The proposed decision of ALJ Malcolm in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(d) and Rule 77.1 of the Commission's Rules of Practice and Procedure. Comments were filed on November 18, 2004 and reply comments were filed on November 23, 2004. The final order adopted by the Commission contains several clarifications to the ALJ's proposed decision and a number of substantive changes with regard to the allocation of program costs and the development of more detailed program elements in Phase II of the proceeding.