ADJOURNMENTS-RESETTINGS-SUBMISSIONS A95-08-038 Stalder-San Jose Water Company, rate increase, Evidentiary Hearing held and continued to 9 am, March 18, San Francisco A96-11-046 Careaga-Southern California Edison Company, gas- fired generation, Evidentiary Hearing held and completed ADVICE LETTER FILINGS NONE D E C I S I O N S COMMISSION MEETING OF 3/7/97 3/7/97 D97-03-001 C96-01-015 - Robert G. Belmont v California Water Service Company. The Commission in Interim Opinion 96-09-026 (9/4/96) found for the complainant and against the water utility serving the City of South San Francisco on evidence that the utility did not act promptly to resolve customer complaints of excess turbidity in their drinking water. The utility was directed to install and test the effectiveness of a fabric- bag filtration system, but that installation was unsuccessful. The utility now proposes installation of a more sophisticated manganese filtration system. The Commission's Water Division analyzed the utility's proposal and, along with the Office of Drinking Water of the Department of Health Services, recommends that the utility be directed to proceed. This decision directs the new installation and orders the Water Division to test its effectiveness, recommending further proceedings as necessary. The effect on rates of the new system will be analyzed in the next general rate case for the South San Francisco District. This proceeding is closed. D97-03-002 A96-11-042 - 360` Long Distance, Inc. For a certificate of public convenience and necessity to provide interLATA and intraLATA telecommunications services. Grants applicant's request for a certificate of public convenience and necessity to operate as a switchless reseller of interLATA and intraLATA telecommunications services. This proceeding is closed. D97-03-003 A96-11-043 - Pacific Bell (Pacific). For authority pursuant to PU Code Section 851 to ground lease property located at 148 Natoma Street, San Francisco. Approves a lease of a parking lot from Pacific to San Francisco Museum of Modern Art. This proceeding is closed. D97-03-004 A96-08-017 - Whole Earth Access Networks LLC. For a certificate of public convenience and necessity to provide facilities-based and resale local exchange telecommunications service as a competitive local carrier. It also seeks authority to provide long distance intraLATA and interLATA services. Grants the authority requested subject to the terms and conditions set forth. This proceeding is closed. D97-03-005 A96-12-038 (EAD) - Southern California Gas Company (SoCalGas). SoCalGas seeks approval of a long-term gas transportation agreement between Inland Paperboard and Packaging, Inc. (Inland) and SoCalGas which was executed by both parties on November 21, 1996. The agreement provides for gas transportation service to Inland's plant located in Ontario under negotiated rates. Since no protests have been filed, the application is granted ex parte. This proceeding is closed. D97-03-006 C96-09-023 (ECP) - Dolly C. Leong v Southern California Gas Company (SoCalGas). For excessive and erroneous gas bill of 7/13/94 in the amount of $184.01. The evidence is clear that the meter at complainant's home was operating properly and that it was accurately read by defendant. Complaint is denied. Leong has not proven that alleged error or omission occurred. This proceeding is closed. D97-03-007 A96-08-011 - RKMS, Inc., dba Nationwide Limousine Service and A-Carriage Limousine of San Francisco. For authority to operate as a passenger stage corporation between points in the San Francisco, San Mateo, Santa Clara, Alameda, Marin and Contra Costa Counties and the San Francisco, Oakland, and San Jose International Airports, and between specified points in San Francisco and San Mateo Counties. Granted. This proceeding is closed. D97-03-008 A96-09-016 - Borrego Springs Water Company (the Company), to sell and Borrego Water District (the District) and Borrego Water District Public Facilities Corporation (the Corporation) to buy the Company's water system in San Diego County. Grants joint application of the Company, the District, and the Corporation to merge the Company into the Corporation and simultaneously transfer ownership and control to the District. Protests are found to be without merit or outside jurisdiction of the Commission. The certificate of public convenience and necessity issued to the Company by the Commission in 1947 is cancelled. This proceeding is closed. D97-03-009 C96-06-051 (ECP) - Michael and Kathleen Lyon v Matrix Telecom. I94-03-020 - Related matter. Denies the request of the Lyons for compensation from the advocates trust fund for their efforts in this investigation and for an unspecified amount of additional work related to the rehearing of portions of D94-03-045. However, the Lyons may pursue a finding of eligibility and (if eligible) request compensation under the Commission's intervenor compensation program. These proceedings are closed. D97-03-010 A96-12-004 - MSN Communications, Inc. For a certificate of public convenience and necessity to offer resold local and interexchange telecommunications services to the public. Grants applicant a certificate of public convenience and necessity to provide switchless resold interLATA and intraLATA telecommunications services. This proceeding is closed. D97-03-011 A96-08-067 - Dial Long Distance , Inc. For a certificate of public convenience and necessity to provide interLATA and intraLATA telecommunications services. Grants a certificate of public convenience and necessity to resell interLATA and intraLATA services. This proceeding is closed. D97-03-012 R95-04-043 - Order Instituting Rulemaking on the Commission's own motion into competition for local exchange service. I95-04-044 - Related matter. Denies petition of the California Telecommunications Coalition for modification of D96-09-089 regarding franchise impacts; modifies conclusion of law 5 to clarify the Commission's intent. D97-03-013 A96-09-051 - Hospitality Communications Corporation dba HCC Telemanagement. Grants a certificate of public convenience and necessity to resell competitive local telecommunications service. This proceeding is closed. D97-03-014 A96-10-031 - Caprock Communications Corp. For a certificate of public convenience and necessity to provide interLATA and intraLATA telecommunications services. Grants a certificate of public convenience and necessity to operate as a switchless reseller of intrastate interLATA and intraLATA telecommunications services. This proceeding is closed. D97-03-015 A96-12-017 - World Network Communications, Inc. For a certificate of public convenience and necessity to provide intrastate interLATA and intraLATA long distance telecommunications services as a reseller. Granted. This proceeding is closed. D97-03-016 A95-04-006 - GTE Card Services Incorporated (GTE- CSI). For a certificate of public convenience and necessity to operate as a reseller of interLATA and intraLATA telecommunications services. Approves the petition of GTE-CSI for relief on restrictions imposed by Ordering Paragraph 17 of D95-08-028. This proceeding is closed. D97-03-017 A94-12-005 - Pacific Gas and Electric Company (PG&E). For authority, among other things, to decrease its rates and charges for electric and gas service, and increase rates and charges for pipeline expansion service. Sets marginal costs and establishes principles for revenue allocation