IV. CONCLUSION

PG&E's application for rehearing fails to demonstrate legal error in Commission Decision (D.) 02-04-016.

THEREFORE, IT IS ORDERED:

1. Rehearing of D.02-04-016 is denied.

2. 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