September 9, Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E., Room 1A Washington, DC 20426

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1 Mark D. Patrizio Attorney at Law 77 Beale Street, B30A San Francisco, CA Mailing Address P.O. Box 7442 San Francisco, CA (415) Fax: (415) September 9, 2009 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E., Room 1A Washington, DC Re: Notice of Termination of PG&E Rate Schedule FERC No. 235, SCE Rate Schedule FERC No. 475 and SDG&E Rate Schedule FERC No. 200 Interim Cost Sharing Agreement Among the California Companies between Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company Dear Ms. Bose: Pacific Gas and Electric Company ( PG&E ) submits for filing and acceptance, on behalf of itself and both Southern California Edison Company ( SCE ) and San Diego Gas & Electric Company ( SDG&E ), a Notice of Termination of PG&E Rate Schedule FERC No. 235, SCE Rate Schedule FERC No. 475 and SDG&E Rate Schedule FERC No. 200 ( Notice ). 1 The rate schedule so designated is the Interim Cost Sharing Agreement Among the California Companies ( Interim Agreement ) among PG&E, SCE and SDG&E ( collectively, Parties ). Because Certificates of Concurrence of SCE and SDG&E are included in this filing, PG&E proposes to terminate those utilities rate schedules as well as its own. PG&E requests that the Commission order that the subject rate schedules be deemed to have terminated effective December 31, 2007, when the Interim Agreement terminated as a contract under its terms. 1 The Notice of Termination is submitted under Section 205 of the Federal Power Act, 16 U.S.C. 824d, and Section of the Federal Energy Regulatory Commission s ( Commission or FERC ) regulations, 18 C.F.R (2009).

2 Ms. Kimberly D. Bose, Secretary September 9, 2009 Page 2 PURPOSE AND NATURE OF THIS FILING On July 30, 2007, the Commission accepted PacifiCorp s termination of its Agreement for the Use of Transmission Capacity (UTCA) and the Parties termination of the California Companies Pacific Intertie Agreement (CCPIA) respectively, in FERC Docket Nos. ER and ER The termination of PacifiCorp s UTCA was suspended for five months and made effective December 31, The termination of the CCPIA was made effective July 31, The gap between the termination dates of the UTCA and the CCPIA created a need, for five months, for an interim agreement to cover the allocation of UTCA-related costs between the Parties previously covered under the CCPIA. The Interim Agreement was to be effective for the period from July 31, 2007, the effective date of the CCPIA termination, through December 31, 2007, the effective date of the PacifiCorp UTCA termination. On July 30, 2007, the Commission accepted the Interim Agreement, as filed in FERC Docket No. ER The Interim Agreement addressed capacity and cost allocation, and collection for operating and maintenance costs incurred by PG&E to perform work on behalf of the Parties required under the PacifiCorp UTCA. Pursuant to terms and conditions, specifically Section 2, the Parties anticipated that the Interim Agreement would be effective for only the five month period after service under the CCPIA terminated and before the services under the PacifiCorp UTCA terminated. Therefore, in accordance with Section of the Commission s rules and regulations, 18 C.F.R , PG&E is filing this Notice of Termination. EFFECTIVE DATES AND REQUESTS FOR WAIVERS PG&E respectfully requests that the Commission grant any waivers of the Commission s rules and regulations that are necessary for acceptance of this filing and the Notice of Termination of the Interim Agreement. Specifically, pursuant to Section of the Commission s rules and regulations 18 C.F.R , PG&E respectfully requests a waiver of the notice requirements set forth in Section 35.3 of the Commission s rules and regulations, 18 C.F.R to allow the Notice of Termination to be effective on December 31, PG&E further requests that the Commission grant any waivers of the Commission's rules and regulations necessary for acceptance of this filing and the notice of termination of PG&E Rate Schedule FERC No. 235, SCE Rate Schedule FERC No. 475 and SDG&E Rate Schedule FERC No. 200 under the Federal Power Act. Granting this request for waiver is appropriate as the Commission has determined that waivers will be granted in instances where there is a contractual commitment as to the effective date in an agreement which the Commission has previously accepted. On August 3, 1992, in FERC Docket No. ER , et al., 60 FERC 61,106, the Commission stated "We will also generally grant waiver of the 60-day prior notice