and rate design under Phase 2 of PG&E's 1996 Test Year General Rate Case. Phase 2 is closed. D97-03-018 A96-11-017 - Park Water Company (Park Water). For authority to issue evidence of indebtedness - unsecured notes in an aggregate principal amount not to exceed $3,400,000 in exchange for outstanding shares of Park Water common stock. Authorizes Park Water to issue up to $3,400,000 of its unsecured notes in exchange for outstanding shares of Park Water's common stock upon terms and conditions set forth. This proceeding is closed. D97-03-019 A94-02-053 - City of Long Beach (City). For an order authorizing modification of one grade crossing at Ninth Street through the addition of two tracks of the Southern Pacific Transportation Company at the Harbor Scenic Drive-Pico Avenue interchange project. The City's petition for modification of D96-04-010, filed on September 1996 is granted. City requested authority to alter one grade crossing at Ninth Street through the addition of two tracks of Union Pacific Railroad Company at the Harbor Scenic Drive - Pico Avenue Interchange Project. Grants authority to add two spur tracks at Ninth Street Crossing BH-503.56-C of Union Pacific Railroad Company's Long Beach Branch Line in the Port Area of Long Beach, Los Angeles County is granted. This proceeding is closed. D97-03-020 I87-11-033 - In the matter of alternative regulatory frameworks for local exchange carriers. A85-01-034, A87-01-002, I85-03-078, C86-11-028, I87-02-025, C87-07-024 - Related matters. Latino Issues Forum and American G.I. Forum are awarded $282,999.65 for their participation in this proceeding. D97-03-021 A95-12-043 - Pacific Bell (Pacific). For authority to increase and restructure certain rates of its integrated services digital network services (ISDN). C96-02-002 - Related matter. Grants in part Pacific's application for rate changes to its ISDN services subject to certain modifications to its cost studies and proposed rates. Finds that Pacific has not provided adequate service to ISDN customers and prospective customers. Directs Pacific to include certain provisions in its tariff which would provide incentives for Pacific to improve customer service. These proceedings are closed. D97-03-022 >R95-01-020 - Rulemaking on the Commission's own motion into universal service and to comply with the mandates of Assembly Bill 3643. I95-01-021 - Related matter. Grants intervenor compensation to Utility Consumers' Action Network in the amount of $51,272.83 for its substantial contributions to the development of the universal service rules that were adopted in D96-10-066, and originally proposed in D95-07-050. D97-03-023 A96-07-035 - TCG-San Francisco, TCG-Los Angeles, TCG-San Diego, and Pacific Bell. Denies application for rehearing of D96-10-039, the Commission's opinion approving three voluntary interconnection agreements between Pacific Bell and the following Teleport Communications Group (TCG) affiliates: TCG-San Francisco, TCG-Los Angeles, and TCG-San Diego. The application, filed jointly by the respective TCG affiliates, alleges that the mistakenly truncated definition of an incumbent local exchange carrier constitutes legal error because the definition is not consistent with the controlling statutory definition found in the Telecommunications Act of 1996. EXECUTIVE ORDERS SIGNED 3/12/97 D97-03-024 A96-04-044 - Southern California Gas Company. A96-05-002, A96-05-006, A96-05-009 - Related matters. 1996 application under the Annual Earnings Assessment Proceeding for Shareholder Earnings for the 1995 DSM Program Year. Replaces Attachment 2, page 2 of 4 to D96-12-079 with attached table. D97-03-025 C96-12-018 - Dexter L. Cole v Pacific Bell. Dismissed upon written and unopposed request of complainant. D97-03-026 A97-01-037 - Roseville Long Distance Company. For a certification of public convenience and necessity to provide interLATA and intraLATA telecommunications services. Grants waiver of Rule 18(b) service requirement upon cities and counties. D97-03-027 C97-02-004 (ECP) - Jeffrey J. Carlson v Southern California Edison Company. Dismissed upon the written and unopposed request of all parties. R E S O L U T I O N S 6/20/96 T-15926 Advice Letters 380, 381, 382, 383, 384, 385, 386, 387, 388, 389, 390, 391, 392, 393, 394, 395, 396 of Bay Area Cellular Telephone Co. Executive Order authorizing the construction of cellular radiotelephone facilities in accordance with General Order 159; Adopted. T-15927 Advice Letters 464, 465, 466, 467, 468, 469, 470 471, 472, 473, 474, 475 of GTE Mobilnet of CA. Executive Order authorizing the construction of cellular radiotelephone facilities in accordance with General Order 159; Adopted. T-15928 Advice Letters 743, 746, 747, 748, 749, 750, 751, 752, 753, 754, 755, 756, 757, 758, 759, 760, 761, 762, 763, 764, 765, 766, 767, 768, 769, 770, 771, 772, 773, 774, 775, 776, 777, 778, 780 of Los Angeles SMSA L.P. Executive Order authorizing the construction of cellular radiotelephone facilities in accordance with General Order 159; Adopted. T-15929 Advice Letters 781, 782, 783, 784, 785, 786, 787, 788, 789, 790, 791, 792 of Los Angeles SMSA L.P. Executive Order authorizing the construction of cellular radiotelephone facilities in accordance with General Order 159; Adopted. T-15930 Advice Letters 476, 477, 478, 479, 480, 481, 482, 483, 484, 485, 486, 487, 488, 489, 490, 491, 492, 493, 494, 495, 496, 497, 498, 499 of GTE Mobilnet of California. Executive Order authorizing the construction of cellular radiotelephone facilities in accordance with General Order 159; Adopted. 3/7/97 G-3203 Advice Letter 1981-G/1616-E, filed October 22, 1996 of Pacific Gas and Electric Company. Requests permission to revise its gas and electric Rule 6, Establishment and Reestablishment of Credit; Granted T-16011 Advice Letter 18464, filed September 3, 1996, as supplemented by Advice Letter 18464A, filed October 10, 1996, and Advice Letter 18464B, filed November 4, 1996 of Pacific Bell (Pacific). Request to provide optional calling plans on a resale basis pursuant to Ordering Paragraph 3 of D96-03-020. This resolution approves Pacific's compliance filing in which it tariffs its optional calling plans for resale by competitive local carriers, subject to the filing of the supplemental advice letter ordered in Ordering Paragraph 2. Pacific's filing includes a requirement for end-user aggregation, rather than aggregation at the reseller level; Granted T-15996 Advice Letter 18434, filed August 16, 1996 and supplemented by Advice Letters 18434A, filed October 18, 1996 and 18434B, filed December 23, 1996. Approves modification to Pacific Bell's (Pacific) total service long run incremental cost studies regarding the assignment of operating expenses and volume sensitive unbundled loop costs as ordered by D96-08-021 of the Commission's open access and network development proceeding. This resolution approves Pacific's Advice Letter 18434 and supplemental Advice Letters 18434A and 18434B. This resolution also directs Pacific to submit a supplement to reassign open expenses for trouble report generation and special access testing to retail services; Granted subject to modification TL-18786 Resolution approving issuance of charter-party carrier certificates pursuant to Section 5374 of the Public Utilities Code and approving issuance and transfer of highway carrier authority pursuant to the Commission's contract with the Department