7. Conclusion

In summary, we find PG&E's costs to co-fund Phase 1 of the CAES project to be reasonable and authorize their recovery. Thus, PG&E is authorized to recover up to $24.9 million for Phase 1 costs for Phase 1 of the CAES project. At the conclusion of Phase 1, PG&E must provide a report on Phase 1 of the project including an analysis of Phase 2 of the project that makes a recommendation as to whether or not it is reasonable to proceed to subsequent phases of the CAES project. This report is due within 90 days from the completion of Phase 1.

There are no outstanding issues in this proceeding and it should be closed.