Public Agenda 3167

Thursday, February 16, 2006 10:00 a.m.

San Francisco, California

Michael R. Peevey, President

John A. Bohn

Geoffrey F. Brown

Rachelle B. Chong

Dian M. Grueneich

Scheduled Commission Meetings

505 Van Ness Avenue, San Francisco

For each agenda item, a summary of the proposed action is included; the Commission's decision may,

however, differ from that proposed.

Ratesetting Deliberative Meeting*

Room 5305

(1:30 p.m.)

Closed to the Public

Commission Meeting

Auditorium

(10 a.m.)

Open to the Public

Monday, February 27, 2006 (San

Francisco)

Thursday, February 16, 2006 (San

Francisco)

Thursday, March 02, 2006 (San

Francisco)

Monday, March 13, 2006 (San

Francisco)

Wednesday, March 15, 2006 (San

Francisco)

Monday, April 10, 2006 (San

Francisco)

Monday, April 24, 2006 (San

Francisco)

Thursday, April 13, 2006 (San

Francisco )

Thursday, April 27, 2006 (San

Francisco)

*Ratesetting Deliberative Meeting dates are reserved as noted but will be held only if there are ratesetting matters to be

considered and a Commissioner has requested that a Ratesetting Deliberative Meeting be held.

This location is accessible to people with disabilities.  If specialized accommodations for the disabled

are needed, e.g. sign language interpreters, please call the Public Advisor at (415) 703-2074 or TTY#

(415) 703-5282 or toll free # 1-866-836-7825 three business days in advance of the meeting.

The following items are not subject to public comment:

· All items on the closed session agenda.

·

1

[5232]

Resolution approving issuance of charter-party carrier certificates pursuant to Section 5374(b) of the

Public Utilities Code.

2

[5234]

Ratification of preliminary determination of category for proceedings initiated by application. The

preliminary determinations are pursuant to Article 2.5, Rules 4 and 6.1 of the Commission's Rules of

Practice and Procedure.

3 (Rev.)

[5164]

A05-03-006 - Related matters. This decision approves sale and transfer of Alisal Water

Corporation’s small water systems to Pajaro Sunny Mesa Community Services District, upon payment

of Public Utilities Commission Reimbursement Account fees, real and personal property taxes, and

telephone charges incurred, and remittance to Alisal Water Corporation of Department of Health

Services surcharges collected, in association with the small water systems, since February 2005.

Applications 05-03-003 and 05-03-006 are closed.

(Comr Grueneich - ALJ Yacknin)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

4

[5213]

I05-03-011 - Investigation on the Commission’s own motion into the operations and practices

of Pacific Gas and Electric Company; Notice of Opportunity for Hearing; and Order to Show

Cause why the Commission should not impose fines and sanctions for the December 20,

2003 PG&E Mission Substation fire and electric outage pursuant to Public Utilities Code

Section 451.

This decision approves the all-party settlement, which resolves all issues in this proceeding and requires

Pacific Gas and Electric Company (PG&E) shareholders to make payments totaling $6.5 million -

$6.0 million for five programs and projects to improve electric system reliability and the remainder to

the State’s General Fund; decision also orders two refinements of the reporting requirements the

parties have already agreed upon, in order to guard against inadvertent double counting in PG&E’s

next general rate case. This proceeding is closed.

(Comr Peevey - ALJ Vieth)

5

[5243]

R99-11-022 - Order Instituting Rulemaking into implementation of Public Utilities Code

§390.

This decision denies Petition of Juniper Generation, LLC and PE Berkeley, Inc. to Modify Decision

(D.) 05-09-003 to defer its effective date from September 8, 2005 to July 30, 2006.  D05-09-003

granted Pacific Gas and Electric Company's petition to be relieved of the obligation to pay Qualifying

Facilities (QF) within 15 days of the end of the QF billing period and to continue with the 30-day

payment scheduled.  The decision noted the importance of maintaining good relationships between

QFs and gas suppliers.  It also provided QFs an opportunity to request modifications.

(Comr Peevey - ALJ DeBerry)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

6

[5244]

R99-11-021 - Rulemaking for purpose of revising settlement provisions in the Rules of

Practice and Procedure.

The Commission instituted this rulemaking on November 18, 1999, proposing to revise its procedural

rules governing settlements.  The Commission stated that the proposed new rules were intended to be

simpler and more flexible in order to encourage settlements.  Interested parties were invited to submit

comments and reply comments on a draft of the new rules and to participate in a workshop conducted

on February 29, 2000. Because of the passage of time and because other proceedings may address

some or all of the issues in this rulemaking proceeding, this decision closes Rulemaking 99-11-021.

(Comr Peevey - ALJ Walker)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

7

[5260]

R03-10-003 - Order Instituting Rulemaking to implement portions of AB 117 concerning

Community Choice Aggregation.

