Results of Public Agenda 3171

Meeting Held on Thursday, April 27, 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

Ratesetting Deliberative Meeting*

Room 5305

(1:30 p.m.)

Closed to the Public

Commission Meeting

Auditorium

(10 a.m.)

Open to the Public

Monday, May 22, 2006 (San

Francisco)

Thursday, May 25, 2006 (San

Francisco)

Thursday, June 15, 2006 (San

Francisco)

Monday, June 12, 2006 (San

Francisco)

Thursday, June 29, 2006 (San

Francisco)

Monday, June 26, 2006 (San

Francisco)

Monday, July 17, 2006 (San

Francisco)

Thursday, July 20, 2006 (San

Francisco)

Monday, August 21, 2006 (San

Francisco)

Thursday, August 24, 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; these are HEX and EX items.

·

Re 53:

Assemblymember Dave Jones, Sacramento, CA

Supervisor Illa Collins, Sacramento County Board of Supervisors, Sacramento, CA

1

[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)

Agenda 3167, Item 11 2/16/2006 (Brown);

Agenda 3168, Item 1 3/2/2006 (Bohn);

Agenda 3169, Item 3 3/15/2006 (Bohn);

Agenda 3170, Item 3 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

2

[5421]

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.

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

3

[5376]

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

consumer rights and consumer protection rules applicable to all telecommunications utilities.

This decision grants $58,373.00 in intervenor compensation to The Utility Reform Network (TURN)

for its further contributions to D04-05-057, approximately $78,085 less than TURN requested. Only

amounts directly attributable to preparing and filing TURN’s motion to intervene in federal litigation

seeking to overturn D04-05-057, and amounts for preparing its compensation claim, have been

allowed.

(Comr Peevey - ALJ McVicar)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

4

[5384]

SDG&E requests approval of the Pacific Wind renewable resource procurement contract. This

contract is approved without modifications. (Advice Letter 1734-E, filed October 2, 2005)

Agenda 3169, Item 15 3/15/2006 (Staff);

Agenda 3170, Item 6 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

5

[5424]

Complainant seeks a rate reduction for themselves which would adversely affect all customers of the

water company. This issue should be considered in a general rate case, not case by case. This

Complaint is dismissed. Case 05-07-014 is closed.

(Comr Bohn - ALJ Barnett)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

6

[5425]

Res T-17006 - Citizens Telecommunications Company of California, Citizens

Telecommunications Company of Tuolumne, and Citizens Telecommunications Company of

the Golden State.

This resolution authorizes Citizens Telecommunications Company of California (California Citizens)

and Citizens Telecommunications Company of the Golden State (Golden State Citizens) to grandfather

their 75% employee telephone concession service associated with its residential “Citizens Select”

service offering and also authorizes Citizens Telecommunications Company of Tuolumne (Tuolumne

Citizens) to withdraw its 75% employee telephone concession (since the carrier has no employees on

this concession plan) associated with its existing residential “Citizens Select” service offering. This

resolution also authorizes California Citizens, to introduce a 50% employee telephone concession

associated with its “Frontier Choices” tariff offering and “Frontier California Choices” package

offering, and also authorizes Tuolumne Citizens and Golden State Citizens to introduce a 50%

employee telephone concession associated with its “Frontier Choices” tariff offering. (California

Citizens' Advice Letter (AL) 934, filed February 15, 2006, Tuolumne Citizens' AL 169, filed February

15, 2006, Golden State Citizens' AL 179, filed February 15, 2006)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

7

[5438]

This resolution adopts comprehensive procedures and guidelines for eligible telecommunications carrier

designation and requirements for eligible telecommunications carriers effective July 1, 2006 in response

to Federal Communications Commission Report and Order 05-46.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

8

[5449]

This resolution revokes the certificates of public convenience and necessity of the following six

competitive carriers for failure to comply with D93-05-010 Ordering Paragraph 4: EZ Phone, Inc.

(CPCN# (#)) 5867; One Star Long Distance, Inc. (#6129), P.D.S., Inc. (#6256), Servisense.com,

Inc. (#6388), Kiger Telephone of Telephony, LLC (#6670), and Westex Communications, LLC.

