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CONTENTS , . ,.,2- .
To Our Stockholders
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The Alberta. California Projecf. . .'. .
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Financial Statements . . . . . . . . . . . . . * ' ' '
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?a Os.a.; :ni.a.c.a a.c.&. <.&J.suww.vs.: Mu.m %.s..M;.Jx,. x,.2. m u n PACIFIC GAS AND ELECTRIC COMPANY 245 MARKET STREET SAN FRANCISCO f"T
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HIGHLIGHTS OF OPERATIONS r. - 4;a.; _4 ..:.42 ,:/ M. n. 1 c. nc, < ',' '
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Taxes and Franchise Payments . . . . . . . . . . . . . .-:.. R. ' $.161,209,000 a . . ..x ' $,M59,253,000 l
l Natural Gas Purchased. . . . . . .. . ........ . . . . . . .<. . . 1. . . $_ .185,776,000 . _
$ 164,919,0C0
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Operating Payroll . . . . . . . . .. . .... .. . ..... . . c. .; /. $.: . 83,244,000 . . $ $ . ' 79,223,000.
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Other Expenses and Charges. . . . . . . . .... . . . . . . . . . .T ': . . . .".'$. 7166,888,000 . $ '150,874,000
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Q.K.llg$j 192,565,000
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Earned Per Common Share (on average shares) (a) . . . . . . m'r F *w*n:7w $.1,.52 *a u,a
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Construction Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. gM4 228,086,000 p6 ..7 %.r+W e$5173,126,00 f,,tch%w:ww.wMWW 4%r:7.rawn.4%] :
Sales of Electricity to Customers (KWH) . . . . . . . . . . . . . . . Jty.J.'t25,76,7,858,00.0 il,$Rgfm:.gf;;;23,
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Number of Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C'.S. WON M 383 W 18 Number of Stockholders . . . . . . . . . . . . . . . . KMM2 u .m w
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- -m i BOARD OF DIRECTORS ;'.~ p - 4 '3 .w'd h $ '5 Sv hO J Auss B. BLAcx* San Francisco Chairman of the Board
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RAnson M. Coon San Francisco a
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Roarni H. GnDzs 5 San Franetsco -
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S RUBBELL GITTEN ~ Fresno " Q%$.*
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. DAVID PACKAnD Palo Alto
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EXECUTIVE OFFICERS .
N. R. SUTHEnLAND President E. E. MANHARD Secretary 1 Rossnt H.GsnDis Executive Vice President L W. CoucutAn Comptroller 1 S. L SIBLEY Vice-President and GeneralManager RtcuAnD H. PETtnson General Counsel L HAnotD ANDanson Vice-President and Assistant General Manager F. T. SsAnLa GeneralAttorney
, J. S. MotLion Vice. President and Executive Engineer A. J. SwAux Vice President in Charge of Electric Operations ' ***
E.H.Fisnxn Vice-President in Charge of Gas Opentions
, H. W. HAssnxons Vice. President in Charge of General Construction H. C. Nelson Assis, tant Treasurer and Asu.s tant Secretary J.F.Bonuxa Vice-President in Charge of Engineering V D.Vinczus Assistant Treasurer O. R. Doennt Vice-President and Anistant to the GeneralManager D. L BELL Assist, ant Treasurer R. W. JoYcs Vice-President in Charge of CommercialOperations J F.TAYLon Asssstant Secretary K.C.Cunisisuszs Vice-President and Treasurer A. H. CAtaxnALL Assnatant Secretary Rostat R. Gnos Vice-President tRetired December 31,1961 .
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I REPORT OF THE DIRECTORS OF struction expenditures for 1962 are estimated at $221 PAClFIC GAS AND ELECTRIC COMPANY million. ;
The most notable development of the year was the l TO OUR STOCKHOLDERS: Meipt b Decemkr of b nnt Canah gas Mo our system through the facilities of the Alberta-California 1 San Francisco, California, February 20,1962 project. Access to the vast reserves of natural gas of Accelerated economic activity in Northern and Central Western Canada has thus become a reality for our Com-California in 1961 was reflected in another year of rapid pany. The project makes available a much needed sup- 1 owth and progress for our Company. Continuing an plemental source of energy for Northern and Central
- Q' unbroken trend of many years ,
new records were high California, and is of great significance in the future out-established for sales of gas and electricity and for oper- look of the Company. This $300,000,000 project repre-ating revenues. sents an outstr.nding example of economic cooperation,
~
Adjusted to reflect the 3 for-1 split of the common based on the principles of international comity and stock, which became effective Dece:nber 29,1961, earn- mutual responsibility, between Canada and the United ings per share amounted to $1.52 hased on an average States, and substantial benefits to the economies of both ;
of 55,229,907 shares outstanding during the year, and countries will flow from it. A map and a description of to $1.49 a share based on the 56,477,325 shares outstand- the participating companies in the project are set forth ing at the year-end. Also on an adjusted basis, these on the inside of the back cover of this report.
compare with earnings of $1.38 a share in 1960. Electricity, of course, continues to be our principal As more fully set forth in the section on Earnings and business. During 1961 our electric generating resources Dividends and in the notes to the financial statements, a were augmented by the completion of a 330,000 kilowatt substantial portion of the increase in share earnings is unit at Pittsburg Power Plant, which brought the total attributable to certain accounting changes which be- installed capacity of this plant to 1,320,000 kilowatts, cane effective on January 1,1961. . In addition, we have under construction or authorized Expenditures for construction amounted to $228 u- for completion before the end of 1965, 2,348,000 kilo-
, lion in 1961, exceeding those of any previous year. To watts of electric generating: capacity in conventional finance this outlay the Company sold securities from steam, nuclear, geothermal, and hydro plants.
which it received net proceeds of about $123 million, Stockholders have been advised from time to time of he balance being provided from' internal sources. Con- the Company's activities, commencing in 1951, in the' 3
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field of nuclear power. Research and development during tions with other power systems in its service area, as this period has, we believe, justified our early conviction well as with the major power system in Southern Cali- 3 l '
l that nuclear energy holds great promise as an economic fornia and neighboring systems in Oregon and Nevada. l source of electric power, particularly in the relatively Late last year the four principal electric companies in l high cost fuel area in which we operate. A 60,000 kilo- California entered into an agreement, subject to obtain-watt nuclear unit is now under construction at our steam ing the necessary regulatory approval, to form a state-plant near Eureka, about 250 miles north of San Fran- wide electric power pool. It provides for mutual assist-cisco, which will be completed this year, ance during emergencies and establishes the basis for In last year's report it was stated that we were con- enlarging interconnections to achieve greater efficiency tinuing our studies looking to the construction of a large- and economy in the use of resources whe scale nuclear plant close to the San Francisco Bay area. ically justified.
In June 1961 we announced our intention to construct Shortly after the first of the year we agreed to con-a 325,000 kilowatt nuclear unit at Bodega Bay, about struct a third interconnection with the utility which 50 miles north of San Francisco. Construction on this operates north of us, principally in Oregon. This extra plant will start late in 1962, provided all necessary gov- high voltage line will extend from Klamath Falls, Oregon, ernmental approvals are obtained. We feel confident this to a point of connection with our Company's Pit River plant will produce power at a cost substantially com- transmission system in Shasta County, California.
petitive with that from a conventional steam unit at the Planned for initial operation at 230,000 volts, it will be same location, constructed for conversion to not less than 500,000 volts. j In recent months much comment has appeared in In addition, the Company and other members of the the public press concerning power pools and regional California power pool have jointly offered to construct a power interconnections. Recently a task force appointed line of not less than 500,000 volts from the southern by the Secretary of the Interior issued a report recom- terminus of the above mentioned line in Shasta County mending alternate plans for constructing extra high volt- to Southern California, when Northwest power is avail-
', age transmission lines between the Bonneville power sys- able on terms which will make construction of the line !
l tem in the Pacific Northwest and Southern California, economically feasible. This line will be constructed in l The lines would be used for the purpose, among others, stages as needed and existing transmission capacity of
- of transmitting surplus northwest power to California. the California companies will be used to the maximum Our Company for many years has had interconnect- extent to avoid uneconomic duplication of facilities.
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In view of the transmission lines now existing and to laws, three times the difference between the prices paid l be constructed by the California companies, there is no and the prices that would have been paid in the absence !
l need whatever for the Federal government to spend vast of the alleged conspiracies, f sums of taxpayers' money to construct the transmission Without in any way minimizing the problems we face, facilities recommended by the task force. The lines to there are reasonable grounds to view the outlook for the i be built by the California companies will be at no cost Company with optimism. We are privileged to serve a to taxpayers and, furthermore, will be productive of sub- highly diversified area which is growing rapidly and in
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stantial tax revenues. an orderly manner. We operate a modern and eflicient f
, In January 1962 the Company filed eighteen damage plant which has an average dollar age of about eleven actions under the antitrust laws against various manu-
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years. We have competent personnel alert to the needs I facturers of electrical equipment. Each action relates of our customers. Our financial condition is sound and to a category of equipment as to which the Company we enjoy the confidence of the public, e.lleges that it was overcharged as a consequence of col. The following pages contain a more detailed review lusive action by the defendants. These actions are an of our operations for the year. Certified fmancial state-outgrowth of the proceedings commenced in 1960 by ments are set forth beginning on page 26 of this report.
the Philadelphia Federal Grand Jury indictments of the On behalf of the Board of Directors we acknowledge defendants, to which they entered pleas of guilty or noto with deep gratitude the splendid contributions made by contendere. The Company's complaints seek to recover, our employees to the successful conduct of our business pursuant to the treble damage provisions of the antitrust during the past year.
For the Board of Directors C
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Chairman of the Board President The Management will solicit proxies (or the annual meeting to be held at the office of the Company,245 Market Street, San Francisco, California, on Tuesday, April 24,1962. In connection with such solicitation, it is expected that the proxy statement and form of proxy will be mailed to stockholders on or about March 19,1962.
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e THE 1961 FINANCIAL STORY .
7 EM@ MM {
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REVENUES Growth of revenue is one important l,. y
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yardstick commonly used to appraise the performance of ,
g l.$1. % ' ' ( c.s'.: a ..o 1 ^^'
gj any gas and electric company. By this test,1961 was a I fesyP:Med
- favorable year; operating revenues reached $695,708,000, 1 ...=...-.ALi ' m%ig a gain of $47,820,000 over 1960.
W 'E Our two major sources of income, sales of electricity q$a I' and gas, produced revenues of $446,154,000 and $246,-
'f. l
432,000, respectively.
/ t, ' . In. analyzing nevenue growth, an examination of the
[~ ; .'Y distribution of the increase by major categ'ories is im- (
, w,. - n a. . .
Agii gu( portant. Here again the 1961 results were encouraging.
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n 'i In the Electric Department the gain was well distributed l I
.a . .. __ ,
- over the principal classes of service. Gains of 7.4% in
.- - >t .1 : 3 I MNITd5Ik j; ! j "
$ $ j ,h.. M ,- - Q. M e, residential and 8.0% in large light and power, our two MCy largest classes of revenue producers, were particularly
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In he as Department residential revenues climbed g ;2 W Q,3.j p p .
10.0% and produced over half the total gas revenues.
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%jp. @ The relatively small increase of 4.2% in industrial gas revenue is in part explained by increased competition i yyp g- d be.[gpf.MM from fuel oil for this type of service.
w- .m. - -
The table on page 25 shows a detailed breakdown of
- 'QF" m. _ . _ x,'fM.=r aJ .;;% ' , J=:x%
%E revenues and unit sales by major classes of service. !
'g- -- - : '
h EXPENSES Operating expenses for the year, exclu- ;
- Q) sive of taxes and depreciation, amounted to $335,448- '
=="1% % % q= '
' f@Nhg'%m;
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jp;g7 A %3mg 000, or $31,277,000 more than m, 1960.
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. penses,it is important to make a distinction between the A%
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volume of business, and the increases resulting from the essing work in about one third of the time required by inflationary bias long prevalent in our economy. the older vacuum type models. While the principal appli-A large part of the increases in expenses in 1961 fell cations thus far have been in the fields of customers' bill-
, within the former category. With an expanding sales ing and accounting, and stores accounting, a wide range volume we naturally had to purchase more natural gas of other applications are being programmed in other to supply our customers and more fuel to generate elec* areas of our operations, which should produce additional l tricity. It is the increases in the unit costs of these items,. savings.
together with higher taxes, wages and prices for mate- TAXES Taxes charged against income absorbed about rials and services used in our business, which create the 23% of our operating revenues in 1961, and were equiv-real problems of cost control.
' alent to one and one-half times cur entire net income. 1 There are basically only three remedies available t Total taxes paid or set aside for future payment )
the Company to offset increased costs of the latter char-amounted to $166,015,000. As shown on the table on acter. The first is to aggressively promote sales, partte- .
. page 15, over half was paid to the state and local gov-ularly to increase average consumption per customer.
. ernments and the remaining $77 milh.on to the Federal The second is to reduce costs by improving the efficiency of our operations. Finally,if these two remedies do not government, suffice, rate increases must be obtained to maintain the The $5,650,000 decline in Federal income taxes Company's financial integrity. Fortunately, our success charged against income in 1961 as compared to 1960 l in applying the first two remedies has enabled us to was brought about by the change in accounting more maintain the prices of our services at a relatively low fully described under the heading Earnings and Div-level in relation to prices of most other services and idends, and in the footnotes to the financial statements.
commodities. Ad valorem property taxes showed an increase of We are continuing to keep the costs of conducting our $4,427,000 for the year. This was due principally to the business under the closest scrutiny. Important savings Company's large construction program which added new l
i are being made by simplifying our procedures and by property to the local tax rolls, and to higher tax rates adopting mechanization wherever possible. We are con- required to support the public schools and other services l
tinuing to make many conversions from manual to auto. performed by local governmental units.
matic operation, particularly in hydro plants and substa. EARNINGS AND DIVIDENDS Netincome for the tions. We are expanding the use of electronic computers- year amounted to $102,241,000. After payment of which have already produced significant savings. Late in $18,336,000 in dividends to holders of preferred stock l the year we took delivery of a new computer to replace there remained $83,905,000 of carnings for the common the two units previously in service. The new unit is stock, equivalent to $1.52 a share on the average shares completely transistorized and performs the daily proc- outstanding during the year.