The Commission recently issued Decision 05-12-041, adopting rules and policies for Community

Choice Aggregation (CCA) in Phase II of this proceeding. This decision modifies slightly Appendix B

of that decision to reflect the intent of the Commission to permit a CCA to change its commencement

date in an open season following its binding commitment for a period of up to three months, as the

utilities suggested in their comments to the proposed Phase II decision.

(Comr Peevey - ALJ Malcolm)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

8

[5262]

R04-04-003 - Order Instituting Rulemaking to promote policy and program coordination and

integration in electric utility resource planning.

This decision grants the petition of Pacific Gas and Electric Company for modification of Decision

05-10-042.  That decision ordered implementation of the Commission’s resource adequacy

requirements policy framework and, among other things, adopted a proposed prohibition on reselling

and re-trading import capacity.  This decision lifts that prohibition so that load serving entities (LSEs)

are authorized to engage in such transactions, which may lead to more effective use of import capacity.

(Comr Peevey - ALJ Wetzell)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

9

[5264]

SDG&E requests approval of its proposal to replace Payden and Rygel with NISA Investment

Advisors L.L.C., as fixed-income manager for its Non-qualified trust and confirm the NISA investment

management agreement by authorizing the Commission's Executive Director or his designate to sign it

on behalf of the Commission. Request approved. (Advice Letter 1742-E, filed November 14, 2005)

10

[5266]

This decision dismisses the application of Empire One Telecommunications, Inc., Fonix Corporation,

and TOE Acquisition Corporation (Applicants) for approval of a merger agreement and authority to

transfer ownership without prejudice, based on Applicants’ failure to complete the application. This

proceeding is closed.

(Comr Grueneich - ALJ Prestidge)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

11

[5267]

C88-03-016 - The City of St. Helena, Town of Yountville, County of Napa, Napa Valley

Vintners Association vs. Napa Valley Wine Train, Inc.

Following decisions by the Court of Appeal and the California Supreme Court, this decision denies

Petition for Modification filed by Wine Train and closes this proceeding.  The denial leaves standing

Decision 01-06-034, in which the Commission determined that Wine Train’s excursion service is not a

public utility service.

(Comr Grueneich - ALJ Vieth)

12

[5270]

For authorization under Public Utilities Code Section 851 to quitclaim a portion of a 115 kV

transmission line easement.  Decision 05-07-017 granted PG&E’s application to quitclaim a portion of

the Sobrante-Moraga 115 kV transmission line easement.  The petition of Wilmot McCutchen for

modification claims the voltage of the transmission line is 220 kV.  Held: Petition denied. The line is

115 kV. This proceeding is closed.

(Comr Brown - ALJ Barnett)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

13

[5271]

This decision grants the application of the City of Gridley 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

Gridley of a crossing plan that more compellingly addresses safety issues raised by the California

Department of Transportation, Commission staff, and the Union Pacific Railroad Company.  This

proceeding is closed.

(Comr Peevey - ALJ Walker)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

14

[5274]

R03-09-005 - Order Instituting Rulemaking on the Commission’s own motion to evaluate

existing practices and policies for processing general rate cases and to revise the general

Rate Case Plan for Class A water companies.

This decision adopts a process for requesting waivers to the Water Rate Case Plan requirements,

modifies the Rate Case Plan requirement regarding filing of testimony, and closes the proceeding.

(Comr Brown - ALJ Bushey)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

15

[5278]

R04-03-017 - Order Instituting Rulemaking regarding policies, procedures and incentives for

distributed generation and distributed energy resources.

This order denies the petition of Tecogen, Inc., for modification of D04-12-045 to increase incentive

payments for certain distributed generation projects to $1 per watt.

D.04-12-045 reduced incentive levels for all technologies because the Self-generation Incentive

Program overall had been oversubscribed, suggesting some incentives were higher than they needed to

be to motivate investment. Among other things, the decision reduced the incentives from $1 per watt to

$.80 per watt for nonrenewable projects.

(Comr Peevey - ALJ Malcolm)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

16

[5279]

Complainant alleges that defendant has placed unauthorized charges on its customers' bills, a practice

known as "cramming."  Cingular filed a Motion to Dismiss the complaint.  This decision grants

Cingular's motion to dismiss, to the extent the complaint alleges that communications-related charges

violated the Interim Rules and denies it with regard to violations of law and regulations applicable to

communications-related charges.

(Comr Grueneich - ALJ Bushey)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Adjudicatory.

17

[5282]

This resolution downgrades the authorities granted to Universal Access, Inc. from facilities-based to

switchless reseller competitive local and long distance. (Advice Letter 5, filed December 27, 2005)

18

[5283]

R93-10-002 - Rulemaking on the Commission's own motion to provide for mitigation of local

rail safety hazards within California.