(#6719)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

9

[5472]

C04-12-012 - California Alliance for Utility Safety and Education vs. San Diego Gas &

Electric Company and the City of San Diego.

This decision finds that, in planning and constructing the 30th Street 138 kilovolt underground

conversion project in San Diego (Undergrounding Project), defendant San Diego Gas & Electric

Company (SDG&E) did not comply with the mandates of the California Environmental Quality Act

(CEQA), Pub. Res. Code § 21000 et seq., and General Order (GO) 131-B.  Since the

Undergrounding Project has already been built, however, the Commission will not now require

SDG&E to take any remedial steps with respect to the requirements of GO 131-D or CEQA for the

Undergrounding Project.  The decision also finds that SDG&E complied with the requirements of

Decision 93-11-013 regarding no-cost and low-cost measures to mitigate the impact of

electromagnetic fields in its construction of the Undergrounding Project.  This proceeding is closed.

(Comr Brown - ALJ Simon)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

10

[5483]

This decision grants Applicant's application to enter revolving credit agreement with Bank of

Oklahoma to borrow up to $10 million and pledge pipeline assets to secure the borrowing.  Denies

request for nunc pro tunc approval and imposes a fine of $5,000 for violation of Pub. Util. Code §

851. This proceeding is closed.

(Comr Peevey - ALJ Bemesderfer)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

11

[5484]

NCT requests authority under Section 854(a) to transfer ownership to Karyn Bartel (Bartel). The

transaction was implemented without Commission authorization in March 2003.  NCT’s certificate of

public convenience and necessity was revoked by Resolution T-16962, issued on October 27, 2005,

for failure to file an annual report and to remit regulatory surcharges and fees.  This Decision denies

A02-10-007 because NCT is no longer a public utility and, therefore, Section 854(a) does not apply.

Even if §854(a) did apply, the application would be denied because Bartel is unfit to own a public

utility.  This decision also orders NCT to pay a fine of $55,000 for violating Rule 1, several decisions,

and parts of the Public Utilities Code.  To protect the public interest, NCT and Bartel are prohibited

from providing public utility service in California until the fine levied by this decision is paid and past

due surcharges and fees are remitted.  Additionally, this decision finds that the Helein Law Group

violated Rule 1 by providing false information to the Commission.  In lieu of a fine, today’s decision

requires the Helein Law Group to provide notice in all documents filed at the Commission that the firm

was found by this decision to have violated Rule 1.  This requirement shall end after three years.

Finally, NCT continues to provide interexchange telephone service, despite having no authority to do

so.  This decision directs Pacific Bell Telephone Company dba SBC California and Verizon California,

Inc. to stop routing calls to NCT and to notify NCT’s customers about the termination of service by

NCT.  This proceeding is closed.

(Comr Brown - ALJ Kenney)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

12

[5485]

On December 19, 2005, the Commission served Citation number FC-022 on Emerald City Limousine

(respondent) in accordance with Resolution ALJ-187. On December 21, 2005, respondent served a

Notice of Appeal on the Consumer Protection and Safety Division of the Commission. Citation

FC-022 is affirmed in part and dismissed in part.  The fine is reduced to $1,250.

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

13

[5498]

For authority to institute a rate stabilization plan with a rate increase and end of rate freeze tariffs.

A00-11-056, A00-10-028 - Related matters. This decision grants the Petition for Modification of

D03-10-040 filed by Pacific Gas and Electric company (PG&E). In D03-10-040, the Commission

addressed how PG&E and the other investor-owned electric utilities were to remit to cities and

counties Municipal Surcharge Fees attributable to power charges collected on behalf of the California

Department of Water Resources (DWR).  This decision affirms that D03-10-040 does not address

PG&E’s remittance methodology for municipal surcharges generally, but is limited in applicability to

DWR revenues.