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This represents an increase of $9,676,000 over the earnihgs available for the common stock m 1960. The gmwy g g ~,r g
e g~ i % .4. g g g gw e M M M L % s h *gb g pg NUE '
major portion of this increase resulted from a change, wm@-@6:Wu c; a. . mu.mpmyn.t. .Wi 700 i t effective January 1,1961, in the method of accounting 7"*"*^^
- m . .=%?""**" _ m .. - .L .. - ..c.. ~ .., a ... " k i for the benefits arising from the use of accelerated de- p Q. o ~g.,g g g g p15 $ : p ;J. g gfi; g g ',.5 ' Q preciation for tax purposes, as previously reported to y@W M
- ~ - .. . -m e" ~ iF5h' stockholders. The net effect of this accounting change, MNEN-. N' NNkMbNMN) '
,, which permits the tar savings to flow through to net income, and of a change, made concurrently,.from the T([g %fg hh
, y 4 ,s y gg j g dfswa7.ggg sinking-fund to the straight-line method of accruing _
24W - id#d TfW depreciation on the Company's books which increased El $4 ' MMi depreciation charges, was to increase net income by h 'aQ ei ne' ._$F43cd
. w. ..w:t% m.wspm:
vs. ;;p n ;A.c.4-wmam;.m, r w w (, g ;- g ,.,d W @# 7 c . ;c 4.. i ~
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approximately $7,000,000 for the year. Frgm m'yr _ pe.*pNetwa:A. my% #. ,
On March 22,1961 the Board of Directors increased the quarterly dividend on the common stock from 65 to h(S[
GG ' W-
'p" $# $"~ % % % T Q Cf f [
70 cents a share. The first dividend at the new rate was EN --- $b #72WC%M b1 E'$ 'D paid on April 15,1961 to common stockholders of record
^
. mMi NMMb ' MN MDMDENDSb f N"h8' W dIf on March 30,1961. Aggregate dm. .dends declared on the yg@f_AnNINGS geh gig.y,yweg.r.; m:g %.y common stock during the year were $51,457,000, repre-senting about 61% of the earnings available for the F
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'4 w.m .Jh M g-p common stock. The earnings not paid out as dividends were reinvested in the business, thereby improving the g 'ggg * * " P,y e ry g m .- .. _wg%%4 equity position of common stockholders. me On December 26,1961 a letter was sent to all common 46aane _ds - - -- ---
~
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(pges m_-.i -sm,L = - _r%.;
stockholders advising that 7.7% of all common dividend payments in 1961 were excludable from their taxable k jg A m4W ghC3 ;
E " 6 " b "% [ Q E m _ .. _ m income in computing their Federal income tax. While tlu. .s is an estimated percentage subject to review by the kw ygg--- wn<wPr%wmun;.w.w._s~gy9 N Td M
< wqgg;~ m Internal Revenue Service, the review will not be made s .w ggg.--a 9 5p. . . _ g.3 before stockholders are required to file their Federal : meem e sm e amww mewmeph
, income tax returrs for 1961. If such review should eventually result m a substantial change from the Com- {' {gg -
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, ' . . .A, m i . d . U .. A d .3i. C O a $ h N L :.i O 1 N .c. s :.. n J . i > U m W d A . M I 5 dD M U E A
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1 pany's estimate, common stockholders will be informed stock, $10 par value. Accordingly, common stockholders 1 cecordingly. now have three $10 par value shares of common stock for j In connection with the stock split (see following sec- each $25 par value share of common stock held before 1 tion) the Board of Directors has expressed its intention, the split, j subject to earnings and other factors which affect div- FINANCING Common stockholders of record on l idend policy, to declare a dividend on the new stock, June 13,1961 were offered the right to subscribe for epplicable to the first quarter of 1962, of 25 cents'a 896,470 additional shares of common stock in the ratio chare. If this action is taken, the first dividend in this of one share for each twenty then held at a subscription n emount will be paid on April 16,1962. price of $71 a share. This offering was well received and L ) STOCK SPLIT On October 18, 1961 the Board of the Company obtained about $62% million after under- ,
Directors voted to recommend to stockholders a 3-for 1 writing and corporate costs. The last previous offering ]
split of the common stock. The recommendation was of common stock, also on a one for twenty basis, was made in the expectation that with the resulting reduc- made in 1958.
tion in market price, the split would produce a broadened Additional financing was conducted in September l
- public interest in the stock, an increase in the number when we sold at competitive bidding $60 million of our l of stockholders, and a greater availability of shares for First and Refunding Mortgage Bonds, Series GG,4%% l purchase and sale. due 1993. i At a special meeting held on December 20,1961 the The proceeds from these two securities offerings, to-stockholders overwhelmingly approved the recommen. gether with internally generated funds (principally de-dation; 99.76% of the votes cast were recorded in favor preciation accruals and retained earnings), provided the of the action. The split was effected by amending the $228 million required to finance our construction pro-Company's Articles of Incorporation to change the gram.
25,000,000 authorized shares of common st'ock, $25 par In February the Company purchased $6,659,000 of the value, into 75,000,000 shares of common stock, $10 par 5%% Convertible Subordinated Debentures of Pacific value. The change in par value required a transfer from Gas Transmission Company. This investment, together carned surplus to stated capital of about $94 million. with the previous purchase of $9,945,000 of common The split became effective on December 29,1961. stock, brought our total investment in the securities of On January 19,1962 new certificates were mailed to that company to about $16% million.
common stockholders representing two additional shares At the year end the Company's total capitalization for each share previously held. The old certificates will amounted to $2,384 million, consisting of 50.1% bonds be treated as evidencing, and will automatically repre- and short term bank loans,14.7% preferred stock, and sent, the same number of shares of the new common 35.2% common stock equity.
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8 FlVE . YEARS IN BRIEF PACIFIC CAS AND ELECTFilC COMPANY
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J Electric revenues . ; . . . . . . . . . ..., .. { m.4.?g),$yi
.. $446,154,000 (5416,569,000 .$384,450,000 $351,284,000 1 3328 ,310,000 .j
- Gas revenues . . . . . . ; . . . . . . . . . . ; .V .a
- ".i:p. . . . C..< 246,432,000 t 228,276,000 196,356.000 '181,076,000 170,569,000
. Other opera ting revenues . . . . . . . . ;; . l2. ., %, yQ 3,122,000 ', , 3,043,000 : 2,618,000 ;; 2,418,000 2,365,000 M Miscellaneous income ~, . . . . . . .. . . 5.9. . MM.'^I:M2 1,694.000 ' F < 902.000 ' ' r 1,455,000 . S 866,000 ' ' 1,504,000 V9.KEMp.i, Total - h.;@.h4di'.MM2d,Q$ '
, $697,402,000 ESM8.790,000 h8584,879.000 . 8535,644.000 a $502.748,000 - Jj QMri.1@:N.Mm ?p+M * '* ~ ] h,qg g .Ju .qmw.p.g.d.JusM:c...z;.g,
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1@M;z. Diar 0smon or 1Ncoun%c;;.;&;myg;
,. . . _ p . . , ;
W ,,, , .s Wh@vages'and salaries .'#D!
y;, . S 83,244,000 p$.79,223,000. 8!.74,893,000; $ 68,317.000 bS'61,766,000 <%
i .b**.*h h b . 4, 4048,000 185,776,000 [4 ,64,919,000M N,MhM,% ,k hpIf4,227,000 M,% .] , -
.i.xWO@atural gas, purchased
'" " ~ ~ 7 Oi! and other fuel'.'..iq.s.
- i. .g p'1 4135,933,000g114590,0004 l,.
.UI[....7.M.T.0~,
. . ; . . c.:.y.g$*4),;.g, .:,@., A. 18,464,000 17,793,000 416,781,000 ', J15,683,000~.. [19,517.000 '
38,216,000 ['C 33.259,000 y 34,314.000 ' n 33,33
' * %)Other operating expesses .4..,n. ....% 7.~. W A M t
L. . Insurance, injuries arid ' damaged. etc.".<.1",! .QQ'i 5,700,000 yJ.F4,800,~000QC3,900,000 .44095,000d3,660,000., .
Depreciation and amortir.at. ion . . . , a. .l. J. . . . .~J.;.t lm. T
. 66,862,000 [, . 59,012,000 r ".55,863.000 e. - . 51, 309,000. ,,i 48,025,000 Taxes-current . ....... .... .. Ui. ;, '. . . .yf.",; 148,587,000 , .148.453,000 1125,098,000 J 118,501,000 110.765,000 Taxes-deferred . .f. 3 . . . . . . . . . , . ... r/.V. . a .n i,b."./.I 6,509,000 O, : 9,010,000 .E 12,923,000 a.c. ;.,9,803,000 ! .;10,000,000 B
f 37,755,000 1. T.'35,579,000.','.4 35,025,000..w$25,328',000 ; 26,017,000 _ ,;
1.;r $ ond interest an.d o. ther income" deductions C.D. . .D..n.,,
18,336,000 ~/+18,336,000 H8,336,000 y; 18,336,006 . .'.;18,336,000_ -
Dividends declared on preferred .stocli....-
. .c M i A A .,'
~ .
.i Dividends declared on'commhn stock.i" . 51,457,000 1,. ' Balance retained in the' business. . .c.s.. ' O ',7.
,. .t.'. d. '!.M.d. .:
. m 32,448,000 .p' 27,613.000 M 19.785,000 L24,072,000 ' ,'17.303.000 ::.46,616,00 ,
O** ,y' ? "> Total . tr.d $jd*f,M.",,h'f,QNDP $697.402,000 @ $648.790.000 "; $584.879,000 0$535,644,000 $ $502,748.000 -
@:"M NW,%.*ntWB?'W (% g,4.;;r%3,.,43.p ,g,:&,r; 3 ..,;q
- NUMasa or, SHARES Or COMM0?ff'"'lWO ST0cK OtmrrANDINGry, WWM3$y- r,tQ.tMNeplfffgMyg>dyr.-gsprqf 7e-p*,!.(
,,,,'.,$,'"/Nyerage forLth'e]Mr91 55,229,907 k i.0,ninEnd of yearn %h'fgMf,,P[M.NQQ}, Sh787,9,15g53,78],915g52,507,245]g5{224.823g i r,'J M 4":R,6 3
w.,h.H.%*W.:$ifMW4@JT.W_WiMt3% *M 56,477,325 QV7q3,787.915 4 g%,fd63,9 k%i?rNWW9 epC us.9,f//i.E.AaNIN08
, ~ -
y On_a..... sverage shares VEE ou. _SHAR.R
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OF,.C_OMM.0.M.S,_TOCKf.M*Mtstanding.
$1.52 ,%.481 e%. QQ$%,. 3.m. r .,..,e $1.23
. .~.+, %,n$128 ,,
- v. r, p;& y g..~p .,;m..%.
' S% On end.of. year shares outstanding .%D$.d.DM,1 .a G 1.36 % C M 1.23:
%%%_ . . ..s %. . < w %.v. %ey.m*so.p4. f . v,.4,h;Wl] 1.49ki@MM.4NdlWMW#,G.WGh ,G2 *1.25dANW1.14J.N c -
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%e MD.e 4, motNDS PER SHARE Orww.a<,g.g COM' M'ON W .* 2 wy y erg STOCK
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w&g.o wocw. m:ww?lorf stoch. y,;gsplit.q.se%m g:pkt yb ppgq y g@q.mk g&.3 p&ywhrg44 M,n.:A n:.p iter ewsne et!*ct.to.1961 ,
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TAXES AND FRANCHISE PAYMENTS .i i
PACIFIC GAS AND ELECTRIC COMPANY f,s.sw mm:mm m -~ m.> ,-S ,h.:n ~ 7-u a .-m . ~
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Loca taxes AND FRANCHISE PAYMENTS:
Ad valorem property taxes . . . .. ...... ... . . .... $ 70,393,000 $ 65,966,000 $ 4,427,000
, Franchise payments .. .. ........ .. . .. ... . ..... 4.157,000 3,746.000 411.000 j l Total . . . ... . . . .. ....... ....... 74,550,000 69,712.000, 4,838,000 9 i ,
,..- x. j STATE TMES: d< - _ . . ,MMb *.3 9 : f ~&: * % [.
- Ny VP .3 ]
Corporation franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,935,000 Deferred taxes on income . . . .......... . ........ ...... 932,000 $$6,582.000Jifl M,n ..y S1,339,000 : .,.. .*
407,000 353,000]A.n R$WS .Q:' h [g -
O, Unemployment insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
742.000h.GW; W000 827,000 . f.. V::85,000 . Mp ..* W l t jy'.V. . 4l
'/ Other . . ... ....... ......... .. .. ........... . 481,000 .,
'W460 4O21.000 : @d >
Total . . . . .. . .. . . . . .... 10,090,000 K 1 9,208,000 v 882.000.- .- t .G l0- l
- 0. o..c . .
j CITY AND STATE TnEs: U %' '*
- N#N'. + '
Sales and use . . .... . . ... . . . . .. ... 4,262,000 " # 3.506.000 ' 756,000 - ' "
F::cenn TAXES: <
Corporation income . . . . . . . . . ........ ........ . . .. . 68,400,000 J ' ' 74,050,000 '5,650.000 ,. <
Deferred taxes on income . .. .. . . ...... . ...... 5,577.000 [.g7,G71,000 *2.094,000, g,g m..
Unemployment insurance . ... .. ...... .. ........... . 243,000 r. W ' . "175,000 - 68,000 s.L - .
Old age benefits . . ... .. . . .... ...... .. .. ...... 2,712.000 3 2672,000 40,000 . ?, " - ,
Other . . . .. .. - 66.000
.. . .......... ........... ........... 152.000 } .. 86. _000-Total . . . .. .... ..... .. .. ..... ... 77.084,000 % ; 84,634,000 *7,550,000 . ' " '"'~- '
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CANADIAN TAIES 29.000 T' W:% fj y .. 'y h .'W* .. . .n.%. ."-. .' * 29,000 y: . heen . Awg op
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ToTn TAIES AND FaANeutsE PAYMENTS , . . . . . . . . . . . . . . $166.015,000 g $167,000,000 (4S*1.045,000 yq. g ;..,7; g.g
-@ L m ms% %.9 M N @ y:PM; CH ARGED To:
Income as taxes . ..... . . ..... .. ............ .. . . $155,096,000 El,$!MW
$ z.A.c.-;. M W 7"*[f$/M C $157,463.000. J$'2,3GT,000 J. . '.. . . . . . .
M 4g@3 Q *p'.M' W l Income as franchise payments . . ..... ... ............ 4,157,000 T 3,746,000 i 411,000 'e ._ wN - 2e
) Capital and other accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,762,000 F~D# .851,000 ;
5 ToTn TAKES AND FRANCHISE PAYMENTS. . . . .......
w
$166,015,000 6 $167,060,000 / $*1,045,000 " 911,000 ;;4Q' c,jy.g' v
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' Denotes decrease
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$ b y. m OPERATIONS d, AND ADMINISTRATION-
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hj?fyhy$% '7 : 7 ELECTFilC OPERATIONS ~ During July the Com-N:'M;,9$# Mj,M , :Dg I ; -]PQ%f pany connected its two-millionth electric customer. At
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. . m; p . f... g year ind the count reached 2,038,687, an increase of w w+q.m;ow.u.+, V ag:.,y V w );-~~c2w ;;,for the%s&L mk; p&y
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62,112 yean d ((e. 3F -
'Y% System electric output increased 8.6% over the pre-
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vious year, reaching a total of 31.1 billion kilowatt hours.
I * $/ fl.1 gifh For the third successive year precipitation was substan-yg~ o.. g. <., s. .if.,: ', ws9w =M...,.&4 tially below normal, which reduced output from our own q ;.(9e.
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hydro-electric generating plants and from those of other
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'. M .V/ i; 3,d. N # N ff g^ [i.h ciency was made up by increased output from our steam-g_F , . ..,;g.p:S Ed I electric generating plants which produced 22.2 billion nym.ynS.p%' .d. ., - ,, . .
n6'.[ M -
T$ $ h.n
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m.@ kilowatt-hours or 71% of the total. This was approx- l
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. he%.4 ; w%g =a e MS?% Nbq%y,,
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- ago. Company hydro output' amounted to 7.4 billion
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MY@ kilowatt hours or 24% of the total. The remaining 1.5 j
, " #iM billion kilowatt hours, or 5%, was obtained from other j m@yk,Wbi.*W
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The system peak dimand of 5,414,700 kilowatts 4- 4 ~
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capacity of the largest genera'.ing unit on our system. ;
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ice and to provide adequate margins of safety, it is nec-
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- l. essary to schedule the completion of new units at least m; 7 m T. 7{Dc"^
. A.
7 yg
{; ..*P5AK 7 ; y., g
\ -
" r. ,
three years ahead. The following tabulation sets forth DNY LECTRIC k MMA 6000E the Company's current construction program:
p-
- w. mn.w.l.
p%cw; emm@gm. w e w,:o *. w.4 -
Of m E
Estimated Estimated QN:' 4, g:.q ; $l y
com letion Ca acity .. g.g.gA$:.$5((R*
d r Snnt-EtzcTRIc PLANTS: ate W) - - u ~A A 5000 CI W
- r. wam,., ,,pw.w.:.:,.. :y ,e.
Morro Bay Unit 3 . . . . . . . . . 1962 . 330,000 [,, g.: (A.$p M ' " ' ' " 5fhjfQ , E[
l Humboldt Bay Unit 3 < M'+T % $$iE9N 3 <. 7 Di
- r. (Nuclear) . . . . . . . . . . . . . 1962 60,000 fgp?h MPM Dy m-v a= =-me- h u _.- _. .-g
[Mj(GgA.:.
- .M %
. "; O ..
gwww ggg -
's. Geysers Unit 2 12,500 tw4.merw.m.mm wAM (Geothermal) . . . . . . . . . . . 1963 Morro Bay Unit 4 . . . . . . . . . 1963 330,000 y,"}^j'QGf'.%,:.-~{S[g..'%.:{p@..
.nuu.E . ide4Ay?& w g,
.,,'-Mgr,pftEn, %^
e,9 m .w m,A., m? u' -: g,. M.. a., j.
er :e. n :. ;
Contra Costa Unit 6 . . . . . . . 1964 330,000 ' M/ . h .
