III. CONCLUSION

For the reasons stated above, the application for rehearing of D.06-05-042 filed by PG&E and SCE (jointly) is dismissed.

Therefore IT IS ORDERED that:

1. The application for rehearing of D.06-05-042 is dismissed.

This order is effective today.

Dated August 24, 2006, at San Francisco, California.

MICHAEL R. PEEVEY

President

GEOFFREY R. BROWN

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE CHONG

Commissioners