IX. Assignment of Proceeding

Geoffrey F. Brown and Carl W. Wood are the Assigned Commissioners and Thomas R. Pulsifer is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Neither DWR nor the IOUs incorporated explicit quantifiable adjustments into the load forecasts relied upon by DWR to recognize bypass attributable to new load for publicly-owned utilities.

2. The IOUs' forecast models implicitly incorporated historic trends, and to that extent, necessarily included a level of municipal annexation as well as associated new POU load.

3. PG&E explicitly forecast a provision for transferred load attributable to municipalization and irrigation district bypass in its forecast provided to DWR, based upon data from its August 2000 Bypass Report.

4. Since provision for new POU load was implicitly included in the IOUs' forecasts, there is a basis to grant a limited exception to CRS charges for new POU load.

5. To assure that there is no cost-shifting prohibited by law, it is reasonable to set a limit on the amount of new MDL of POUs to be granted CRS exceptions.

6. Although PG&E did not explicitly forecast new load, its forecast of transferred load raises issues concerning whether a CRS exception is warranted to recognize the effects of the amount of transferred load that was excluded from the forecasts given to DWR.

7. In the MDL Decision, however, the Commission relied on PG&E's representation that it did not deliver forecast data to DWR incorporating its 2000 Bypass Report until June 2001, as a basis for concluding that no MDL bypass was explicitly incorporated into the load data utilized by DWR in procuring power.

8. Based on disclosures developed in the evidentiary record in this phase of the proceeding, PG&E has confirmed that--instead of June 2001--it actually delivered forecast data to DWR on February 12, 2001, that incorporated MDL estimates for the period 2001-2003 from the 2000 Bypass Report.

9. PG&E's February 12, 2001 transmittal to DWR incorporated specific energy sales forecasts of municipal departing load bypass for 2001-2003.

10. The MDL bypass incorporated in the 2000 Bypass Report reflect "transferred load", as well as associated "new load" in the same geographic areas as the transferred load.

11. The amount of load from the 2000 Bypass Report that was subtracted out of the PG&E forecast utilized by DWR was based upon the cumulative bypass totals forecasted for the year 2003.

12. In extending the PG&E 2003 load forecast from 2004 to 2010, DWR applied a year-to-year growth trend line to escalate the load forecast applicable to bundled load, but did not apply any growth trend to the 2003 forecast municipal departing load shown in the Bypass Report.

13. The forecast developed by DWR for the PG&E service territory for 2004 to 2010 period retained the fixed amount of 2003 cumulative municipal departing load from the Bypass Report, without any growth trend applied.

14. The fixed amount of municipal departing load estimated for 2003 as set forth in PG&E's 2000 Bypass Report attributable to irrigation district bypass was 588,252 MWh and for municipalization bypass was 151,506 MWh.

15. Merced ID and Modesto ID have mutually agreed to an allocation between themselves of the 2003 bypass estimate of 531,065 MWh attributed to them in the following manner: 340,844 MWh for Merced ID and 190,220 MWh for Modesto ID, and this allocation is reasonable.

16. Since DWR did not procure power on behalf of the MDL Bypass "transferred" load that was subtracted out of the 2000 Bypass Report, no cost shifting would result from the adoption of a MDL CRS exception applicable to that "transferred" load in the PG&E service territory.

17. As of February 12, 2001-the date on which the MDL estimate incorporated in the 2000 Bypass Report was provided to DWR by PG&E--, DWR had only executed two of its fifty-three power contracts.

18. The currently adopted requirements for MDL as adopted in D.03-07-028 do not take into account any effects of the 2000 Bypass Report as they relate to DWR power purchases.

19. For purposes of identifying publicly-owned utilities that would be eligible to apply for any unused portion of the CRS exception adopted for transferred load (not otherwise utilized by the entities identified in the PG&E Bypass Report), it is appropriate to limit eligibility to those entities formed as of the date of this order and serving at least 100 customers.

20. On the basis of equity, it is reasonable to modify the date of eligibility from February 1, 2001 to the effective date of this decision.