Contra Costa Unit 7 . . . . . . . 1964 330,000 I, WTdMMN tl' f' '
I Potrero Unit 3 . . . . . ., . . . . 1965 p %!Wh. A %.,$M....~ # :. :
165,000
.9 2 , ;./. ? y>W W'...%a[
- n. -. 7'5NA 4 .. .s.. V. w;'y%x ,. 4 e.
Bodega Bay Atomic Park 'wm.
3'W =;en mww~ '.*/'WD N .. . j j w e T R!W Sa 2000 ;-
(Nuclear) . . . . . . . . . . . . . . 1965 325.000 6 .
VN M2WA%
R - %.K4Rby ' ;
Total 1,882,500
- W D:$ :ht.M.p ?MW6%s MM 9_;M, M*&
!*2QW l
@tW W f f8 Elf g.w;p_ -
.,--s.-
37]
Hypno-EtscTarc PLANTS: NM T,;, ngp "w. *!.C
'r 2 - , .
..a.g g g, .
.n. ,.
- s. 4 m*
Hw m*
- g s.
Kings River. . . . . . . . . . . . . . . 1982 42,000. R" ew NM ~^ -
q'E . L 7.,7. p,,E.
mr. t . . .
MNdNg ,ggg
! New DeSabla* . . . . . . . . . . . . 1962 18,500- U/r+'$'s o s
.c%. ".C ! -
P- l ,. w . :
s"e,U -
gP l New Stanislaus* . . . . . .. . . . . . 1962 82,000 ' . 'M " MN i '
gw sue
'w_ W :ys e rs t e n e +p*c .m, ,
Pit No. 6 . . . . . . . . . . . . . . . . . 1965 69,000 qp Q , , , 7 n , ,
(
Y< Pit Nuf 7 . . . . . . . . . . . . . . . . . 1965 98,000 l l J r [ McC?oud Pit . . . . . ; . . . . . . . . 1965 156,000 ' M 'r k . - .
ITotal 465,500 $?lll
< l j.
l' ll 3
l l'
i l l ll j
r- l..l
< o., ii,
- Will replace existing plant of lener capacity. T$:.CE lll l lY '
l l -.w f 17 l 4
.i 4- f 1 *,y 1
.q
- - ._ = --~ ,e - ~ = = n - ,. - - - - - ~ ~ - - - - :~ u - w
n , .
, ,e;;- p i
...-m FM:$'a c u. ,.
v . 7 9. ,..:. Q.~...-.t h , $ . y p g._.t,9 q q h h . 4 .c 7..r? um-g (,,;. ,.g /. ~ s i y.,L -
. f ,.
- q n ,
~~
.s
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. t 1 WNawm;m;y; n., GAS OPEFIATIONS For the second successive year m .,. .
..,t 7g
?n_t @AY0i m m(A..t?. Ci P ASE -.
ak relatively normal temperatures prevaihd m our service
~~g gQgyEggj J g QQ area which produced the expected volume of gas sales j wo m ww.ew,<
p;wegAe 4N enM*7 au,.,su M for space heating associated with a " normal" year. Sales
, Y<w$w.,~s.We,qW
, tn y . a . w. ~ y.s. .ma.w.,y. in 3. ,% x:.;
~ .. .. ,, ~ .
-a,., .m,.,. ,. 7.a y.e.,w,w.n son -,
. . , yr to customers were over 387 billion cubic feet, or 4.6%
Pk. Y[ [%..h[NEW n greater than those in the previoua year. #
Q4 f
- M
~ a ___ =gg ' - -
i1 l re We connected 54,507 new gas cuetomers during the h$
45tMfAM?$57 h,m cdd [
- v,:~.m:: .a.ungen b6 W,wium e.psr&wam p
=^
y ie
- 'W*rQ$
b
'. %p p m year, bringing the total at year-end to 1,745,030.
In addition to the gas delivered to our customers, almost 170 billion cubic feet was used as fuel in our
]! i
..4 ...y. ~,x ~.r._, qu.9.g~t-r%.es. %9eae e%.ew'"!1 sg steam-electric generating plants. This figure far ex-
': + 29 3.c 3.fdqq"t,c*;n.
s a.. . q%gs:~,c.Q.w&arym.yg
~
.., . c ceeded any '@gg steam plant use previously experienced.
w,is y:,
.. m N %r. %.m ;.c wl2 R * Min Y , . 2 Initial deliveries of Canadian gas through the facilities yO'wdpA5 WE u j yg;p @% g% d -_ W.5 *M ,
- < of the Alberta Cdifornia project, discussed elsewhere in
- @.M W M k I f this report, were received in December of 1961. This new
.M. , A +p5.ii.? w ..
I y% source of supply and the full operation of the Mcdonald n:
Tm. -~ w.Q%%- .. -v. a, .. .". .x.. n 4
-m Island storage reservoir will provide us with much \
~%y W. f I
.; W r..
w . c . .. ~ . .. :u.
greater flexibility in the operation of our gas system. <
j r - , c ,, 7, "
The McDona!d Island storage reservoir will become
([ N .. -
. "". 7. ~
3,".'. f ^ M 2o.'i d M h operative in 1962, with ett initial working storage of 30 n l' l; v.g
.. 4 (47... s4s 4 r.tr.45stsr s i .
g j l
- A. billion cubk feet. When fully developed, withdrawals of
, l y
$,!.(ds ' entp vedjengt ma ' qwAAq up to 4Q railNoa cubic feet a day can be made to serve
,j h dM l ll.
72 : ' s hagg undergone.suhs - - e
'% h
~ eA 1ei ~
na he gasis 19Et marke.
l lll i w l
- l. . I.ll.
l
!.. WM pe$k demands. This vrl. provide an additional margin
'sI ic addities te the' source l Of ' safety to insure f.ontinuity of service for our firm gas up ~;+ .:e ,m --
g ll , gg m
18 -! -
y "Q l
1 G1 w
M.C L;, J .M:Idrid11.didsOMi$.$dN5h ii $dh3h bbdIbi5 bbild.n$btl
, I, a
- 1 1
]
i .
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s l
1 1
1 d
- l 9
4 BUSINESS DEVELOPMENT A well coordinated R. g e r ,. w..,a. g. gL .c p... q dmEk6fsfs,. pL.eg ae - ,
and aggressive sales program aided materially in pro. NATURAt. CAS SENDOUT1961,8yp10NTM,3 . ,3 70 y p.7,w . 4.... ,,
g ducing a record volume of new business connections 'I. 4.g. h ! , / D. ;,.yly, c .. )..m.: . 9 x
'.;. .},.)
during the year. . u .. , S EO . -
5,., u : . ;e
, . . r.w wa.w.t. :.e..,.. , o
+ + n e ev g W5 n. .k. aw,.g;c z y $: 2,.t,&:n a v, ;;p.r,y..g,p
- egM$r y .x. .u g
,, . v m s .ee:. 6' c 4 a y, CUSTOMERS b hhh$kbhMh bi MWt by Departments and Increase During Year -<
R4/.WW.;c@n+M.yy$y.7gg/s jp;IXn .f
,.g , g. ;
u.s m- guy me,_ q ,
3*
increase ,W '.~2 W '* 7.***JJ ..%.
ry ' . M9
' ' 4..e d
.,s~.h' i- W, Whv*q *T, j *~'s D ,
December 31 dun,ng
. ..",~~ vs. s. .. t ,.a y.p,.e't&w
. 4 M ,
,;eu;rg., s,t zug.pg.. o e M y.;- .l 1961 1960 nei g;g.3ee:a 3 m' ,,'-s e - 0, g
iG. w & s: D L
p.4 .... ,.U5. , e e.,y . :u.f. y u :Q4 ) y P %,, + ycucicW . . 5 ; - O **.W Z 'a-@ d UNE @M5hbr t o h,C pNN i E!ectric Department . 2,038,687 1,976,575 62,112 E. M . p t.,, M @k ?:; q rf L'9.#pqs"" y ga YN* ,3j eX,w w ..e.
u, -
u v ..$ 'O I Gas Department . . . . 1,745,030 1,690,523 54,507 eWutw W2hs.pP%We;@ifMMkd j % pggl, v> p,d.s.p@fd ..
N4 A-je.d i4;.1 l MAM . _ ...m.
%[ ' '
.f ._
,_, Q w .1 j
]
Water Department . . . 25,633 24,928 "
705 Tg ~ ~ j 4 t.., 4 wp Nr' ' = C; -l 6 ., , y., 9tud, 4 p4 rq Steam Sales NS Ai W M M.U 4 n. P M h1 M 0 1 Department . . . . . . 600 599 1 )
Total . . . . . . . 3,809,950 3,692,625 117,325 ,
e 4 se !*e-l l
- l 19 i
. ' 4'A N '
am y s e, %. .& v. j ,w j , ,, : w ,,. , _ _ . , , , , . . ...,___,__,n_,_,_,_,_______ji
...w m....
- ~ _..a. m .. M R.. .c..G lo. W 8. ~i,."i.#-d< m~An D
N1 %..,..s... .... n. ' %, :m.: , N, .
.. ~ . n ' .lu:, n.:
~
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s..... t. _
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The Company's promotional program on Medallion electric homes and Blue Star gas homes was influential [Q,QTF% D ,# ', g' D Of. g . ' hM2N.7, 4 ] g 7' {$ [U. '
I in maintaining appliance sales at a level well above the
.SIlf
..~. .
m +4 s
". M r O"..Iw. 45 ,+ - - <
i m > , e .,
national average. For example, sales of electric ranges MCm.?: :,' ;*f w.~I. ? , ,? . .:7/ .~ ., .. , .3 l
,p ,j i
- t. .w ; .s ,. . ,
j and dishwashers exceeded those of 1960 by 15% and F O rf.J a c.y .g p.h 44nf. ,
22%' respectively. Our sales efforts received national Id'jpha.u .,g v hu.. e n ' 2' ,, 7. O Wng.)g,n%. h}Mg.$.. % yst WWH w.k:
@@p:gr. 4 b..ie i N 6:$ %gC r
-f!'
recognition when the Company was presented with;:;pg , ,
the , .c y$Mwn>g,f+gd,h WA * %.s4'J&.jn
...:g Md g 9 W ff,, %,ed g,4 d ,g. .M i,)
Edison Electric Institute Class A Residential Sales Award for the second time m three years in competition gg%gga o ~, ,...._.s.
.g,g
.. pg K.g, . .s.pp, ,
g,94.g ;,p/
g..j L. .,_, ; . .y.,
. .. 4. f,g M. 4
,, r .2,, p . .
,., ..t .I with utility companies throughout the United States. *. ,,- "-- Os *! '.
FM*e 1 '
- i Through its area development department the Com- +3 y / ol
~
[.:7.w .
, , 4 ~.,r
' .sw2 4
...w.
wv{. f
.Jg e. }c?! s 9}*.
g ;{ gg~.., A- a.f ,f pany contm, ued to promote, m, cooperation with other .m. A ym , r..mw .a h ~#'. Ay% ~ ., ':
agencies, the location of industrial plants within its p/@ ' .Mf.p*,'y,;'/
4:p d f '
- 4. Q([
,$ 'a 6
N?*3 service territory. During the year commitments were .j hi.t.hhiM -
9.,
\, ,' _I p g. m m e . ': a f" made by various industries for the expenditure of $250 gggg j, 4 p /,'., c4v milh,on for over 300 new plants and expansions of 900 n.+tu,a{.~mn pg ygg-gg: , pg' s fi
- .t yg
,e
#D(+g
!?Strie"r6* M{gt!3' i ; M
;Q m p ' M " "
. . , o exisung plants.
Lk. %
'g 4 <
w, The pattern of continually increasing lighting levels tyH A.4 r . , 4-flb
),.dr .6, 1, 4 #
- s. M ,k' W: y .
, . w~~,e.g. 7 ..u, . . . . .
m "g .m._
.y u
1 ., . a.? .; to satisfy the need for increased office production, greater ry.;f.Agpq Li.y u % ey y],,. , g.:ggse, q f 4.. p
. G,Whetx.r W4W e, c ,
r x store sales, higher school classroom efficiency, and im- Mwnft.rgpi.ymm l <H Am:Rr .e ca.%T vm @w@iWWhea W ,o .4 proved employee morale and comfort, has created the sWA.es.pvwwmkus3gw u
- J < x WWW WMm sgg N c.4 necessity for integrating the air conditioning system with the lightm, g m.stallation. Ths rap.d i acceptance of k3h (CJMer4k h h,4 pf.{ g$%gy.g/.gp$qy.:4, d e, V g.G fy a w. rlcA
, ,4 W
. Ap p hhL %
add w these two compatible loads mdicates a great potential igypg.gqq%ig'wggged WW N W" Q"- :,r M
- -""o.wfDr5-- 3, ifg- - .:9,qmy
.3 ~
y ;..g 4 9,3.g - 20 \ I 1 s a L
- :.% M w :J b.: a c i d . 5L N n N b $.$5iS];AYS.$$$ d.hdi.:Y$EN$Eis . i iO ,
\
l l l l of new business for the Company. such time as the Company's rates were fixed on that The concept of all year comfort through winter heat- basis. After hearings on the r~ natter, the Commission ing and summer cooling by means of one unit is gaining decided on September 20 that the Company's rates and general acceptance. The Company is actively promoting the resulting rate of return for its Electric Department the sale of gas and electricity for this purpose, were not unreasonable on the " flow through" accounting j Average annual use of electricity by our residential basis. As mentioned above, rates for the Cornpany's gas customers reached 3,664 kilowatt hours in 1961, an in- service had previously been fixed on that basis. Accord- I
,' -' crease of 213 kilowatt hours over the previous year. The ingly, the Commission modified the order to make it average use per customer has about doubled in the last inapplicable to the Company.
twelve years. In April 1955 and on three occasions thereafter in RATE MATTERS Effective April 16,1961 the Cali- 1958,1959 and 1960 El Paso Natural Gas Company fornia Public Utilities Commission authorized the Com- increased the price of gas sold to the Company. Under pany to increase its rates for firm gas service to produce authorizations of the California Public Utilities Com-an additional annual revenue of about $4,819,000 on the mission the Company placed four gas rate increases in basis of estimated sales for 1961. The rate of return effect which offset in part the higher price of gas. In allowed on the Company's investment in gas facilities 1961 all of the El Paso increases were consolidated into . was 6.25% and was computed on the basis of the use of one case on which hearings before the Federal Power accelerated depreciation for tax purposes with the result- Commission are continuing into 1962. ing tax savings " flowing through" to net income. EMPLOYEES The continuous strengthening of a As previously reported to stockholders, the Commis- competent and creative work force is one of our prime
- sion on March 21 issued an order which purported to objectives. Recruiting practices, management develop-require the Company to charge income and credit de- ment programs, organizational realignments and on the-preciation reserve accounts with amounts equal to the job training are receiving new emphasis each year.
tax differentials, or savings, resulting from the use of Employees are encouraged to submit time and money
- accelerated depreciation for Federal income taxes, until saving ideas through our Employee Suggestion Plan 21 1
J d:3 s......,_.._,_. . . _ _ . . _ _ _ _________.________A___ _ d
c
~.
. L . :, ~ 1. . ' r;;.w.. . '
l .s. ;~~ ;&$ &~;[f YNr~O hh , ~ ".si;m (~ *~~s.;
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~
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^
4 and suitable cash awards are given for all suggestions extends into every state and many foreign countries, the adopted. Company has long encouraged by various means local At the end of 1961 we had 18,383 employees, or only ownership of its stock. The success of this effort is evi-6% more than were employed ten years ago. During denced by the fact that about two-thirds of our stock-this same decade electric generating capacity has more holders have . California addresses. than doubled; over 9,000 miles of gas lines have been Through the continued operation of the Savings Fund added, and 1,200,000 new customers have been con- Plan our employees have acquired a significant amount , nected. While the number of employees has remained of the Company's common stock. Over 600,000 shares .l.) relatively static, the character of the work force has (after giving effect to the stock split) have been pur-changed markedly. The number of professional, sub- chased by the Trustee for the account of nearly 12,000 professional, and technical specialists has increased sub- employees since the Plan's inception in April of 1959. stantially and the unskilled and semiskilled jobs have As we have repeatedly pointed out in previous annual declined in number. The signs are unmistakable that reports, the number of stockholders of record represents this trend will continue. only a fraction of those who have a beneficial financial The Company will continue to give closest attention interest in the Company. This is so because of the large to providing an environment in which each employee holdings of our securities by institutional investors. For may develop his full potential to assure continuity of example, over 800 insurance companies of all types have an efficient service organization and provide job interest a present investment in the bonds, preferred and com-and incentive for the individual. mon stocks of the Company of about $650 million, or STOCK OWNERSHIP At the close of 1961 PG&E about one-quarter of all the capital committed to our was owned by 231,545 individual and institutional in- business. Thus indirectly tens of millions of policy vestors, a gain of 6,888 for the year. Of the total,83,183 holders of these insurance companies have a financial were preferred and 148,362 common stockholders. interest in the Company. It is therefore a mistake to The Company continues to be the most widely owned refer to utilities, such as PG&E, as privately owned for gas and electric utility in the country. While ownership they are truly publicly owned corporations. q1 3 V
. .I
' ,t
- . . n q
. yphLda$d22I:dbakisN.NibDMIIbkIdNdhEld5d5Nbdi$$ !$$$$.NbhEb1 l
l? - ,
-]
1 I l j $
+
i l DISTRIBUTION OF STOCK OWNERSHIP DIRECTORS AND OFFICERS , Mr. O. R. Doerr, . for many years Vice-President in Charge of Sales, retired j d by Class of Investor, December 31,1961 ' on December 31,1961, after a distinguished career with the Company extending over 40 years. For a' period of Number Number of Stock. of Shores six months preceding his retirement, Mr. Doerr served holders Owned as V. ice President and Assistant to the General Manager. l Women stockholders . . . . . . . . . . . 93,032 17,980,335 Mr. R. W. Joyce was elected to the new position of - l 63,028 10,886,338 Vice President in Charge of Commercial Operations,
- 3. ;( g) Joint and other tenancies. . . . . . . effective July 1,1961. In this capacity Mr. Joyce will l Men stockholders . . . . . . . . . . . . . 51,469 11,101,478 .t
- be responsible for all commercial and sales operations of j Trustees, guardians and other the Company. Prior to his election Mr. Joyce had been ]
fiduciaries . . . . . . . . ....... 15,332 3,539,049 manager of the Company's Commercial Department. l 1 Nominees . . . . . . . . . . . . . . . . . . . . 2,579 13,713,790 There were no changes in the membership of the Board of Directors during the year. Corporations, partnerships and ) proprietorships . . . . . . . . . . . . 2,093 2,253,959 Charitable and fraternal organizations and foundations. 1,348 504,816 Banks, investment companies and security dealers . . . . . . . . . . . . . 1,019 4,362,719 STOCK MANSFER AGENCES
; Insurance companies . . . . . . . . . . 652 5,469,506 OrrIcm or Taz COMPANY (E. F. Hall. Transfer Agent),
. Religious institutions . . . . . . . . . . 534 181,976 San Francisco I
I BANKERS Tucs7 COMPANY, New York Educational institutions . . . . . . . 429 475,675 REGISTRARS OF STOCK Labor organizations . . . . . . . . . . . 30 17,674 WEI.t.s FARGo BANx, San Francisco Total . . . . . . . . . . . . . . . . 231,54 5 70,487,315 CnEMicAI. BANK.New YORK TavsT COMPANY, New York - O = ,
' O.,e.,,,,m.e,-* .-mi,,... %mb.,b. _,,,,_.,____.,_;__.,,__. __,
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M. :./ .. m@:7-f.. M. 7.. _~( W. ELECTRIC OPERATIONS ~ CENERAL CONSTRUCTION
.i
- 1. W. Collina, Assistant to Vice-President in Charge of MAN ACERS:
- Electric Operations '.
o ,, . Joe Pittz, Jr.. Civil and Hydro Construction
' MANAGERS: -. .. ;y , - C. H. Sedaw, Station Cor.rtruction
,, . p. a, .3.r p* J. H. Martin, Power Contro! " ;,. . .. _w. g...( .:,g.,';.;.y aGas , . construction
.. K. M. Sco6" *eld. " *
- Line Con
, A M. H. Chandler, '
. %a V. F Estcourt, Steam Generatw, n
~
, s, y k y' ., ; . . c. i;. " .J. N. Spaulding, Water Systems
- 3.g ;g;%,g' 7, R !;?,f, ,4;.- R. B. Thompson, Field ORice Operations and Personnel
. O F: s ' V. Hugo Irona, Genera! Construction Services . .
.
- n . ~ e. <:. ' b ~'- ~^ * " ' ~ *'N' *W* **" 6. & ^
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< H.' R. . D.a. n. iel.s,
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~ < - yd_ ~ - ro. ..G.ene.ra..t. ion M 'AW"q:;*'~~^W=~m',p"4+.- COMMERCIAL O -
. .: .R F Stuart,Substatto.nsa"-ar. met.'.re~e. .wsm.YAMANAGERS: ?#'# WM--w'wa W'mW"t' $ w'%
~- - - -
., 9. ,.w. r. +~.gm.,, -~
. ~
TC. R' Machen, Transms,ssion and Distribution c# r
. W N 'wz% T y,0._Beardsley,
+.Wtz1% t System Protecti$~W:,WJIT;W:TW. 1.MY.J. S. C, Ross, Residentia! Sales .R. *
- bL.Brinton,
' V. _ O b Wi* ' U % A' C s
. .!
- 1l'. .). i . . ' , '
' ra .
* ' , J.. QC ~
- f'rM? 6.M ?R. L Mendes, Market Research andSales Control'
, - . 4 A CAS OPERATIONS ' ' .t.w:s:
p,~ MANAccRs: 7,. .?,
;.' ' ,:.:g;[.x*h 'J. S. Walsh, Area Development - '. ~;
^
J F .G. Rothganger CommercialIndustrialand Y',. * ..K . '*i?^ l'?"Y ? AgriculturalSales ~" .
' ' ^ ,
? R. D. Smith, Gas System Design * ' 'VY,. . x %. s,p - ; -
3 -E M. A. Richford, Gas Utilization < Q MlM }'4;A F TAX DEPARTMENT N, N- [ R. T. Peterron, Gas Control '
' ~ '- a '
Francis J. Carr, Manager
~
' ~
K. B. Anderson. Pipe Line Operations e E. F. Sibley, Gas Distribution LAW DEPARTMENT l T .,- SENIOR ATTORNEYS: .
~
i S. A. Haavik Director Natural Gas Production William B. Kuder : John C. Morrissey J. J. Pugh, Director Gas System Planning . .' '
- William E. Johns ' . Frederick W. Mielke. Jr.
* . Richard A.Raftery ' ' Malcolm H. Furbush .
, v y,r ', , *.y* ~w,- ENGINEERING . s a,."w' ,y'a.g ~ - rwe t.
4 , o .~ a4.s . -C.C.Whelchel. Chief MechanicalEngineer+ w..'"<...'r'.%~ 3~^p~d i Ww;;Malcolm Charles A.MacKillo T, Van Deuse' '+- n i?#l > John A.WSproul
" ;,.^sA y n, q: er
- p:g - s. .. .; J. D. worthm.gton,~ Chs*e/ Ca'vs't Eng'n"eer"g#
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Y,, .W.R. John.so.n,Chsef. Electric. ... , Generation and.g* Ww W +.W,.a.m. CLAIMS A.ND SAFETY DEPARTMENT
- ,- d '% n w um~ ~,. '~wa ~ ~ ~ ~~W
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% V' & .y* "n.. E.'.e, 4 $ .. .. T.r.a.nsmissio.n s A.BettersworthlCh
- A.~ Thoma.
e %L~k
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Elec$ic - r Distribution;
.>* ***.-V 4L4. ",(Q )
s".97# . . . S f ' . ' 4 Engineer e 'pM AM, m'e, c.M.>e, eu F, U. Naytor,a Afanager M>. -:>4.:r-c*
- - - ; ';;m ;
E. V. Noe, Chs. e f Engineering Services ,7,,,.
,4 .;.,,; ; .<'.. PERSONNEL' DEPARTMENT 4.13t < $ , - .
l William O. Cheney, Chief Engineering Research , ~ - . MAN AGERS: M~ *
' W. M. Pickslay. Chief Computer Application'Engi.neer G ?A. J. Noia. Person'nelRelations' ' ~.~ ~ ^ ' ~ ~
EXECUTIVE ENGINEER - t <*... ' ~s
^
V. J. Thompson, Industrial Relations , .
, M AN AGERS : , . .j AUTOMOTIVE DEPARTMENT [ , ,
C. R. Stanley, Manager s
- g. .'.. .
'., , EmilJ. Lage, Valuation Departmint y, ,*'* .:. . , -
- S. B. Barton, Land Department ,.m,.
.w.,..,. ., ,,._
, L.T. f ' i"b DIRECTOR OF INVESTIGATIONS / ' .,. ,y 1 John F. Roberts, Rate Departmcnt ^ '
~? ' ~ R. E. Lawrance . - -
N. H. Neel, Gas Purchase Department'
. .,. y 3 ., , , .;. PURCHASING AND STORES DEPARTMENT - .
..".;.e'N.d .wW Y.s JI"'N $P. . - ...n.- F. E. Baxter,3fanager ;'e
- y. ;s-.q n - -.' ,' COMPTROLLER $95 m
, , ~. ,,...w. .n. . = . . . .;- . ,
R. N. Dretman, A ..
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. .pa, w.c., w.e e./ m ADVERTISING AND PUBLICITY DEPART.M.ENT
,., . c c ral Auditor .j ,. 4 y,.#,y
~ . .r. C.wy , :
+ . * .
s.hs,CE.1d.5% s< John Brass, Jr., Auditor c'ounts of Divisii$;Ac'% w , .se e.g.1.po s.A. J McCollum
- r. , .
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, M. llM,.;, Y, .
an .. ,, . A , , a . . . , . . . + phs :, 7Q3[. . Richard B. Luce. , Auditor of Phini Accosnts ,QM.!m)l.g$;.:p. DEPARTMENT W FLOCEDURES . - ... AND ORGANIZATION ..
- w g. ;r:.n:::- .F. P..Lallement ~ Manager olinternal Auditing y,i:,QpQ.;J.R. Kleespies.hianager : sagkRfMM,K..t Q:.C m...'.L.c &;;.1 % 47 tz.:b.::k.1;n.;au.a.a ' e,w:.s s;;< :', ; m:::L :L= %.. m gn n.4in.xr.6. h + ..& w r .>.: % . O w k ~ow*w.s~c ,w..1w:
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. ;;J ' om Nac, ; &CowATz: F. Y. Kraftrysvilleg.. <Ma M. ~-,a . 'ebe, ~ ns. e, S.a.hcm.na.,s A.. . p. m.:. ' . m..r ~ 2..r
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~
;L SAN FRANersco:.H. A. Lee, San Francisco ,Alg: . .~.. .. / : .. in 5 tec.s. :nM..r.;..: (.*. . reDa SABLA: K. C. Porte'r, Chico, '. S. v; W.T C:n m,- l.gD. Sw,AN c JOAQUIN : .V. C. Redman, Fresno : W .;
._. , W DauM; Walter D. Skinner,. Auburn ~. %, AuwM r.
f .gm . .M.e~ % M; e . 3..?.n C.d,.q W. .6d.Q g[HL'MacLDT:JIa'rold F. S,.w+ dew.%.7, ,, EAST BAY: *yCarr' Oakland ( $',Dy,g.,@@, , pMS16s j SAN Joss:. RH. Sinith, L'J2Red Brundige, Bluff .,,* '? San Jose . N" r* T. P.Jenkms Eurekn . A.Q g.yyw;.yy,;(StocxToN:,
< NoRTn BAY: E. S. Day, San Rafael '.h $
WG9.W:ttc % George
' edaWiWGQt LcWor'ks,Stockt t
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l REVENUES AND SALES ELECTRIC AND GAS DEPARTMENTS BY CLASSES OF SERVICE l Increase ELECTRIC DEPARTMENT 19 61 1960 Amount Per Cent RDTNUES Residential . .. ..... . ...... .. ..., $ 153,581,465 $ 143,040,783 $ 10,540,732 7.4% Small Light and Power . . . . . . . . . . . . . . . . . . . 75,614,479 73.026,487 2,587.992 3.5 Large Light and Power . . . . . . . .. .. .... 132,510,526 122,703,879 9,806,647 8.0 l Agricultural Power . . . . . . . . . . . . . . . . . . . . . . 52,752,447 49,719.442 3,033,005 6.1 Public Street and Highway Lighting . . . .... 7,048,848 6,109,633 939,215 15.4 Other Electric Utilities . . . . . . . . . . . . . . . . . 17,675,026 15,410,470 2,264,556 14.7 . i Miscellaneous . . . ...................... 6.971.091 6,558,443 412.648 6.3 l l
, Totn . . . . . . . . . .. . . .... S 446.153.882 $ 416.569,087
$ 29.584,795 7.1% l l
SALES-Kilowatt Hours Residential . . . . .... 6.061,015,931 5.518,829,157 542.186,774 9.8% Small Light and Power . . . ... 2,344,502.510 2.263.707,341 80,795,169 3.6 l Large Light and Power . . . . .. . ... 10,582,805,027 9,872,429,101 710.375,926 7.2 l Agricultural Power . . . . . . . . . . . . . . . . . . . . 4,016,131,802 3,737.255,434 278,876.368 7.5 j Public Street and Highway Lighting . . . . . . . 200,810.872 173,077,939 27,732,933 16.0 p Other Electric Utilities . .. . .......... . 2.562.591,708 2.193.993,740 368,597.968 16.8 i , ..' / Total Sales to C'ustomers . . . . . . . . . . . 25,767.857.650 23.759,292.712 2.008.565,138 8.5 j Delivered for the Account of Others . . . . . . . . . . 615.587.572 443.562.903 172.024.669 38.8 TOTE .. .. ........ ....... 26.383.445.422 24.202.855.615 2.160 589.807 9.0% GAS DEPARTMENT ROTNUES Residential . ..... ............. $ 135,407,029 $ 123,121.127 $ 12,285,902 10.0 % Commercial . . .... . . . ........ . 33,504,964 30,743,393 2,761,571 9.0 Industrial . . ... .. ... ... ... .... .. 74,454,750 71,461,642 2,993,108 4.2 Other Gas Utilities . ... . .. . .. . 2.584.862 2,416,906 167,956 6.9 Miscellaneous . . .. . .. ........ 480.521 533,189
- 52.668 ' 9.9 l
TOTAL. .. . . . .. . .. . .... $ 246.432,126 $ 228.276.257 5 18,155.869 8.0% l l l l SALES-Thousands of Cubic Feet Residential . . . . .. ... . . 164,994.923 154,557,868 10.437,055 6.8% Commercial . . . . .. .. .. ........ .... 49,349,103 46,549,797 2,799,306 6.0 Industrial . . . .. . . ......... 168,137,418 164,458.032 3,679,386 2.2
, Other Gas Utilities . . . .. .... ... 5.009.327 4.845.829 163,498 3.4 Total Sales to Customers . 387,490,771 370,411,526 17,079,245 4.6
';- Company Use (Steam. electric plants, etc.), 169.831.307 139.694.223 30,137,084 21.6 i Toi'AL , . . .. . . . . 557.322.078 510,105.749 47.216.329 9.3%
' Denotes decrease 25 1
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. . 4274',c." Q PACIFIC GAS AND ELECTRIC COMPANY
[c f M@... ~. * .m ed$ m.,
,-[. .M,9.v.N[+NFOR
. .,+ THE.w:
q Lx;C YEARS ENDED DECEMBEFf31.1981 A"ND
%ur. W m ?'b. ~
q v.w.w n;>.w ;.w w jggj 1,960.' h, .s q gi$i"
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wn%.aww,%;+ w,.y e. . w BA1.ANcz wm, JANUARY eev.,a w gw g m :v y M-M W YW ? IOnt.'!WUO.Mhfri*.iW.T.W.'.w't:4%w." $207,005,817 t'-l$178,146,1303.$. Ww ~ww - R 102,241,100 %,, 92
-wG.4,WW.;.:.,uNet,c.NCOME U+mCMAirdn{ Wimts.Ni4 4.%:,.6.m.,s,.w. u;a . .: .564 I -
4 : .%, M c, .l..s m.e. . . . . . . _ . ,
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e ut.4G sales 358,287 h p P5887 077 ~ ' 9@Wd ir K-;9& .% r'Ne't gain',on exchangei arid' ' of properties kDWM,I ,fMq% . *
, @l?O%d;49 2.
p .y 7;;.EPurchase . net discount and discount expense on bonds'readquired applicable thereto J . , (. .jf.%.dril'unknEordied
. . . , .". . 455,815; 7 ' ;,-.h 1.399.963
- 4. _ , r: .v':h, ., .J. .'.h. . .;,..: h. . n a.
