III. CONCLUSION

PG&E has not established legal error. We will, however, modify our decision to clarify our authority pursuant to CEQA. Therefore, the application for rehearing of D.01-10-029, as modified below, is denied.

Therefore IT IS ORDERED that:

1. D.01-10-029, p. 148, is modified to include the following Conclusion of Law:

Conclusions of Law

17. 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.01-10-029, as modified, is hereby denied.

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

4. 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