of Motor Vehicles as permitted by Vehicle Code Section 34605(b); Adopted TL-18787 Resolution denying issuance of charter-party carrier authority and highway carrier authority (including authority to operate as a household goods carrier) for failure to satisfy statutory provisions of the Public Utilities Code and Commission General Orders; Adopted W-4030 Advice Letter 34, received December 30, 1996, and Supplemental Sheets received February 5, 1997 of Penngrove Water Company. Order authorizing an offset rate increase of $19,938 or 8.96% additional annual revenue for 1997; Adopted W-4031 Cottage Springs Water Company. Order authorizing a general rate increase producing additional annual revenues of $1,570 or 154% in 1997; Adopted W-4032 County Water Company, Inc. Order authorizing a general rate increase producing additional annual revenue of $57,240 or 6.03% in test year 1996; Adopted W-4033 Advice Letter 27, filed January 7, 1997 of Rio Plaza Water Company, Inc. Order authorizing a rate base offset rate increase producing $9,108 or 7.8% additional revenue, and a $3.12 monthly surcharge for twenty-four months for the recovery of an unanticipated expense memorandum account producing $19,431 additional annual revenue for two years; Adopted LAW AND MOTION HEARINGS Law and Motion Hearings are held before Administrative Law Judge Steven Kotz at 9:30 am in one of the Commission's San Francisco Office Hearing Rooms, unless otherwise noted. Law and Motion procedures are governed by Resolution ALJ-164. Copies of Resolution ALJ-164 are available from the Commission's Documents Desk (703-1713) or from Central Files (703-2045). 3/18/97 9:30 am NONE SCHEDULED 3/25/97 9:30 am NONE SCHEDULED 4/1/97 9:30 am NONE SCHEDULED ============================================================================= HEARINGS Dates in parentheses following the word "also" are subject to change without notice. The assigned Commissioner's name is listed next to the proceedings as matter of record; the assigned Commissioner may not be present at the hearing. (PHC)=Prehearing Conference (OA)=Oral Argument (EH)=Evidentiary Hearing (WS)=Workshop (PPH)=Public Participation Hearing (FPH)=Full Panel Hearing (IAM)=Initial Arbitration Meeting (AH)=Arbitration Hearing (M)=Mediation 3/18/97 9:00 am ALJ Stalder A95-08-038 (EH)-San Jose Water Company, for authority to Comr Conlon increase rates by $3,867,000 or 4.16% in 1995, $4,348,000 or 4.43% in 1996, and $1,713,000 or 1.6% in 1997 in Los Gatos, Saratoga, Monte Sereno, Campbell, portions of San Jose, Cupertino and Santa Clara surrounding and adjacent to these municipalities, Commission Courtroom, San Francisco (also March 18-21, San Francisco) 3/18/97 1:30 pm ALJ Pulsifer R95-04-043 (FPH)-Rulemaking on the Commission's own motion Comr Conlon into competition for local exchange service, and I95-04-044 (FPH)-Investigation on the Commission's own motion into competition for local exchange service, Commission Auditorium, State Office Building, 505 Van Ness Avenue, San Francisco 3/18/97 10:00 am ALJ Ramsey C95-08-061 (PHC)-City of San Leandro vs. Southern Pacific Comr Neeper Lines, Inc., for failure to adequately maintain several of its at-grade crossings, Commission Courtroom, San Francisco 3/18/97 1:30 pm ALJ Weissman A96-12-009 (PHC)-Pacific Gas and Electric Company, to Comr Duque identify and separate components of electric rates effective January 1, 1998, and A96-12-011 (PHC)-San Diego Gas & Electric Company, for authority to unbundle rates and products, and A96-12-019 (PHC)-Southern California Edison Company, proposing the functional separation of cost components for energy, transmission and ancillary services, distribution, public benefit programs, and nuclear decommissioning, to be effective 1/1/98 in conformance with D.95-12-036, as modified by D.96-01-009, the 6/21/96 ruling of assigned Commission Duque, D.96-10-074, and AB 1890, Commission Courtroom, San Francisco; (EH), 10 am, March 24 (also March 25-27, and March 31; April 1-4, April 7-11, and April 14, San Francisco) 3/19/97 9:30 am ALJ Garde C97-01-003 (EH)-C. J. Villalobos, et a. vs. Grand Oaks Comr Neeper Water Company, fopr failure to provide adequate water utility service on a day-to-day basis, Mountain Crossing Restaurant, 416 W. Tehachapi Boulevard, Tehachapi 3/19/97 10:00 am ALJ Kotz C96-08-023 (PHC)-Elizabeth R. Patton vs. GTE Mobilnet, for a Comr Neeper cellular telephone site with impermissibly high radio frequency fields, Telephone Prehearing Conference 3/20/97 9:00 am ALJ Bushey I97-01-011 (PHC)-Commission Order Instituting Investigation Comr Neeper on the Commission's own motion into the operations, practices, and conduct of Donald Blakstad, an individual, Inter Continental Telephone Corporation, CTN Telephone Network, International Telecommunications Corporation, dba Total Communications Network, and all affiliate companies in which Donald Blakstad has an ownership interest and that are providing telecommunications services, to determine whether they have complied with the laws, rules, regulations, and applicable tariff provisions governing the manner in which consumers are switched from one long distance carrier to another, and other requirements for long distance carriers, Commission Courtroom, San Francisco 3/20/97 9:30 am ALJ Malcolm C97-01-014 (PHC)-Robert E. and Patricia J. Lee vs. Pacific Comr Duque Gas and Electric Company, for failure to provide or make adequate plans for the placement of transformers, resulting in cost of $5,900.00 for trenching and placement of electric al conduit at property owners' expense, City Hall, 2nd Floor Conference Room, 1666 N. Main Street, Walnut Creek 3/24/97 10:00 am ALJ Stalder C96-12-016 (EH)-Joseph Canter vs. Southern California Edison Comr Knight Company for a power outage resulting in damages, Commission Courtroom, Los Angeles 3/25/97 9:30 am ALJ Ramsey C96-12-057 (OA)-Jasmine Benjamin-Sohal vs. Pacific Bell, Comr Knight for wrongful use of "spotter" reports resulting in unlawful termination of employment, Commission Courtroom, San Francisco 3/25/97 10:00 am ALJ Pulsifer R95-04-043 (PHC)-Rulemaking on the Commission's own motion ALJ McKenzie into competition for local exchange service, and Comr Conlon I95-04-044 (PHC)-Investigation on the Commission's own motion into competition for local exchange service, and R93-04-003 (PHC)-Commission Order Instituting Rulemaking on the Commission's own motion to govern open access to bottleneck services and establish a framework for network architecture development of dominant carrier networks, and I93-04-002 (PHC)-Commission's Order Instituting Investigation on the Commission's own motion into open access and network architecture development of dominant carrier networks, Commission Courtroom, San Francisco 3/25/97 10:00 am ALJ Stalder C96-08-019 (EH)-George W. Gillemot vs. Borrego Springs Water Comr Duque Company, for improper replacement of the water meter with resulting in excessive charges for water consumption, City Hall Council Chamber, 210 N. Broadway, Escondico 3/26/97 10:00 am ALJ Ramsey C94-09-038 (PHC)-John P. Duffy, dba Vintners Inn, vs. Comr Knight Larkfield Water Company, for failure to grant an exemption for failure to grant an exemption to the requirement to install backflow prevention devices or, in t he alternative, for frailure to install the devices, themselves, Commission Courtroom, San Francisco 3/27/97 11:00 am ALJ Weiss I96-09-002 (PHC)-Commission Investigation into whether the Comr Duque Greenbelt Water Company, Inc., is unable or unwilling to serve its ratepayers, is incapable of financial management, or is unresponsive to the rules, orders, and decisions of the Commission, Civic Auditorium, Room ABC, 307 Church Street, Santa Cruz 3/28/97 10:00 am ALJ Barnett C96-11-045 (ECP)-Ruby Patterson vs. Southern California Comr Knight Edison Company, for failure to replace a damaged meter resulting in improper billing in the amount of $2,099.00, Riverside Municipal Museum, 3580 Mission Inn Avenue, Riverside 3/31/97 7:00 pm ALJ Bushey A95-08-020 (PPH)-City of San Rafael, to construct one grade Comr Conlon crossing of the Golden Gate Bridge, Highway & Transportation District (formerly Northwestern Pacific Railroad Company Main Line) (San Rafael- Willits) at Anderson Drive in the City of San Rafael, San Rafael Community Center, 618 B Street, San Rafael 4/2/97 10:30 am ALJ Ramsey C96-07-031 (PHC)-Richard E. Meoli and Paragon San Dimas Comr Duque Homeowners Association vs. Souithern California Water Company, for unreasonable increase of water rates, City Hall, Council Chambers, 245 East Bonita Avenue, San Dimas 4/3/97 9:30 am ALJ Ramsey C96-10-009 (PHC)-Lee A. Johnson vs. Southern California Gas Comr Neeper Company, for improper transfer of outstanding balance in the amount of $12,579.31 to the Complainant, Commission Courtroom, Los Angeles 4/3/97 3:00 pm ALJ Wetzell A92-10-017 (PHC)-San Diego Gas & Electric Company, to Comr Knight establish an experimental performance-based ratemaking mechanism, (Phase 2 - Base Rates Mechanism), Commission Courtroom, San Francisco 4/7/97 9:00 am ALJ Patrick A94-12-005 (EH)-Pacific Gas and Electric Company, for Comr Conlon authority to decrease its rates and charges for electric and gas service and increase rates and charges for pipeline expansion service - Test Year 1996 General Rate Case (1997 Electric Rate Design Window Phase) Commission Courtroom, San Francisco (also April 8-11, San Francisco) 4/7/97 10:00 am ALJ Barnett A91-05-050 (EH)-Southern California Edison Company, to Comr Fessler revise its Energy Cost Adjustment Clause (ECAC), and to review the reasonableness of its operations 4/1/90-3/31/91, (Reasonableness of the Amended and Restated Power Purchase Contract between Edison and Mojave Cogeneration Company) Commission Courtroom, San Francisco (also April 8-11, San Francisco) 4/14/97 9:00 am ALJ Stalder I97-01-028 (EH)-Commission Order Instituting Investigation Comr Duque into the operations and practices of North Shuttle, Inc., dba Yellow Airport Express and its president and manager Martin Smith, an individual, Commission Courtroom, San Francisco (also April 15-18, San Francisco) 4/14/97 11:00 am ALJ Barnett C97-03-003 (ECP)-James Moore vs. GTE California Incorporated Comr Bilas and AT&T Communications of California, Inc., for improper billing in the amount of $3,685.00, Riverside Municipal Museum, 3580 Mission Inn Avenue, Riverside 4/17/97 10:00 am ALJ Patrick A96-05-045 (PHC)-Southern California Edison Company, for Comr Conlon authority to freeze rates at their current levels by deferring a $1.7 million rate decrease, plus interest, to 1998; for a finding that 1/1/97 balances in the energy cost adjustment clause (ECAC) and the electric revenue adjustment mechanism (ERAM) accounts are reasonable; for authority to set aside overcollection in the ECAC and ERAM accounts as of 12/31/96 to reduce the level of competition transition cost; for authority to revise its incremental energy rate, the energy reliability index, and avoided capacity cost pricing; and for a review of the reasonableness of Edison's operations during the period from April 1, 1995 through March 31, 1996, Commission Courtroom, San Francisco 4/18/97 9:30 am ALJ Hale R97-01-009 (PHC)-Commission Order Instituting Rulemaking on Comr Knight the Commission's own motion to evaluate the intervenor compensation program, and to modify the existing program or develop new rules to promote participation of all categories of consumers and their representatives in Commission proceedings to better insure that the consumer interests are more effectively represented and compensated, and I97-01-010 (PHC)-Commission Order Instituting Investigation on the Commission's own motion to evaluate the intervenor compensation program, and to modify the existing program or develop new rules to promote participation of all categories of consumers and their representatives in Commission proceedings to better insure that the consumer interests are more effectively represented and compensated, Commission Courtroom, San Francisco 4/22/97 9:00 am ALJ Stalder C96-12-052 (EH)-Richard D. Corson, Juanita A. Corson, and Richard DeWorken vs. Pacific Bell Telephone Company, for unlawful wiretaps and failure to provide private telephone ervice, City Hall Council Chambers, 212 S. Vanderhurst Avenue, King City 4/23/97 10:00 am ALJ Wright A96-06-018 (PHC)-City of Yorba Linda, for authority to Comr Conlon widen Route 90 (Imperial Highway) at A.T.& S.F., railroad crossing M.P. (Public Utilities Commission Crossing N. 2-12-38.4), Commission Courtroom, Los Angeles 4/23/97 10:00 am ALJ Walker A96-08-029 (EH)-Southern California Edison Company, for Comr Knight expedited and ex parte consideration regarding settlement agreement between Southern California Edison Company and Vulcan/BN Geothermal Power Company, Del Ranch, L.P., Elmore, L.P., and Leathers, L.P., Commission Courtroom, San Francisco (also April 24 and 25, San Francisco) 5/12/97 10:00 am ALJ Walker C96-12-026 (EH)-MCI Telecommunications Corporation vs. Comr Knight Pacific Bell and Pacific Bell Communications, for illegal conduct stalling MCI's efforts to enter the local exchange market, Commission Courtroom, San Francisco (also May 13-16, San Francisco) 5/19/97 10:00 am ALJ Minkin A96-08-001 (EH)-Pacific Gas and Electric Company, for Comr Conlon approval of valuation and categorization of non- Comr Duque nuclear generation related sunk costs eligible for recovery in the competition transition charge, and A96-08-006 (EH)-San Diego Gas & Electric Company, to identify and value the sunk costs of its non- nuclear generation assets, and A96-08-007 (EH)-Southern California Edison Company, to identify and value the sunk costs of its non- nuclear generation assets, and A96-08-070 (EH)-Pacific Gas and Electric Company, to establish the competition transition charge, and A96-08-071 (EH)-Southern California Edison Company, to estimate transition costs and establish a transition cost balancing account, and A96-08-072 (EH)-San Diego Gas & Electric Company, to estimate transition costs and establish a transition cost balancing account (Phase 2), Commission Courtroom, San Francisco (EH) May 20- 23, 27-30, June 2-6, 9-13, and 16-20, San Francisco) 5/21/97 2:00 pm ALJ Walker A96-11-007 (PPH)-Southern California Water Company, to Comr Knight increase rates in order to recover costs resulting from participation in the State Water Project under contract with the Central Coast Water Authority and other related costs to deliver water in its Santa Maria District, Santa Maria Valley YMCA, 3400 Skyway Drive, Santa Maria (also 7:00 pm); (EH) 10:00 a.m., June 24, Commission Courtroom, San Francisco (also June 25-27, June 30, and July 1-3, San Francisco) 5/28/97 7:00 pm ALJ Barnett A96-10-038 (PPH)-Pacific Enterprises, Enova Corporation, Comr Duque Mineral Energy