IX. Authority to Condition Conclusion of
RFO on Particular CPUC Action

The June 1, 2006, scoping memo and ruling of the assigned Commissioner identifies, as one of the issues for resolution in this proceeding, the following question: Does PG&E have the authority to condition concluding the RFO on approval of the cost allocation proposal in R.06-02-013? Although no party elected to address this issue either in testimony or in briefs, we necessarily address it here. We conclude that PG&E does not have the authority to condition concluding the RFO on approval of its proposed cost allocation in R.06-02-013, or on any other Commission action with respect to cost recovery for the results of the RFO.

Pub. Util. Code § 451 provides, "Every public utility shall furnish and maintain such adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities, including telephone facilities, as defined in § 54.1 of the Civil Code, as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public." We have found, after extensive public review pursuant to our authority, practices and procedures, that PG&E requires 2,200 MW to serve the public need, and we directed PG&E to conduct this RFO to procure it. PG&E does not have the discretion to decline to conclude the RFO on the basis of dissatisfaction with our orders.