III. CONCLUSION

As explained above, Resolution E-3831 is modified to remove an inconsistency with D.03-04-030, regarding what exceptions for CGDL count toward the 3,000 MW cap. Rehearing of Resolution E-3831, as modified is denied.

THEREFORE, it is hereby ordered that:

1. Resolution E-3831 is modify as follows:

a. Finding of Fact No 12 on page 27 will be changed to read:

"For CG up to 1 MW, the CRS exception is tied to CPUC or CEC program eligibility and requires no other specific designation as a clean system to qualify. Pursuant to D.03-04-030, the exception for CGDL systems that are 1 MW and under shall be included in the count toward the 3,000 MW cap."

b. The text for Ordering Paragraph No. 5 on page 28 is changed to read as follows:

"Consistent with D.03-04-040, PG&E, SCE, and SDG&E shall modify their proposed tariffs to reflect that the following do not count toward the 3,000 MW cap:"

c. Ordering Paragraphs Nos. 5.c. and 5.d. on page 28 are

deleted.

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2. Rehearing of Resolution E-3831, as modified herein, is

hereby denied.

3. Application (A.) 04-08-009 is hereby closed.

This order is effective today.

Dated January 13, 2005, at San Francisco, California.

MICHAEL R. PEEVEY

President

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners