Public Agenda 3138

Thursday, September 2, 2004 10:00 a.m.

San Francisco, California

Michael R. Peevey, President

Geoffrey F. Brown

Susan P. Kennedy

Loretta M. Lynch

Carl W. Wood

Scheduled Commission Meetings

505 Van Ness Avenue, San Francisco

For each agenda item, a summary of the proposed action is included; the Commission's decision may,

however, differ from that proposed.

Ratesetting Deliberative Meeting*

Room 5305

(1:30 p.m.)

Closed to the Public

Commission Meeting

Auditorium

(10 a.m.)

Open to the Public

Monday, September 20, 2004 (San

Francisco)

Thursday, September 02, 2004 (San

Francisco)

Thursday, September 23, 2004 (San

Francisco)

Monday, October 04, 2004 (San

Francisco)

Thursday, October 07, 2004 (San

Francisco)

Monday, October 25, 2004 (San

Francisco)

Monday, November 15, 2004 (San

Francisco)

Thursday, October 28, 2004 (San

Francisco)

Friday, November 19, 2004 (San

Francisco)

*Ratesetting Deliberative Meeting dates are reserved as noted but will be held only if there are ratesetting matters to be

considered and a Commissioner has requested that a Ratesetting Deliberative Meeting be held.

This location is accessible to people with disabilities.  If specialized accommodations for the disabled

are needed, e.g. sign language interpreters, please call the Public Advisor at (415) 703-2074 or TTY#

(415) 703-5282 or toll free # 1-866-836-7825 three business days in advance of the meeting.

The following items are not subject to public comment:

· All items on the closed session agenda.

· 34a, 34

1

[3622]

Resolution approving issuance of charter-party carrier certificates pursuant to Section 5374(b) of the

Public Utilities Code.

2

[3624]

Ratification of preliminary determination of category for proceedings initiated by application. The

preliminary determinations are pursuant to Article 2.5, Rules 4 and 6.1 of the Commission's Rules of

Practice and Procedure.

3

[3654]

R93-12-008 - Rulemaking on the Commission's own motion to provide rules and regulations

governing the requirements for information on contents, inspection, operation, and training

for the transportation of hazardous materials by rail within California.

Rulemaking concerning the rules to be applicable to transportation of hazardous materials by rail in

California.  This proceeding is closed.

(Comr Kennedy - ALJ Weismehl)

4

[3663]

This decision authorizes Cal Water to issue $250 million of common shares, preferred shares or debt

securities. Debt issues of $20 million or less are exempted from the Competitive Bidding Rule. This

proceeding is closed.

(Exam Jackson)

Agenda 3136, Item 27 7/8/2004 (Staff);

Agenda 3137, Item 7 8/19/2004 (Staff)

5

[3727]

This decision finds SDG&E's administration of power purchase agreements and procurement of

least-cost dispatch power activities for the period beginning January 1, 2003 and ending September

30, 2003 were reasonable and prudent.  The decision also finds SDG&E's $83.3 million energy

resource recovery account and overcollected balance at September 30, 2003 was reasonable and

prudent. This proceeding is closed.

(Comr Peevey - ALJ Galvin)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

6

[3731]

This resolution directs Verizon to file an application to request clarification of Finding of Fact (FOF) 3

in D96-10-037 and FOF 15 in D02-10-040 as to whether developers making contributions in aid of

construction are entitled to refunds of over-collected federal taxes they paid to telecommunications

utilities calculated pursuant to "Method 5" for the period from September 12, 2001 to September 11,

2003.  (Advice Letter 10584, filed August 12, 2003)

7

[3736]

For approval of its updated Water Management Program as ordered in Commission Resolution

W-4154 dated August 5, 1999.   This decision awards The Angeles Chapter of Sierra Club

$4,074.18 for its contribution to D01-11-048 and D03-10-063.  This proceeding is closed.

(Comr Brown - ALJ Patrick)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

8

[3737]

This decision approves with modifications SCE's petition to modify Resolution E-3843. This

proceeding is closed.

