IV. CONCLUSION

We have reviewed each and every allegation of error raised by the joint applicants for rehearing and are of the opinion that there is merit to their allegation that D.07-05-028 errs because it conflicts with relevant statues and Commission rules including those established in R. 05-06-040. Accordingly, we grant limited rehearing of D.07-05-028 in order to modify the decision to correct the error in the manner set forth in the ordering paragraphs below.

For the foregoing reasons we grant a limited rehearing of D.07-05-028.

THEREFORE, IT IS ORDERED that:

1. Limited rehearing of D.07-05-028 is granted.

2. D.07-05-028 is modified as follows:

a. The following language on pages 28-29, after the sentence "Finally, TURN asks that non-market participants, in addition to Commission staff, receive copies of contracts and other documentation of compliance with § 399.14(b)(2)" is deleted in its entirety:

"...For the large utilities, such information is already available through participation in procurement review groups (PRGs). We decline to create quasi-PRGs for ESPs, CCAs, and small and multi-jurisdictional utilities and will not require documentation to be provided to non-market participants."

And the following language is added in its place:

"Non-market participants are entitled under Public Utilities Code section 454.5(g) to access confidential market sensitive information submitted to the Commission in a procurement plan or resulting from or related to the Commission's approval of a procurement plan provided such entities agree to abide by the Commission's confidentiality procedures at all times. Further, it is standard practice at the Commission, for parties seeking discovery of confidential relevant information to be required to maintain the confidentiality of the information via use of a protective order and/or confidentiality agreement. Pursuant to D.06-06-066 as modified by D.07-05-032 in R.05-06-040, parties that are deemed to be non-market participants are entitled to discovery of confidential market sensitive information provided they agree to abide by the Commission's confidentiality procedures. The Commission's staff at all times has the right of access to documents submitted to the Commission and no confidentiality order or agreement is required for Commission staff. (D.06-06-066 as modified by D.07-05-032 at pp. 53-54.)

3. Rehearing of D.07-05-028, as modified, is hereby denied.

This order is effective today.

Dated July 26, 2007, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

TIMOTHY ALAN SIMON

Commissioners