This decision modifies Decision (D.) 97-09-045, the Commission's 1997 order identifying local safety

hazard sites on railroad lines in California and adopting regulations to eliminate or reduce recurring

railroad accidents at these identified local safety hazard sites.  By this order, D.97-09-045 is modified

to conform to decisions and orders of the Ninth Circuit Court of Appeals and the United States

District Court for the Northern District of California, Case Nos. 01 15141, 01-15531, and

C-97-03660 TEH, respectively.  This proceeding is closed.

(Comr Peevey - ALJ Weismehl)

19

[5285]

This resolution grants the application of Inland Empire United Way to use the 2-1-1 dialing code for

health and human services information and referral service in San Bernardino County.

20

[5287]

R04-01-006 - Order Instituting Rulemaking on the Commission's proposed policies and

programs governing post-2003 Low-Income Assistance Programs.

A05-06-005, A05-06-009, A05-06-012, A05-06-013 - Related matters. On November 28, 2005,

Southern California Edison Company (SCE) filed a petition for modification of D.05-10-044, asking

that the Commission exempt SCE, an electric-only utility, from what it refers to as the “winter shut-off

moratorium” or, in the alternative, restrict the shut-off moratorium to low-income customers, as

opposed to all residential customers. This decision denies SCE's Petition. The fundamental request is

one that SCE made in the pleadings that led to D.05-10-044. In that decision the Commission stated

its concern about the ability of customers to pay their utility bills this winter. Applications A05-06-005,

A05-06-009, A05-06-012, and A05-06-013 are closed.

(Comr Grueneich - ALJ Weissman)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

21

[5288]

R01-08-028 - Order Instituting Rulemaking to examine the Commission's future energy

efficiency policies, administration and programs.

This decision allows SBW Consulting, Inc. to shift up to $255,000 from its 2002-2003 budget for use

in conjunction with its 2004-2005 Energy Efficiency Program activities.

(Comr Peevey - ALJ Weissman)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

22

[5289]

R01-08-028 - Order Instituting Rulemaking to examine the Commission’s future energy

efficiency policies, administration, and programs.

This decision awards The Utility Reform Network $197,615.13 in compensation for its substantial

contributions to Decision D04-08-019, D04-09-060, D04-12-019, D05-01-055, and D05-04-051

in Rulemaking 01-08-028.

(Comr Peevey - ALJ Gottstein)

23

[5290]

(ECP) C05-04-024 - Patricia C. Prado, George P. Beaulieu, Kimballs Mobile Home Park

Sub-Meter Customers, and Circle S Mobile Home Park Sub-Meter Customers vs. Robert

H. Johanson dba Kimballs Mobile Home Park and Robert H. Johanson dba Circle S Mobile

Home Park.

This decision orders Defendant to pay additional refunds of $286.87 to tenants of Kimball’s Mobile

Home Park and $1,022.28 to tenants of Circle S Corral Mobile Home Park. This proceeding is

closed.

(Comr Brown - ALJ Ryerson)

24

[5291]

For recovery of costs related to the 2003 Southern California Wildfires under the Catastrophic Event

Memorandum Account.  This decision awards The Utility Consumers' Action Network $59,388.92

for its substantial contributions to D05-08-037 on San Diego Gas & Electric Company’s 2003

Southern California Wildfires Recovery.  This proceeding is closed.

(Comr Peevey - ALJ Long)

25

[5303]

Res W-4585 - California Water Service Company, Salinas District  (Cal Water, Salinas

District).

This resolution authorizes Cal Water, Salinas District a surcharge to recover water treatment expenses

booked into a memorandum account to produce an increase in annual revenue for the Salinas District

of $1,054,838 or 6.54% to be amortized over a 36-month period. (Advice Letter (AL)1734, filed

July 8, 2005 and Suppplemental AL 1734-A, filed December 2, 2005)

26

[5304]

I_________ - Order Instituting Investigation on the Commission’s own motion into the rates,

operations, practices, service, and facilities of San Gabriel Valley Water Company.

In San Gabriel Valley Water Company (San Gabriel) last general rate case decision (Decision

04-07-034), the Commission left open for further hearing an adjustment for some $27 million received

by San Gabriel as payment for sales, condemnation, and water contamination damages.  This Ordering

Instituting Investigation puts San Gabriel on notice that a reduction in rates and refunds may result.

27

[5307]

This resolution authorizes California Water Service Company, Selma District rate base offset revenue

increase of $244,243 or 10.5%. (Advice Letter 1748, filed October 20, 2005)

28

[5308]

This resolution authorizes the Sacramento Regional Transit District an exemption from the provisions of

Section 7.8 of General Order 75-C by providing that the bells on the warning devices located on the

south side of the crossings at Royal Oaks Drive and Oxford Street in the City of Sacramento sound

only during the initial warning and descent stage of the gates at the crossings.

