I. SUMMARY

In Resolution E-3831, the Commission implemented the cost responsibility surcharge ("CRS") for customer generation departing load ("CGDL"), as mandated by Decision (D.) 03-04-030, as modified by D.03-04-041.

Pacific Gas and Electric Company, Southern California Edison Company, Energy Producers and Users Coalition, Kimberly Clark Corporation, and Goodrich Aerostructures Group (collectively, "Applicants") timely filed an application for rehearing. Applicants claimed that the Commission erred by: (1) stating that CGDL shall pay the same competition transition charge ("CTC") as paid by bundled-service and direct access customers; (2) issuing a resolution that could be misconstrued to prejudge an issue in another proceeding; (3) subjecting the CRS for CGDL to a 2.7 cent cap, and (4) exempting certain categories of CGDL from the 3,000 MW statewide cap. Applicants are claiming that the Resolution is inconsistent with previous Commission decisions.

Modesto Irrigation District filed a response to the application for rehearing. It argues that Resolution E-3831 does not in any way prejudge the outcome of A.03-08-004. (Modesto's Response to Application for Rehearing, p. 4.)

We have reviewed each and every allegation in the application for rehearing, and are of the opinion that Resolution E-3831 must be modified to remove an inconsistency contained therein regarding what exceptions for CGDL count toward the

3,000 MW cap. We find that the other issues presented in the rehearing application lack merit. Therefore, rehearing of Resolution E-3831, as modified herein, is denied.