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ALJ/SRT/hl2 Mailed 7/13/2004

Decision 04-07-006 July 8, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Pacific Gas and Electric Company (U 39 G),

      Complainant,

vs.

Calpine Corporation, CPN Pipeline Company Calpine Energy Services, L.P., Calpine Natural Gas Company; Lodi Gas Storage, LLC; and DOES 1-10,

    Defendants.

Case 03-07-031

(Filed July 22, 2003)

OPINION APPROVING SETTLEMENT

I. Summary

This decision approves a settlement1 between Pacific Gas and Electric Company (PG&E), complainant, and defendants Calpine Corporation, CPN Pipeline Company (CPN), Calpine Energy Services, L.P., Calpine Natural Gas Company (collectively, Calpine Entities), and Lodi Gas Storage (LGS). The terms of the settlement provide that PG&E will dismiss the complaint in exchange for payments and other agreements by defendants.

We find the settlement meets all of the Commission's requirements, and should be approved.

1 The full text of the settlement is attached as the Appendix to this decision.

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