29

[5310]

This resolution approves an Interconnection Agreement between SBC and Habla Comunicaciones,

Inc., in accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice

Letter 27626, filed November 15, 2005)

30

[5311]

This resolution approves and Interconnection Agreement between SBC and Spectrotel, Inc., in

accordance with the provisions of General Order 96-A and Resolution ALJ-181. (Advice Letter

27637, filed November 17, 2005)

31

[5313]

This decision adopts a 2006 Energy Resource Recovery Account (ERRA) revenue requirement

forecast of $478 million for SDG&E. The ERRA was established to track fuel and purchased power

revenues against actual recorded energy procurement costs.  This forecast represents an increase of

$177 million, or 59% over the 2005 ERRA forecast.  The large increase in ERRA revenue

requirement is mainly due to fuel costs added to ERRA for a new generating plant, the Palomar Energy

Center, and the substantial increase in market energy prices.  Rather than increase rates by $177

million, SDG&E is allowed to consolidate into one advice letter filing all its Commission-authorized

revenue requirements from other proceedings to avoid multiple rate changes.  This matter is

uncontested and the proceeding is closed.

(Comr Bohn - ALJ Patrick)

32

[5317]

This decision grants the request of City of San Clemente to construct a pedestrian underpass rail

crossing, referred to as the Mariposa Pedestrian Underpass, under the single-track Orange

Subdivision main line of the Southern California Regional Rail Authority, within the City of San

Clemente, County of Orange.  This proceeding is closed.

(Exam Clark)

33

[5320]

This decision grants the request of Telscape Communications, Inc. (Telscape) and Gemini Partners,

Inc. for approval of a change in control over Telscape. The matter is uncontested. This proceeding is

closed.

(Comr Peevey - ALJ Patrick)

34

[5323]

This order opens a rulemaking to amend and recodify the Rules of Practice and Procedure in order to

update, clarify and simplify them.  For the most part, the proposed amendments (1) repeal rules that

have been rendered obsolete by changes in statute or practice; (2) delete redundant rules, rules which

define commonly understood terms and phrases, and rules which merely state the Commission’s

existing authority or reiterate statutory requirements; (3) edit rules to reflect and formalize standard

Commission practices; and (4) simplify the language and organization of the rules.  The proposed

recodification reorganizes the rules in a more logical fashion reflective of the course of Commission

proceedings, making it easier to identify and locate rules regarding particular subjects.

Some of the proposed amendments would also enact substantive changes prompted by our experience

with the rules, changes in statute or Commission practice, and the opportunity to codify interim rules

currently in effect under Commission resolutions.

35

[5324]

This decision authorizes Applicant to operate as a passenger stage corporation between points in the

Counties of Alameda, San Francisco, San Mateo, and Santa Clara, on the one hand, and San

Francisco, Oakland, and San Jose International Airports, on the other hand; and to establish a zone of

rate freedom. This proceeding is closed.

(Exam Clark)

36

[5325]

This decision authorizes Jose Luis Ayala-Aroche to transfer his passenger stage corporation (PSC)

certificate to El Corre Caminos, Inc., and the transferee is authorized to modify the PSC certificate.

This proceeding is closed.

(Exam Clark)

37

[5326]

This decision authorizes Michael Tran, Thien Nguyen, and Tony Tran to operate as a passenger stage

corporation between Garden Grove, on the one hand, and San Jose and Oakland, on the other hand;

and to establish a zone of rate freedom. This proceeding is closed.

(Exam Clark)

38

[5327]

This decision authorizes Imperial Valley Transportation Services, LLC to operate as a passenger stage

corporation between points in Imperial County, on the one hand, and San Diego, on the other hand;

and to establish a zone of rate freedom. This proceeding is closed.

(Exam Clark)

39

[5328]

This decision authorizes Applicant to operate as a passenger stage corporation between points in the

Counties of Alameda, San Mateo, and Santa Clara, on the one hand, and San Francisco, Oakland,

and San Jose International Airports, on the other hand. This proceeding is closed.

(Exam Clark)

40

[5329]

This decision authorizes Applicant to operate as a passenger stage corporation between San Ysidro,

Santa Ana, and Los Angeles; and to establish a zone of rate freedom. This proceeding is closed.

(Exam Clark)

41

[5330]

A05-11-010 - Bernard Cabute and Darryck Saterfield, dba Mountain View Limousine and

Airport Shuttle Service (Applicant).

This decision authorizes Applicant to operate as a passenger stage corporation between points in the

Counties of San Mateo and Santa Clara, on the one hand, and San Francisco, Oakland, and San Jose

International Airports, on the other hand; and to establish a zone of rate freedom. This proceeding is

closed.

(Exam Clark)

42

[5332]

This decision authorizes Zafar Quraishi to transfer his passenger stage corporation certificate to

Mumtaz Group of Companies, LLC; and the transferee is authorized to establish a zone of rate

freedom. This proceeding is closed.

(Exam Clark)

43

[5334]

This decision authorizes the County of Kern to construct at Seventh Standard Road a grade-separated

overhead crossing over the tracks of the Union Pacific Railroad Company’s Fresno-Bakersfield Main

Line and to close the existing at grade crossing (001B-305.90). Application 05-06-023 is closed.

(Comr Grueneich - ALJ Patrick)

44

[5171]

R02-01-011 - Order Instituting Rulemaking regarding the implementation of the suspension

of direct access pursuant to Assembly Bill 1X and Decision 01-09-060.

This decision addresses the Petition for Clarification of D03-09-052 filed on May 10, 2005, by the

Regents of the University of California on behalf of the University of California, Davis.  D03-09-052

addressed issues relating to a “cost responsibility surcharge” for customers who met a portion of their

requirements through bundled service from Pacific Gas and Electric Company on or after February 1,

2001 and the remainder through the Western Area Power Administration on a “split wheeling” basis.

(Comr Brown - ALJ Pulsifer)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3165, Item 46 1/12/2006 (Staff);

Agenda 3166, Item 33 1/26/2006 (Bohn)

45

[5222]

R01-10-024 - Order Instituting Rulemaking to establish policies and cost recovery

mechanisms for generation procurement and renewable resource development.

This decision on rehearing grants the application of San Diego Gas & Electric Company for approval

to enter into a ten-year electric power purchase agreement with Calpine Corporation for electric

power from the Otay Mesa Energy Center. This proceeding is closed.

(Comr Peevey - ALJ Brown)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

46

[5241]

R04-04-003 - Order Instituting Rulemaking to promote policy and program coordination and

integration in electric utility resource planning.

This decision considers Pacific Gas and Electric Company’s request to purchase and deliver gas, as

needed for electric and gas system reliability purposes, to supply generating units under the California

Independent System Operator reliability must run contracts with Calpine Company and its affiliates,

and for authorization to recover from its ratepayers the costs associated with these activities.

(Comr Peevey - ALJ Brown)

Agenda 3165, Item 48 1/12/2006 (Staff);

Agenda 3166, Item 36 1/26/2006 (Peevey)

47

[5263]

R____________ - Order Instituting Rulemaking to develop additional methods to implement

the California Renewables Portfolio Standard program.

In this proceeding, the Commission intends to address two principal aspects of implementing the

Renewables Portfolio Standard (RPS) program.  First, the Commission will add to the design for RPS

implementation in areas where it is not yet complete.  Second, the Commisison will address the

integration of new issues or programs into its implementation of the RPS program.  The Commisison

intends to continue its oversight of the annual RPS procurement cycle, compliance, and other

administrative issues in RPS implementation in Rulemaking 04-04-026 and any successors to it.  This

new rulemaking will consider at least four areas: 1) Electric Service Providers, Community Choice

Aggregators, Small and Multijurisdictional Utilities; 2) Renewable Energy Credits; 3) California Solar

Initiative; 4) other new issues.

48

[5273]

R_________ - Order Instituting Rulemaking to review the 2006 long-term procurement plans

of load serving entities in the interest of ensuring reliable and cost-effective electricity

supply in California.

The Commission opens this rulemaking to continue the ongoing efforts to ensure reliable and

cost-effective electricity supply in California through the review of the next cycle of long-term

procurement plans.  This rulemaking is the successor to the long-term procurement planning portion of

Rulemaking 04-04-003, and it will be the forum for consideration of future procurement policy and

planning issues.

49

[5280]

R04-04-003 - Order Instituting Rulemaking to promote policy and program coordination and

integration in electric utility resource planning.

This decision states the Commission's intent to develop a load-based cap on greenhouse gas (GHG)

emissions for Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern

California Edison Company, and non-utility load serving entities that provide electric power to

customers within these three respondents’ service territories.  Today’s decision provides guidance for

the implementation steps to put this cap in place.  In conjunction with a load-based emissions cap on

electric procurement, the Commission will pursue the development of shareholder incentives in

resource-specific proceedings, with its immediate focus on energy efficiency.  Over the longer term, the

Commission also intends to develop a GHG limitation program that includes emissions from the natural

gas sector, as the requisite emission reporting and certification protocols become available.

(Comr Peevey - ALJ Gottstein)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

50

[5284]

This decision grants authority under Pub. Util. Code § 854(a) to transfer control of PacifiCorp from

Scottish Power PLC to MidAmerican Energy Holdings Company. This decision denies the applicants’

request that the transaction be exempted from § 854(a) pursuant to § 853(b).  The authority granted

by this decision is subject to specific commitments offered by the applicants, including their

commitment to implement in California conditions that are adopted in other states that provide

additional benefits or protections to California ratepayers.  Other adopted commitments include

PacifiCorp’s agreement to:  a) take no actions to diminish PacifiCorp’s ability or willingness to perform

its legal obligations associated with its Klamath River hydroelectric system or PacifiCorp’s ability to

recover associated costs, b) make cost-effective investments in California as reasonably required to

serve load, c) offer cost-effective DSM programs in California, subject to such costs being

recoverable on a timely basis, d) take specified actions to extend electric service to unserved Indian

communities located in PacifiCorp’s service territory, and e) provide $150,000 per year for three

years to fund a study to identify the presence, distribution, and possible causes of toxic algae in the

Klamath River basin. This proceeding is closed.

(Comr Bohn - ALJ Kenney)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

51

[5286]

I05-05-024 - Related matters. This decision addresses the general rate increase request of the SCE.

SCE is authorized a revenue increase of $60,693,000  for test year 2006 based on a base revenue

requirement level of $3,699,766,00.  The adopted methodology for calculating post test year revenue

requirements results in additional revenue increases of $67,784,000 for post test year 2007 and

$105,319,000 for post test year 2008.  On a general rate case revenue basis, the increases amount to

1.73% for 2006, 1.80% for 2007 and 2.68% for 2008.  On a total system revenue basis, the

increases amount to 0.61% for 2006, 0.67% for 2007 and 1.02% for 2008.  These proceedings are

closed.

(Comr Brown - ALJ Fukutome)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

52

[5321]

This decision grants SoCalGas' petition to modify Decision 05-11-027 to allow SoCalGas to defer to

future winter months the remaining benefits of the cushion gas project for customers of the California

Alternate Rates for Energy Program (CARE).  The petition seeks to modify Ordering Paragraph 4 of

D05-11-027 to allow SoCalGas to defer to future winter months, but no later than March 31, 2008,

the remaining benefits of the cushion gas project to the extent the benefits are needed to keep CARE

commodity rates below 80 cents per therm.  In D05-11-027, the Commission authorized SoCalGas to

rework the wells in two of its gas storage fields so that 4 billion cubic feet (Bcf) of cushion gas could

be freed up, and reclassified as working gas and transferred in kind to SoCalGas’ CARE customers at

book value.

(Comr Peevey - ALJ Wong)

53

[5256]

This resolution authorizes SCE to file tariff sheet revisions to establish a Memorandum Account to

record certain SCE costs associated with interconnecting Renewables Portfolio Standard generators.

(Advice Letter 1950-E, filed December 23, 2005)

54

[5130]

R93-04-003 - Rulemaking on the Commission's own motion to govern open access to

bottleneck services and establish a framework for network architecture development of

dominant carrier networks.

I93-04-002 - Related matters.  This decision, in the "Verizon UNE phase" of OANAD, sets

unbundled network element (UNE) rates for Verizon California and price floors for Category II

services. Rates are set using the HM 5.3 model proposed by AT&T and MCI, and include a 9.89%

cost of capital and an overhead markup of 8.93%. The average basic loop rate is $14.07, a 24%

increase from the $11.36 interim loop rate set in D05-01-057. The new flat monthly port rate is $3.12.

The Verizon models are rejected as not forward-looking. Verizon must calculate billing adjustments of

interim rates to the rates in this order, but payment of any billing adjustment is stayed pending further

proceedings to determine payment options. With regard to price floors, the Commission agrees to

modify D99-11-050 and remove unbundled switching from the price floor calculation. Verizon is

directed to file a compliance filing updating its price floor calculations based on the methodology used

in D03-03-033, updated to reflect the UNE prices in to-day's order.

(Comr Peevey - ALJ Duda)

Agenda 3165, Item 49 1/12/2006 (Staff);

Agenda 3166, Item 39 1/26/2006 (Chong)

55

[5185]

R03-08-018 - Order Instituting Rulemaking to review policies concerning intrastate carrier

access charges.

This decision reduces intrastate access charges by eliminating two non-cost based charges - the

network interconnection charge and transport interconnection charge.  Local exchange carriers are

ordered to record lost revenue in a memorandum account. This proceeding is closed.

(Comr Peevey - ALJ Bushey)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

56

[5211]

R00-02-004 - Order Instituting Rulemaking on the Commission's own motion to establish

consumer rights and protection rules applicable to all telecommunications utilities.