(Exam Clanon)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

9

[3767]

This decision grants A04-05-034 to the extent it requests prospective authority to transfer indirect

control of RRLD. The Application is denied to the extent it requests retroactive authority for the

transfer.  This decision also requires RRLD to pay a fine of $5,000 for violating Pub. Util. Code

Section 854(a). This proceeding is closed.

(Comr Kennedy - ALJ Kenney)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

10

[3793]

R02-01-011 - Order Instituting Rulemaking regarding the implementation of the suspension

of direct access pursuant to Assembly Bill 1X and Decision 01-09-060.

This decision extends the two monthly reporting requirements for the utility distribution companies that

were originally established in D97-05-040 and D99-05-034.

(Comr Brown, Comr Wood - ALJ Wong)

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Pub. Util. Code § 311 – This item was mailed for Public Comment.

11

[3804]

I02-04-027 - Order Instituting Investigation into the operations and practices of Verizon

(formerly GTE California Incorporated) with respect to its Individual Case Basis contracts.

This decision approves an uncontested settlement agreement between Verizon California and

Consumer Protection and Safety Division.  Verizon will pay $4,836,000 to the state General Fund for

violations of the Public Utilities Code and Commission rules relating to Individual Case Basis and

express contracts.  This proceeding is closed.

(Comr Peevey - ALJ McVicar)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Adjudicatory.

12

[3810]

(ECP) C04-03-018 - Daniel M. Schwartz (Complainant) vs. Pacific Bell Telephone Company

dba SBC California (SBC).

Complainant seeks a refund of $648.63 for toll charges billed by SBC to Complainant’s Burlingame

telephone.  These charges were accumulated when his house guest dialed an Internet access number

that was a toll number. However, SBC’s charges do not violate any statute or Commission order.  The

request for relief is denied.  This proceeding is closed.

(Comr Brown - ALJ Patrick)

13

[3813]

This decision grants Sacramento Regional Transit District's application to construct and maintain the

Sunrise Station Driveway across the Union Pacific Railroad track in the County of Sacramento. This

proceeding is closed.

(Exam Clark)

14

[3822]

This resolution authorizes CUS and All Sewer Utilities: (1) CUS a Consumer Price Index increase

producing an increase in annual revenue of $13,134 or 1.9%, and (2) All Sewer Utilities to file for rate

increases based on the Consumer Price Index. (Advice Letter 32, filed April 22, 2004)

15

[3823]

C03-07-031 - Pacific Gas and Electric Company (PG&E) vs. Calpine Corporation, CPN

Pipeline Company Calpine Energy Services, L.P., Calpine Natural Gas Company; Lodi Gas

Storage, LLC; and DOES 1-10.

In D04-07-006, the Commission approved a settlement among the parties to this proceeding, but

inadvertently neglected to dismiss the complaint.  On the unopposed petition of Complainant, PG&E

and Defendants, Calpine Corporation, CPN Pipeline Company, Calpine Energy Services, L.P.,

Calpine Natural Gas Company and Lodi Gas Storage, LLC, the Commission now does so.  This

proceeding is closed.

(Comr Brown - ALJ Thomas)

16

[3825]

The City of Oxnard moves to withdraw its application in this matter without prejudice to later refiling.

The motion is unopposed and is granted.  Application 01-10-047 is closed.

(Comr Brown - ALJ Walker)

17

[3827]

CalWater's petition for modification of D03-03-037 is granted.  Two reserved connections are

granted an exemption from the approved connections list procedures established in D03-03-037.

D03-03-037 is modified accordingly.  Joseph Farais' petition for modification of D03-03-037 is moot.

Application 02-03-032 is closed.

(Comr Kennedy - ALJ McVicar)

18

[3832]

(ECP) C04-05-024 - Joseph Gorlock (Complainant) vs. San Diego Gas & Electric Company

(Defendant).

Complainant claims his electric and gas bills are too high because of errors by Defendant.  Recovery is

denied.  Complainant’s usage and bills are correct.  Deposit paid to Defendant.

C04-05-024 is closed.

(Comr Wood - ALJ Barnett)

19

[3835]

R02-06-041 - Order Instituting Rulemaking to require California natural gas and electric

utilities to preserve interstate pipeline capacity to California.