Company, B Mineral Energy Sub, and Comr Neeper G Mineral Sub, for approval of a plan of merger of Pacific Enterpr5ises and Enova Corporation with and into B Mineral Energy Sub (Newco Pacific Sub) and G Mineral Energy Sub (Newco Enova Sub), the wholly owned subsidiaries of a newly created holding company, Mineral Energy Company, Council Chambers, 12th Floor, City Administration Building, 202 C Street, San Diego; (also May 29, 7:00 pm, Council Chambers, City Hall, 600 Eucalyptus Avenue, Vista; June 3, 7:00 pm, Council Chambers, City Hall, 77 Fair Drive, Costa Mesa; June 5, 7:00 pm, Council Chambers, City Hall, 3900 Main Street, Riverside; June 17, 7:00 pm, Council Chambers, City Hall, 320 West Newmark Avenue, Monterey Park; June 18, 7:00 pm, Hall of Administration, Lower Plaza Assembly Room, 800 S. Victoria Avenue, Ventura; June 19, 7:00 pm., Counsel Chambers, City Hall, 707 West Acequia Street, Visalia) 6/11/97 10:00 am ALJ Weil A90-12-018 PHC)-Southern California Edison Company, general Comr Duque rate increase for electric service for 1992 in the amount of $440 million, and I89-12-025 (PHC)-Commission Investigation into the operations, rates and expenses associated with Palo Verde Units 1 and 2, and I91-02-079 (PHC)-Commission Investigation into the rates, charges, and practices of Southern California Edison Company (Phase 5), Commission Courtroom, San Francisco 7/14/97 9:00 am ALJ Mattson A90-09-043 (EH)-GTE Corporation, to merge into Contel Comr Duque Corporation and GTE becoming the parent company, and A95-12-006 (EH)-Contel of California, to restructure intrastate rates and charges, for a general rate increase of $45,324,000 per year, based on an overall rate of return on rate base of 12.05% for test year ending 12/31/97, and to implement a new regulatory framework for telephone service, and I96-03-021 (EH)-Commission Order Instituting Investigation into the rates, charges, service, and practices, and regulation of Contel of California, Inc., Commission Courtroom, San Francisco (also July 15-18, San Francisco) 7/14/97 10:00 am ALJ Barnett A96-10-038 (EH)-Pacific Enterprises, Enova Corporation, Comr Duque Mineral Energy Company, B Mineral Energy Sub, and Comr Neeper G Mineral Sub, for approval of a plan of merger of Pacific Enterprises and Enova Corporation with and into B Mineral Energy Sub (Newco Pacific Sub) and G Mineral Energy Sub (Newco Enova Sub), the wholly owned subsidiaries of a newly created holding company, Mineral Energy Company, Commission Courtroom, San Francisco (also July 15-18, 21-25, 28-31, and August 1, San Francisco) MISCELLANEOUS TRANSPORTATION ITEMS 03/18/97 Filings with Safety and Enforcement 03/10/97 TCP-10955-B Corporate Classic Services, Ltd., dba Corporate Classic Charter, 1624 6th Street, #8, San Francisco, CA 94107, application for new TCP Class B Certificate 03/10/97 TCP-10956-B Lester W. Rall, dba Sunshine Travel, P.O. Box 243, San Lorenzo, CA 94580, Tel. No. (510) 802- 8648, terminal address: 2201 Brush Street, Oakland, CA 94612, application for new TCP Class B Certificate 03/12/97 TCP-10959-A Hyun Kyoo Cho, dba Las Vegas Express, 12860 Beach Blvd., #K, Stanton, CA 90680, Tel. No. (800) 700- 5550, application for new TCP Class A Certificate NEW FILINGS 03/05/97 A97-03-020 Cheetah Communications, LLC, for a certificate of public convenience and necessity to resell local, interLATA and intraLATA telecommunications services 03/11/97 A97-03-021 South Bay Airport Shuttle, Inc. dba South and East Bay Airport Shuttle, Inc., to establish a zone of rate freedom for its airport passenger fares between its authorized service areas in Santa Clara, San Francisco, Alameda Counties, to and from San Francisco, San Jose, Oakland Airports (5759 #D Winfield Blvd., San Jose, CA 95123; (408) 225-4444) 03/13/97 C97-03-018 William A. Fabricius vs. Ducor Telephone Company, for failure to extend service to the City of Porterville and provide equal access to the internet and other telecommunications services 03/13/97 C97-03-019 California Cable Television Association vs. Southern California Edison Company, for unlawful increase of pole attachment charges 03/13/97 C97-03-022 ECP-Thomas F. Winfield, III vs. Southern California Gas Company, for improper charges in the amount of $204.24 03/14/97 A97-03-023 ComTel Computer Corp., for a certificate of public convenience and necessity to operate as an intraLATA reseller of telecommunications services PETITIONS FOR MODIFICATION AND APPLICATIONS FOR REHEARING 03/14/97 R87-11-012 Commission order instituting rulemaking to revise time schedule for rate case plan and fuel offset proceedings; Petition for modification of D89-01-040 by Pacific Gas and Electric Company DRAFT DECISIONS/PROPOSED DECISIONS/ALTERNATES/ARBITRATOR'S REPORTS 3/17/97 A96-04-038 In the Matter of the Joint Application of Pacific Telesis Group (Telesis) and SBC Communications, Inc. (SBC) for SBC to Control Pacific Bell (U 1001 C), Which Will Occur Indirectly as a Result of Telesis Merger With a Wholly Owned Subsidiary of SBC, SBC Communications (NV) Inc.; Alternate decision of Commissioners Neeper and Bilas 3/17/97 A96-04-038 In the Matter of the Joint Application of Pacific Telesis Group (Telesis) and SBC Communications, Inc. (SBC) for SBC to Control Pacific Bell (U 1001 C), Which Will Occur Indirectly as a Result of Telesis Merger With a Wholly Owned Subsidiary of SBC, SBC Communications (NV) Inc.; Alternate decision of Commissioner Conlon NEW SETTINGS NONE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Wesley M. Franklin Executive Director State Office Building State Office Building San Francisco, CA 94102 Los Angeles, CA 90012 Tel. No. (415) 703-2782 Tel. No. (213) 897-2973 DAILY CALENDAR Tuesday March 18, 1997 (The Daily Calendar is available on the Internet at http://www.cpuc.ca.gov.) REGULAR COMMISSION MEETINGS March 18, 1997, (9:00 am) (NEW DATE) March 31, 1997, (10:00 am) April 9, 1997, (10:00 am) San Francisco SUBSCRIPTION NOTICE FOR DRAFT AGENDA ITEMS In compliance with Public Utilities Code Section 311.5, parties who wish to subscribe to receive draft agenda items may do so by writing to the Public Utilities Commission; Attention: Poly Arca, Room 1003; 505 Van Ness Avenue; San Francisco, CA 94102; or by calling (415) 703-1798. The cost for a one- year subscription to the entire public agenda package (which excludes Executive Session materials) is $1,000. You may also order a partial agenda package (energy agenda items only or telecommunication agenda items only) at the cost of $500 per year. The package you receive via mail will include only those agenda items available at the time of the agenda distribution date, which is usually 10 to 12 days prior to the Commission meeting. If agenda items (including revisions) are not ready on the distribution date, they will be made available at no charge in the lobby outside the Commission Auditorium at 9:00 a.m. on the morning of the Commission meeting, but not earlier. In addition, the Commission will make draft agenda items available for viewing and photocopying (at 20 cents per page) at the Commission's Central Files Office (Room 2002), 505 Van Ness Avenue, San Francisco, and in the Commission offices in Los Angeles, San Diego, and the following field offices: El Centro, Eureka, Sacramento, and San Bernardino. Since the agenda package will be mailed to these locations, it will be available at these locations a day or two after the distribution