- d.'.c;. 7 n DEDUCTIONS Ornra TnAn DIVIDENDS:
m y 6T.otal "..W;p.
. . . .if,'.
. ,. .V..VN. . r.._ i.~.< M. . ~. . '. .'.'. .... ! . . 310,061,019 i- 271.997,917 7 Q' 3 N'p';3",@
, , { a . +
g ,.y *
- m . ~ Transfer to capital stock account in connection with n' ' , '
three for.one stock split . . . . . . . .*. . . '". . .' . . .T.".'. . . . . . . . . . . .
- " ' 'f '
^
93,502,048
; Other-net ; . *. . . . . . ip. ;L . grG ' ;. ':g . . . . . . : .c. P. . J. . . . . . . . . . .
. 6,486* '40,252
..z.;.
_ Total . . . . : . . . . . . . . ' . . h . . . . . . . . '. . . . . . . . . . . . .. 93,495,562 40.252
,. .. . . . K,:. , M Remainder . , , ~. id, /Z . . L . . c. . . . . . . .
216,565,457 , 271.957,665
, - . . .- -,m. ..
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-/4. %.w&,TM..
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- ,.v,a.rious.'s . .
g.Qyprp.pty.,f g,g, .g18,335,647 N
~ k .C.om..
C, . mon.4,- .,.'. '. 9.yW E xyrdmray ,.s~t P f,e. , .m*,er. A. , . - 4' .c A.. ;. 4.ft i,es,7./M. "
~
i','".Y. 51,457,112J C//@. x f.W,k.i/18,335,655.n ",,2.. i'. ..W/ 146,616.193
^c 4i s.
'.wg.E.P.w.v'.M.w ;
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M mwm .! Total AwnStg<gf. nM.'.6p?;d.. . _ . . . . . tf*.W.W..rft /*M.mW. .,i 69,792.759 U.re 64.951,848 / . 'l i
.~.-
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. . . c . ... . . . . .,..g.,.gmyg .,,, ,,, ...y . .. .t,mW.1 . . . . . . $146,772,698 M c.12 : 07.005,31.,. 44(
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'Denotea red figuro. g a.cyg.7'm,. .u y['[,g~.73 y'The accompanying notes to financial statements are ariintegr.al part. of this state ment.
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ACCOUNTANTS' OPINION i The Shareholders and Board of Directors of Pacific Gas and Electric Comparay: We have examined the financial statements and schedules of Pacific Gas and Electric Company for the year ended December 31,1961. Our examination was made in accordance with generally accepted auditing standards. and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying balance sheet and schedules of capital stock and mortgage bonds, and the statements of income and earned surplus, with their notes, present fairly the financial position of the Company at December 31,1961 and the results of its operations for the year then ended, in conformity with generally accepted i accounting principles. Effective January 1,1961 the Company changed its accounting for tax reductions arising from the use of li?:aalized depreciation (in order to conforrn with the rate. making policy of the California Public Utilities Corr. mission) and changed from the sinking-fund to the straight line method of providing for depreciation, j as explained in Notes 2 and 5 to financial statements; with these exceptions,in our opinion, the financial statements have been prepared on a basis consistent with that of the preceding year. San Francisco .N .g4/ February 15,1062 26
- i i
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N. s w .2 . . uL .w.Nh. a .M._N)h) A M-STATEMENT OF INCOME i PACIFIC GAS AND ELECTRIC COMPANY
FOR THE YEARS ENDED DECEMBER 31,1961 AND 1960 l
l' :j 4 l 19 61 1960 l
. ' ! l OPERATING REVENUES:
Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $446,153,882 $416,569,087 ! Gas......................................................... 246,432,126' 1228,276,257 Other...................................................... 3,121,809 3,042,744 ' Total............................................. 695,707,817 - 647,888,088 :
't OPERATINo EXPENSES:
Producuon. I Power purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,048,044 4,177,205 ; Natural gas purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,776,011 164,918,696
.]
Oil and othe r fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,464,154 17,792,581
~
Other.,..................................................'.. 10,440,493 -11,231,792
]j Transmiss ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,033,988 26,249,521 5,597,993 '
25,374,488
] '
Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.' Maintenance and repaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,728,685 21,673,271-i( Customer accounts . . . . . . . . . . . . . . . . . . . . . . . . .
Sales promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 21,532,735 20,885,203 -
. .5,672,918
. .
- 6,175,508 Administrative and general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,899,063 . 25,196,882 Uncollectible accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100,000 . -1,650,000 Depreciation and amortization (Notes 2 and 5) . . . . . . . . . . . . . . . . . . . 66,861,815 59,011,567 Taxes (Note 5): .
Federal income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' 73,914,289 81,586,505 j Other..................................................... 81,181,787 75.876,93S To tal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 557,406,093 520,646,039
~
OPEr.ATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,301,724 127,242,049 OTHER INCO M E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,694,007- 902,111 Total....................................... 139,995,731 128,144,160 INCOME DEDUCTIONS: l
- Interes t on bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '40,246,012 37,729,706 O th e r-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,514,308 1,635,884 Interest charged to construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,005,689* 3,786,177* i
~
Total............................................. 37,754,631 35,579,413 [ ! 1 NETINCOME.................................................. $102,241,100 $ 92,564,747 q
- Denotes red figure. 'f l ,.
. f ] The accompanying notes to Anancial statements are an integral part of this statement. 27 Q .;
e p
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8
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/. l BALANCE SHEET PAClFIC GAS AND ELECTRIC COMPANY I DECEMBER 31,1981 AND 1900 i
t r
- ib:,p:e.ww:
ASSETS 1961 1960 i A 4he i 7,% UTarrr PLwr- At original cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,125,557,420 $2.919,196,961 j l k- . Less accumulated depreciation and amortization (Note 2) . . . . . . . . . 667,766,026 617,420,141
. .Mm Utility plant-net . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,457,791,394
,i L . - > 2,301,776,820 InverrMENTS AND NONCURRENT RECEIVABLES
- Investments in subsidiaries-at cost (Notes 1 and 4) . . . . . . . . . . . . . . 26,530,0G8 19,695,058 Nonutility property-at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,622,400 4,529,383 I
1 Other.................................................. 2,822,158 3,289.249 Total investments and noncurrent receivables. . . . 33,974,626 27,513,690 CURRENT Assets: ' 1 Cash...................................................... 27,576,537 26,438,942 Accounts receivable (less allowance for uncollectible accounts: 1961, $1,425,787; 1960, $1,337,549) . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,981,769 52,152,762 Notes and accounts receivable from subsidiaries. . . . . . . . . . . . . . . . . . 335,464 7,225,288 Materials and supplies-at average cost. . . . . . . . . . . . . . . . . . . . . . . . . 17,281,951 18,124,906 l I Gas stored underground-at average cost. . . . . . . . . . . . . . . . . . . . . . . . 231,619 475,246 i Prepaymen ts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 37,514,883 34,528,922 1 Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . 142,922,223 138,946,066 : DEFERRED DEstrs: l Unamortized bond discount and expense (Note 4) . . . . . . . . . . . . . . . . 8,961,306 8,987,978 l Other...................................................... 817,250 1,452,554 i Total deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . 9,778,556 l 10,440,532 1 i s
, TOTAL................................. $2,644,466,799 $2,478,677,108 The accompanying notes to financial statements are an integral part of this statement.
28 I i
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J y .g u 3_,4 p. .' m 4 O . BALANCE SHEET y
, PACIFIC GAS AND ELECTRIC COMPANY ;
DECEMBER 31.1981 AND 1980 LIABILITIES 1961 1960 l CAPrrALIZATION: Capital stock (Schedule 1) (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,042,270,589 $ 886,106,401 Earned surplus (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,772,698 207,005,817 1 Total capital stock and surplus . . . . . . . . . . . . . . . . . . . . 1,189,043,287 1,093,112,218 l Mortgage bonds (Schedule 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,185,595,290 1,138,029,750 Total capitalization . . . . . . . . . . . . . . . . . . . . . . . . . 2,374,638,577 2,231,141,968 CURarNT LIABII.ITIES: Bank loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... 9,000,000 12,000,000 1 1 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,106,024 33,772,510 l
, G .
Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,178,503 11,655,041 Current sinking. fund requirements (Note 4) . . . . . . . . . . . . . . . . . . . . . 7,061,710 5,515,250 Customer deposits . . . . . . 3,575,976 2,589,901
)
. Taxes accrued (Note 5) . . . . . . ................................ 83,655,953 77,470,S58 Interest accrued . . . . . . . . . . . . . . . .......................... 3,526,664 3,337,807 Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . 158,104,833 146,341,367 1
l l
~
Drrranen Carorts . . . . . . . . . . . . .. ........................... 7,438,572 8,210,316 CUsTOMon ADVANCES FOR CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . 6,133,712 5,986,672 RESrnvrS FOn INSURANCE, CASUALTIES, AND Ontra. . . . . . . . . . . . . . . . . . 5,732,869 3,974,527 CONTRIBUTIONS IN AID Or CONsTnUcrION. . . . . . . . . . ............... 25,862,341 22,975,572 l ACCUMULATED Derranto TAXES ON INCOME (Note 5) . . . . . . . . . . .... 66,555,895 60,046,686 1 l l l l TOTAI.................................. $2,644,466,799 $2,478,677,108 The accompanying notes to financial statements are an integral part of this statement. - ( 29 l
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4 j i r'% Y. ) 4 i CAoiTAL STOCK i' DECEMBER 31.1981 l Shares issued and Outstanding ScnEDutz 1 Description Authorized ~ Held by Public FIRST PREFERRED. OUMULATM. Shares pan VALvs $25 pea SHARE: Amount 6 ........ . ................ 4.211,662 4,211.662
.. . ... ........... $ 105.291.550 5 % .. ... .. ........ ......... ..... . . ....... . 1,173,163 1,173.16il 29.329,075 5 ................. .. . ............... ......... .. 400,000 400,000 10,000,000 ,
5 % redeemable . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... ........ 2.860.977 2.860,977 71.524.425 5% redeemable - Series A . . . . . . . . . . . . . . . . . . .. 1,750,000 1,719,388 42.984.700 4.80P redeemable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,517,375 . 1.517.375 37,934,375 4.50 $ redeemable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,127.426 1,127.426 28,185.650 4.36Fe redeemable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 1.000.000 1,000,000 25,000,000 Redeemable (unclassified in series) . . . . . . . . . . . . . . . . . . . . . . 5.959.397 TOTAI, . , , . . . . .. ..... .... . . . . . . . . . . . . . . . . . . 20.000.000 - 350,249.775 14.009.99_1_ COMMON, PAR VALUE $10 PER SuARE. .. ... . . . . . . . . . . . . 75.000.000 56.477.559 564,775.590 l TOTAL . . .... ...... .... ...... . .. ...... ..... ....... . ........ 915,025,365 Excr.ss or PREMrvMs RECEIVED OVEN Discount AND EXPENSE ON OUTSTANDING SHARES. . . . . .... ........... . .. ... . .. ....., . .... 127.245.224 i TOTAL .... . ......... ........ . . .. .. ... . .. . . $1,042.270.589
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.;. GW OM . ,.w m. ,MuTSNM
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. w% Amount v ?. s nV' 78caEDcxx23Witteifloss%wca' W ,' W1?? Rate wQMaturi ww.w -Heldwww.6
% Outstanding eny;;fg,p.,QWInterest y Gui?%;pr
, :.. WAmount Held p.m m .
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. #W.***;*ecaUm.r4Q% ecesws@yyggyi W;AWety %fr,d iFra37 AND RErvNDINo I onTGAGE (see Note):.;mRrc.-
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- %' Series II.Y;M?lT*?M!$.W.G;WQ.93%"'M.,;p.cy,g"1,19M une ?' S 927.000 m% ,J, s "..% Series ICN; Jp.'.', i;1; Dec. 1,1970 . 18,484,000 7 , ,
,I Series
. Series L . . . .
' .J.';
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.'. . . . . . . . . . .;.. . !.;.. a. * .f. .,.gi' 3 ,, ? f -l; June 1.1971
.;.. OJ JO.WT4,fM .3. . .... J 3- l j 23.789,000' . ,
r ..
% A. .,#.....
- June 1,1974
< ~ Series M . . . . . c. . . . . . . . . ...........r.....-3 . . JW.. .%. c. i s 3. a; 7 ' Dec.: 1,1970 . l 109.101.000 '
77.376,000 ' i
,,. ., 4 Series N . . . a . .. . ' . . J. n . a . . . . .. . . . L . . J 3' ' ' ', Dec.1,1977 * ' 47.962.000 '
' Serie.s O <
'.w c4 r Series P.......;.....;.........c.
'......13 ' Dec.1,1975 6.400.000 g;. .
. i
; June 1,1981 - - 23,374,000 '
N . 'A C ' Series Q . . . dr,. . , '. . W, . . ., J. . . ; . . .G . . i, t 2 S 257.000 a.7 . . . . . JR. , "..;... ,. 4 Dec. ,1;1980 - 63,573.000 50,000 ' N & 7.. ;.M. Series R 7.; . . . . . . v. ';'J; . .. ct he .....'. . . . ;e. # 3. . .'...a 2tJune 1,1982 68.972.000
. p. u -
Series S ;.W.; .r . J... . ~a
" Series T . . . . . . . . , . . ; . . . . . . . . . . ; f. . . . .'. . ; . .' 3 9 June l 1983
.... )
' 72,477,000 58,000 i
..... ....... . June 1,1976 , 75,935,000 m/e.7. 9" ':. Series 7 Series U . . . . . . ;4. ' J. ;;; . . . . . . . ; . < . . . . .: .Dec.1,1985 W . . ; .y; ..'. '
. . . . 2%. . ,3% . 44,824,000 l I
.> Z MWM'd ,t Series X ~. .; dL . . c. , n , s. .; . . 4. . . . . '.;;, ,' 3 3 .fj Dec.1,1984 54,349,000 f!/. . ;'.Tl' ,'/ .- . 1/. ', . .Y. . . .. .1 . ' June 1,1984 a 59,459,000
-G gN, 4' M S;cTDec.;1,1987 . 43,408,000 i. ' 't L... ".
O a;,q t *b].e wy@wh SeriesJ ',.WgG.?f.hinj'4c.T,;Y.V.7;1'...'iLi? d'.GWOW
+a<, Series ZdJ!,o .d. Wee mw.a .w. & wm3 99Dec. 4,1988 W Series AAz hBigy.e.Mr.thim.cuin4 Mis 4 ..M Dec.1 1986:.. . 19.178,000 S ". + 314,000 e." 7*f 1
.s <dhwe.42M natirpcartS eries BBwp;#cw;4priur,m!W?ic.@5 W**3unal,1989 + 1 . 30,969,000 58,000,000 / " r G .o*P,2
" " . )?
%w M: g . h.,. F, @ A$41.. Series CCMSKtMirr e.@n/.' Of::: !r*7M4,4 w.phM.M;W38f&@MJune Dec.rt,1978 "
1,1990 ' 69,296,000 U 7W4Cf3 W '8 g .a fMct 'h 53,887,000 t . , >"93
~a ?'hfrM;f$.pa'P),'@4. Series EE NDD6*/gt'rJr dM1;'.**,Nt:tt3rttfg5 ^N$ June 1.1991 ! 60,025.000 ,000
; ;X.OR:.'W.; Series FFM . .Mhv.
Series '
. i *. ' b M,i i
//g 'TlE' ..lJ r.- . .E 4 7" 54,135,000
- C 999.000' '
.gTt Series GG7: i .;fn! 4.vtM'JdM..h,t ,I'oT .vsn [.g:... :r 4sz -^Pt " " #'"~'h e:lJunel;1992*' June 1,199327 4' .3 W
~ ; . m., q'Iy%+f.% nW ,<. w.?;Q.. ' # ? ? '.' * ' 7' 56.757.000 3,243.000 ,
k.W.% *9 *.+"fM%* V'*PCX;".* ~W 1'192,657,000
. < M;%:"'hy?? S r@r1 mum.%dW . C.. a:*M.M;'l592* *d 7/r '!!t.
