II. CONCLUSION

UDI has failed to show that the Commission committed legal error in approving PG&E's Advice Letter 2111-G.

THEREFORE, IT IS ORDERED that

1. UDI's application for rehearing of Resolution G-3359 is denied.

2. This proceeding is closed.

This order is effective today.

Dated March 16, 2004, at San Francisco, California.

MICHAEL R. PEEVEY

President

CARL W. WOOD

LORETTA M. LYNCH

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners