This excerpt taken from the PCG 8-K filed Oct 28, 2005.
In the Settlement Agreement, the CPUC agreed to set the Utilitys capital structure and authorized return on equity in its annual cost of capital proceedings in its usual manner. However, from January 1, 2004 until Moodys has issued an issuer rating for the Utility of not less than A3 or S&P has issued a long-term issuer credit rating for the Utility of not less than A-, the Utilitys authorized return on equity will be no less than 11.22% per year and its authorized equity ratio for ratemaking purposes will be no less than 52%. For 2004 and 2005, the Utilitys authorized equity ratio will be the greater of the proportion of equity approved in the Utilitys 2004 and 2005 cost of capital proceedings, or 48.6%. In December 2004, the CPUC issued the Utilitys cost of capital decision authorizing an equity ratio of 49.0% for 2004 and 52% for 2005.
The CPUC also agreed to act promptly on certain of the Utilitys pending ratemaking proceedings. The outcome of these proceedings may result in the establishment of additional regulatory assets on the Utilitys Consolidated Balance Sheet.
This excerpt taken from the PCG 10-K filed Feb 18, 2005.