This excerpt taken from the PCG 8-K filed Dec 28, 2005.
B. 2006 Cost of Capital Proceeding
On December 15, 2005, the California Public Utilities Commission (CPUC) voted to issue a decision in the Utility’s cost of capital proceeding to determine the Utility's authorized capital structure and the authorized rate of return that the Utility may earn on its electricity and natural gas distribution and electricity generation rate base for 2006. (The Utility’s rate of return for its electric transmission operations is set by the Federal Energy Regulatory Commission (FERC) and the Utility’s rate of return for its gas transmission and storage operations through 2007 has been previously set in the Gas Accord settlement agreement approved by the CPUC.)
The decision establishes the following capital structure and rates of return for 2006, as compared to the 2005 authorized amounts:
The Utility's authorized cost of capital would increase the 2006 cost of capital revenue requirement by approximately $4 million over the currently authorized revenue requirement for electricity and natural gas distribution and electricity generation operations, based on the Utility's currently authorized rate base.