Pacific Gas & Electric (PCG)

Electric Restructuring Costs Account Application

On April 16, 2004, the Utility filed an updated Electric Restructuring Costs Account application for recovery of distribution related electric industry restructuring related revenue requirements totaling $117 million for the period 1999 through 2002. The Utility requested that the $117 million revenue requirement increase become effective January 1, 2005, and be recovered through future rates charged to customers. Revenue requirements associated with these ongoing activities in 2003 and afterwards are included in the 2003 GRC.

On December 2, 2004, the CPUC adopted a proposed settlement agreement to resolve issues in this proceeding filed by the Utility, ORA, Aglet Consumer Alliance, and TURN. Under the settlement agreement, the Utility is authorized to collect $80 million in revenue requirements to recover the distribution related electric industry restructuring costs through rates charged to certain of the Utility’s customers beginning January 1, 2005. Additionally, beginning January 1, 2007, the Utility is required to remove from rate base all remaining net plant in service associated with the Utility’s capital plant at issue in this application, projected to be approximately $30 million at the end of 2006. During the fourth quarter of 2004, the Utility recorded a net pre-tax regulatory asset of approximately $50 million, resulting in an increase of approximately $30 million in after-tax net income.

Electric Restructuring Costs Account Application

        On April 16, 2004, the Utility filed an updated Electric Restructuring Costs Account application for recovery of distribution related electric industry restructuring related revenue requirements totaling $117 million for the period 1999 through 2002. The Utility requested that the $117 million revenue requirement increase become effective January 1, 2005, and be recovered through future rates charged to customers. Revenue requirements associated with these ongoing activities in 2003 and afterwards are included in the 2003 GRC.

        On December 2, 2004, the CPUC adopted a proposed settlement agreement to resolve issues in this proceeding filed by the Utility, ORA, Aglet Consumer Alliance, and TURN. Under the settlement agreement, the Utility is authorized to collect $80 million in revenue requirements to recover the distribution related electric industry restructuring costs through rates charged to certain of the Utility's customers beginning January 1, 2005. Additionally, beginning January 1, 2007, the Utility is required to remove from rate base all remaining net plant in service associated with the Utility's capital plant at issue in this application, projected to be approximately $30 million at the end of 2006. During the fourth quarter of 2004, the Utility recorded a net pre-tax regulatory asset of approximately $50 million, resulting in an increase of approximately $30 million in after-tax net income.

43