Assignment of Proceeding

Susan P. Kennedy is the Assigned Commissioner and Robert Barnett is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. PG&E's updated agreement for the sale of Sole Customer Facilities will increase the protections to and benefits for PG&E and ratepayers by clarifying that the buyer shall pay certain service costs, taxes, and the cost of complying with legal requirements, plus providing an enhanced indemnity provision.

2. It will benefit PG&E and ratepayers if PG&E is authorized to make modifications to the updated agreement that (i) clarify the existing terms of the updated agreement without making substantive changes; (ii) enhance existing protections for PG&E and/or ratepayers; or (iii) are designed solely to improve administrative efficiency. PG&E should be permitted to make these changes without prior Commission approval.

Conclusion of Law

The petition should be granted.

ORDER

IT IS ORDERED that:

1. Pacific Gas and Electric Company (PG&E) shall use the updated standard form purchase and sale agreement set forth in Appendix B for sole-customer facility sales.

2. PG&E may modify the updated agreement without prior Commission approval where such modifications (i) are used only to clarify existing terms for individual transactions; (ii) further strengthen PG&E and/or ratepayer protections recognized in Decision 99-12-030; or (iii) are used only to improve the administrative efficiency of the transaction.

3. Application 99-04-048 is closed.

This order is effective today.

Dated August 19, 2004, at San Francisco, California.

I dissent.

I reserve the right to file a dissent.

/s/ LORETTA M. LYNCH

Commissioner

I dissent.

/s/ CARL W. WOOD

Commissioner

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