III. CONCLUSION

For the reasons discussed above, CARE's application for rehearing of D.06-12-030 is denied. However, in response to IEP's rehearing application and CAC/EPUC's joint rehearing application, a limited rehearing on issues discussed above and set forth in Ordering Paragraph No. 2 herein shall be granted; in all other respects, the applications for rehearing are denied.

THEREFORE, IT IS ORDERED that:

1. A limited rehearing of D.06-12-030 is granted in response to the applications for rehearing filed by Independent Energy Producers Association and jointly by Cogeneration Association of California and Energy Producers and Users Coalition.

2. The limited rehearing of D.06-12-030 herein ordered shall concern:

a. Whether all parties, including those categorized as market participants, are constitutionally entitled to discover confidential market sensitive information if it is relevant to the proceedings in which the rules adopted in this rulemaking shall apply, subject to our confidentiality procedures.

b. Whether market participants who are parties in proceedings affected by the rules adopted in this underlying proceeding-and in particular, the applicants for rehearing-may meaningfully participate in such proceedings if they are denied discovery of relevant information.

c. Whether market participants who are active parties in proceedings affected by the rules adopted in this underlying proceeding may meaningfully participate in such proceedings if they are permitted to use reviewing representatives for purposes of discovery of relevant confidential market sensitive information, provided such reviewing representatives agree to abide by all required confidentiality procedures, such as those adopted in

D.08-04-023.

d. Whether meaningful participation by parties in proceedings affected by the rules adopted by D.06-12-030, regardless of categorization of the parties, mandates a right of access by all parties to all of the information available to other parties in the proceeding, and if so or if not, based on what laws; comments should include a discussion of the difference between mere "access" to information versus discovery of relevant information, and whether that distinction is pertinent to the question of meaningful participation by all parties in which the rules adopted in this proceeding apply, regardless of classification.

e. Whether circumstances warrant a denial of party status for entities who may be in a position to misuse confidential market sensitive information, and if so, under what circumstances and pursuant to what laws.

f. Whether the Commission may utilize a "limited participation" status for certain parties and if so, what such status entails, including but not limited to what constitutes fair and adequate participation and whether that satisfies the requirement of "meaningful participation," as well as any additional requirements, such as those pertaining to proceedings which may be affected by the adopted rules, and based on what law(s).

g. Whether a protective order or protective agreement may adequately safeguard the interests of the party claiming the market sensitive information is confidential particularly if other parties are permitted some form of access to or discovery of that same information in situations where the parties seeking the confidential information may be competitors; comments should include relevant laws, rules, regulations and relevant Commission and/or court decisions.

h. Whether and if so, how, use of a reviewing representative by IEP and/or other market participant parties in proceedings affected by the rules adopted in this proceeding may or may not impede those parties' First Amendments rights in said proceedings; and whether such an impediment, if it exists, is permissible and if so under what standards.

i. Whether participation in the electricity and/or gas market(s) in excess of one megawatt constitutes a material ability to affect market price and if not, what amount does and what amount constitutes a de minimis participation level and why?

j. Whether meaningful participation by parties in proceedings affected by the rules adopted by D.06-12-030, regardless of categorization of the parties, mandates a right of discovery which includes access by all parties, including those consisting of trade associations classified as market participants, to all of the relevant information available to other parties in the proceeding, and if so or if not, based on what laws.

k. Whether some market participants should not have access to relevant market sensitive information (for purpose of discovery or participating in a proceeding in which the rules adopted in the underlying proceeding apply), while other parties may have access through a reviewing representative and by entering into a protective order, and if so based on what laws.

l. Whether other means may be used, aside from total prohibition of access by select parties, to address the Commission's concern for inadvertent disclosure, and if so, what are they (comments should include relevant laws as well as recent developments in this proceeding such as the adoption of the MPO).

m. Whether prohibition of simultaneous representation by an attorney or consultant of non-market and market participants should apply in all Commission proceedings that involve procurement, resource adequacy, RPS, the wholesale purchase, sale or marketing of energy or capacity, the bidding on or purchasing of power plants, or bidding on utility procurement solicitations, and if so or if not, why and when.

n. Whether a representative of a non-market participant that has access to confidential market sensitive information should be prohibited from acting as a reviewing representing of a market participant in any Commission proceeding and if so, which proceedings, why, and for how long.

3. The Executive Director shall serve upon the parties in R.05-06-040 a copy of this order.

4. An ALJ shall hold a prehearing conference setting forth the schedule for the limited rehearing. To the extent there are related legal issues not set forth in this order, that warrant consideration during the limited rehearing, the parties should inform the ALJ assigned to the rehearing what those issues are specifically, so that the schedule may incorporate an opportunity to file briefs on those legal issues, as necessary.

5. Pending the outcome of the limited rehearing, the ordering paragraphs of D.06-12-030 shall remain in effect.

6. The application for rehearing of D.06-12-030 filed by Californians for Renewable Energy is denied.

7. Except as set forth in Ordering Paragraph Nos. 1 and 2, the applications for rehearing filed by Independent Energy Producers Association and jointly by Cogeneration Association of California and Energy Producers and Users Coalition, are denied in all other respects.

This order is effective today.

Dated March 26, 2009, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

TIMOTHY ALAN SIMON

Commissioners