This decision modifies D04-01-047 to clarify Ordering Paragraph 5.  This proceeding is closed.

(Comr Lynch - ALJ Brown)

20

[3836]

This decision authorizes Applicant to operate as a passenger stage corporation between points in San

Francisco, Alameda, Contra Costa, Santa Clara, San Mateo, and Marin Counties, on the one hand,

and San Franisco, Oakland, and San Jose International Airports, on the other hand; and to establish a

zone of rate freedom. This proceeding is closed.

(Exam Clark)

21

[3837]

This decision authorizes Abdolkarim Nouranian to transfer his passenger stage corporation certificate

to Eslam Pirany. This proceeding is closed.

(Exam Clark)

22

[3839]

For authority to re-categorize inside wire maintenance plans and billable repair service from Category

II to Category III service offerings. This decision awards The Utility Reform Network $51,957 for its

substantial contribution to D04-05-058.

(Comr Wood - ALJ Galvin)

23

[3840]

R03-03-014 - Order Instituting Rulemaking into implementation of Senate Bill 669 and

Assembly Bill 1734, as they affect the deaf and disabled telecommunications equipment and

services program fund.

This decision grants the California Coalition of Agencies Serving the Deaf and Hard of Hearing, Inc.

an additional compensation award of $3,220.70 for substantial contributions to D04-05-031.  In that

decision, the Commission modified an earlier decision and made changes affecting the

Telecommunications Access for the Deaf and Disabled Administrative Committee.  This proceeding is

closed.

(Comr Kennedy - ALJ Kenney)

24

[3842]

A04-04-012 - Nexus Communications, Inc., dba Nexus Communications TSI, Inc.

(Applicant).

This decision grants Applicant a certificate of public convenience and necessity to provide limited

facilities based and resold local exchange and interexchange telecommunications services.  This

proceeding is closed.

(Comr Brown - ALJ Prestidge)

25

[3844]

This resolution approves an Interconnection Agreement between CTC-California and SureWest

Televideo dba: SureWest Broadband and SureWest Telephone dba: SureWest Broadband, in

accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice Letter 850,

filed July 23, 2004)

26

[3845]

This resolution approves an Interconnection Agreement between CTC-California and MetroPCS

California/Florida, Inc. dba: MetroPCS, in accordance with the provisions of General Order 96-A and

Resolution ALJ-181. (Advice Letter 851, filed July 23, 2004)

27

[3366]

This decision concludes the reasonableness review of PG&E’s Safety and Reliability Enhancement

Funds Balancing Account. It allows PG&E to recover a portion of the charges as provided by Pub.

Util. Code §368(e).  This proceeding is closed.

(Comr Kennedy - ALJ Long)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3132, Item 42 4/22/2004 (Kennedy);

Agenda 3133, Item 40 5/6/2004 (Kennedy);

Agenda 3136, Item 49 7/8/2004 (Brown);

Agenda 3137, Item 64 8/19/2004 (Brown)

27a

[3806]

This decision resolves Pacific Gas & Electric Company's (PG&E) System Safety and Reliability

Balancing Account.  Pursuant to the provisions of Public Utilities Code Section 368, which was added

to the Code by AB 1890, the electric industry deregulation bill, PG&E was allowed an increase in

base revenues equal to the consumer price index plus 2% for the years 1997 and 1998.  The

additional funds thus acquired were to be spent recovering costs incurred from enhancement of system

safety and reliability.  The Commission approved PG&E's cost recovery plan in 1996 and laid out in

detail the steps PG&E was required to follow in recording the costs in D96-12-077 and D98-12-094.

PG&E seeks approval for approximately $120 million in costs incurred pursuant to Section 368 and

our prior decisions.  The Office of Ratepayer Advocates (ORA) and The Utility Reform Network

(TURN) have filed objections. This decision allows most costs sought by PG&E.  The decision

disallows applications for automated meter readers and meter reader trucks as too remote and

insignificant in their effects on system safety and reliability. The decision also orders PG&E to file a

Catastrophic Event Memorandum Account application to seek recovery of approximately $29 million

in storm and flood-related costs included in this application. This proceeding is closed.

