ALJ/KJB/hl2 Date of Issuance 2/19/2008

Decision 08-02-009 February 14, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas And Electric Company (U 39-E) for Approval of 2008 - 2020 Air Conditioning Direct Load Control Program.

Application 07-04-009 (Filed April 6, 2007)

OPINION GRANTING APPLICATION AS MODIFIED AND
APPROVING SETTLEMENT AGREEMENT BETWEEN AND AMONG
PACIFIC GAS AND ELECTRIC COMPANY, THE DIVISION OF RATEPAYER ADVOCATES AND THE UTILITY REFORM NETWORK

1. Summary

This decision approves an uncontested settlement agreement between Pacific Gas and Electric Company (PG&E), the Division of Ratepayer Advocates (DRA), and The Utility Reform Network (TURN) authorizing PG&E to install 305 megawatts (MW) of air conditioning direct load control. PG&E estimates that 305 MW equates to about 397,000 devices.

Residential and small commercial customers that volunteer to participate in this program will receive a monetary incentive and can choose between either an air conditioning switch (Switch) or programmable communicating thermostat (PCT). PG&E would trigger the program in an emergency or in anticipation of an emergency. Furthermore, customers that are on critical peak pricing (CPP) rates can use the air conditioning direct load control to automate their response to critical peak events.