(Comr Brown - ALJ Allen)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

14

[5519]

This decision denies Applicant's application for a certificate of public convenience and necessity

authorizing the provision of resold local exchange services based on Applicant’s failure to file user fee

reports and public program surcharge reports for 2003 and 2004 as required by its licensing decision,

D03-06-038, and as ordered by a ruling of the assigned Administrative Law Judge.  If Applicant

promptly comes into compliance with these requirements and does not engage in additional violations

of law or Commission requirements, Applicant may reapply for a certificate of public convenience and

necessity no sooner than one year after the date of the issuance of this decision. This proceeding is

closed.

(Comr Bohn - ALJ Prestidge)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

15

[5522]

Applicant seeks to amend its certificate of public convenience and necessity under Pub. Util. Code

§1001 to expand its authority to provide competitive local exchange telecommunications services as a

switchless reseller.  This decision grants the requested authority subject to the terms and conditions of

this decision. A05-12-006 is closed.

(Comr Brown - ALJ Patrick)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

16

[5526]

This decision authorizes Abdisamad M. Deria to transfer his passenger stage corporation certificate to

Jaipal Singh. This proceeding is closed.

(Exam Clark)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

17

[5527]

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

Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, and Solano Counties, 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)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

18

[5528]

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

Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, and Solano Counties, 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)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

19

[5529]

For authority to update its gas revenue requirement and base rates.  A02-12-028, I03-03-016 -

Related matters.   This decision clarifies the record and adopts a correct forecast for test year 2004

and attrition year 2005 of the costs billed by Southern California Edison Company to San Diego Gas

& Electric Company. These proceedings are closed.

(Comr Brown - ALJ Long)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

20

[5533]

A05-12-015 - Royal Dutch Shell plc, N.V., Koninklijke Nederlandsche Petroleum

Maatschappij (Royal Dutch Petroleum Company), The Shell Transport and Trading

Company Limited, Shell Petroleum N.V. and Shell California Pipeline Company LLC.

This decision grants the joint application of Shell California Pipeline LLC, for a change in control

pursuant to Public Utilities Code Section 854(a).  This proceeding is closed.

(Comr Peevey - ALJ Bemesderfer)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

21

[5537]

A06-01-008 - Pacific Gas and Electric Company, Southern California Edison Company, and

San Diego Gas & Electric Company.

This decision grants the request of three California utilities to modify requirements for reporting

incidents involving trees or other vegetation in the vicinity of power lines.  The proposal would eliminate

the reporting requirement for some relatively minor vegetation incidents that both the utilities and

Commission staff deem unnecessary.  The application is unopposed.  The application is granted.  This

proceeding is closed.

(Comr Peevey - ALJ Walker)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

22

[5538]

Foresthill Telephone Company requests authority to grandfather foreign exchange service. (Advice

Letter 264, filed March 9, 2006)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

23

[5539]

For recovery of pre-deployment costs of the Advanced Metering Infrastructure Project. This decision

awards The Utility Reform Network (TURN) $31,457.38 in compensation for its substantial

contributions to D05-09-044. TURN requested $31,505.88. The Commission has made limited

disallowances to TURN’s direct expense claims. This proceeding is closed.

(Comr Peevey - ALJ Cooke)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

24

[5540]

For authority pursuant to Public Utilities Code Section 454 to restructure and consolidate its rates for

its Monterey and Felton Districts. This decision finds that Felton FLOW did not make a substantial

contribution to D05-09-004, and denies its request for $49,719 in intervenor compensation.  This

proceeding is closed.

(Comr Peevey - ALJ McVicar)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

25

[5541]

Pub. Util. Code §1701.2(d) provides that adjudication cases shall be resolved within 12 months of the

date the complaint was filed unless the Commission makes findings why that deadline cannot be met

and issues an order extending that deadline.  In this proceeding, the 12-month deadline for resolving

this matter is July 5, 2006.  Based on the record in this proceeding, the Commission determines that

parties’ interests will be served by extending this proceeding to allow the parties to hold a hearing with

adequate time to prepare.  As a result, a 5-1/2 month extension order is required under Pub. Util.

Code §1701.2(d).

