_____________________________________________________________________________________
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: December 21, 2009
(Date of
earliest event reported)
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Commission
File Number
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Exact
Name of Registrant
as
specified in its charter
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State
or Other Jurisdiction of Incorporation or Organization
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IRS
Employer Identification Number
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|||
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1-12609
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PG&E
CORPORATION
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California
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94-3234914
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1-2348
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PACIFIC
GAS AND ELECTRIC COMPANY
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California
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94-0742640
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 |
 |
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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)
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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)
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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):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17
CFR 240.14d-2(b)
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17
CFR 240.13e-4(c))
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Item
8.01. Other Events
2011
General Rate Case Application
On
December 21, 2009, PG&E Corporation’s subsidiary, Pacific Gas and Electric
Company (Utility), filed its 2011 General Rate Case (GRC)
application. The Utility is requesting that the California Public
Utilities Commission (CPUC) authorize the amount of base revenues that the
Utility may collect from customers to recover its costs for electric and natural
gas distribution operations and electric generation operations for a three-year
period (2011 through 2013). The Utility’s request represents a
proposed revenue increase for 2011 of $1.048 billion, or 6.4%, above the 2010
total revenue forecast. The critical driver of the Utility’s request
in this GRC will be the need to invest in energy infrastructure to meet
customers’ expectations for service quality. The Utility estimates
that it will need to spend an average of about $2.7 billion in capital
expenditures annually on these infrastructure improvements, especially
replacement of gas and electric systems that are reaching the end of their
useful lives. The Utility also needs adequate funds to continue to
safely operate, maintain, and upgrade generation plants to serve growing
demand.
The
Utility proposed that the CPUC adopt new flexible cost recovery mechanisms by
establishing balancing accounts for several categories of costs that are subject
to a high degree of volatility based on economic conditions and other factors,
including new customer connections, emergency service restoration, uncollectible
accounts, and employee healthcare costs.
The
Utility also has requested that the CPUC establish a ratemaking mechanism for
2012 and 2013 designed to increase the Utility’s authorized revenues in years
between GRCs to reflect increases in rate base due to capital investments in
infrastructure, and increases in wages and expenses. The proposed
mechanism also would require revenue requirements to be adjusted to reflect
changes in franchise, payroll, income, or property tax rates, as well as new
taxes or fees imposed by governmental agencies. The Utility estimates
that this mechanism would result in a revenue requirement increase of $275
million in 2012 and an additional increase of $343 million in
2013. The Utility would advise the CPUC of the actual amount of these
proposed increases in October 2011 and October 2012 for years 2012 and 2013,
respectively.
The
Utility requested that the CPUC issue a final decision by the end of
2010. If the decision is delayed, the Utility will, consistent with
CPUC practice in prior GRCs, request the CPUC to issue an order directing that
the authorized revenue requirement changes be effective January 1, 2011, even if
the decision is issued subsequent to that date.
PG&E
Corporation and the Utility are unable to predict what amount of revenue
requirements the CPUC will authorize for the period from 2011 through 2013, when
a final decision in this proceeding will be received, or how the final decision
will impact their financial condition or results of operations.
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SIGNATURES
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 hereunto
duly authorized.
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PG&E
CORPORATION
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Dated: December
21, 2009
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By:
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LINDA
Y.H. CHENG
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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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Dated:
December 21, 2009
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By:
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LINDA
Y.H. CHENG
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LINDA
Y.H. CHENG
Vice
President, Corporate Governance and
Corporate
Secretary
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