Pacific Gas & Electric (PCG)

C.  Pension Contribution Application

              Also, on December 15, 2005, the CPUC approved in part the Utility’s July 2005 petition regarding resumption of pension contributions, giving the Utility permission to (1) file an application for a pension contribution in 2006, and (2) begin collecting the requested revenue requirement through rates effective January 1, 2006, subject to refund depending on the outcome of the application.    On December 20, 2005, the Utility filed the pension contribution application, requesting that the CPUC approve a net pension contribution of approximately $250 million in 2006, and the associated revenue requirement of $155 million attributable to  electric and gas distribution and generation operations. This annual net pension contribution amount of $250 million is the contribution level projected over a four year period (2006-2009) to increase the funded status of the pension plan trust from 98.6 percent on January 1, 2005, to 100 percent on January 1, 2010.  The requested revenue requirement of $155 million is less than the annual pension contribution amount because (1) a substantial portion of the annual pension contribution amount will be capitalized and (2) it does not include approximately $20 million in revenue requirements associated with natural gas transportation and storage, electric transmission, and nuclear decommissioning, which are the subject of other CPUC and FERC proceedings.