** S r . WLess current' sinking fund requirements n &h 78 67d;Wl?-2..,,;.. ljff.l !1 7,061,710 W ' $4'914.000 ' '"
Memee; .hc I +4'rm* .mA
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->Me: p..; $1,185,595.290 y 2. v.;;.A aq' VS-:
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w:e Nm b,uw?NOTENAdditionala u t.pdMMit&96?.ny;r5%&&;M mounta rnay be it. sued under the terms of the lidenture relatin to these bonds. The Compan@y E;& W WM : e 4AWT5Eif.EtWMipropos~ M/S;i% M.M s td seu $65,000,000 f.M.:W e p . w ,0 *w face w w amountw.c B of First and Refunding Mortg ge donds in March 1962. . m W M. h. . r. A 5 W ;d d % D M @'t. 6 M 6 M E M d M M ' hWD452MWEGM& @ e % m e W s - eMil .m .
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i. s i NCTES TC F1N ANC1AL STATEMENTS split into three shares of $10 par value for each outstanding . ! PACIFIC GAS AND ELECTRIC COMPANY s par vab. In eHec% b hpe M DECEMBER 31,1961 AND 1960 split, the amount of $627,217 (represented prmespally by
, discount on shares of capital stock reacquired) and earned i NOTE 1-Subsidiary Companies: surplus in the amount of $93,502,048 were transferred to !
the common stock account. The financial statements presented herein relate to the Company only by reason'of the fact that the assets and revenues of the subsidiaries are presently not significant in NOTE 4-Mortgage Bonds: relation to those of the Company. Sinking. fund payments due under the terms of tha Erst and refunding mortgage during the year ending December NOTE 2-Accumulated Depreciation 31,1962 are shown among the current liabilities net of the and Amortization: treasury bonds held by the Company at December 31,1961. The accruals to accumulated depreciation and amortiza. In general, bond discount and expense, redemption pre. tion through the year 1960 we're computed on the sinking. mlums on refunded issues, and sale premiums are being fund method for book purposes. Pursuant to authorization written off over the lives of the various issues to which they of the California Public Utilities Commission, effective pertain, or refunding issues. Such items applicable to bonds January 1,1961 the Company changed its method of accru. reacquired other than' through refunding operations are 1 ing depreciation to the straight-line remaining life basis, cleared to earned surplus at time of reacquisition. with revised remaining lives for some plant accounts. These All fixed properties and certain personal properties.of the changes resulted in an increase of approximately $3,842,000 Company are subject to the lien of the mortgage bonds. Sub. in depreciation expense for 1961, stantially all of the securities representing the Company's investments in subsidiaries are on deposit and pledged with 1 NOTE 3-CapitalStock: the California Trustee of the Erst and refunding mortgage. Effective December 29, 1961 the Company, by amende o ment of its Articles of Incorporation, increased the number NOTE 5-Taxes on Income: , ;[ of common shares authorized from 25,000,000 to 75,000,000 The cost of plant construction completed under Certif. and reduced the par value of its common stock from $25 per icates of Necessity is being depreciated at normal rates for .]; share to $10 per share. Also effective that date, issued and purposes of general accounting whereas for purposes of l outstanding shares of the Company's common stock were taxes on income such cost is being amortized on an accel. 31
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d.,- w..i l l qq jj 4 i d i 1 i s I l 1 l l i 1 erated Sve year basis. The Company is normalizing the tax changed its method of providing for depreciation expense effect of the accelerated amortization, and at December 31, as explained in Note 2. The net effect of these changes, i 1961 the resultant accumulated deferred taxes on income which have received California Public Utilities Commission - amounted to $66,555,895. authorization, was a reduction in expense of approximately Since 1954 the Company has elected liberalized depreci- $7,000,000 during 1961. l ation for Federal income tax purposes, and beginning in Q.
'1960 for purposes of the California tax on income, for ali NOTE 6-Commitments and .) l property eligible therefor and not subject to accelerated Contingent Liabilities:
amortization. For general accounting purposes, however, the dt December 31, 1961 the Company had firm commit-Company during the period 1954 through 1960 accrued its ments in the aggregate amount of about $48,000,000 in f provision for taxes on income on the basis of straight-line connection with its plant construction program.
^
depreciation, resulting in excess accruals considered by the The Company closes its accounts promptly as of the end Company to represent the amount of taxes deferred by the of each month with the result that there are always un- ) use of liberalized depreciation. The excess accrual for 1960 recorded items of expense from month to month and year was approximately $9,488,700, to year; at December 31,1961 the unrecorded liabilities and In April 1960 the California Public Utilities Commission accruals for expenses were more than offset by the un. l issued an order stating, in effect, that it would adopt the recorded and unbilled revenues accrued at that date. I
" flow through method with respect to liberalized depre- .
clation (and accordingly not permit tax normalization) in The Company has been named as a ddendant, along w16
,. , ]
determining allowable income tax expense in rate proceed- thers, in three related lawsuits arismg from the production 4 ings. Since the Commission does not authorize deferred tax and sale of gas from certain California gas fields. Damages recounting with respect to liberalized depreciation and such totaling approximately $99,800,000 are sought on the charge tecounting would be inconsistent with the " flow-through', that the Company is neither buying as much gas as it should rate-making policy of the Commission, the Company trans- fr m these fields nor paying high enough prices for it. In the r6 ferred its total excess accruals, amounting to $35,635,611 opinion of counsel for the Company none of these suits is j (reduced by an adjustment of S435,368 in 1961) to accumu. meritorious. I lated depreciation and amortization on December 31,1960, Except as to the above-mentioned litigation and certain end effective January 1,1961, discontinued accruing taxes other litigation which is considered routine to the Com-on income on the basis of straight-line depreciation and pany's operations, and certain indemnities given in the commenced accruing such taxes on the basis of liberalized normal course of business, .there are no known contingent depreciation. Also effective January 1,1961, the Company liabilities not provided for by reserves or insurance. 32 - o 6 .$ M .
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l THE ALBERTA CALIFORNIA PROJECT ~
^
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N > , PAFITICIPATING COMPANIES % 2 1}g.mmt 1 l .,fr'kgl 7 l 1 ALBEMTA AND SOUTHERN CAS CO.. LTD. ,.N . _. \ l This Alberta corporation is a wholly-owned subsidiary of PG&E. Its prin- 1. 5N., [1 \, j i l cipal function is to purchase gas from producers in Alberta and arrange for ) its transportation to the international boundary. It does not own any pipe- y g ,y~'(~, ji 3 g line facilities and has only nominal capitalization. b ff y,, 4,; ;C f /.'.. 1
.,, EDED THE ALBERTA CAS TRUNK LINE COMPANY LIMITED g' g^
i This company owns and operates approximately $83 million of pipeline +?:ntyy F [ M ( rf
.I facilities required by the project within the Pmvince of Alberta. It gathers gas, including the gas purchased by Alberta and Southern, from numerous A M.WSs h
W M;g - 4 fields in western Alberta and transports it as a contract carrier to the Alberta .j g MM D . :j # p-boundary. It has no corporate connection with PG&E or any of the other pN p '[Nm participants in the project. ,g h m.- l y 8-
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- ALBERTA NATURAL CAS COMPANY f,..- [," -p ~ . . ., '
This company transports gas as a contmet carrier for Alberta and Southern and Westcoast Transmission Company Limited through the Province of 4 8.'}2' y r;;r6 4.4 d af tl
, British Columbia to the international boundary. It owns and operater pipe- - 1f. .%'4e$W/t107)
M. . ._. Cy.... line facilities costing about $32 million. Its common shares are owned in M
' . t ., d.eV 7 equal portions by Westcoast Transmission Company Liruited, Pacific Gas Mdf9,f '7.jr;- ,.
Transmission Company, and the public. Westcoast and Pacific Gas Trans- . L N.<A.S mission have entered into a voting trust agreement under which each ' Im@'f ',g;dn V.?L <tLo nominates four of its eight directors.
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- 4. x .s,; y.y' amuse PACIFlC GAS TRANSMISSION COMPANY h?) p p[g[( Q[ h. {,
This company purchases gas from Alberta and Southern at the international ' it
- W 't' PS.1he#. T . UT kp'M 7 '
boundary, transports it through Idaho, Washington and Oregon to the Call-fornia border, and sells it there to PG&E. It also transports gas bought from r4 . t
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Westcoast Transmission Company by El Paso Natural Gas Company as a Q ).1fg,e I. %g 7 contract carrier. It owns and operates pipeline facilities costing about $1I8 r .c million. PG&E owns about 50% of the outstanding common stock and con-
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vertible subordinated debentures of this company and the balance is owned a 1 4
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PACIFIC CAS AND ELECTRIC COMPANY
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MM $ k PG&E owns and operates a $55 million pipeline facility to transport the ...~
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SUMMARY
REPORT. BODEGA BAY ATOMIC PARK UNIT NUMBER 1
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^
BODEGA BAY ATOMIC PARK UNIT NUMBER 1 l ALLOCATION OF SPECIAL NUCLEAR MATERIAL i SUPPORTING DATA AND ASSUMPTIONS 1
- 1. The estimated start-up date (power operation) of Unit l
Number 1 of the Company's Bodega Bay Atomic Park is January 1, 1966. For fuel allocation purposes it is l assumed that the Unit will operate thereafter at a 90% capacity factor at 325 Mw gross output (1008 Mw l l thermal), throughout a 40-year life. I I
- 2. Fuel data: i
<^N Replacement Loadings
.s Item First Core _
(Equilibrium) Uranium, Ib. 148,000 29,600 i Enrichment, wt. % 2.67 2.67 Burnup, MWD /T* 15,000 (avg) 17,000 Discharge Enrich-nent, wt. % variable 1.11 ! Discharge Pu, wt % variable .57 3 l
- 3. The schedule for the first core is as follows: ,
- a. The material for the core is required by the fabricator during the third quarter of 1963. .
-1 The quantity shown in the following table ;
i includes provision for spares and scrap, as j described in items 5 and 6. .l i ', 1 u/ , i
*T (ton) is 2000 lbs. of uranium metal. l i
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- b. It-is expected that the first core will be removed-
' from the reactor in five approximately equal sec-tions, starting in the first quarter of 1968.
- 4. The schedule for the replacement loadings ir estimated to be as follows:
, a. The material for replacement loadings is required )
by the fabricator 18 months in advance of loading. The first 20% of the first replacement core will ! be required in the second quarter of 1966.
- 5. Spares .
The present assumptions as to spares are as follows: em
.j a. Six spare assemblies' ordered for the first core
, will be retained as inventory and returned at the- <
conclusion of the 40-year operating life,
- b. No spares are included in replacement loadings.
- 6. Losses i
The following losses are assumed:
- a. An irrecoverable loss of 1% in the conversion of UF6 to UO2 '
- b. An irrecoverable loss of 2% in the fabrication of fuel elements.
I c. A recoverable loss of 7% in the fabrication of fuel elements. (v'1
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- 7. Returns to the AEC 1
.i It is assumed'that reprocessed fuel will be returned j 1
1 to the AEC one year following its removal from the- 1 reactor. Reprocessed scrap wil1~be returned'.during the year following the year the material was received - ., 1 l from the AEC. ) 4 9
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s i f p > w s ., TRANSFERS FROM RETUR1iS BY PG6E TO AEC s . AEC TO PG&E Recovered Reprocessed NET YEARIX CUMULATIVE Date of Enrich- Scrap Fuel DISTRIBUTION DISTRIBUTION Transfer Kg U-235 _ ment 7. Kg U-235 Kg U-235 Kg Pu Kg U-235 ' Kg U-235 July 1963 through , :t ! Oct. 1963 2010.1 2.67* 139.3 -- -- 1870.8 1870.8 { 1966 800.1 55.5 -- -- 744.6 2615.4 , 1967 396.7 27.5 369.2 2984.6 ' 1968 800.1 55.5 744.6 3729.2 1969 396.7 .27.5 419.1 124.5 ( 49.9) 3679.3 1970 396.7 27.5 316.2 148.0 53.0 3732.3 1971 800.1 55.5 114.5 84.3 630.1 4362.4 1972 396.7 27.5 167.5 72.1 201.7 4564.1 1973 403.4 28.0 309.4 146.2 66.0 4630.1 ; 1974 396.7 27.5 144.7 76.9 224.5 4854.6 ! 1975 800.1 55.5 144.7 76.9 599.9 5454.5 ; 1976 396.7 27.5 304.1 152.1 65.1 5519.6 { 1977 396.7 27.5 148.7 75.9 220.5 5740.1 I l 1978 505.9 35.1 188.6 96.2 282.2 6022.3 r' f b) (From 1978 to 2004, overunt e.nnual transfers i and returns remin constant) l 2004 253.0 17.5 188.6 96.2 46.9 13124.2 2005 188.6 96.2 12535.6 2006 (188.6) 1383.3 189.S (1383.3) 11S52.3 l TOTAL 21797.2 1511.9 8733.0 3840.3 11552.3 1 Enrichment remains at 2.677. throughout plant life, assuming use of stainless steel cladding. l l O l 1 l r4
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t . i/ i o f' THE DISSENTING OPINION S by the ,
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's Honorable William M. Bennett c , President, California Public Utilities Commission >
IN THE ORDER DENYING REOPENING OF HEARINGS ON. , THE APPLICATION FOR A
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E CER.TIFICATE _ OF PUBLIC CONF' NIENCE AND NECESSITY FOR lTHE BODEGA BAY ATOMIC PARK i Decision No. 65701
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L th.L'& M.d a.M usnc ~.~ 4 d.ic & - :;a & .i 1.~ c c w ~ = M- n h.:: 2. n u a a r o, 7 ; 6 I CHRONOLOGY LEADING TO CPUC ORDER NO. 65701
- 1. On March 9,1960, the Pacific Gas and Electric Company '8. The Northern California Association to Preserve Bodega obtained a use permit for a " steam-electric" power plant on Head and Harbor and several individuals 6ted petitions for re. l Bodega Head. The Sonoma County Board of Supervisors granted . hearing with the CPUC after the Novemer 8.1962 decision. And I the permit without a public hearing and without requiring submis- in January,1963, the Association and Dr. Joe! Hedspeth, Director ;
sion of plans and specifications. 'of the Pacific Marine Station at Dillon Beach, filed petitions to ! enjoin the construction begun by PG&E, pending AEC approval.
- 2. In July 1961, the company announced that it had decided to '. All of these petitions were denied.
build a nuclear power plant on Bodega Head. . 9.' On December 28,1962, PG&E applied to the Atomic Energy .
. 3. On October 4,1961, PG&E filed Application No. 43808 with Commission for a construction permit, and, submitted to the AEC a re sary azards Summary Report.
4 the California Public Utilities Comniission for "a certificate of public convenience and necessity to constritet, install, operate and 10. This report, on file at the AEC's San Francisco Operations maintain Unit No.1, a nuclear power unit, at its Bodega Bay Office, contained a detailed analysis of earthquake hazards at the Atomic Park." site. According to the Northern California Association to Preserve Bodega Head and Harbor, some of the statements in the hazards
- 4. On March 7,8, and 9,1962, the Commission held hearings summary seemed to conflict with testimony given by the com-in San Francisco on the application. There was little opposition.- pany's witnesses at the CPUC hearings. In addition the hazards The company's witnesses came from the company's own staff, who summary did not contain the reports on the foundations at the testified that experts retained by the company had given assur- plant site, which had been included in late-filed Exhibit 48 at the - )
ances as to the plant's reliability and safety. CPUC.
- 5. After receiving "a large number of written protests" the 11. At about this same time, Commissioner C. Lyn Fox'a term CPUC by order dated April 24, 1962, set the matter aside and expired and the Chief Counsel for the Commission, William M.
reopened it for further hearings. These hearings were held on Bennett, was appointed in his place. May 21 and 22 and June 6,7, and 8,1962.
, 12. Working from the discrepancies noted between the Prelimi.
