I. INTRODUCTION

In D.08-11-056 ("Decision"), we adopted a plan to facilitate the removal of the Department of Water Resources ("DWR") from its role of supplying electric power to retail customers.

CAlifornians for Renewable Energy, Inc. ("CARE") filed a timely application for rehearing of D.08-11-056. CARE alleges the following error: (1) it is premature for the Commission to act because the contracts entered into by DWR may not be valid in light of pending proceedings before the Federal Energy Regulatory Commission ("FERC") and the federal courts; (2) D.08-11-056 conflicts with the Commission's statutory mandate to represent the interests of California natural gas and electric consumers; and (3) D.08-11-056 violates CARE's due process rights.

The California Alliance for Competitive Energy Solutions and the Alliance for Retail Energy Markets filed a joint response opposing CARE's rehearing application.

We have reviewed each and every argument raised in the rehearing application and are of the opinion that good cause has not been established to grant rehearing. Accordingly, the application for rehearing of D.08-11-056 is denied.