(Comr Brown - ALJ Barnett)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

26

[5542]

This decision authorizes Sprint Communications Company L.P. to cease offering resold based service

and transfer the related customer bases to the incumbent local exchange carriers or to Trinsic, Inc., a

competitive local exchange carrier, in accordance with the Commission’s rules governing customer

base transfers.  This proceeding is closed.

(Comr Bohn - ALJ Bemesderfer)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

27

[5543]

This resolution approves an Interconnection Agreement and Amendments between Verizon California,

Inc. and Covista, Inc., in accordance wtih the provisions of General Order 96-A and Resolution

ALJ-181. (Advice Letter 11486, filed March 1, 2006)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

28

[5545]

This decision authorizes Applicant to extend its on-call passenger stage corporation service to and

from San Francisco International Airport to include all points in the City and County of San Francisco.

This proceeding is closed.

(Exam Clark)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

29

[5546]

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

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

(Exam Clark)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

30

[5547]

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

Alameda, San Mateo, and Santa Clara Counties, 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)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

31

[5548]

A06-01-021 - Fariborz Alishahi and Nora Alishahi dba Green Van Airport Shuttle and Leyla

Saebi Monfared.

This decision authorizes Faribora Alishahi and Nora Alishahi to transfer their passenger stage

corporation certificate to Leyla Saebi Monfared. This proceeding is closed.

(Exam Clark)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

32

[5549]

This decision grants the application of ClearLinx Network Corporation (Applicant) for modification of

its existing certificate of public convenience and necessity (CPCN) to allow Applicant to provide full

facilities-based local exchange and interexchange services.  Applicant currently holds a CPCN

authorizing the provision of limited facilities-based interexchange services. This decision also approves

a process for review of Applicant’s claimed exemptions from the California Environmental Quality Act

for future construction projects authorized by the full facilities-based CPCN in this case.  This

proceeding is closed.

(Comr Bohn - ALJ Prestidge)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

33

[5551]

For approval of the 2006 - 2008 energy efficiency program and budget.  A05-06-011, A05-06-015,

A05-06-016 - Related matters. This decision adopts needed corrections and clarifications to the text

and attachments to Decision 05-09-043 that were identified subsequent to the issuance of that

decision.

(Comr Peevey - ALJ Gottstein)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

34

[5553]

This resolution conditionally authorizes YBWC to secure loans totaling $85,000 used for various

emergency repair works on its water system and to encumber utility assets. (Advice Letter 33, filed

January 6, 2006)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

35

[5554]

This resolution authorizes Sea Ranch rate base offset revenue increase of $8,084 or 1.03%. (Advice

Letter 70-A, filed March 23, 2006)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

36

[5557]

Application for rate and line extension incentives for conversion of stationary agricultural internal

combustion equipment to electric service. A04-11-008 - Related matters. This decision awards The

Utility Reform Network compensation of $46,277.58, and the Agricultural Energy Consumers

Association compensation of $69,131.27, for their respective contribution to Decision 05-06-016.

These proceedings are closed.

(Comr Brown - ALJ McKenzie)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

37

[5560]

This resolution approves staff recommendation in Agate Bay Water Company informal General Rate

Case request. The net system average rate increase is 23.10%.

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

38

[5561]

This decision grants Applicant approval of parent corporation’s buy-out of certain minority interests.

This proceeding is closed.

(Comr Bohn - ALJ Bemesderfer)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

39

[5562]

This decision grants the Applicant full-facilities based certificate of public convenience and necessity

(CPCN) authority to construct specific aerial and underground projects in the City of Saratoga.  This

authority expands Applicant’s currently held CPCN (U-6936-C) which authorizes the provision of

limited facilities-based and resold local exchange and interexchange services.  This decision also finds

that Applicant’s proposed aerial and underground construction projects, as described in the

application, are exempt from further environmental review under California Environmental Quality Act.

This proceeding is closed.

(Comr Bohn - ALJ Prestidge)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

40

[5563]

This decision approves Applicant's application to sell all its issued and outstanding shares of stock to

Cristina M. Tucker.  This proceeding is closed.