(Comr Brown)

28

[3713]

This order authorizes PacifiCorp to sell and transfer its interest in the Skookumchuck dam in the State

of Washington to a subsidiary of TransAlta Corporation (TransAlta).  The sole purpose of the

Skookumchuck dam is to meet cooling water requirements of the nearby Centralia Steam Electric

Generating Plant (Centralia Power Plant), which with Commission approval was purchased four years

ago by a subsidiary of TransAlta.  The Centralia Power Plant serves customers in the State of

Washington.  Energy customers of PacifiCorp in California (representing about 2% of PacifiCorp’s

business) are expected to benefit from the sale in that income from the dam operations is minimal and

the application forecasts a $200,000 reduction in California revenue requirements.  PacifiCorp will

receive its net book value of the assets being transferred, with no appreciable gain or loss.  This

proceeding is closed.

(Comr Kennedy - ALJ Walker)

29

[3743]

R04-01-025 - Order Instituting Rulemaking to establish policies and rules to ensure reliable,

long-term supplies of natural gas to California.

This decision addresses the Phase I proposals of Southern California Gas Company, San Diego Gas

& Electric Company, Pacific Gas and Electric Company, and Southwest Gas Company.  These

proposals were filed in accordance with this Order Instituting Rulemaking and address interstate

pipeline capacity contracts, liquefied natural gas access, and interstate pipeline access.

(Comr Kennedy, Comr Peevey - ALJ Fukutome, ALJ Wong)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

29a

[3843]

This alternate establishes an evidentiary hearing process in Phase II to consider California's future need

for natural gas, the price, environmental, reliability, operational and gas quality effects of bringing LNG

to the California market, and other supply options.  The alternate directs California's natural gas utilities

to file open access tariffs for all supply sources but declines to establish new receipt points or

preapprove LNG contracts pending the evidentiary hearings to be conducted in Phase II.  It outlines

additional restrictions on the utilities' acquisition of interstate pipeline capacity and storage holdings that

would be eligible for the pre-approval process, finds that third party storage for the utilities' core

portfolios is unneccessary at this time, and makes other changes to the Draft Decision.

(Comr Lynch)

29b (Rev.)

[3865]

The alternate pages reflect the outcome of what was proposed in the Draft Decision that was mailed

on July 20, 2004.

(ALJ Fukutome, ALJ Wong)

30

[3790]

R01-08-028 - Order Instituting Rulemaking to examine the Commission's future energy

efficiency policies, administration, and programs.

The Energy Action Plan, adopted by the Commission, the California Energy Commission and the

California Consumer Power and Conservation Financing Authority, identifies reduction of energy use

per capita as the overall, highest goal for resource procurement.  This decision has translated this

mandate into explicit, numerical goals for electricity and natural gas savings for the four largest

investor-owned utilities:  Pacific Gas and Electric Company, San Diego Gas & Electric Company,

Southern California Edison Company, and Southern California Gas Company. The adopted annual

and cumulative goals for energy savings through the year 2013 are presented in Tables 1a-1d, by IOU

service territory.  These goals will be updated every three years, in concert with a three-year program

planning and funding cycle for energy efficiency.  In preparation for the program year (PY) 2006-2008

planning cycle, the Commission is in the process of designing the future administrative structure for

energy efficiency in a separate phase of this proceeding.  The program administrators that the

Commission selects under this structure will be required to submit energy efficiency program plans and

funding levels for PY2006-PY2008 in the coming months to meet the electric and natural gas savings

goals adopted today.  Future updates to these goals will be considered for the PY2009-PY2011

planning cycle, based on updated savings potential studies, accomplishment data and other evaluation

studies, as appropriate.

