7. Ex Parte Communications

In accordance with Rule 8.2, ex parte communications10 in this proceeding are allowed without restricting or reporting requirement.

1. The Commission has expressed its support for the development of distributed generation by utilities and customers.

2. State policy and utility rules will affect the development of distributed generation.

1. The Commission should initiate a new rulemaking to continue to consider policies, rules and practices that would promote the development of cost-effective distributed generation in California.

2. Because the issues remaining in R.06-03-004 and R.04-03-017 will be addressed in this rulemaking, the record in R.06-03-004 and R.04-03-017 should be incorporated into this docket and R.06-03-004 and R.04-03-017 should be closed.

Therefore, IT IS ORDERED that:

1. A rulemaking is instituted on the Commission's own motion to establish policies and rules regarding distributed generation and distributed energy resources, to implement the provisions of the California Solar Initiative as set forth in Senate Bill 1 and Commission orders, and to address ongoing issues associated with the Self-Generation Incentive Program.

2. Pacific Gas and Electric Company, Southern California Edison Company, Southern California Gas Company, and San Diego Gas & Electric Company are made respondents to this proceeding.

3. The records in Rulemaking (R.) 06-03-004 and R.04-03-017 are incorporated in this proceeding by reference, and any pending matters in these former rulemakings will be addressed in this new proceeding under the new caption. Any future petitions to modify decisions in R.04-03-017 or R.06-03-004 should be filed in this new proceeding and served on the service list of both this docket and the docket of the original order.

4. The Executive Director shall cause this Order Instituting Rulemaking to be served on the respondents, the Executive Director of the California Energy Commission, the California Independent System Operator, the California Air Resources Board, the California Environmental Protection Agency, and on the parties to R.06-03-004 and R.04-03-017.

5. Within 20 days from the date of mailing of this order, any person or representative of an entity interested in monitoring or participating in this rulemaking should send a letter to the Commission's Process Office, 505 Van Ness Avenue, San Francisco, California 94102, or electronically to process_office@cpuc.ca.gov, asking that his or her name be placed on the service list for this rulemaking.

6. The category of this rulemaking is preliminarily determined to be "quasi-legislative." Any persons objecting to the preliminary categorization of this rulemaking as "quasi-legislative" or to the preliminary determination that limited evidentiary hearings are not necessary shall state their objections in comments on the preliminary scoping memo, to be filed and served no later than April 11, 2008.

7. The assigned Administrative Law Judge (ALJ) shall conduct proceedings in this rulemaking to effect the Commission's policy and direction as set forth herein; in that capacity the ALJ, in consultation with the assigned Commissioner, may make any adjustments to the schedule and service list for this proceeding.

8. The Commission hereby schedules a prehearing conference (PHC) in this proceeding for the purpose of discussing the management of this docket. The prehearing conference will take place at 10:00 a.m., on April 22, 2008, in the Commission's Hearing Room, State Office Building, San Francisco, California 94102.

9. Parties may file PHC statements in advance of the prehearing no later than April 11, 2008, as further directed in Section 4 above, and serve them on the service list for R.06-03-004, unless a new service list is established by that date.

10. Any party that expects to request intervenor compensation for its participation in this rulemaking shall file its notice of intent to claim intervenor compensation in accordance with Rule 17.1 of the Commission's Rules of Practice and Procedure.

11. R.06-03-004 and R.04-03-017 are closed.

This order is effective today.

Dated March 13, 2008, at San Francisco, California.

10 An ex parte communication is defined in Rule 8.1(c) as:

...a written communication (including a communication by letter or electronic medium) or oral communication (including a communication by telephone or in person) that:

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