D0204018 PG&E's ordered to tender a notice of intent, and to pay penalty of $500 a day

PG&E's Proposal

Upon issuance of the OII/OSC, PG&E and staff representatives promptly met to discuss a potential resolution of the issues in this proceeding. The following proposal resulted from their discussions:

1. PG&E will tender an NOI for a test year 2003 GRC no later than April 15, 2002.

2. PG&E agrees to voluntarily pay a penalty of $500 per day that will begin to run on January 9, 2002, and will conclude on the day it tenders its NOI for the test year 2003 GRC. Should PG&E take the entire allowed time, up to and including April 15, 2002, the penalty will be for 96 days and will be in the sum of $48,000.

3. If PG&E tenders its NOI no later than April 15, 2002, the Commission agrees not to pursue any additional penalty or sanction beyond those identified in this proposal against PG&E, or any officer or employee of PG&E, for its failure to tender an NOI on November 14, 2001, as ordered in D.01-10-059. PG&E's agreement to pay a penalty here has no effect or precedential value on other issues or proceedings addressing penalties.

4. PG&E understands and recognizes that the Commission has the need, right, and authority to periodically review the costs of PG&E and all utilities that it regulates, and that the 2003 GRC is an appropriate vehicle to accomplish that goal.

5. PG&E recognizes that it failed to timely notify the Commission that it was not able to meet the November 14, 2001, deadline set by the Commission in D.01-10-059. PG&E takes seriously its obligation to comply with the Commission's orders and regrets that it failed to provide a timely response to D.01-10-059.

6. The Commission and PG&E agree that the April 15, 2002, deadline for tendering the NOI for the 2003 GRC provides a reasonable and sufficient time for PG&E to comply with the Commission's order.

7. Commission staff will recommend that the Commission adopt the terms of PG&E's proposal at the Commission meeting scheduled for January 9, 2002.

Although PG&E and staff negotiated and agreed upon the foregoing proposal, it is not presented to the Commission as a formal settlement proposal. Instead, it is a proposal by PG&E for resolution of the issues in this proceeding, and staff recommends that the Commission approve it.