UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of Report: March 15, 2007
(Date
of
earliest event reported)
PG&E
CORPORATION
(Exact
Name of Registrant as specified in Charter)
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California
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1-12609
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94-3234914
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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One
Market, Spear Tower, Suite 2400, San Francisco, California
94105
(Address
of principal executive offices, zip code)
415-267-7000
(Registrant’s
Telephone Number, Including Area Code)
N/A
(Former
Name or Former Address, if Changed Since Last Report)
PACIFIC
GAS AND ELECTRIC COMPANY
(Exact
Name of Registrant as specified in Charter)
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California
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1-2348
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94-0742640
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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77
Beale Street, P. O. Box 770000, San Francisco, California
94177
(Address
of principal executive offices, zip code)
(415)
973-7000
(Registrant’s
Telephone Number, Including Area Code)
N/A
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
8.01 Other Events
2007
General Rate Case
On
March
15, 2007, the California Public Utilities Commission (CPUC) approved a
multi-party settlement agreement to resolve Pacific Gas and Electric Company’s
(Utility) 2007 General Rate Case (GRC). The decision sets the Utility’s electric
and gas service revenue requirements for a four-year period, from 2007
through
2010. Effective January 1, 2007, the Utility is authorized to collect revenue
requirements of approximately $2.9 billion for electric distribution (an
increase of $222 million over the 2006 authorized amount), approximately
$1
billion for gas distribution (an increase of $20.5 million over the 2006
authorized amount), and approximately $1 billion for electric generation
operations (a decrease of $29.8 million from the 2006 authorized amount).
The
total authorized amount of approximately $4.9 billion reflects an overall
increase of $212.7 million (or 4.5%) over the total 2006 authorized amount.
The
decision also authorizes annual increases, known as “attrition adjustments,” to
the authorized revenue requirements in order to avoid a reduction in earnings
due to, among other things, inflation and increases in invested capital.
The
decision authorizes attrition adjustments to authorized revenues of $125
million
in each of 2008, 2009, and 2010. The decision also authorizes an additional
adjustment of $35 million in 2009 for the cost of a second refueling outage
at
the Utility’s Diablo Canyon nuclear power plant.
Under
the
decision, the Utility’s next GRC will be effective January 1, 2011.
Proposed
Gas Accord IV Settlement Agreement
On
March
15, 2007, the Utility filed an application with the CPUC to request approval
of
a settlement agreement, known as the Gas Accord IV, to establish the Utility’s
natural gas transmission and storage rates and associated revenue requirements
and to retain the
“Gas
Accord” market structure for
the
period 2008-2010. For more information about the proposed Gas Accord IV,
see
PG&E Corporation’s and the Utility’s Current Report on Form 8-K filed with
the Securities and Exchange Commission on March 6, 2007.
It
is
expected that the CPUC will issue a final decision with respect to the
Gas
Accord IV by the end of the year. If
the
CPUC does not issue a final decision by the end of the year to approve
new rates
effective January 1, 2008, the rates and terms and conditions of service in
effect as of December 31, 2007, will remain in effect, with an automatic
2% escalation in the rates as of January 1, 2008.
PG&E
Corporation and the Utility are unable to predict whether or when the CPUC
will
approve the proposed Gas Accord IV.
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SIGNATURE
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Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their
behalf by
the undersigned thereunto duly authorized.
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PG&E
CORPORATION
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/s/
Linda Y.H. Cheng |
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Dated: March 16, 2007
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Linda
Y. H. Cheng
Vice
President, Corporate Governance and Corporate Secretary
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PACIFIC
GAS AND ELECTRIC COMPANY
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/s/
Linda Y.H. Cheng |
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Dated: March 16, 2007
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Linda
Y. H. Cheng
Vice
President, Corporate Governance and Corporate Secretary
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