(Comr Kennedy - ALJ Gottstein)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

31

[3786]

SCE submits an Advice Letter containing its first annual filing requesting recovery of costs recorded in

the bark beetle Catastrophic Event Memorandum Account for the period April 3, 2003 through

December 31, 2003. SCE's request is approved with modifications. (Advice Letter 1801-E, filed June

4, 2004)

32

[3847]

Motion for Reconsideration of Resolution E-3884, adopted by the Commission August 19, 2004,

regarding approval of a new renewable energy contract with a wind energy facility. (Advice Letter

1596-E, filed June 15, 2004)

33

[2636]

R01-09-001 - Order Instituting Rulemaking on the Commission’s own motion to assess and

revise the new regulatory framework for Pacific Bell (Pacific) and Verizon California

Incorporated.

I01-09-002 - Related matters.    This proposed decision addresses Phase 2B audit issues. The

proposed decision sustains most of the findings of an audit of Pacific's intrastate financial results for the

period 1997-1999 that were considered during Phase 2B. Despite the audit adjustments, this decision,

read in combination with the findings reached by the Commission in Phase 2A of this proceeding, does

not increase Pacific's earnings to a level requiring it to make refunds to its ratepayers.

(Comr Kennedy - ALJ Thomas)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3123, Item 40 11/13/2003 (Staff);

Agenda 3125, Item 70 12/18/2003 (Staff);

Agenda 3126, Item 57 1/8/2004 (Kennedy);

Agenda 3129, Item 31 2/26/2004 (Wood);

Agenda 3131, Item 39 4/1/2004 (Staff);

Agenda 3134, Item 45 5/27/2004 (Staff);

Agenda 3135, Item 30 6/9/2004 (Kennedy);

Agenda 3136, Item 68 7/8/2004 (Peevey);

Agenda 3137, Item 81 8/19/2004 (Lynch)

33a

[2637]

I01-09-002 - Related matters.  This alternate resolves Phase 2B audit issues.  This alternate, read in

combination with the findings in D04-02-063, does not increase Pacific’s earnings to a level requiring it

to make refunds to its ratepayers.  The alternate proposed decision accepts Pacific’s claim of

lawyer-client confidentiality concerning certain information, but prohibits the booking of contingent

liability accruals that rely on that information.  The alternate proposed decision denies Pacific’s request

to recover audit costs because of its failure to cooperate with the audit.  The alternate orders

corrections to the regulatory accounts concerning the booking of Local Number Portability costs and

reducing the levels of authorized “Cash Working Capital.”  The alternate also orders Pacific to make

other error-correcting adjustments, with the timing of the adjustments consistent with GAAP (which

was previously adopted by this Commission to guide telecommunications accounting).

(Comr Kennedy)

Agenda 3123, Item 40a 11/13/2003 (Staff);

Agenda 3125, Item 70a 12/18/2003 (Staff);

Agenda 3126, Item 57a 1/8/2004 (Kennedy);

Agenda 3129, Item 31a 2/26/2004 (Wood);

Agenda 3131, Item 39a 4/1/2004 (Staff);

Agenda 3134, Item 45a 5/27/2004 (Staff);

Agenda 3135, Item 30a 6/9/2004 (Kennedy);

Agenda 3136, Item 68a 7/8/2004 (Peevey);

Agenda 3137, Item 81a 8/19/2004 (Lynch)

34

[3199]

I02-06-003 - Investigation on the Commission’s own motion into the operations, practices,

and conduct of Pacific Bell Wireless LLC dba Cingular Wireless and related entities

(collectively Cingular) to determine whether Cingular has violated the laws, rules and

regulations of this State in its sale of cellular telephone equipment and service and its

collection of an early termination fee and other penalties from customers.

This modified decision finds that Cingular’s corporate practice and policy from January 2000 to April

31, 2002 violated (1) Pub.Util.Code §451 and D95-04-028 because it allowed no trial of its wireless

service and prohibited early termination of wireless service contracts unless the customer paid an early

termination fee of $150 or more, even though testing wireless service by using the phone is the best

way for a customer to ascertain whether the service meets his or her needs, and (2) violated §§451,

702 and 2896 and D95-04-028 because it failed to disclose known network problems during 2001

and, in spite of these problems, continued to prohibit refunds/returns and require early termination fees

for early cancellation of wireless service contracts.  Decision orders a penalty of $12,140,000 and

requires reparations to customers.  This modified decision addresses the issues raised by the

Commission's Consumer Protection and Safety Division, Utility Consumers Action Network, and

Cingular in their appeals to the Presiding Officer’s Decision filed October 9, 2003.  This proceeding is

closed.

