III. CONCLUSION

For the reasons stated above, D.06-12-031 is modified to reflect two minor clarifications as described herein, and rehearing of this decision, as modified, is denied.

Therefore IT IS ORDERED that:

1. D.06-12-031, at p 104, last sentence of the second paragraph, is modified to read:

"Also with the opportunity for electric generators to bid in Steps 2 and 3 of the open season, they should be able to obtain most, if not all, of what they need."

2. D. 06-12-031, Ordering Paragraph 9(b), at p. 143, and the last sentence of the first paragraph on p. 130 are modified to read:

"At the conclusion of SoCalGas' next BCAP, we intend to sunset the existing peaking rate tariff."

3. Rehearing of D.06-12-031, as modified, is denied.

4. This proceeding, Application (A.) 04-12-004, is closed.

This order is effective today.

Dated September 20, 2007, at San Francisco, California.

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