The proposed alternate decision of Commissioner Peevey in this matter was mailed to the parties in accordance with Section 311 and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Comments were filed by Bloom, CESA, CMUA, DRA, EPUC, PG&E, SCE, TURN, and WPTF. Reply comments were filed by CMUA, DRA, EPUC, PG&E and SCE. Minor corrections and clarifications in response to comments are incorporated throughout the decision.