(Comr Wood - ALJ Vieth)

Pub. Util. Code § 1701.2(c), allows this modified Presiding Officer’s Decision to be considered

in Closed Session.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Adjudicatory.

Agenda 3128, Item 48 2/11/2004 (Kennedy);

Agenda 3131, Item 45 4/1/2004 (Kennedy);

Agenda 3133, Item 50 5/6/2004 (Staff);

Agenda 3134, Item 47 5/27/2004 (Peevey);

Agenda 3136, Item 69 7/8/2004 (Peevey);

Agenda 3137, Item 82 8/19/2004 (Staff)

34a

[3815]

PROPOSED ORDER OF COMMISSIONER KENNEDY DIFFERENT FROM PRESIDING

OFFICER'S DECISION - This decision finds that Cingular Wireless committed one violation of

Section 451 of the Public Utilities Code by unreasonably including a substantial early termination fee it

its long-term contracts without including a grace period in which a customer could try out a new

cellular telephone. The decision orders Cingular to refund early termination fees to (1) all customers

who paid such fees within 14 days of entering a contract in the period from January 1, 2000 to May 1,

2002 and (b) all customers who paid such fees during the period February 1, 2001 through April 30,

2001. The decision also fines Cingular $890,000, equal to $10,000 per day for each day from

February 1, 2001 through April 30, 2001, a period in which Cingular knowingly failed to disclose

serious network problems and continued to aggressively market its services. This decision is final.

(Comr Kennedy)

35

[3530]

This decision approves in part the Competitive Local Exchange Carriers' request for advice letter

treatment of Sections 851 through 854 matters.  This proceeding is closed.

(Comr Lynch - ALJ Galvin)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

Agenda 3135, Item 6 6/9/2004 (Kennedy);

Agenda 3136, Item 3 7/8/2004 (Kennedy)

36

[3652]

R03-08-018 - Order Instituting Rulemaking to review policies concerning intrastate carrier

access charges.

This order resolves several policy questions with regard to intrastate access charges, their levels and

impact on California long distance markets. The Commission opened this rulemaking in response to the

petition of AT&T Communications of California, Inc. (AT&T). The term "access charges" refers to

charges imposed by local exchange carriers (LECs) such as Pacific Bell Telephone Company on

interexchange carriers (IEC) such as AT&T for using the LEC's local exchange network.

Interexchange carriers use this switched access to originate and terminate long distance calls to the vast

majority of California residential and business customers.

(Comr Peevey - ALJ Malcolm)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

37

[3764]

R95-04-043 - Order Instituting Rulemaking on the Commission's own motion into

competition for local exchange service.

I95-04-044 - Related matters. This decision addresses the approval and implementation of batch hot

cut processes and related pricing applicable to SBC California and Verizon California, Inc. These

findings are the result of the workshops and evidentiary hearings conducted pursuant to the Federal

Communications Commission Triennial Review Order, adopted on February 20, 2003.

(Comr Kennedy - ALJ Pulsifer)

38

[3728]

This decision grants prospective authority pursuant to Pub. Util. Code Section 854(a) for the transfer

of control described in A02-11-027.  The request for retroactive authority is denied.  This decision

also orders Comm South Companies, Inc. to pay a fine of $5,000 for violating Section 854.  Finally,

this decision orders an affiliate of the Applicants to submit a compliance filing that discloses whether the

affiliate discontinued service in California without Commission authorization.

(Comr Brown - ALJ Kenney)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

39

[3848]

C02-07-044 - The Utility Consumer's Action Network vs. AOL-Time Warner and Pacific Bell

Telephone Company.

This decision grants The Utility Consumer's Action Network an award of $79,090.95 in compensation

for substantial contributions to D04-07-052. This proceeding is closed.

(Comr Brown - ALJ Walker)

40

[3683]

This decision approves the rate case stipulation and decides the one remaining issue.  This proceeding

is closed.