(Comr Bohn - ALJ Bemesderfer)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

41

[5564]

This decision grants joint application for authority for Hypercube, LLC to acquire control of KMC

Data, LLC, a certificated local carrier. This proceeding is closed.

(Comr Bohn - ALJ Bemesderfer)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

42

[5565]

Res E-3982 - Pacific Gas and Electric Company (PG&E) and San Diego Gas & Electric

Company (SDG&E).

This resolution approves PG&E's and SDG&E's request to change their electric time-of-use (TOU)

rate schedule as an alternative to full reprogramming of the existing TOU meter stock in response to

calendar changes affecting Daylight Saving Time as contemplated under the U.S. Energy Policy Act of

2005. (SDG&E Advice Letter (AL) 1746-E, filed November 17, 2005 and PG&E AL 2727-E, filed

October 24, 2005)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

43

[5566]

SCE requests a temporary suspension of the Cost Responsibility Surcharge collected from the City of

Cerritos. SCE's request is approved. (Advice Letter 1975-E, filed March 1, 2006)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

44

[5567]

This resolution approves BMS's request, on behalf of Crown Castle Solutions Corporation (CCSC),

for a deviation from California Public Utilities Code Section 320. This resolution grants the request and

authorizes CCSC to add approximatey four miles of aerial optics cables, six directional antennas, six

GPS antennas, and six Remote Access Node cabinets along Highway 9 on existing joint poles in Santa

Clara County, from west of Greenwood Road extending northwest to southeast of Carnelian Glen

Court. Highway 9 is within a state scenic corridor. (Advice Letter NON-40, filed September 22,

2005)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

45

[5569]

Rulemaking will consider new rules to (i) clarify eligibility and compensability requirements, (ii) provide

flexibility in filing notices of intent, (iii) require accounting documentation, and (iv) require notice of

intent to claim judicial review costs.  The Commission will also consider eliminating the intervenor

compensation fund established in Decision 00-01-020 and replacing the fund with an alternative

mechanism to allocate payment responsibility in certain rulemaking proceedings.

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

46

[5286]

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

Southern California Edison Company (SCE). For test year 2006, SCE is authorized a revenue

requirement of $3,749,292,000, which reflects an increase of $333,115,000 or 9.75% over the

previously authorized level of $3,416,177,000. The adopted methodology for calculating post-test

year revenue requirements results in additional revenue requirement increases of $143,350,000

(3.82%) for post-test year 2007 and $192,573,000 (4.95%) for post-test year 2008. On a general

rate case (GRC) revenue basis, when reflecting the effect of increased sales for the test year and

post-test years, the revenue increases amount to $273,455,000 (7.87%) for 2006, $73,541,000

(1.93%) for 2007 and $104,055,000 (2.61%) for 2008. On a total system revenue basis, the revenue

increases amount to 2.74% for 2006, 0.72% for 2007 and 1.00% for 2008. These proceedings are

closed.

(Comr Brown - ALJ Fukutome)

Agenda 3167, Item 51 2/16/2006 (Staff);

Agenda 3169, Item 18 3/15/2006 (Staff);

Agenda 3170, Item 54 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

47

[5349]

R05-09-006 - Order Instituting Rulemaking concerning broadband over power line

deployment by electric utilities in California.

This decision adopts a regulatory framework that fosters competition in the broadband market by

providing regulatory certainty to California companies seeking to provide broadband over power lines

(BPL).  The benefits of BPL include a new “wired” broadband pipe to the home, promoting universal

access to broadband services, and providing California electricity consumers with increased reliability

and lower costs through new “smart grid” technologies.  This decision is: (1) allowing third-parties or

electric utility affiliates to provide BPL services; (2) protecting ratepayers and aligning financial risks

and rewards; (3) adopting a mechanism for sharing any additional revenues received from BPL

providers; (4) providing non-discriminatory access to utility poles and rights of way; (5) maintaining the

safety and reliability of the electric distribution system; and (6) adopting a policy of exempting

BPL-related transactions, with conditions, from the requirements of Pub. Util. Code § 851 pursuant to

the Commission's authority under Pub. Util. Code § 853(b).

