IV. CONCLUSION

For the reasons stated above, we modify D.04-09-022 to remove the language in the decision setting interim rates for the Otay Mesa joint receipt point. Accordingly, we deny TURN and RACE's Joint Application and RACE's Application of D.04-09-022, as modified.

Therefore IT IS ORDERED that:

1. D.04-09-022 is modified as follows:

a. The following language on page 4 of D.04-09-022 is amended:

"SDG&E and SoCalGas are authorized to establish the Otay Mesa receipt point as a joint receipt point into both of their systems."

b. The following language on page 63 of D.04-09-022 is amended:

"Additionally, we will grant the request of various parties to make Otay Mesa a common receipt point for both the SoCalGas and SDG&E gas systems. It is important for the Commission to send the signal to potential LNG suppliers that the gas they provide will have access to the California utilities' systems. Accordingly, we authorize SDG&E and SoCalGas to establish Otay Mesa as a joint receipt point into their systems at the earliest practical date."

c. The language removed from page 63 of D.04-09-022 is replaced by the following language:

"Because of the ratemaking issues that are implicated by establishing interim rates for a joint receipt point at Otay Mesa, we defer consideration of this issue to
A.04-12-004."

d. Findings of Fact 40 is deleted.

e. Conclusions of Law 13 is amended as follows:

"Otay Mesa should be designated a common receipt point for both the SDG&E and SoCalGas systems."

f. Ordering Paragraph 7a is modified as follows:

"Otay Mesa shall be designated a common receipt point for both SoCalGas and SDG&E."

2. Rehearing of D.04-09-022, as modified, is denied.

This order is effective today.

Dated October 27, 2005, at San Francisco, California.

MICHAEL R. PEEVEY

President

GEOFFREY F. BROWN

SUSAN P. KENNEDY

DIAN M. GRUENEICH

Commissioners

Commissioner John A. Bohn recused
himself from this agenda item and was
not part of the quorum in its consideration.