(Comr Wood - ALJ Bushey)

Agenda 3136, Item 42 7/8/2004 (Lynch);

Agenda 3137, Item 85 8/19/2004 (Kennedy)

40a

[3811]

This alternate decision finds that the statute of limitations was tolled and that customers are entitled to

refunds for the entire overcharge period.

(Comr Lynch)

41

[3789]

R97-10-049 - Commission Order Instituting Rulemaking on the Commission’s own motion to

set rules and to provide guidelines for the privatization and excess capacity as it relates to

investor owned water companies.

This decision denies the petition of the California Water Association to modify D03-04-028.  This

proceeding is closed.

(Comr Kennedy - ALJ Bushey)

42 (Rev.)

[3809]

R ___________ - Order Instituting Rulemaking on the Commission's own motion to develop

rules and procedures to preserve the public interest integrity of government financed

funding, including loans and grants, provided to investor-owned water and sewer utilities.

43

[3600]

CWSC - Bakersfield, Bear Gulch, Chico, Dixon, Dominguez-South Bay, East Los Angeles,

Hermosa-Redondo, King City, Livermore, Los Altos, Marysville, Mid-Peninsula, Salinas, Selma,

South San Francisco, Stockton, Palos Verdes, Westlake, Willows, Visalia Districts - Resolution

recording status of reserve account recovery filings and results of earnings tests.  (Advice Letter (AL)

1622 and AL 1624, filed March 25, 2004, and AL  1642, AL 1643, AL 1647, AL 1648, AL 1649,

and AL 1650, filed April 1, 2004)

Agenda 3135, Item 17 6/9/2004 (Staff);

Agenda 3136, Item 9 7/8/2004 (Staff);

Agenda 3137, Item 89 8/19/2004 (Staff)

44

[3838]

This resolution recommends to the California Transportation Commission to set aside the funding for

maintaining automatic grade crossing protection devices.

45

[3812]

R_________ - Order Instituting Rulemaking on the Commission’s own motion for the

purpose of considering policies and guidelines regarding the allocation of gains from sales of

energy, telecommunications and water utility assets.

This order initiates an Order Instituting Rulemaking on the Commission's own motion to consider

policies and guidelines regarding the allocation of the gains from sales of utility assets. The primary

purpose of this proceeding is to set forth clear rules regarding who – the utility’s investors or the

ratepayers – receives the capital gains realized upon the disposition of utility property.  The

Commission will consider in this Rulemaking assets sold by electric and gas utilities, certain

telecommunications carriers, and water utilities.

46

[3846]

Discussion of and vote on sending a letter in support of the re-nomination of Commissioner Adelstein

to the Federal Communications Commission.

47

[3626]

48

[3601]

C98-06-003; C98-06-027; C98-06-049; I90-02-047 - Related matters.   Disposition of

Applications for Rehearing of D03-11-021 filed by The Latino Issues Forum (LIF), The Utility Reform

Network, and SBC California.  On November 13, 2003, the Commission issued D03-11-021,

awarding intervenor compensation to The Greenlining Institute and LIF for its contribution to

D01-09-058.

Agenda 3136, Item 97 7/8/2004 (Staff);

Agenda 3137, Item 97 8/19/2004 (Staff)

49

[3606]

A02-12-028, I03-03-016 - Related matters.   Disposition of the application for rehearing of

D03-12-058 filed by Southern California Edison Company (SCE).  D03-12-058 found Local 483

Utility Workers Union of America eligible for intervenor compensation under Chapter 9, Article 5,

Section 1801, et seq., of the Public Utilities Code.

Agenda 3135, Item 66 6/9/2004 (Staff);

Agenda 3136, Item 98 7/8/2004 (Wood);

Agenda 3137, Item 98 8/19/2004 (Staff)

51

[3684]

Disposition of Applications for Rehearing of Decision D03-12-060 filed by Women’s Energy Matters

(WEM), Residential Energy Service Companies’ United Effort (RESCUE), and joint application of

Consortium for Energy Efficiency, Inc. et al. R01-08-028 examines the Commission’s future energy

efficiency policies, administration and programs. D03-12-060 is an interim opinion adopting funding for

the 2004-2005 energy efficiency programs and studies. D03-12-060 was modified in part by

D04-02-059.

