Findings of Fact

1. The settlement is uncontested.

2. The settlement resolves all of the disputed issues among the settling parties.

3. The active parties in the proceeding are representative of the stakeholders, and each has ably and vigorously pursued the interests of its constituency.

4. Pacific Gas and Electric Company and the Western Manufactured Housing Community Association were not active parties in the proceeding.

5. The TRAC is not reasonable or necessary in order to adopt a rate design that allows the rates to move towards full cost of service. The TRAC component to reallocate costs and avoid potential bypass can be included in the distribution rate component.

6. A 2% limit on the change to residential customers is reasonable to mitigate rate-shock.