date. These locations will not receive agenda items that are not ready on the distribution date. If an agenda item is held over to a subsequent Commission meeting, that agenda item and any revisions to that agenda item that were available on the morning of the initial Commission meeting (as well as any further available revisions) will be mailed in the Escutia package for the subsequent Commission meeting; the item and its revisions will also be available for viewing and photocopying in the Commission's Central Files office and field offices as set forth above. Intervenors who have a financial hardship determination pending or granted shall be eligible to receive draft agenda item packets at no charge. The cost to receive the agenda only, without copies of draft agenda items, remains at $75 per year. SUBSCRIPTION NOTICE FOR DAILY CALENDAR AND/OR AGENDA Parties who wish to subscribe to the Daily Calendar and/or the Agenda may do so by writing to the Public Utilities Commission; Attention: Poly Arca, Room 1003; 505 Van Ness Avenue; San Francisco, CA 94102; (415) 703-1798. The subscription cost for the Daily Calendar is $225 per year. The Biweekly Daily Calendar is $50 per year. The agenda is $75 per year. Checks are to be made payable to the Public Utilities Commission. NOTICE Unless otherwise directed, all courier-delivered documents submitted for filing as part of the formal record in a proceeding should be hand-carried directly to the Commission's Docket Office, Room 2001, 505 Van Ness Avenue in San Francisco; Room 5109, 107 South Broadway in Los Angeles; or Room 4006, 1350 Front Street in San Diego. All documents sent through the mail for formal filing should be addressed ONLY to the Commission's Docket Office, Room 2001, 505 Van Ness Avenue, San Francisco, CA 94102. NOTICE The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: (415) 703-1203. If specialized accommodations for the disabled are needed, e.g. sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074 or TDD# (415) 703-2032 five working days in advance of the event. NOTICE To purchase Commission documents, there is a charge of 20 cents a printed page (postage prepaid) with a minimum purchase of $2.00. COMMISSIONER OFFICE HOURS April 4, 1997 Commissioner Josiah L. Neeper 9:00 am - 12:00 pm State Office Building 1350 Front Street, Room 4006 San Diego April 11, 1997 Commissioner Jessie J. Knight 9:00 am - 12:00 pm Department of Parks & Recreation 2211 Garden Road Conference Room Monterey April 14, 1997 Commissioner Richard A. Bilas 1:00 pm - 4:00 pm Department of Parks and Recreation Green Acres 2014 Calloway Drive Bakersfield April 25, 1997 Commissioner Josiah L. Neeper 9:00 am - 12:00 pm City Hall, Department of Public Works Conference Room B 300 North D Street San Bernardino April 28, 1997 Commissioner Jessie J. Knight 9:00 a.m. - 4:00 p.m. Park Place 1395 Civic Drive Walnut Creek April 29, 1997 Commissioner Josiah L. Neeper 9:00 - 12:00 pm City Hall Council Chambers, Interview Room 201 No. Broadway Escondido June 18, 1997 Commissioner Josiah L. Neeper 9:00 am - 12:00 pm State Office Building 107 S. Broadway, Room 5109 Los Angeles For further information or to make an appointment, please contact Sandra Graham at (213) 897-3544. PUBLIC MEETING 1:30 pm - 4:00 pm March 18, 1997 California Public Utilities Commission 505 Van Ness Avenue, Room 3204 San Francisco The Administrative Committee of the Universal Lifeline Telephone Service Trust will hold its regular monthly meeting. This meeting can be accessed via conference call. If conferencing is requested, a one-week notification is required. For a copy of the agenda or more information, contact Terry Gray at (510) 452-2757. WORKSHOP NOTICE R94-04-031/I94-04-032 10 am March 18, 1997 Commission Training room 505 Van Ness Avenue San Francisco As directed by the Commission in D.97-02-014, the Energy Division will hold a workshop on Tuesday, March 18, 1997 in the Commission Training Room to address implementation issues related to a gas surcharge mechanism that may apply to all public purpose areas and, ultimately, to all gas customers. In order to facilitate discussions in this workshop, the Energy Division has developed the following topics for consideration: 1. How can the Commission ensure that the costs of these programs are borne equitably by natural gas customers regardless of their natural gas provider? 2. Which class of customers should bear the costs of these programs? 3. What funding level should be established? 4. What further Legislative action is needed to implement these changes? Please serve a written response to these questions on all parties by March 14, 1997. An electronic copy on a 3 1/2 "floppy disk, created in either WordPerfect or Microsoft Word, should be submitted along with the written response to the Energy Division. Parties who wish to propose additional questions for discussion at the workshop should include their questions with their comments. The workshop is open to the public and the Training Room is wheelchair accessible. Please contact Patrick Hoglund at (415) 703-2043 (e-mail: phh@cpuc.ca.gov) for more information. WORKSHOP NOTICE R.94-04-013/R.I94-04-032 9:30 am March 20, 1997 and March 21, 1997, if necessary Hearing Room A 505 Van Ness Avenue San Francisco Commission Staff will hold a workshop on Thursday, March 20, 1997, and Friday, March 21, 1997, if necessary, to discuss implementation of Public Utilities Code Sections 840-847. PU Code 841(a) requires electric utilities to file for financing authority to issue rate reduction bonds. The workshop is open to the public and the Hearing Room is wheelchair accessible. For more information contact Julie Halligan via e-mail at jmh@cpuc.ca.gov; facsimile, at 415/703-1184; or telephone at 415/703-2776. WORKSHOP NOTICE R.95-04-043/ I.95-04-044 WORKSHOP TO ADDRESS SOLUTIONS TO THE OSS CONSTRAINTS REGARDING IMPLEMENTATION OF AREA CODE RELIEF PLANS 9:00 am - 4:00 pm April 2, 1997 California Public Utilities Commission 505 Van Ness Avenue, Training Room, 1st Floor San Francisco, California This a continuation of a workshop held on February 25, 1997 and will be conducted by the Commission's Telecommunications Division staff. In compliance with Ordering Paragraph 2 of D.96-12-087, the workshop shall address solutions to overcome the Operational Support Systems (OSS) constraints limiting the ability to schedule permissive or mandatory dialing for multiple relief plans within the same month. On February 11, 1997, comments were filed by parties regarding workshop topics and questions. Contact person is Risa Hernandez at (415) 703-5331; E-Mail rhh@cpuc.ca.gov. for a copy of the workshop agenda, please call or E-mail Ms. Hernandez and leave the FAX number or E-mail address where the agenda should be sent. If a sign language interpreter or other specialized accommodations are needed, please contact the Public Advisor's Office at (415) 703-2074 or TDD (415) 703-2032 five working days in advance of the event. PUBLIC MEETING 2:00 pm - 4:00 pm April 11, 1997 Offices of Graham & James LLP Third Floor Reception Area 1 Maritime Plaza (Clay Street at Front Street) San Francisco The California High Cost Fund A (CHCF-A) Trust Administrative Committee will hold its third meeting of 1997. The contact person is Jean Boettger at (415) 542-1949. ============================================================================ NOTICE OF DENIAL OF REQUEST FOR EX PARTE MEETING On September 20, 1996, the Commission adopted Resolution ALJ-169 regarding the "Filing of Notice of Denial of Request for A96-08-043eeting". The resolution implements an interim procedure whereby a party whose written request for an ex parte meeting with a Commissioner has been denied will be allowed to file a notice of such denial. Copies of Resolution ALJ-169 are available from the Commission's Central Files Office at 505 Van Ness Avenue in San Francisco; telephone (415) 703-2045. Copies of tendered notices are available in the Central File Room for review and/or reproduction under existing procedures. They are also available from the filing party who is under the obligation to provide copies of the notice without delay. NONE FILED NOTICE OF EX PARTE COMMUNICATIONS Copies of tendered notices are available in the Central File Room for review and/or reproduction under existing procedures. They are also available from the filing party who is under the obligation to provide copies of the notice without delay. 