utility Employees (CCUE). CCUE's motion seeks to prevent Pacific Gas and Electric Company (PG&E) and Southern California Edison Company (SCE) from laying off workers until the Commission has had a full opportunity to review such proposals.

The motion of CCUE presents the issue of whether the proposed layoffs of utility employees will affect the safety, service and reliability of the electricity system, and whether this will affect the ability of the utilities to respond to emergencies. SCE proposes to layoff 1450 employees over the next several months, in addition to the 400 employees in the Transmission & Distribution Business Unit (T&D) which were announced in December 2000.¹ PG&E has announced that it is releasing 325 contract workers and hiring hall employees, and that another 675 reductions will occur over the next several months if PG&E's cash flow situation is not resolved.

We find that the layoff of workers that have already been implemented by SCE and PG&E, and the contemplated layoffs as presented in this hearing, do not appear to adversely affect the safety, service and reliability of the operations of SCE and PG&E at this time. However, if we perceive harmful effects about to occur, we will intervene. SCE and PG&E are on notice that any failure to meet all standards as to safety, service and reliability will result in enforcement actions by this Commission. Therefore, CCUE's motion is denied.

CCUE's motion and the pleadings of other parties have alerted us to the possible effects that the cost cutting measures could have on costs incurred during the rate freeze, and on the level of service provided for in the utilities' revenue requirement. We direct the utilities to establish a memorandum account to record the costs and savings associated with the cost cutting measures for possible future adjustment. We also require monthly reports setting forth how each utility is continuing to meet its obligation for safe and reliable service.