3 Ms. Kimberly D. Bose, Secretary September 9, 2009 Page 3 requirement for filings that increase rates when the rate change and the effective date are prescribed by contract... In these instances, there is a contractual commitment as to the effective date which the Commission has already accepted." 60 FERC at 61,338. No other PG&E, SCE or SDG&E wholesale customer will be affected by the Commission's acceptance of this filing. Denial of this request would further delay PG&E's. SCE s and SDG&E s enforcement of the contractually agreed upon termination provisions already approved by the Commission. C ONCURRENCE By execution of the Interim Agreement, which provides for termination as of December 31, 2007 and as confirmed by the enclosed Certificates of Concurrence, SCE and SDG&E have concurred with this filing. NO EXPENSES ALLEGED ILLEGAL No expenses or costs associated with this filing have been alleged or judged, in any judicial or administrative proceeding, to be illegal, duplicative, or unnecessary costs that are demonstrably the product of discriminatory employment practices. PROPOSED RATE SCHEDULE DESIGNATIONS PG&E respectfully requests the following designations: Designation First Revised Sheet No. 1 to PG&E Rate Schedule FERC No. 235 (Cancels PG&E Rate Schedule FERC No. 235) First Revised Sheet No. 1 to SCE Rate Schedule FERC No. 475 (Cancels SCE Rate Schedule FERC No. 475) Description Notice of Termination of PG&E Rate Schedule FERC No. 235, Interim Cost Sharing Agreement Among the California Companies between PG&E, SCE and SDG&E Notice of Termination of SCE Rate Schedule FERC No. 475, Interim Cost Sharing Agreement Among the California Companies between PG&E, SCE and SDG&E

4 Ms. Kimberly D. Bose, Secretary September 9, 2009 Page 4 Designation First Revised Sheet No. 1 to SDG&E Rate Schedule FERC No. 200 (Cancels SDG&E Rate Schedule FERC No. 200) Description Notice of Termination of SDG&E Rate Schedule FERC No. 200, Interim Cost Sharing Agreement Among the California Companies between PG&E, SCE and SDG&E ENCLOSURES: Enclosed for filing are six copies of the following documents: 1. Certificate of Service; 2. Attachment 1 Notice of Termination for Interim Cost Sharing Agreement and the corresponding designated rate schedule sheets; 3. Attachment 2 Certificate of Concurrence, Southern California Edison Company; and 4. Attachment 3 Certificate of Concurrence, San Diego Gas & Electric Company. SERVICE Copies of this filing have been served upon SCE, SDG&E, the California Independent System Operator Corporation, and the California Public Utilities Commission. In addition, copies of this filing are available for public inspection in a convenient form and place during normal business hours at PG&E s General Office, located at 77 Beale Street in San Francisco, California. CORRESPONDENCE PG&E requests that all correspondence, pleadings, and other communications concerning this filing be served upon the following: Mark D. Patrizio Attorney Pacific Gas and Electric Company Law Department Post Office Box 7442 San Francisco, California MDP5@pge.com

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6 CERTIFICATE OF SERVICE

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8 Attachment 1 NOTICE OF TERMINATION AND CORRESPONDING DESIGNATED RATE SCHEDULE SHEETS

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10 PACIFIC GAS AND ELECTRIC COMPANY First Revised Sheet No. 1 Rate Schedule FERC No. 235 Superseding Original Sheet No. 1 Cancels Rate Schedule FERC No. 235 Notice of Termination Issued By: Dede Hapner, Vice President FERC and ISO Relations Issued On: September 9, 2009 Effective: December 31, 2007

11 SOUTHERN CALIFORNIA EDISON COMPANY First Revised Sheet No. 1 Rate Schedule FERC No. 475 Superseding Original Sheet No. 1 Cancels Rate Schedule FERC No. 475 Notice of Termination Issued By: James A. Cuillier, Director FERC Rates & Regulation Issued On: September 9, 2009 Effective: December 31, 2007

12 SAN DIEGO GAS & ELECTRIC COMPANY First Revised Sheet No. 1 Rate Schedule FERC No. 200 Superseding Original Sheet No. 1 Cancels Rate Schedule FERC No. 200 Notice of Termination Issued By: Lee Schavrien, Senior Vice President Regulatory and Finance Issued On: September 9, 2009 Effective: December 31, 2007

13 Attachment 2 CERTIFICATE OF CONCURRENCE OF SOUTHERN CALIFORNIA EDISON COMPANY

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15 Attachment 3 CERTIFICATE OF CONCURRENCE OF SAN DIEGO GAS & ELECTRIC COMPANY

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