03/13/97 A97-01-012 MCI Communications Corporation and British Telecommunications plc, for all approvals required for the change in control of MCIC's California Certified Subsidiaries that will occur indirectly as a result of the merger of MCIC and BT. AUGMENTATION REQUIRED. On March 12, 1997, James Lewis, Regional Executive for MCI Telecommunications Corporation, met with Cmmr. Conlon in San Francisco. Also present was Jose Jimenez, advisor to Cmmr. Conlon. Lewis explained MCI's responses to pleadings filed in this proceeding to comments filed by SBC/Pactel, AT&T and the Office of Regulatory Advocates, and described the schedule for regulatory approvals of the MCI/BT merger in other jurisdictions. MCI Contact: Dorothy L. Maddux filed Tel: (415) 978-1245 03/13/97 AUGMENTATION REQUIRED. On March 12, 1997, James Lewis, Regional Executive for MCI Telecommunications Corporation, met with Cmmr. Duque in San Francisco. Also present was Tim Sullivan, advisor to Cmmr. Duque. Lewis explained MCI's responses to pleadings filed in this proceeding to comments filed by SBC/Pactel, AT&T and the Office of Regulatory Advocates, and described the schedule for regulatory approvals of the MCI/BT merger in other jurisdictions. MCI Contact: Dorothy L. Maddux filed Tel: (415) 978-1245 03/14/97 A92-12-043 Pacific Gas and Electric Company, for an order to increase the maximum cost specified in PG&E's Certificate of Public Convenience and Necessity to Construct the California portion of the expansion of its Natural Gas Pipeline, and A93-03-038 Pacific Gas and Electric Company, to establish interim rates for the California portion of the expansion of Pacific Gas Transmission Company's and PG&E's Canada-to-California Natural Gas Pipeline Project, and A94-05-035 Suncor, Inc., for rehearing of Resolution G-3122, and A94-06-034 El Paso Natural Gas Company, for rehearing of Resolution G-3122, and A94-09-056 Pacific Gas and Electric Company, for a finding that the $812.8 million of capital costs incurred in the construction of the PG&E Pipeline Expansion Project and the initial pipeline expansion operating expenses are reasonable, and A94-06-044 Pacific Gas and Electric Company, for amortization of interstate transition cost surcharge account and approval of rates on an ex parte basis. A96-08-043 Pacific Gas and Electric Company, to restructure and establish natural gas rates; modify its core aggregation and core subscription programs; obtain approval of the principles of a post-1997 core gas procurement incentive mechanism; and obtain approval of principles for disposition of its gas gathering facilities. On March 11, 1997, Kristel L. Frank, Director of Regulatory Relations for Pacific Gas and Electric Company (PG&E), met with Cmmr. Duque in San Francisco. Michelle Cooke, advisor for Cmmr. Duque, was also present. Frank stated that the Gas Accord settlement was the accomplishment of over a year of difficult negotiations. Frank stated that only TURN, the State of New Mexico, and the California Department of General Services do not support the Gas Accord. Frank stated that the objectives of the settlement are to resolve outstanding litigation, to simplify oversight, to align ratepayer and shareholder interest consistent with Commission directives, and to establish a market structure that is supported by the market participants. Frank stated that the settlement provides a comprehensive resolution of all major gas litigation issues pending before the Commission. Frank stated that the Gas Accord is consistent with Commission policy, not only because it resolves issues through a settlement, but because it proposes to unbundle transmission and distribution services; eliminates balancing account risk protection; provides solutions supported by the market; expands competitive opportunities for all customers, including core customers; and is supported by cost-based ratemaking principles. Frank stated that specific benefits to core customers are lower rates, including PG&E's absorption of 100 percent of the core's ITCS costs and the backbone memorandum account costs. Frank stated that another key feature of the Gas Accord is that it provides rate certainty. Frank stated that the Gas Accord resolves allegations about conflict of interest. PG&E Contact: Marian Swanson filed Tel: (415) 972-5611 03/17/97 A96-04-038 Pacific Telesis Group, to transfer and SBC Communications Inc., to acquire control of Pacific Bell, which will occur indirectly as a result of Telesis' merger with a wholly owned subsidiary of SBC, SBC Communications (NV) Inc. AUGMENTATION REQUIRED. On March 13, 1996, Tony Bixler, Vice President of the Communications Workers of America District 9 (CWA), wrote a letter (attached to the notice) to all the Commissioners. On the same day, March 13, 1996, Santora, CWA Governmental Affairs Coordinator, had four separate communications with Jose Jimenez, advisor to Cmmr. Conlon; Don Lane, advisor to Cmmr. Knight; Tim Sullivan, advisor to Cmmr. Duque; and Lester Wong, advisor to Cmmr. Bilas. Also present was Harold Jackson, CWA District Counsel. A copy of the foregoing letter was delivered to: Tim Sullivan, for Cmmr. Duque; and to Lester Wong, for Cmmr. Bilas. The letter addressed Mr. Bixler's concern about the proposed decision of 2/21/97. In the letter, Bixler stated that CWA supports the application; that the commitments made to California by applicants should be given more credit, that the creation of separate pensions and order for broad audits are unnecessary, and that the ordered rate reductions should be modified. Santora and Jackson stated during their meetings with the Commissioners' advisors, that CWA supports the merger; had concerns about the proposed decision's handling of the California commitments and the tone of the proposed decision; opposed the creation of a separate pension fund for Pacific Bell nonsalaried employees; and questioned the size of the rate reduction ordered. CWA Contact: Marguerite K. Stone filed Tel: (415) 348-7303 03/17/97 A96-11-037 Pacific Gas and Electric Company, for an order under Section 701 of the Public Utilities Code granting permission to use energy-related derivative financial instruments. On March 12, 1997, Jana Corey, Director of Regulatory Relations of Pacific Gas and Electric Company (PG&E), met with Cmmr. Conlon in San Francisco. Also present was James Hendry, advisor to Cmmr. Conlon. Corey