CPUC Public Agenda 3263Thursday, October 28, 2010, 10:00 a.m.

505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey Dian M. Grueneich

John A. Bohn Timothy Alan Simon

Nancy E. Ryan

www.cpuc.ca.gov

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment: Item: 28 All items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Once called, each speaker has up to 2 minutes to address the Commission.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment: Item: 28 All items on the Closed Session Agenda

Agenda Changes• Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting.

• Items on Today’s Consent Agenda are: 1, 4, 5, 6, 7, 8, 10, 11, 12, 13, 14, 16, 17, 18, 19, 21, 22, 23, 24, 25 & 26

• Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting.Item: None from the Regular Agenda have been added to the Consent Agenda.

• Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Item: 20 has been moved to the Regular Agenda.

• Item: None have been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 11/19/10: 2, 3, 15, 28, 32, 32a, 34 & 36

Held to 12/2/10: 9, 30 & 30a

Held to 1/13/11: 29

Regular Agenda

• Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote.

• For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed.

• The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

Regular Agenda – Legal Division Matters Item #27 [9853] Emergency Authorization to Ensure Adequate Gas Supplies to San Francisco and to the Peninsula

Res L-406------------------------------------------------------------------------------------------------------

Authorizes the Commission President to direct the Executive Director to take appropriate actions to ensure that Pacific Gas and Electric Company provides safe and reliable natural gas service to San Francisco and the Peninsula in the coming cold weather months, given the reduction in pressure on Pacific Gas and Electric Company's Line 132 ordered by prior Commission Resolution L-403. These actions may include increasing the pressure on Line 132, if warranted and if this can be accomplished without compromising public safety. Requires the Commission President to submit to the Commission for subsequent ratification any orders directed to Pacific Gas and Electric Company by the Executive Director pursuant to this delegation of authority.

Regular Agenda – Energy Resolutions and Written Reports

Item #20 [9836] Pacific Gas and Electric Company's Deviation From Gas and Electric Rule 9

Res G-3450, Advice Letter 3155-G/3739-E Filed on September 28, 2010 - Related matters.------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Provides bill relief to Pacific Gas and Electric Company customers impacted directly by the San Bruno Explosion.

ESTIMATED COST:

• None.

Resolution G-3450 (Item 20)

Approval of PG&E’s Bill Relief to Customers Impacted by the San Bruno Natural Gas Pipeline

Explosion

Julie Fitch, Director

Energy Division

October 28, 2010

PG&E San Bruno Bill Relief Program

• Resolution G-3450 approves PG&E’s proposed bill relief program for San Bruno customers affected by the pipeline explosion, effective September 10, 2010.

• Applies to the 374 customers located in the impact area, for both gas and electric bills.

• The program is PG&E shareholder funded.

• The bill relief is for all aspects of the otherwise applicable PG&E bill, including, but not limited to, usage charges and taxes.

• Applies to any outstanding balance as of September 10, 2010.

PG&E San Bruno Bill Relief Program

• For displaced customers, the bill relief extends through the January 2012 billing cycle and to a temporary living location as well.

• For non-displaced customers, it extends through the December 2010 billing cycle.

• PG&E is ordered to permit the Commission or its designee to fully audit the utility’s records and accounts to ensure that PG&E shareholders fund the program.

• PG&E is ordered to report to the Commission program results and to certify it was implemented in accordance with the approved advice letter and tariff revisions.

Regular Agenda – Energy Resolutions and Written Reports

Item #20 [9836] Pacific Gas and Electric Company's Deviation From Gas and Electric Rule 9

Res G-3450, Advice Letter 3155-G/3739-E Filed on September 28, 2010 - Related matters.------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Provides bill relief to Pacific Gas and Electric Company customers impacted directly by the San Bruno Explosion.

ESTIMATED COST:

• None.

Regular Agenda – Energy OrdersItem #31 [9812] Tariff Rules for Small Business Affecting Back-Billing and Deposits

R10-05-005 Order Instituting Rulemaking on the Commission's Own Motion to Consider Revising Energy Utility Tariff Rules Related to Deposits and Adjusting Bills as They Affect Small Business Customers.

Quasi-Legislative Comr. Bohn/ALJ DeBerry ------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Small business tariff rules are revised to reduce back-billing to three months and deposits to

twice the monthly bill.• Closes the proceeding.

ESTIMATED COST:• Unknown.

Regular Agenda – Energy OrdersItem #33 [9817] Paves the Way for Future Evaluation, Measurement, andVerification of Commission Energy Efficiency Programs

R09-11-014 Order Instituting Rulemaking to Examine the Commission’s Post-2008 Energy Efficiency Policies, Programs, Evaluation, Measurement, and Verification, and Related Issues.

Quasi-Legislative Comr. Grueneich/ALJ Farrar----------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Establishes workshops and reporting requirements.

ESTIMATED COST:

• None.

Regular Agenda – Communication OrdersItem #35 [9775] California Telephone Corporation Billing Rules

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.

Quasi-Legislative Comr. Bohn/ALJ Bushey-------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Adopts rules for California Billing Telephone Corporations, Billing Agents and Service Providers.

• Closes the proceeding.

ESTIMATED COST:

• Unknown.

Regular Agenda – Water/Sewer OrdersItem #37 [9695] 2010 Cost of Capital Decision for San Jose Water Company, Valencia Water Company, Park Water Company and Apple Valley Ranchos Water Company, San Gabriel Valley Water Company, and Suburban Water Systems

A09-05-001, A09-05-002, A09-05-003, A09-05-004, A09-05-005 - Related matters.In the Matter of the Application of San Jose Water Company for Authority to Determine its Cost of Capital and to Apply that Cost of Capital in Rates for the Period From January 1, 2010 through December 31, 2012.

Ratesetting Comr. Bohn/ALJ Long---------------------------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Establishes the base year 2010 ratemaking return on common equity for San Jose Water Company, Valencia Water Company, Park Water Company and its affiliate Apple Valley Ranchos Water Company, San Gabriel Valley Water Company and Suburban Water Systems;

• Adopts a base return on equity of 10.20% for all six applicants along with an individual capital structure and weighted cost of capital for each company;

• Adopts a Cost of Capital Adjustment Mechanism which uses an interest rate index and a Moody’s bond rating to adjust the return on equity and update the cost of capital for the two years 2011 and 2012;

• Adjusts the trigger mechanism otherwise used in Decision 09-07-051 to avoid an unintended reduction in return which may result from a high cost base year for the bond index;

• Determines that San Jose Water Company shall file an application for a new 2012 base year cost of capital concurrent with the three large multi-district Class-A water companies; and

• Closes Application (A) 09-05-001, A09-05-002, A09-05-003, A09-05-004 and A09-05-005.

ESTIMATED COST:

• The specific cost impacts of this decision are not quantified and depend upon any other changes to revenue requirement scheduled for

January 1, 2010.

Commissioners’ Reports

Management Reports

Regular Agenda – Management Reports and Resolutions

Item #38 [9849] Water Action Plan 2010

Director Kahlon Report------------------------------------------------------------------------

Water Action Plan 2010 for Commission consideration.

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

November 19, 2010, at 9:00 a.m.