6. Comments on Proposed Decision

On October 1, 2007, the proposed decision of ALJ Mattson on the amended petition for modification was mailed to the parties in accordance with § 311 of the Pub. Util. Code and Rule 14.2(a) of the Commission's Rules of Practice and Procedure. Timely comments were filed on or about October 22, 2007 by SCE, PG&E, SDG&E, IEP, CEERT and Division of Ratepayer Advocates (DRA). Timely reply comments were filed on October 29, 2007 by SCE and PG&E.

We are persuaded to make certain changes to the proposed decision, and do so in the text above, including the following: STC 1 (CPUC Approval - delete subpart (c)), STC 6 (Eligibility - not include a proposal from the proposed decision regarding change in law; remove contract default risk related to changes in law, as recommended by SDG&E) and STC 16 (Assignment - convert from non-modifiable to modifiable; clarify that utilities are expected to agree only to modifications that afford the greatest protection to ratepayers). We clarify that current advice letters with contracts which we have not yet approved should be amended to conform with the decisions herein, and Energy Division shall reject pending advice letters which are not in conformance. We include a new section on the context of the changes ordered herein, to clarify the responsibility of each electric corporation to meet RPS Program targets and goals, and the relationship of increasing contracting flexibility with provisions for flexible compliance to meet those targets and goals. We also do not require a verified statement that all changes to modifiable STCs are non-substantive unless otherwise specifically identified, as was included in the proposed decision.