explained that PG&E is seeking authority to use financial instruments to help manage the risk associated with fluctuating gas and electricity costs. Corey stated that PG&E proposes that during the rate freeze period, shareholders pay the transaction costs, and bear any losses or receive any gains from these transactions. Corey also stated that PG&E further requests that the gains and losses from the financial instruments not be subject to reasonableness review during the rate freeze period. PG&E Contact: Marian Swanson filed Tel: (415) 972-5611 03/17/97 A96-03-054 Pacific Gas and Electric Company, to modify Diablo Canyon pricing and adopt a customer electric rate freeze in compliance with. On March 12, 1997, Gordon Smith, Senior Vice President and Senior Financial Officer for Pacific Gas and Electric Company (PG&E), hand- delivered written material (attached to the notice) to Cmmr. Knight in San Francisco. Copies of the materials were also delivered to Robert Lane and Dorothy Duda, advisors to Cmmr. Knight; and to Michelle Cooke, advisor to Cmmr. Duque. The handout outlined PG&E's position on the proposed decision and provided a brief history of ratemaking for Diablo Canyon settlement in 1988 to the present. PG&E recommended that: (1) the imposition of the $100 million design penalty be eliminated; (w) the decision should reflect SONGS-like ratemaking treatment; (3) the decision should affirm must-take status of Diablo Canyon and exemption from annual operational reasonableness review; and (4) the decision should be effective 1/1/97. PG&E Contact: Marian Swanson filed Tel: (415) 972-5611 03/17/97 On March 12, 1997, Gordon Smith, Senior Vice President and Senior Financial Officer for Pacific Gas and Electric Company (PG&E), met with Cmmr. Conlon in San Francisco. Also present were: James Hendry, advisor to Cmmr. Conlon; Steven Kline, Vice President of Regulation, PG&E; Les Guliasi, Manager, and Jana Corey, Director, of Regulatory Relations for PG&E. Written materials (attached to the notice) were used. Smith stated that the proposed decision (PD) deviates significantly from SONGS-like ratemaking treatment. Smith stated that in the 1988 settlement PG&E wrote-off $1.2 billion and cut its dividend 27% while assuming the operating risk under a performance-based ratemaking mechanism. Smith explained that the risk was offset by the recovery of a higher rate of return than under traditional ratemaking. Smith noted that in 1995 the Commission ordered PG&E to file for SONGS-like treatment to "avoid inequities for ratepayers in different parts of the state". Smith stated that over the 10 year period, Diablo Canyon earned $1.6 billion less than it might have earned under traditional mechanism. Smith stated that the imposition of the $100 million design penalty should be eliminated because no prudence review of sunk costs was required under the "alternative ratemaking" settlement and that there is no basis for the disallowance in the record of this proceeding. Smith stated the the restructuring rate settlement requires a verification audit, but exempts Diablo Canyon sunk costs from a prudence review. Smith also stated that the decision should reflect SONGS- line treatment by including materials and supplies, and nuclear fuel inventory in sunk costs. Smith stated that the incremental cost incentive pricing should balance risk and reward comparable to SONGS, and the decision should be changed to require no annual true-up and no annual reasonableness reviews. Smith asked for an affirmation that Diablo Canyon remain a must- take resource and that the decision be effective 1/1/97. PG&E Contact: Marian Swanson filed Tel: (415) 972-5611 03/17/97 On March 12, 1997, Gordon Smith, Senior Vice President and Senior Financial Officer for Pacific Gas and Electric Company (PG&E), met with Cmmr. Neeper in San Francisco. Also present were David Gamson, advisor to Cmmr. Neeper; Steven Kline, Vice President of Regulation, PG&E; Les Guliasi, Manager, and Jana Corey, Director, of Regulatory Relations for PG&E. Written outline (attached to the notice) was used. Smith stated that the proposed decision (PD) deviates significantly from SONGS-like ratemaking treatment. Smith stated that in the 1988 settlement PG&E wrote-off $1.2 billion and cut its dividend 27% while assuming the operating risk under a performance-based ratemaking mechanism. Smith explained that the risk was offset by the recovery of a higher rate of return than under traditional ratemaking. Smith noted that in 1995 the Commission ordered PG&E to file for SONGS-like treatment to "avoid inequities for ratepayers in different parts of the state". Smith stated that over the 10 year period, Diablo Canyon earned $1.6 billion less than it might have earned under traditional mechanism. Smith stated that the imposition of the $100 million design penalty should be eliminated because no prudence review of sunk costs was required under the "alternative ratemaking" settlement and that there is no basis for the disallowance in the record of this proceeding. Smith stated the the restructuring rate settlement requires a verification audit, but exempts Diablo Canyon sunk costs from a prudence review. Smith also stated that the decision should reflect SONGS- line treatment by including materials and supplies, and nuclear fuel inventory in sunk costs. Smith stated that the incremental cost incentive pricing should balance risk and reward comparable to SONGS, and the decision should be changed to require no annual true-up and no annual reasonableness reviews. Smith asked for an affirmation that Diablo Canyon remain a must- take resource and that the decision be effective 1/1/97. PG&E Contact: Marian Swanson filed Tel: (415) 972-5611 Other Business Agenda No. 2947 June 6, 1996 LEG-1 SB 678 (Polanco) as amended on May 9, 1996. Would require that the Commission submit a report to the Legislature by July 1, 1997 that recommends an approach to financing existing low- income public policy prograns that does not create competitive imbalance between Commission- regulated natural gas providers and others. Commission voted 4-0 to approve recommendation to support the bill. Commissioner Fessler necessarily absent. HLEG-4 AB 2589 (Battin) as amended on April 17, 1996. Would require approval by April 1, 1997, of an experimental rate design, in Climatic Zone 15, which may diverge from the inverted rate structure mandated by Section 739 of the Public Utilities Code. Commission voted 3-1 to support recommendation to take a neutral position on the bill if funding to implement is provided. Commissioner Neeper dissented. Commissioner Fessler necessarily absent. HLEG-6 AB 2597 (Alby) as amended on April 24, 1996 and as proposed to be amended. Would provide that no privately owned or publicly owned public utility shall provide electric service to an existing retail customer of another utility unless the customer first enters into an agreement to pay an established nonbypassable severance fee or competitive transition charge. Commission voted 3-1 to support the concept of a nonbypassable competition transition change but oppose provisions of the bill which are inconsistent with the Commission's policy and Roadmap implementation decisions. Commissioner Knight dissented. Commissioner Fessler necessarily absent. REMOVALS FROM CALENDAR A96-06-029 Careaga-Southern California Gas Company, GCIM, hearing set for April 8, removed from calendar