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ALJ/AYK/jyc Date of Issuance 9/22/2008

Decision 08-09-024 September 18, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Promote Policy and Program Coordination and Integration in Electric Utility Resource Planning.

Rulemaking 04-04-003

(Filed April 1, 2004)

(QF Issues)

And Related Matter.

Rulemaking 04-04-025

(Filed April 22, 2004)

(QF Issues)

DECISION GRANTING IN PART AND DENYING IN PART JOINT

PETITION FOR MODIFICATION OF DECISION 07-09-040

1. Summary

This decision grants, in part, and denies, in part, the joint petition for modification of Decision 07-09-040 filed by the Cogeneration Association of California and the Energy Producers and Users Coalition (CAC/EPUC), and the Independent Energy Producers (IEP) (collectively, QF Parties). We make those changes which are sufficiently justified and which would result in a short-run avoided cost energy price which best reflects utility avoided cost.

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