III. CONCLUSION

PG&E has not established legal error. We will, however, modify our decisions to clarify our authority pursuant to CEQA. Therefore, the applications for rehearing of D.01-05-059 and D.01-12-017, as modified below, are denied.

Therefore IT IS ORDERED that:

1. D.01-05-059, p. 88, is modified to include the following Conclusion of Law:

Conclusions of Law

14. The Commission may make a need determination pursuant to Public Utilities Code Section 1001. Under the Commission's authority to grant a CPCN pursuant to Section 1001, the Commission may also make a need determination under the "No Project" alternative pursuant to Section 15126.6(e) of CEQA.

2. D.01-12-017, p. 30-31, is modified to include the following Conclusion of Law:

Conclusions of Law

11. The Commission may make a need determination pursuant to Public Utilities Code Section 1001. Under the Commission's authority to grant a CPCN pursuant to Section 1001, the Commission may also make a need determination under the "No Project" alternative pursuant to Section 15126.6(e) of CEQA.

3. Rehearing of D.01-05-059 and D.01-12-017, as modified, is hereby denied.

4. PG&E's request for oral argument is denied.

5. This proceeding is closed.

This order is effective today.

Dated October 24, 2002, at San Francisco, California.

LORETTA M. LYNCH

President

HENRY M. DUQUE

CARL W. WOOD

GEOFFREY F. BROWN

MICHAEL R. PEEVEY

Commissioners