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: July 14, 1995
PACIFIC GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
California 1-2348 94-0742640
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification Number)
77 Beale Street, P.O.Box 770000, San Francisco, California 94177
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(415) 973-7000
Item 5. Other Events
A. Gas Restructuring and Settlement Proposal
On June 27, 1995, the assigned administrative law judge (ALJ) in the
Company's rate case for the California portion of the PGT/PG&E
Pipeline Expansion Project (PG&E Expansion) issued an order setting
hearings to consider the market impacts of the PG&E Expansion. (The
PGT/PG&E Pipeline Expansion Project (Expansion Project), which was
placed into service in 1993, expanded the capacity of Pacific Gas
Transmission Company's (PGT) natural gas pipeline from Canada to
California and the Company's interconnected pipeline into
California.) The order indicates that hearing topics would include,
among other things, (1) the effects of California regulation on
upstream transportation markets, (2) operation of the cross-over ban
(which requires that gas delivered from the PGT portion of the
Expansion Project must be transported at PG&E Expansion rates as
opposed to rates charged for use of the Company's original intrastate
system, which are lower), (3) effects of the "backbone" credit (which
removes charges associated with transmission on the original system,
that would otherwise be included in the Company's intrastate rates,
for certain customers in the Company's service area using the PG&E
Expansion), (4) identification of so-called "stranded costs"
associated with pipeline capacity, and (5) the Company's discounting
practices.
The ALJ's order also re-opened the proceeding in which the California
Public Utilities Commission (CPUC) approved the PG&E Expansion, in
order to consider an allegation that the Company concealed critical
documents relating to the Company's decision to proceed with the
Expansion Project. The ALJ's order provides that any recommendations
for CPUC action may be made after discovery on the issues.
On July 6, 1995, the Company filed a motion to request that the
hearings be suspended to enable parties to engage in meaningful
settlement discussions encompassing both a restructuring of the
Company's gas transmission system and a broad range of gas-related
issues arising in other proceedings. Those proceedings include the
PG&E Expansion reasonableness case and the Interstate Transition Cost
Surcharge proceeding.
The Company's proposal contemplates that settlement negotiations
would extend from August 4 to November 1, 1995. The Company intends
to use the discussions to consider restructuring of its gas
transmission business to achieve increased competition and
efficiency. The Company will propose that parties discuss open
access intrastate transmission service, brokering of capacity on its
transmission system, and performance-based ratemaking to determine
the Company's earnings.
At a prehearing conference held on July 7, 1995, the ALJ granted in
part the Company's request to suspend the hearing schedule to allow
settlement discussions to commence. The ALJ called for the parties
to exchange factual reports on the market impact issues listed in his
earlier order and to hold a workshop on such information with
comments to follow. Testimony and hearings are suspended in
accordance with the Company's motion.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
PACIFIC GAS AND ELECTRIC COMPANY
LESLIE H. EVERETT
By ________________________________
LESLIE H. EVERETT
Corporate Secretary
Dated: July 14, 1995
