STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

January 11, 2006 Agenda ID #5271

Ratesetting

TO: PARTIES OF RECORD IN APPLICATION 04-02-031

This is the proposed decision of Administrative Law Judge (ALJ) Walker, previously designated as the principal hearing officer in this proceeding. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. This matter was categorized as ratesetting and is subject to Pub. Util. Code § 1701.3(c). Pursuant to Resolution ALJ-180 a Ratesetting Deliberative Meeting to consider this matter may be held upon the request of any Commissioner. If that occurs, the Commission will prepare and mail an agenda for the Ratesetting Deliberative Meeting 10 days before hand. When an RDM is held, there is a related ex parte communications prohibition period.

The Commission may act at the regular meeting, or it may postpone action until later. If action is postponed, the Commission will announce whether and when there will be a further prohibition on communications.

When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

_/s/ ANGELA K. MINKIN by SW_

Angela K. Minkin, Chief

Administrative Law Judge

ANG:jt2

ALJ/GEW/jt2 DRAFT Agenda ID #5271

Ratesetting

2/16/2006

Decision DRAFT DECISION OF ALJ WALKER (Mailed 1/11/2006)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of the City of Gridley to remove the Laurel Street crossing of the Union Pacific Railroad Company tracks and construct a new crossing in the City of Gridley, County of Butte.

Application 04-02-031 (Filed February 27, 2004)

James D. Squeri, Attorney at Law, for the City
of Gridley, applicant.

Carol A. Harris, Attorney at Law, for Union Pacific
Railroad Company, protestant.

OPINION DENYING APPLICATION FOR RAIL CROSSING

WITHOUT PREJUDICE TO REFILING

1. Summary

This decision grants the application of the City of Gridley (the City) to close a lightly used rail crossing but denies approval at this time for construction of a major new crossing that, while clearly needed, presents significant safety concerns. The denial of the application is without prejudice to refiling by the City of a crossing plan that more thoroughly addresses safety issues raised by the California Department of Transportation (CalTrans), Commission staff, and the Union Pacific Railroad Company (Union Pacific). This proceeding is closed.