(Comr Chong - ALJ Allen)

Agenda 3169, Item 19 3/15/2006 (Pub. Util. Code §311(e));

Agenda 3170, Item 55 4/13/2006 (Brown)

Yes: (Bohn, Chong, Grueneich, Peevey)

No: (Brown)

Abstain: (none)

Absent: (none)

47a

[5457]

The alternate draft decision varies from the draft decision in four key areas. The alternate Decision

finds the energy affiliate rules are more appropriate for energy companies providing broadband over

powerline (BPL) service in some capacity on their networks. In order to ensure acquisition of BPL

rights on a network is not used to limit broadband paths to the home the alternate decision sets a five

year "use it or lose it" period. The alternate decision adopts the "other operating revenue" (OOR)

sharing mechanism as detailed in Decision 99-09-070, but it finds that, under the landlord/tenant

arrangement, the investment is "passive" rather than "active" and applies the 70/30 rather than 90/10

shareholder/ratepayer sharing arrangement.  Finally, the alternate decision waives the application of

Pub. Util. Code Section 851 for purposes of the lease of BPL rights, but in order to prevent the effect

of a sale of permanent PBL rights, it caps lease length at twenty years. The alternate decision also finds

that no BPL lease shall extend beyond the year 2031 without a Section 851 proceeding or an

application to continue to waive Section 851.

(Comr Brown)

Yes: (Brown)

No: (Bohn, Chong, Grueneich, Peevey)

Abstain: (none)

Absent: (none)

48

[5453]

R04-01-025 - Order Instituting Rulemaking to establish policies and rules to ensure reliable,

long-term supplies of natural gas to California.

This decision addresses the April 1, 2005, motion of the Ratepayers for Affordable Clean Energy

(RACE), which was reclassified as a petition for modification of Decision D04-09-022.  RACE’s

petition for modification seeks to apply the California Environmental Quality Act to the Phase I

activities which were reviewed and resolved in D04-09-022.  Today’s decision concludes that the

activities related to the Phase I issues, and which led up to the adoption of D04-09-022, did not

amount to a project within the meaning of CEQA and therefore CEQA did not apply to the Phase I

activities.  Accordingly, RACE’s reclassified petition for modification of D04-09-022 is denied.

D04-09-022 addressed the Phase 1 proposals of Southern California Gas Company, San Diego Gas

& Electric Company, Pacific Gas and Electric Company, and Southwest Gas Company regarding

interstate pipeline capacity contracts, liquefied natural gas access, and interstate pipeline access.

(Comr Peevey - ALJ Wong)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

49

[5491]

R05-10-030 - Order Instituting Rulemaking concerning relationship between California

energy utilities and their holding companies and non regulated affiliates.

This order amends the October 2005 Order Instituting Rulemaking, both as to scope and schedule,

and attaches for public review and comment, staff proposals to revise (1) the Commission’s Affiliate

Transaction Rules and (2) its General Order 77-L, which governs the reporting of compensation paid

to executive officers and employees of regulated utilities. The proposed rule revisions apply only to the

previously designated Respondents, California’s major energy utilities and their holding companies:

Southern California Edison Company/Edison International, Pacific Gas and Electric Company/PG&E

Corporation, and Southern California Gas Company and San Diego Gas & Electric Company, both

owned by Sempra Energy.

(Comr Brown - ALJ Vieth)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

50

[5403]

SWG requests approval of 2006 attrition year rate relief and other adjustments applicable to its

Northern and Southern California Divisions and its South Lake Tahoe District. SWG's attrition

adjustment methodology is denied. Other aspects of SWG's request are approved. (Advice Letter

(AL) 747, filed October 31, 2005, AL 747-A, filed November 23, 2005)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

51

[5447]

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

authorized to impose a surcharge on local service customers to recover lost revenue from independent

long distance carriers. Transfers from affiliated long distance carriers are not included in lost revenue

calculation because they do not make actual payments but only "paper transfers." Phase III of the

proceeding will address local exchange carriers other than Verizon and SBC California.

