2. Background

On April 20, 2001, Pacific Gas & Electric Company (PG&E) filed and served an emergency petition for modification of D.01-04-006. PG&E seeks an immediate, on-going source of funds for programs adopted in D.01-04-006 through either a surcharge on current rates, or an offset to revenues collected by PG&E on behalf of the California Department of Water Resources (DWR).¹

In support, PG&E asserts that it is a Chapter 11 "debtor in possession" under the United States Bankruptcy Code. As such, PG&E says it is constrained from implementing new programs without concurrent receipt of funds. PG&E estimates that the cost of programs adopted in D.01-04-006 for 2001 alone could be $33 million over and above revenues now authorized in rates.

Further, PG&E states that the funding must not be illusory. Rather, according to PG&E, the Commission must clarify that these costs are not subject to any prohibition on cost recovery after the end of the rate freeze, such as the prohibition PG&E believes was established in D.99-10-057, and affirmed in D.00-03-058.

Pursuant to a shortened comment period, responses to the emergency petition were filed on May 15, 2001 by SCE and the Commission's Office of Ratepayer Advocates (ORA). SCE states its support for modification of D.01-04-006 such that post-rate freeze cost recovery will not be barred by D.99-10-057, D.00-03-058, or related decisions. SCE reports, however, that it does not currently anticipate the need for an immediate surcharge (since incremental revenues may result from the migration of SCE's customers from interruptible to firm service schedules). SCE says if the situation changes, however, it will seek necessary relief at that time. ORA contends PG&E's petition is premature, generally without merit, and should be rejected.