This decision adopts Revised General Order No. 168, Market Rules to Empower Consumers and to

Prevent Fraud. The General Order enumerates consumer rights and freedom of choice principles;

extends to wireless carriers rules addressing (i) investigatory efforts of the Consumer Affairs Branch,

(ii) employee identification and (iii) Emergency 911 access that currently apply only to holders of

Commission-issued Certificates of Public Convenience and Necessity; and combines these rules with a

set of anti-slamming rules. The decision repeals the Commission's interim rules governing placement of

non-communications charges on telephone bills. This decision also initiates new education and

enforcement efforts designed to empower consumers and root out fraud. It focuses Commission

resources on creating a new Commission-led telecommunications consumer education program that

will use multiple languages to reach out to California residents. This decision enhances the

Commission's ability to enforce laws and regulations in a timely and effective manner through creating a

special Telecommunications Consumer Fraud Unit; expanding its toll-free hotline to cover allegations

of fraud; and increasing cooperation with other law enforcement agencies. In order to ensure that the

needs of non-English speaking populations in particular are protected, the decision further directs

Commission Staff to draft report on in-language practices and any special problems faced by

consumers with limited English proficiency.

(Consideration of this item is being postponed due to Pub. Util. Code Section 311(e) requirements)

(Comr Peevey)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

56a

[5312]

The Alternate Decision proposes a comprehensive telecommunications consumer protection program

with four equally essential elements: a Consumer Bill of Rights, clear and concise Rules to enforce

those Rights, a new emphasis on the Education of consumers, and improved Enforcement of the Rules.

The proposed Rules are a streamlined subset of the 2004 Rules that respond to carrier concerns

regarding cost, innovation, and competition; establish a uniform, level playing field for carriers; and

respond to increased complaints about telecommunications service.  The Alternate Decision keeps in

place the current Cramming and Slamming Rules.  The Education element in the Alternate Decision

differs by establishing a program that is shared between the Commission and carriers, rather than

simply the responsibility of the Commission.  The Enforcement element of the Alternate Decision

encourages collaborative efforts between the Commission and the Attorney General, but places greater

emphasis on the Commission’s responsibility to protect California telecommunications consumers.

(Consideration of this item is being postponed due to Pub. Util. Code Section 311(e) requirements)

(Comr Grueneich)

57

[5314]

This decision adopts an amendment to existing interconnection agreements that Verizon California Inc.

has with various competitive local exchange carriers.  The amendment implements the terms of the

Federal Communications Commission’s Triennial Review Order and Triennial Review Remand Order.

(Comr Peevey - ALJ Jones)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

58

[5220]

R04-09-002 - Order Instituting Rulemaking on the Commission’s own motion to develop

rules and procedures to preserve the public interest integrity of government financed

funding, including loans and grants, to investor-owned water and sewer Utilities.

This decision adopts rules that shall govern the accounting and ratemaking treatment for grant funds

received by all classes of regulated water utilities through the passage of Proposition 50 - The Water

Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002. Receipt of these funds by

Commission-regulated water utilities will allow the utilities and their customers to benefit by providing

cost-free funds for needed investments in water supply, treatment, and security. This proceeding is

closed.

(Comr Peevey - ALJ Walwyn)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

59

[5089]

The City of Petaluma (Petaluma) is authorized to relocate an at-grade crossing of the railroad tracks of

the Sonoma Marin Area Transit District (SMART) according to the design set out in the Supplement

to Application and the conditions set forth in this decision.  Petaluma’s authorization continues as long

as no passenger rail service operates along the SMART tracks.  This authorization shall expire in the

event that passenger rail service initiates along the SMART tracks because the institution of passenger

rail service may affect the safety, and may require changes in the rail crossing.  In the event passenger

rail service commences along the SMART railroad tracks, Petaluma must apply to the Commission for

continued authorization of this at-grade crossing. Additionally, if Petaluma extends Caulfield Lane past

Hopper Street, Petaluma must make any changes to the design or signalization of the intersection of

Hopper Street and Caulfield Lane and the railroad crossing required by the Commission’s Consumer

Protection and Safety Division’s Rail Crossing Engineering Section prior to extending Caulfield Lane

past Hopper Street.  This proceeding is closed.

(Comr Grueneich - ALJ Econome)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3164, Item 56 12/15/2005 (Staff);

Agenda 3165, Item 53 1/12/2006 (Peevey);

Agenda 3166, Item 45 1/26/2006 (Peevey)

60

[5106]

R04-09-003 - Order Instituting Rulemaking on the Commission’s own motion for the purpose

of considering policies and guidelines regarding the allocation of gains from sales of energy,

telecommunications, and water utility assets.

This decision adopts a process for allocating gains on sale received by certain electric, gas,

telecommunications and water utilities when they sell utility land, assets such as buildings, or other

tangible or intangible assets formerly used to serve utility customers.  In most cases, utility ratepayers

should receive 75% of the gain, based on our finding that ratepayers bear most of the risk associated

with owning such property.  The utilities’ shareholders should receive the remaining 25% of the gain on

sale.

This rule of thumb will apply to routine asset sales where the after-tax sale price is $50 million or less,

or where the gain or loss from the sale is $10 million or less.  Most ordinary asset sales that come

before this Commission for approval should meet these criteria.

