1. CPUC Public Agenda 3247 Thursday, January 21, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Timothy Alan Simon www.cpuc.ca.gov

2. Public Comment Any member of the public who wishes to address the CPUC about matters before the Commission, must first sign up with the Public Advisor before the meeting begins. Once called, at the discretion of the President of the CPUC, each speaker has up to 3 minutes. A sign will be posted when 1 minute remains. A bell will ring when time has expired. The following items are NOT subject to Public Comment:  Items: 22, 35  All items on the Closed Session Agenda

3. Agenda Changes Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting. Items on Today’s Consent Agenda are: 1, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41 & 42. Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting. Items: 51, 54, 55 & 57 from the Regular Agenda have been added to the Consent Agenda. Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Item: None have been moved to the Regular Agenda. Items: 5, 52a & 53 have been withdrawn. The following items have been held to future Commission Meetings: Held to 2/4/10: 3, 4, 6, 7, 25, 30, 43, 46, 49, 50 & 56 Held to 2/25/10: 2 & 8

4. Regular Agenda Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote. For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed. The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.www.cpuc.ca.gov Late changes to agenda items are available on the Escutia Table.

5. Regular Agenda – Energy Orders Item #44 [9010] California Solar Initiative Thermal Program to Provide Solar Water Heating Incentives R08-03-008 Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues. Quasi-Legislative Comr. Peevey/ ALJ Duda -------------------------------------------------------------------------------------------------------------------------- PROPOSED OUTCOME: Adopts California Solar Initiative (CSI) Solar Thermal Program to provide incentives for the installation of solar water heating systems on homes and businesses in the service territories of Pacific Gas and Electric Company (PG&E), Southern California Edison Company, San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas). Establishes program budget of $250 million to fund incentives for solar water heating systems that displace gas usage. Allows expenditures of up to $100.8 million, using funds authorized and collected through the CSI photovoltaic program, for solar water heating systems that displace electricity usage. ESTIMATED COST: $250 million to be collected through gas customer distribution rates for customers of PG&E, SDG&E and SoCalGas to fund incentives for gas-displacing solar water heating systems. No additional cost for incentives to electric-displacing systems beyond the funds already authorized and collected through the CSI photovoltaic program.

6. Regular Agenda – Energy Orders Item #47 [9134] Sempra Settlement (Pipeline Cases) and Price Indexing Cases Settlement R09-07-029 Order Instituting Rulemaking Adopting Rules to Account for the Consideration Allocated to California Core Natural Gas Ratepayers Under Settlements of Natural Gas Antitrust Cases I-IV. Ratesetting Comr. Simon / ALJ Grau --------------------------------------------------------------------------------------------------- PROPOSED OUTCOME: Allocates Sempra Settlement (Pipeline Cases) (8 installments of $7.85 million plus interest) and Price –Indexing Cases Settlement ($50.5 million) to Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company, Southwest Gas Company, and Long Beach Gas and Oil Department as approved in the Sempra Settlement. Adopts accounting and ratemaking procedures included in Attachment A to this decision. Closes the proceeding. ESTIMATED COST: None.

7. Regular Agenda – Energy Orders Item #48 [9136] Pacific Gas and Electric Company to Recover Smart Grid Costs A09-09-019 Ratesetting Comr. Peevey / ALJ MacDonald ---------------------------------------------------------------------------------- PROPOSED OUTCOME: Grants Pacific Gas and Electric Company the authority to increase electric rates and charges to recover costs related to Smart Grid compressed air energy storage demonstration project. Application 09-09-019 is closed. ESTIMATED COST: $24.9 million.

8. Regular Agenda – Communication Orders Item #52 [8944] Guidelines for Customer Education Programs Regarding Backup Power Systems R07-04-015 Order Instituting Rulemaking on the Commission’s Own Motion into Reliability Standards for Telecommunications Emergency Backup Power Systems and Emergency Notification Systems Pursuant to Assembly Bill 2393. Quasi-Legislative Comr. Simon/ ALJ O’Donnell ---------------------------------------------------------------------------------- PROPOSED OUTCOME: Adopts guidelines for customer education programs for facilities-based providers of telephony services (service providers) who provide service to residential customers using coaxial cable or fiber-optic cable to the customer’s building that requires backup power on the customer’s premises. Directs service providers to enhance their existing customer education programs to meet the guidelines. Requires service providers to make an advice letter filing within 180 days detailing their customer education programs. Closes proceeding. ESTIMATED COST: No significant cost.

9. Commissioners’ Reports

10. Regular Agenda – Commissioner’s Reports Item #58 [9156] Appointments to the Low Income Oversight Board Commissioner Grueneich Report ------------------------------------------------------------------------------------- Discussion and action regarding the appointment of two public representatives to the Low Income Oversight Board (LIOB). The 11-member LIOB advises the Commission on low-income electric, gas, and water customer issues and serves as a liaison for the Commission to low income ratepayers and representatives. Public Utilities Code Section 382.1(b)(1) states that five of the members of the LIOB must “have expertise in the low-income community.”

11. Management Reports

12. The CPUC Thanks You For Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: February 4, 2010, at 10:00 a.m.