Gov. Code § 11126(e)(2)(B)(i), allows this item to be considered in Closed Session.

Gov. Code § 11126.3(d), allows this item to be considered in Closed Session.

Agenda 3136, Item 102 7/8/2004 (Staff);

Agenda 3137, Item 99 8/19/2004 (Staff)

52

[3785]

A03-11-013 - Related matters.  Order disposing of application for rehearing of D04-05-033 filed by

Inflexion California Communications Corp. (Inflexion).  In D04-05-033, the Commission denied

Inflexion's applications for a CPCN to provide competitive local exchange service and for approval to

acquire the assets of In Touch Communications Inc. pursuant to Public Utilities Code §851.  The

Commission found that the management team of Inflexion had not shown that it was qualified to serve

California residential customers, in part because a company run by key Inflexion managers was

recently fined $400,550 by the Pennsylvania Public Utilities Commission for slamming, failed to

cooperate with the Pennsylvania PUC's slamming investigation, and failed to pay the fine.

53

[3814]

A03-10-018, A03-10-019, A03-10-020, A03-10-021, A03-10-031 - Related matters.  Disposition

of Application for Rehearing of D04-05-060 filed by California Water Service Company (CWSC).

D04-05-060 is an interim opinion concerning water quality issues and also authorizes dismissal of

certain applications.  The underlying proceeding concerns authorization for CWSC to increase its rates

for water service in certain districts as well as a request by CWSC that the Commission find that it is in

compliance with General Order 103.

Gov. Code § 11126(e)(2)(B)(i), allows this item to be considered in Closed Session.

Gov. Code § 11126.3(d), allows this item to be considered in Closed Session.

54

[3818]

Disposition of Application of Sound Energy Solutions for Rehearing of I04-04-024. The Order

institutes an investigation into the proposal of SES filed with the Federal Energy Regulatory

Commission to construct a liquefied natural gas terminal in Long Beach, California.

55

[3833]

I01-09-002 - Related matters. Disposition of Applications for Rehearing of D04-02-063 filed by the

Office of Ratepayer Advocates and The Utility Reform Network.  In D04-02-063, the Commission

allowed SBC Pacific Bell Telephone Company to write off approximately $400 million of a Post

Retirement Benefit Other Than Pension regulatory assets above the line in 1998.

56

[3834]

Disposition of Application of Southern California Water Company (SCWC) for Rehearing of

D04-03-039. The Order, among other things, finds that SCWC violated section 851 by failing to seek

Commission approval for a lease of water rights to the City of Folsom, voids the lease from its

inception, imposes a fine against SCWC, and orders a percentage of lease revenues returned to

ratepayers.

Consideration of possible Commission initiation of, or intervention in, litigation.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

Significant exposure to litigation

Gov. Code § 11126(e)(2)(B), allows this item to be considered in Closed Session

Consideration of appointment, employment, evaluation of performance, or dismissal of a public

employee or to hear complaints or charges brought against that employee by another person or

employee.

Gov. Code § 11126(a), allows this item to be considered in Closed Session

Significant exposure to litigation in federal agency or court proceedings.

Gov. Code § 11126(e)(2)(B), allows this item to be considered in Closed Session

Consideration of possible Commission initiation of, or intervention in, federal agency or court

proceedings.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

57

[3628]

Case Nos. C 04-00580 VRW (Bankruptcy Case No. 01 30923 DM) - Conference with Legal

Counsel - Existing Litigation

Loretta Lynch vs. California Public Utilities Commission, Pacific Gas and Electric Company (Debtor),

U.S. District Court for the Northern District of California, Case No. C 04-00580 VRW; Pacific Gas

and Electric Company (Debtor), United States Bankruptcy Court, Northern District of California, San

Francisco Division, Case No. 01 30923 DM.

Conference with Legal Counsel - Existing Litigation; San Diego Gas & Electric Co., EL00-95-000

Gov. Code § 11126(e)(2)(A), allows this item to be considered in Closed Session.