. . nary Hazards Summary Report and testimony given at the CPUC i
- 6. Because of the great interest m. the proximity of the San hearings, the Association went back to late-filed Exhibit 4S, com-Andreas Fault to the proposed reactor site, PG&E was required to pared it with the hazards summary, and began preparing a petition -
submit a late-filed exhibit, No. 48, on " geologic and seismic con- for rehearing, based on discrepancies it had found. The petition siderations" at Bodega Bay. The record shows considerable reluc- was filed with the CPUC on May 6,1963. tance on the part of the company to submittmg Exhibit 48. But the exhibit was received on July 9,1962. 13. On July 9,1963, exactly a year after PG&E had filed Ex. hibit 48, the Commission rendered its decision denying the Associ.
- 7. On November 8,1962, the Commission rendered its " Interim ation's petition to reopen for further hearing. The dissent which is Order" No. 64537, which granted a certificate of public conven. printed here stems from that decision and from Commissioner e ce and necessity, subject to the company's securing a construe. Bennett's independent review of the record. The Commission %
tion permit from the Atomic Energy Commission and conductier majority order and the concurring opinion of Commissioner environmental and " mixing characteristics" studies around the site. Mitchell are appended. 1
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THE DISSENTING . OPINION .; 1 by the Honorable William M. Bennett President, California Public Utilities Commission in the Order Denying Reopening of Hearings on the Application for a Certificate of Public Convenience and Necessity for the BODEGA BAY ATOMIC PARK This is the highly controversial Bodega Bay nuclear power tion to the project; a strong public concern for public unit controversy. It has become the subject of public dia- safety because of the proximity of this proposed plant to logue and has evoked spirited public opposition. The an active fault line and a strong public opposition to the Pacific Cas and Electric Company (P.GAE.), applicant, location of this plant at Bodega Bay because of its impact has requested approval of its proposal in the name of the upon the natural beauty of the area. All of these things public convenience and necessity. have a bearing upon my position herein. The matter is now before this Commission upon a 1 pleading styled "A Petition to Reopen and For Further Tar STATED Pesuc PosmoN Hearing." This petition was filed on May 6,1963, by the The proposed plant of P.G AE. is regarded as an unwanted Northern California Association to Preserve Bodega Head intruder by an irupressive public representation.' Indi-and Harbor, Inc., (the Association) . viduals, speaking out in protection of their interes'ts as The Association evokes the broad discretion of the they conceive them to be affected, have been quite socal Public Utilities Commission of the State of California in their opposition. Public witnesses expressed concern (Commission) to review the record herein and the decision as to the location of the proposed plant and public wit-and order made. This is a matter of such import as to call ; nesses expressed grave concern for their future safety as l
, for my complete review of the record. I did not previously residents of the area in the event the plant were con- ' '
participate in this matter, not then being a member of structed. The Sierra Club of California presented a spokes. this Commission. man on behalf of its numerically substantial membership l From a complete review of the record herein,I am com-to voice its displeasure and opposition to the chosen site ' pelled to the conclusion that a nuclear power unit at because of its claimed impact upon the natural beauty of Bodega Bay is not compatible with the public conven. the area, ience and necessity. Let me articulate those things and The public opposition is not, of course, measured here reasons which drew me to this result. by so clear and conclusive a process as the popular vote i might be. Nonetheless the record gives the clear impres-THE Ptinuc CONVENIENCE AND NEcEsstTY < sion that the vast majority of the public does not want j Public convenience and necessity is not so precise a con. this unit at this place at this time. The Commission, con- ; cept as to be subject to exact interpretation. It is an elastic sistent with its genesis, is bound to give weight to this ' standard but by law its interpretation and application to public expression. a given set of facts and circumstances as pertains to Cali-fornia public utilities rests with this Commission. This BootcA BAY As A NUCt. EAR SITE Commission is the economic court of California and it We are here talking about Bodega Bay, so-called after ! represents the people of this state in approving or dis. Juan Francisco de la Bodega y Cuadra, Captain of the i approving on their behalf, proposals made by public Spanish ship, Sonora, the first spear point of the Spanish
, utilities. In arriving at the true public interest a variety in their explorations of the northern coast of California.
of factors, and in this case a variety of special circum- As it is related: "On October 3,1775, the weary voyagers stances, must be given proper weight, found themselves in a bay about four leagues to the north ' In considering public convenience and necessity in this of Point Reyes, on whose beautiful green banks bear and ' case we are rnet with a showing of strong public opposi. deer could be seen peacefully feeding. In honor of the i i M. }g} Q -2 _ - - - -
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captain of the ship the bay was named Bodega, a name exists and should exist as to this issue in these proceedings. which it still bears." ("A Short History of California" The record is plain that the proposed nuclear unit will by Rockwell D. Hunt, Ph.D., and Nellie Van De Grift be in close proximity to the fault line. A dispute exists Sanchez (1929) at page 141.) While the bears have long as to the precise distance between the unit and the San since gw, still an occasional deer crosses the landscape Andreas fault line. However, in the words of P.GAE.'s and aside from the intrusions of roads and casual struc. expert, Professor G. W. Housner, (Exhibit 48, Tab 12, tures. Bodega remains substantially as it was when first letter of January,1961), "This site is close to the San seen by the Spanish. Andreas Fault Zone which passes a mile or so to the east." Bodega is one of those places which is a unique combi. The report of Clark E. SicHuron, P.GAE. consulting nation of sky, land and water. It is a joy to the eye-a engineering geologist, says: "The general site of the pro. pleasure to behold! The sea coast, the wash of the ocean, posed Bodega Bay Power Plant is known and recognized the rolling hills with their seasonal colors, these have to be within and very close to the San Andreas Fault Zone, been made by the hand of God.There is only one Bodega The San Andreas Fault is known to be active and to have Bay and there will never be another. been active in the past." (Exhibit 48, Tab 3.) It is to be noted that Bodega, while it has not been reserved by Government as one of the playgrounds of the
- " -~ S future, nonetheless is part and parcel of that recreational "
complex which stretches from Stinson Beach on and up @THSiig G the hfarin and Sonoma coast line. The region is fre- - g4 q'uented by beaches, intermittent State parks and recrea. __.2., tional retreats. It enjoys the advantages of possessing great ,
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and rare natural beauty and most importantly is in close s e > %s-proximity to the population of the Bay Area. A nuclear plant in the heart of this area is out of place. Indeed M @ hQg} N @gh kg-- (C p [ '.y. h 3 YIkyjh d*g.M there is an inherent dissonance in the concept of a nuclear a%":,.se*
% d plant at Bodega Bay, I
w *.;- j I believe that the public wishes to guard and to care for its natural heritage. Theodore Roosevelt and Gifford g Pinchot made conservation a national ideal. Today as ~W the natural places of this country, and of California in 7 s . particular, become more compressed, conservation be. Y - h; l<gh'$% comes critical and should properly figure in a determina. . -
-[ f y fjpfy tion of the public convenience and necessity. While there is a narrow utihtarian cost and value to a nuclear plant ~ e.
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- 4. _
h-, as possible even though such social benefit cannot be precisely measured. camp 6eu cove Projects so distasteful and so offensive to the broad standard of public aesthetics are not, nor can argument Other opinions place the Fault Line in closer relation. make them, in the true public convenience and necenhy. ship m the plant but regardless of the exact distance it is Accordingly, I wou'd disapprove this application because a fact that this plant will be very close to the earth's great. of the location selected as well as for other reasons to be est continental active fault line-and there is no other given herein. accurate way to state it! The opinion of this Commission heretofore issued, THE NUCLEAR PLANT AND THE S AN ANDREAs FAl'I/r LINE
"*** " " ^ " "
which accorth.ng to the record is more than one fourth The chosen site, in proximity to the San Andreas Fault, mile east of the proposed reactor site. ." The confusion placed upon P.GAE. the high burden of satisfying this as to the precise distance between the proposed nuclear l Commission as to the absolute safety of its proposal. This plant and the fault line is evident, but it is safe to con.
, fault has been described as the earth's greatest continental clude that despite the lack of clarity in the record, the rift. San Franciscans and North Bay residents do not need plant is none the less in proximity to the fault line.
any special reminder as to its destructive potential. The FttruRE Q,UAKE ACT!YITY CONSIDERED mere mention of 1906 suggests a catastrophe to most people. The San Andreas Fault Line has been active for thou. It is only a matter of common sense that great concern sands of years and will probably continue to be active 4
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l i for thousands more. It has visited its rolls and shocks Dr. Tocher, e consulting seismologist, Dr. Quaide, con-upon this area. either mildly or with some severity, almost sultant geologist, Professor Housner, professor of applied without surcease. That it will continue is stated in Exhibit mechanics, Dames and Moore, soil mechanics engineers, 48, Tab 12 by the P.GAE. expert, Prof. G. W. Housner: and others. Their employ was for the purpose of studying "The proposed site is a region of high seismic activity . . . the proposed site in terms of its safety aspects. Their It has been estimated that a large earthquake such as the opinions, then, were crucial since they formed the basis 1906 shock may x expected to occur along theSan Andreas upon which P.GAE. elected to proceed at Bodega Bay. , Fault in the Bodega Bay region perhaps three or four Durir{g the first day of hearing Commission counsel times per one thousand years. Less intense ground motion inquired of P.G&E. as to whether any of the reports of I can be expected to occur with greater frequency . . ." Geol- its experts were going to be available or were going to be { ogy, as it furnishes the basis for human opinions as to put into evidence. P.G AE. stated: "Well, we didn't intend future fault line activity is not free from human error. to put any of them in. They are quite lengthy, they are Some experts expect more frequent occurrences of violent quite voluminous. Certainly they were available for the activity upon this line and no experts can state precisely Commission staff to look at and to study . . ." At this point l the date of such future happenings nor the seismic inten- staff counsel replied: "...it appears to me that the Com. I sity thereof. mission may in not requiring a full record in this matter it seems safe to conclude then that despite the range of be satisfied with just one or two sentences, in effect that l opinion as to future occurrences that there is a consensus the doctors say that it is O.K.. ..with reference to such that there will be future occurrences and that some of an important matter, I think deserves the consideration them may well be quite severe. of the bench, and I think that we should have available to us some of this information." (R.T. 38,39.) Tnt DErrcr IN P.G1E.'s Snowisc 1 Despite this exchange the h' earing proceeded and the j The issue of safety loomed large in these proceedings and opinions, reports and other information of the selected P.GAE. carried the burden of meeting that issue. Early experts of P.G1E. were given through the mouth of one in the proceedings P.GAE. related that it had retained J. D. Worthington, Chief Civil Engineer of the P.G1E. Bodega Harbor
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No one of the experts retained by P.G.&E. came forward ing a convenient tab and running from Tab 1 through upon oath to throw his opinion into the turbulent arena Tab 24. At the outset is a purported typewritten resume of crossexamination. Their judgments were and remain of the contents of Exhibit 48, unexplained as to the man. untestedt ner of its preparation and by whom. The resume refers Turning to the last day of hearing, demand was made to "a number of conversations with the consultants" .md that P.G.&E. present the reprts of its experts. The ex. to " investigations and results" both oral and written. perts' opinion, it was then agreed, should be received as These are as the resume says "in addition to the material a late-fded exhibit designated Exhibit No. 48, and in contained." By P.G.&E.'s own words the conversations and closing the Examiner stated ".. .and the applicant has . oral results, whatever they were, were not presented to the responsibility of submitting a late-filed Exhibit No, the Commission. , 48." (Reporter's Transcript 1497.) The reports are arranged in chronological order and -l And so, on June 7,1962 these proceedings closed and significantly each report bears the month, the day and the on July 9,1962 late-fded Exhibit 48 was furnished. year given-that is, save one-and this is significant! It should be noted as well that following the first report 1 THE LAcx or Caoss-EXAMINATION
' each subsequent report builds in part upon its predecessor ]'
It is evident that Exhibit 48.was perhaps the most single as the basis of the opinions given. Prof. G. W. Housner, important exhibit in these proceedings. It contained the the expert with the final say upon the safety of this plant, written reports and opinions of P.G.&E.'s experts and'it was asked whether a power plant of the nature and loca. I certainly formed the basis for critical cross-examination. tion as proposed could be safely built to withstand earth. I Unfortunately, however, parties to these proceedings un. quakes in this area. By letter styled " George W. Housner, skilled in Commission practice and indeed, in legal pro. . . 3 January 1961." to Mr.J. D. Worthington, Chief Civil cedure, were not quick to insist upon their right to Engineer of P.G.kE., Professor Housner stated: "In my examination of the document, and, secondly, they were opinion a ponr plant of the nature and location shown not quick to demand that P.G.kE.'s experts give their as Scheme 7 can be safely built to withstand earthquake respective opinions upon oath. in this area if the design and construction are done in The chance abilities or disabilities of the ' parties to accordance with proper seismic specifications. (Tab 13.) these proceedings does not excuse the obligation of this Strangely, however, Tab 12 the report immediately pre. Commission to insist upon a complete record, nor can we ceding Tab 13 is unlike every other dated document and throw our responsibility to the Atomic Energy Commis. merely states " January 1961"-the day of the month being j sion. These proceedings represent more than a game in omitted. In this report labeled " January 1961" Professor which the clever side most conversant with procedure and Housner says this: "Since it is quite impossible to design l method wins the prize. There is a basic proposition which a power plant to survive without damage the large perma. must be reached here and we did not get to it in this case nent ground surface displacements that might occur if , upon a complete record simply because of the unwilling. the earthquake fault slippage occurred on the site, this l ness of the P.G.kE. to expose its experts to crosseamina. possibility must be given special consideration." tion. This poses a fatal deficiency. The complete explo. I can only speculate whrt crossexamination might have i ration of expert opinion which was not permitted here has been done with these two reports, laying in Exhibit 48 l resulted in an approval which should not have been issued next to each other. Was Tab 12 merely dated January 1961 in the first instance in view of the record. Rudiments of rendered before or after the written opinion of Professor fair play and due process suggest to me that there hs Housner on 3 January 1961, wherein he opined that a not been a full hearing here particularly in the rm tter power plant could be safely build af such public importance as this. Why was the Tab 12 report merely dated January 1961? The wealth of questions which occurs to one when con. Exutarr 48 ANAt.YZG fronted with this date discrepancy need not be discussed I have read Exhibit 48 in detail. It is at best a curious in detail. But I am intrigued with the possible reasons document. It is a thick compendium of reports-each bear. for the sharp change in Prof. Housner's opinions from 6
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- pr .//*,b' '"""*rS? 2 FrQ9 W M m R.2,,r- M l This panoramic photograph by Josephine Alexander was taken in series recent earthquake activity at Bodega Head, and the California Legista-aNd stripped logelher lo show the Doran Park sandspit at right and sure has appointed an interim committee to hold public hearings on the Bodega Head, left, with the P.GLrE. Atomic Reactor Site construction controversial nuclear power plant's possible efects on the public interest.
activity in the center (meteorological tower on far left to record wind The inquiry will begin early this fall. The AEC has nos yet scheduled directions). Scientists of the U.S. Geological Survey are now conducting hearings on the safety of the installation. (See recent Sierra Club Exec-an intensive inquiry into the earth formations and any indications of utive Committee action on page U.)