The rule we develop here will not apply where the after-tax asset sale price exceeds $50 million or the

gain or loss exceeds $10 million.  The rule also does not apply to utility sales of assets of extraordinary

character; sales of nuclear power plants; where a party alleges the utility engaged in highly risky and

non-utility-related ventures; or where a party alleges the utility grossly mismanaged the assets at issue.

(Comr Brown - ALJ Thomas)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

Agenda 3164, Item 57 12/15/2005 (Staff);

Agenda 3166, Item 46 1/26/2006 (Staff)

61

[5174]

This resolution adopts interim rules governing electronic filing of documents during the electronic filing

pilot period.

62

[5088]

Notice of Proposed Rulemaking on Consumer Protection re Broadband Services. Recommendation

that the Commission participate in FCC proceeding that seeks comment on consumer protection

measures for broadband Internet access services.  These measures include customer privacy,

slamming/cramming, truth-in-billing, network outage reporting, discontinuance of service, and statutory

rate averaging requirements.

Agenda 3163, Item 33 12/1/2005 (Kennedy);

Agenda 3165, Item 55 1/12/2006 (Peevey);

Agenda 3166, Item 47 1/26/2006 (Brown)

63

[5258]

The FCC has issued a rulemaking asking for comment on issues raised by section 254(b) of the

Communications Act of 1934 – In the Matter of Federal-State Joint Board on Universal Service –

High Cost Universal Service Support- FCC-96-45.

64

[5277]

The FCC has asked for comment on the Petition of certain Rural LECs (Local Exchange Carriers) for

Review of FCC’s June 9, 2005 Declaratory Ruling, denying the LECs’ Petition with Respect to

Obligation to Execute PIC Change Requests with Incorrect Subscriber Information.  Legal Division

and Telcommunications Division contemplates filing comments describing the Commission’s experience

in enforcement cases where non-subscribers have authorized changes to the subscriber’s telephone

service.

65

[5333]

66

[5336]

Discussion and possible action on a Resolution to appeal to the San Francisco Board of Education and

the San Francisco Board of Supervisors to provide for the continued operation of the John Swett

Alternative School, which is an essential neighborhood institution for the children of the Western

Addition and Tenderloin and which the CPUC has been supporting for more than 15 years with

tutoring, funds and other resources.

67

[5237]

68

[5216]

A05-05-013, A05-05-029 - Related matters.

The disposition of the applications for rehearing of Resolution (Res.) E-3929, filed by City of Morro

Bay and the Coastal Alliance on Plant Expansion, and related petition for modification of the

resolution, filed by Pacific Gas and Electric Company.

Res. E-3929 involves the Commission's approval of PG&E's request of a three-year tolling agreement

with Duke's Morro Bay Units 3 and 4.

Agenda 3165, Item 64 1/12/2006 (Staff);

Agenda 3166, Item 53 1/26/2006 (Staff)

69

[5240]

San Diego Superior Court No. GIC 857224 - Conference with Legal Counsel - Existing

Litigation

People of the State of California, et al. v. Sempra Energy, et al.,

San Diego Superior Court  No. GIC 857224.

70

[5315]

A02-12-028; I03-03-016; - Related matters.

Disposition of Application for Rehearing of Decision D05-03-023 filed by The Utility Reform

Network.

In D05-03-023 the Commission approved post-test year ratemaking mechanisms and adopted, a

partial settlement supported by SoCalGas, SDG&E, ORA, TURN, Aglet, NRDC, and SCGC.

The Settlement resolved or otherwise disposed of all issues in Phase II for both SoCalGas and

SDG&E, with the exception of matters related to performance incentives and performance indicators.

Consideration of possible Commission initiation of, or intervention in, litigation.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

Significant exposure to litigation

Gov. Code § 11126(e)(2)(B), allows this item to be considered in Closed Session

Consideration of appointment, employment, evaluation of performance, or dismissal of a public

employee or to hear complaints or charges brought against that employee by another person or

employee.

Gov. Code § 11126(a), allows this item to be considered in Closed Session

Significant exposure to litigation in federal agency or court proceedings.

Gov. Code § 11126(e)(2)(B), allows this item to be considered in Closed Session

Consideration of possible Commission initiation of, or intervention in, federal agency or court

proceedings.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

72

[5275]

California Electricity Oversight Board, William Lockyer, Attorney General for the State of California

and California Department of Water Resources v. Calpine Energy Services, L.P., and Calpine

Corporation.

73

[5309]

U.S. Court of Appeals, D.C. Circuit, Case No. 06-_________  - Conference with Legal

Counsel - Existing Litigation

NARUC et al. v. Federal Energy Regulatory Commission, Case No. 06-____   (U.S. Court of

Appeals, D.C. Circuit).

Conference with Legal Counsel - Existing Litigation; San Diego Gas & Electric Co., EL00-95-000

Gov. Code § 11126(e)(2)(A), allows this item to be considered in Closed Session.