(Comr Peevey - ALJ Bushey)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

51a

[5448]

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

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

authorized to recover these losses via a surcharge.  Unlike the Proposed Decision, this Alternate does

not discriminate between revenue losses from affiliates and non-affiliates.

(Comr Peevey)

Yes: (Bohn, Chong, Peevey)

No: (Brown, Grueneich)

Abstain: (none)

Absent: (none)

52

[5467]

R95-04-043 - Order Instituting Rulemaking on the Commission's own motion into

competition for local exchange service.

I95-04-044 - Related matters.  This decision denies the Petition for Modification of Decision

05-08-040, filed by the County of Los Angeles, seeking the immediate suspension of the

implementation of the 310/424 area code overlay.

(Comr Peevey - ALJ Pulsifer)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

53 (Rev.)

[5496]

C05-10-007, C05-10-011, C05-09-011, C05-09-012, C05-09-027, C05-11-015 - Related

matters. This decision approves a comprehensive settlement agreement reached by the parties to these

proceedings, including Fruitridge Vista Water Company, the County of Sacramento, Sacramento

Housing and Redevelopment Agency, and several developers of residential housing and business.  The

settlement would permit Fruitridge to correct a severe water shortage caused by the closure of four

polluted wells, tie into purchase water from the City of Sacramento, and make infrastructure

improvements to serve 4,947 existing connections and 550 new connections.  The settlement is

opposed by the Division of Ratepayer Advocates.

(Comr Brown - ALJ Walker)

Signed (Comr. Bohn recused himself from this agenda item and was not

part of the quorum in its consideration.)

Yes: (Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

54

[5441]

This resolution records status of (a) reserve account filing and results of earnings test, and (b) water

quality litigation memorandum account. (Advice Letter (AL) 334, filed April 1, 2005 and AL 338, filed

July 22, 2005)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

55

[5521]

This resolution authorizes Great Oaks  a general rate increase producing an additional annual revenue

of $595,878 or 5.40% for test year 2006-2007. (Advice Letter 173, filed June 24, 2005)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

56 (Rev.)

[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 100% of the gain from depreciable property such as buildings, and 50% of the gain

from non-depreciable property such as land and water rights, based on our finding that ratepayers bear

many of the risks associated with owning such property.  The utilities’ shareholders should receive the

remaining 50% gain on sale, partly to compensate for some financial risk borne by the utility and partly

as an incentive to manage its assets wisely. This rule of thumb will apply to routine asset sales where

the sale price is $50 million or less and the after-tax 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.

This decision does not apply to routine retirements of minor utility assets that are no longer used and

useful, such as utility poles, transformers, and vehicles, which are governed by Commission

depreciation rules and schedules. The rule we develop here will not apply where the asset sale price

exceeds $50 million or the after-tax 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)

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

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

Agenda 3167, Item 60 2/16/2006 (Chong);

Agenda 3168, Item 32 3/2/2006 (Peevey);

Agenda 3169, Item 28 3/15/2006 (Chong);

Agenda 3170, Item 77 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

56a

[5524]

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

and ratepayers should split the gains 50-50 based on our finding that both bear risks associated with

owning such property.  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.  For

depreciable assets subject to routine retirement and salvage, ratepayers will receive all of the gain or

loss associated with these assets.  Most ordinary asset sales that come before this Commission for

approval should meet these criteria.  The rules we develop here, however, 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 Chong)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

57

[5394]

Agenda 3169, Item 33 3/15/2006 (Staff);

Agenda 3170, Item 81 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

58

[5397]

Agenda 3169, Item 36 3/15/2006 (Staff);

Agenda 3170, Item 83 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

59

[5398]

Agenda 3169, Item 37 3/15/2006 (Staff);

Agenda 3170, Item 84 4/13/2006 (Staff)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

60

[5513]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

61

[5573]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

62

[5574]

Approved (Legislative Subcommittee Recommendation: Support bill

with technical amendments.)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

63

[5575]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

64

[5576]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

65

[5577]

Approved (Legislative Subcommittee Recommendation: Support bill

with technical amendments.)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

66

[5578]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

67

[5579]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

68

[5580]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

69

[5581]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

70

[5582]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

71

[5583]

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

72

[5584]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

85 (Rev.)