" January 1961" to "3 January 1961." Or suppose the EXHIBIT 48 AND THc Commission OrtNioN
" January 1961" report was written after the "3 January That Exhibit 48 played a decisise role in the decision of 1961" report! the Commission is evident. In that portion of the opinion I remind the reader that Exhibit 48 represents an ac- styled " Safety" at Page 19, the Commission seeks to allay cumulation of independent expert opinions, each opinion public concern as to quake activity by citing by way of serving as the foundation of subsequent opinions. Dames rebuttal " applicant's civil engineering witness"-Worth-and Moore consultants in applied earth sciences. rendered ington-who gave the opinion of the consulting geolo-reports on January 25,1960 (Tab 5), and on December 2, gist-hearsay! And then to buttress the hearsay, the Com-1960 (Tab 10) in which they ventured the opinions that mission found: "This testimony was supplemented and the site was safe as a building location and that "The substantiated by applicant's late-filed Exhibit 48." (Page
]
probability of significant structural damage from the San 20 of Opinion.) Andreas Fault System is remote during the life of the The reliability of Exhibit 48 has been discusu:d above. proposed construction." But then, as Tab 17 discloses, on This is hardly the way to make a complete record and the
.4pril 30.1%2 Dames and Moore reported to P.G&E.: enormity of things left untested and unproven leaves a ,
"We do not know of any sound method of interpretation record which in my opinion cannot possibly furnish the l for this case, therefore we conrInde that at this site the basis for the authority previously granted, results of the seismic studies should be disregarded," M,ny TAxc Tuc RisKr This revised opinion, of course, came more than a year We are met here with applicant's assertion as to the need af ter the opinion of Professor Housner, rendered on 3 Jan- for this unit. P.GAE. spelled out such need. It is not uary 1961, in which he said that a plant could safely be necessary to dispute the applicant's contention as to its l built "in accordance with proper seismic specifications." future energy requirements to judge the merits of the pro- l But now say Dames and Moore "The results of the seismic posal here offered. We ite here dealing so far as seismic l studies shon/d be disregarded." What change in position activity is concerned with a voluntary exposure to risk.
would have resulted on the part of Professor Housner in It is obvious that a few ventures are entirely risk free but siew of the change of position by Dames and Moore? We this is not to say that risk should be courted unnecessarily. l do not know and we are entitled to know. In this case, fortunately, we are not faced with meeting It must be apparent by now that the failure to test future power requirements of P.GAE. by placing a plant , Exhibit 48 by cross-examination, and, in particular, the at this site or in the alternative failing to meet such power I specific deficiencies I have pointed out, resulted in an requirements. This is not the only site available to appli-approval which should not have been issued in the first cant. There exist other areas in the northern coast terri-instance, considering the state of the record. tory which may not be as ideal as applicant wishes but I can only speculate as to how firm the opinions of the which contain geological features suited to the building experts would be af ter exposure to keen questioning. Even of a facility such as this. It is quite possible for applicant without cross-examination the opinions and reports of the to relocate this facility, removing its proposed plant from experts are contradictory and confusing. They leave much such close proximity to the San Andreas Fault Line and to be desired and do not satisfy my concern t.s to the future at the same time thus preserving the natural beauty of safety of the proposed plant. It stands out in Exhibit 48 Bodega Bay. Only blind compulsion would insist upon that there is lacking any clear and qualified expert judg- placing this plant in the heart of one of nature's choicest ment that this plant can be built with safety and, of course, areas and in frightening proximity to an active fault line. this Commission is entitled to no less an opinion than that. Both California history and the opinions in this record i 7 .!
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1 make plain the reality of future earthquake activity. The authority from the Atomic Energy Commission has not '
reports of Prof. Housner speak of future large quakes, yet been obtained. The access road at Bodega B y, now : Common sense and expert opinion place no limit upon in the process of construction, has already wrought harm the potential severity of a future quake. Thus all of the to the natural beauty of the area and has undoubtedly opinions as to safety and design are necessarily qualified. had a devastating effect upon the community ecology of l Even the best opinion of the best expert must acknowledge the Bay. that seismology has been developed almost wholly since 1 am unaware of any persuasive showing here or any. the beginning of the nineteenth century and must still be place as to the public safety so far as future radiation regarded as in the early stages of its progress. effects are concerned. There is a relationship among all In this case approval was given upon such assurances as producers of radiation so far as public safety is concerned. ) an inexact science might furnish and upon unexamined When it is realized that a significant portion of total i opinions. In my view the risk which inheres in this project utility capacity will be nuclear in the future, then it is is not to be assumed upon such a dubious showing. imperative that the total cumulative radiation impact be measured with some precision. The total radiation con. NUCtIAR Pt. ANTS IN CAUFoRNIA tribution of this plant, as well as those in being and those This opinion is not to be construed as a position upon my to be constructed, must be measured by some adequate part of opposition to nuclear plants. Obviously, their use standards and not upon a piecemeal basis. Speaking as will be more and more widespread and they will take an one individual, this case and others to follow demonstrate important place in our economy. Indeed, P.GAE. is to the necessity of adequate standards from the Federal Radi. be commended for keeping abreast of the latest techno- ation Council or other competent agencies whereby an logical developments in the energy field. individual state Commissioner may know the pennissible I am addressing myself only and to this particular proj- limits of total cumulative radiation. Confessing my per. ect. If we were confronted with a power shortage, present sonal inability to render a judgment upon this question. or imminent, somewhat in the nature of a crisis or an I am quick to point out that it is imperative for total emergency, then, of course, such might pose other and , national public safety that the Atomic Energy Ccmmis-different facts. My experience, however, dictates that there sion meet this responsibility. is no power crisis and that other sites exist. This is a real ) I am also compelled to point out that these proceedings I factor in judging the necessity for this project at this point to the necessity for active participation herein by location. representatives of other state agencies concerned .with Sout ret.EVANT OusERvrTroNs questions of conservation and health so that this Com. Obviously there is a highest and a best use of land. A mission may render a judgment which takes into account broad social values rather than the conventionally narrow myopic busmess z,udgment has missed it here. In the pur. is s which might otherwise be encountered here. suit of its pubhc utihty function alone, P.GAE. has I I overlooked so much! CoNCt.UsloN ' As one Commissioner, and a Californian, I am of the Accordingly, taking into account the location of the plant, firm opinion that we should keep for ourselves and our the questions of the public safety as evoked by the loca. grandchildren all of the natural grandeur of Bodega Bay. tion; the failure of P.G1E. to meet the safety issue: the As the population grows and as life becomes ever more clear public desire to keep Bodega inviolate-all of these complex, Californians will have a keen need for some things and cumulatively lead me to the conclusion that escape from the quiet desperation of tomorrow. the authority heretofore given should not have been issued Bodega Bay is being lost to future generations and by and should be rescinded. virtue of a private decision made with none of the checks P.G1E. is not giving proper weight to the total social and balances of governmental action. The land acquisi. values which inhere in the Bodega Bay site and which are tion, the use permit acquisition, the authority previously being destroyed. Steel, concrete and energy are not a fair granted by this Commission-all of these were done sepa. exchange for precious and beautiful land, sea and sky. rately and unrelated. Piecemeal decisions, none of which P.GAE. has in the past shown its concern for public
.- in my opinion looked at the total public interest, have
' opinion. I suggest that it reconsider its decision to place now permitted P.GAE. to change the land at Bodega .a nuclear plant at Bodega Bay, that it withdraw from the Bay. And this despite the fact that the ultimate necessary site, and that it select another.
s Wit.UAM M. BENNETr, Commiffioner 1 8 t 4 *e 5 t q s.,_ { _ ,.__ __ -_ ~ , _ _ _ .._.-. - . _ _ =_2._ a + _
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MAJORITY ORDER AND CONCURRING OPINION Oatma DENY!No RrortNixo lating byproduct, source, or special nuclear materials. The intent is The Northern California Association to Preserve Bodega Head t have the material regulated and licensed either by the Commis.
. .. sion or by the State and local governments, but not by both. (p.2879.)
and Harbor. Inc., filed its petition to reopen the above proceed. (Emphasis added.)
. ing for the purpose of holding further public hearings in said matter, based upon its contention that it has not had an oppor- The Atomic Energy Commission has scheduled hearings in 1 tunity to cross examine applicant concerning late filed Exhibit California in which testimony on the safety of the proposed site No. 48. That exhibit in essence consists of consultants' reports of the nuclear reactor and standards of its construction and of geologic and seismic conditions at the site of the proposed operation will be produced. It would seem that petitioner's Bodega Bay power plant from the standpoint of safety of the expert testimony might better be considered by the AEC than cite. The exhibit was filed on July 9,1962. this Commission. AEC's rules provide:
Neither petitioner nor its unincorporated predecessor sought veopening for the purpose of cross-examination and Interim "Any person whose interest may be affected by a proceeding and who Decision No. 64537 was issued on November 8.1962. Thereafter desires to participate at a party shall file a written petition under oath r amnnatmn f r leave t intervene n t later than five (5) days bdore Petitioner's unincorporated Predecessor sou5 h t rehearing on the commencement a f the hearing or within such other time as may November 28,1962, but did not mention Exhibit 48 or ask for be specified in the no. ice, or as permitted by the presiding officer. The an opportmity to cross. examine the applicant on its contents. petition shall set forth the interest of the petitioner in the proceeding, , Rehearing was denied on January 2,1963. how that interest may be affected by Commiss.on action, and the l Approximately ten months after the filing of Exhibit 48 peti- contentions of the petener." (10 CFR 2. 714 (a) .) tioner asserts for the first time that it has been denied due process, and alleges that it can now produce experts on seis. For all of the foregoing reasons, IT IS HEREBY, ORDERED that the petition of the Northern California Association to mology and earthquake hazards. Their proposed testimony is characterized only in the most general language as that which Preserve Bodega Head and Harbor, Inc. to reopen the above "will give the Commission sufficient grounds to doubt the safety entided proceeding is hereby denied. of the plant." Dated at San Francisco, California, this 9th day of July,1963. Interim Decision No.64537 was conditioned upon applicant's Evtarrr C. McKEAct
. receiving every permit and license required by law for the con- CroacE G. Gaovra struction and operation of the proposed plant, including a Fatoratcx B. Hot onorr construction permit and a license from the Atomic Energy Com- Commissioners mission. Congress has enacted the Atomic Energy Act of 1954 (42 USCA 2011 et seq.) which provkles a complete scheme of I would grant the petition for reasons to be set forth, regulation of nuclear materials and of their utilization for re. W. St. Besserr rearch and development and industrial uses. Permits and licenses I will file a concurring opinion.
must be obtained from the Atomic Energy Commission for all Pma E. Mnce actisities in these fields. (Sections 2073, 2093. 211I, 2133, 2134, and 2235) Cosct;aatso Orixtos While in 1959 the Atomic Energy Commission was given . . .
- authority to enter into agreements with individual states pro. I ' "'"'. in the Order denying the petition of the Northern viding for state regulation of nuclear materials formerly licensed California Association to Preserve Bodega Head and Harbor,
, I and regulated by the Atomic Energy Commission (Section 2021), Inc., to reopen the applicauon of the Pacific Gas le Electric j the following excerpts from the 1959 U. S. Code Congressional Company to install a nuclear power unit at its Bodega Bty and Administrative News adequately summarize the intent of At nue Park Congress to preempt the legislative field: Such concurrence results from a complete review of the sworn evidence adduced before the California Public Utilities Commis.
SUMMARY
OF BILL. . I n after eight days of public hearing. It does not result from In summary, the principal provisions of the hill authorize Lt.e Jom. ""I n my Part that this Commission does not have a , mission to withdraw its responsibility for regulation of certain re$Ponsibih.ty to pass upon pubhc unlity matters affectmg the meterials-principally radioisotopes-but not over more hazardou, safety, health, and general well.bemg of the citizens of Cali. activities such as the licensing and regulation of reactors." (p. 2874.) fornia. Categorically, we do and I so accept that responsibility. It is true that the Atomic Energy Commission has been vested l by Congress with the power to license and regulate nuclear reac. l
" COMMENTS BY THE JOINT COMMITTEE tors. It is not true, however, that the California Public Utihues i
- 2. (b) The bill applies to some, but not all. atomic energy activities now regulated exclusively by AEC It applies principally to radio. Commission is automatically divested thereby of its duty and
'a icotopes. whose use and present licensing by AEC is widespread, but obligation to protect the welfare of the inhabitants of this State.
whose harard is local and limited. Moreover, the radiation hazard Action by the Federal Government herein is not exclusive. The j from radioisotopes has similarities to that fro.n other radiation sources Atomic Energy Commission does not occupy the entire 6 eld of f already regulated by States-such as x ray machines and radium. power regulation to the preclusion of the State. It is patendy Liceruing and regulation o/ more dangerous activities-such as nuclear reactors-will remain the exclustre responsibility of the Commission, obvious that California interest in this plant is equal to if, indeed, it.does not outweigh, any national interest. To espouse l
, Thus a hne s drawn between types of activities deemed appropriate . .
for regulation by individual states at this time, and other activities the may.onty opnmon would logically make impotent any future 1 where continued AEC regulation is necessary " (p. 2879.) (Emphasis rders by this Commission m the field of power regulation. I am
]
edded.) not Prepared to adopt such a posiuon. This Commission must and does make its decisions on sworn "9. It is not intended to lease any room for the exercise of dual or Public testimony and can give no credence to unverified allega. concurrent jurisdiction by States to control radiation hazards by regu. tions or unsubstantiated arguments such as those advanced by 9 d a _ . _ . ,. _ - .._._...,._ _. _ _ _ . _ . . _ . . _. _ m_,._._ f
i ', . -, i // n the protestants. The application for a nuclear power plant to be merable nuclear pilot units operatite in the United States. In constructed at Bodega Bay was filed by the Pacific Gas & Elec. California, the Humboldt Bay Plant in Northern California is tric Company on October 4,1961. Since that date, protestants already successfully furnishing power. There are three other and all other interested parties have had ample opportunity to nuclear plants in California apparently ready for construction. present convincing evidence to this Commission why the appli. The Bodega Bay plant of the Paci4c Gas & Electric Company
! cation should not be granted. If, as the protestants allege, such is within the Bay Area complex; the Malibu plant of City of evidence exists, it has not been submitted to this Commission Los Angeles Department of Water and Power will be in the Los under oath (or even by way of affidavits, to this date). Angeles Area: the San Clemente plant of Southern California Commission pctsonnel especially trained in the nuclear field. Edison and San Diego Gas & Electric is to be located on the experts produced by the applicant, and other disinterested coast between Los Angeles and San Diego.
experts have all testified before the Commission in support of It is apparent that the pilot plant stage of nuclear power the plant at Bodega Bay. I do not demean the seriousness of the development has been completed. Atomic energy is now con. 1 issues or 'the protestants' concern (nor our own concern). But sidered competitive with fossil fuels. Objections primarily the speculation and conjecture raised by the protestants is of appear to be based on fundamental misunderstanding of nuclear no weight balanced against the expert testirrany presented to power to generate electricity. The evidence to date (iricluding this Commission. Indeed, the continuance of such unsubstan. that gathered by the Atomic Energy Commission) indicates tiated speculation and conjecture without verification is not in nuclear power plants presently operating contain as much if the oublic interest. not greater safety protection than competitive power plants. There are now at least eleven nuclear plants plus innu. PzTra E. Mrrcur.LL, Commissioner 1 r l l 9 4 6 4 e i 10 4 o3. v e m m - w m m = = ~x - = m u m = ~ = - - m b - m m , m,m
y , aL . -.a .uw . :.r :ia --a.. . ru i .u e ,L.;,a.'. mu.a % w u .G ' . w.. i 1
. oi EPILOGUE Excerpts from "A Visit to the Atomic Park" by David E. Pesonen On November 9,1962, six months after reopening hearings on monopoly, one remote and priestly science, one place in one the utility's application and two weeks af ter this series of articles county, or one rearguard action. It is a microcosm of the stresses had concluded in the Sebastopol Times, the state Public Utilities acting everywhere on representative government wherever com-Commission granted an interim certificate of public convenience plex gadgetry lies at the heart of the decision making process.
and necessity to the Pacific Gas and Electric Company for con. The people have been bactred into a sittiation which is just struction of the Bodega Bay Atomic Park. There is good reason the reverse of what it should be. The technicians who are shap. $ to believe that the Atomic Energy Commission, P.G.kE.'s last ing the increasingly lethal environment of our brave new be. ' hurdle, will echo this decision. wildedng world both propose and dispose. A close inspection of the PUC decision reveals only the faint. We face a kind of government by schizophrenia. On the one est trace of the public interest. It is clear that the state govern. hand technicians are making sophisticated decisions that affect ment, by default more than design, can govern access only to everyone's destiny, and on the other, citizens are making only . the edge of the atomic park. Neither that government nor the the crudest sort of choices, such as the options between candi. people to whom it is answerable can penetrate the sanctum of dates in an election. Generally, the citizenry ends up running the real decision makers. along behind the technicians, trying to stop modify, or simply This is not the story of one reactor, one barely regulated understand what they have done. EXECUTIVE COMMITTEE ACTION . Among the actk as taken by the Sierra' Club Executive Committee on
, June 9,1963,is:
BooEc4 HEAD-Requested that the state legislature pass an appropriate resolution requestime that a further construction on a power plant be permitted at Bodega Head, and that the matter be referred to an interim committee of the legislature for study of an amendment to the Public-Utilities Act of California to provide for the consideration of scenic and community values in determining the issuance of a certificate of public convenience and necessity. O
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