[5635]

Discussion and action regarding appointment of former Senator Richard Polanco to a public

representative position on the Low Income Oversight Board. This matter is added to the agenda

pursuant to Government Code Sec. 11125.3(a)(2).

Approved (Voted 5-0 to add this item to the agenda pursuant to Govt.

Code Sec. 11125.3(a)(2).)

Yes: (Bohn, Brown, Chong, Grueneich, Peevey)

No: (none)

Abstain: (none)

Absent: (none)

74

[5469]

Disposition of Application for Rehearing of D05-11-028 filed by The Utility Reform Network and the

Office of Ratepayer Advocates, jointly.  In D05-11-028 the Commission granted the Joint Application

of SBC Communications, Inc. (SBC) and AT&T Corp. (AT&T) to transfer control of AT&T

Communications of California and its related California affiliates from AT&T to SBC subject to certain

conditions.

Signed (Comr. Brown reserves the right to file a dissent. Comr.

Grueneich reserves the right to file a concurrence.)

Yes: (Bohn, Chong, Grueneich, Peevey)

No: (Brown)

Abstain: (none)

Absent: (none)

75

[5470]

Disposition of Applications for Rehearing of D05-11-029 filed by The Utility Reform Network and the

Office of Ratepayer Advocates, jointly and by Verizon Communications Inc. (Verizon) and MCI Inc.

(MCI), jointly.  In D05-11-029 the Commission granted the Joint Application of Verizon and MCI to

transfer control of MCI's California utility subsidiaries to Verizon, subject to conditions.

Signed (Comr. Brown reserves the right to file a dissent. Comr.

Grueneich reserves the right to file a concurrence.)

Yes: (Bohn, Chong, Grueneich, Peevey)

No: (Brown)

Abstain: (none)

Absent: (none)

76

[5480]

A04-06-018 - Related matters. Disposition of Application for Rehearing of D05-09-018 filed by

Aglet Consumer Alliance.  In D05-09-018 the Commission approved the Joint Proposal of Southern

California Edision Company and Pacific Gas and Electric Company, with modification, for uniform

Economic Development Rate discount tariffs for the two utilities.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

77

[5556]

Disposition of Application for Rehearing of D04-02-025 filed by The Utility Reform Network.  In

D04-02-025, the Commission adopted capital additions of $31,782,000 for Southern California

Edison Company for non-nuclear generation plant added to rate base from 1997 through March 31,

1998, for non-divested generation plant, and for divested and retained generation plant through July 8,

1998.  This amount represents capital additions for environmental, regulatory, safety, and FERC

relicensing purposes.  The Decision also approved capital addition costs for divested non-nuclear

generation plant from 1997 through July 8, 1998, and to maintain plant through December 2001.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

78

[5568]

A05-05-013; A05-05-029 - Related matters.   The City of Morro Bay (City) and the Coastal

Alliance on Plant Expansion (CAPE) applied for rehearing of Resolution (Res.) E-3929, contending

Res. E-3929 errs: 1) in substantially modifying the draft resolution without adequate notice and

opportunity for comment; 2) in finding attachments to PG&E's AL 2632-E are confidential and for

withholding them from the public for a period of six months; 3) in failing to permit the City and CAPE

from entering into a non-disclosure agreement to view the confidential documents; and 4) in failing to

provide a hearing.  In addition, Pacific Gas and Electric Company (PG&E) filed a petition for

modification of Res. E-3929 essentially seeking deletion of Ordering Paragraph No. 2 which makes

public certain documents currently designated as confidential six months after the issuance of Res.

E-3929.  That six month period was extended on October 4, 2005 for a period of 15 days following

issuance of an order disposing of PG&E's petition for modification.  Neither PG&E's AL 2632-E  nor

Res. E-3929 have docket numbers.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)