Conclusions of Law

1. The record developed pursuant to the rehearing ordered in this proceeding provides a reasonable basis for a CRS exception for new load attributable to particular publicly-owned utilities based on their date of formation or operation.

2. The relevance and adequacy of the evidentiary record in resolving outstanding issues concerning the MDL CRS is governed by Assembly Bill 117 ("AB 117") which clarified the Legislature's intent concerning the implementation of AB 1X, and the recovery of DWR-related costs from retail end-use customers.

3. Since the evidence indicates that the IOUs implicitly include new MDL in their forecasts delivered to DWR, it is reasonable to grant a limited exception to the CRS.

4. We should set a cap of 150 MW for "new" MDL load exceptions prior to the end of 2012, in order not to create an incentive for new load sited for the express purpose of avoiding DWR charges, and thus, to prevent cost-shifting.

5. Since the record indicates that PG&E did exclude a provision for transferred load attributable to irrigation district and municipalization bypass from its load forecast provided to DWR, it is appropriate to amend the MDL CRS obligation to exempt a provision for transferred load corresponding to the amounts excluded in PG&E forecast and relied upon by DWR.

6. Although it was PG&E-rather than DWR-that made the adjustment for MDL transferred load, the relevant issue in the context of cost responsibility is that the forecast, itself, incorporated the adjustment for MDL bypass.

7. Granting an MDL CRS exception for the effects of the MDL transferred load is not inconsistent with the Commission's treatment of the U.S. Navy Load in D.03-05-036 due to the differences in the respective circumstances involved, as specified in today's decision.

8. The MDL CRS decision should be amended to adopt the exception amounts set forth in the ordering paragraphs below for purposes of a MDL CRS exception for transferred load.

9. The MDL CRS exemption should be applied first to those irrigation districts and/or municipalities that were identified in the Bypass Report. Any exception that is not claimed of the exemption should be available to other MDL entities on a first-come, first-served basis, but limited to the MDL of those publicly-owned utilities that were formed as the effective date of this decision and serving at least 100 customers.

ORDER

IT IS ORDERED that:

1. The Municipal Departing Load Decision (MDL) cost responsibility surcharge (CRS) exemption for new load applicable to publicly-owned utilities formed on or before February 1, 2001, as established in Decision (D.) 03-07-028 is hereby modified pursuant to the rehearing ordered in this proceeding.

2. "New" municipal departing load of publicly-owned utilities serving at least 100 customers by the effective date of this decision shall be granted a limited exception to the CRS up to an amount of 150 MW in the PG&E and SCE territories, collectively, by the end of 2012.

3. The "new load" exception shall be administered on a first-come, first-served basis and as further defined in advice letters submitted by the IOUS to the Energy Division.

4. D.03-07-028 is hereby modified to create a CRS exception applicable to transferred load within the PG&E service territory corresponding to the estimates set forth in PG&E's August 2000 Bypass Report that were relied upon by Department of Water Resources in its power procurement process.

5. In accordance with the PG&E Bypass Report, the CRS exception for MDL attributable to irrigation districts shall apply to at least the following: Modesto and Merced IDs, SSJID and Laguna ID. Other irrigation districts must submit proof of eligibility to the Assigned ALJ for a determination of eligibility for unused CRS exception amounts.

6. In accordance with the Bypass Report, the exclusion attributable to municipalization as identified in the Bypass Report shall apply to MDL of at least the following three existing municipalities: Redding, Roseville, and Lodi and two potential municipalities: Davis and Brentwood. Other municipal utilities must submit proof of eligibility to the Assigned ALJ for a determination of eligibility for unused CRS exception amounts.

7. The IOUs should file advice letters for Commission approval for developing the procedures to determine how exceptions to the CRS will be administered.

8. The amounts of CRS exception for transferred load shall be allocated to each qualifying entity in accordance with the amounts shown on a megawatt-hour basis for each entity as set forth in Appendix 2.

9. To the extent that any of those specifically identified entities, MDL does not utilize their allotted CRS exception, the exception shall be made available to MDL, including "new" MDL, of these and other eligible publicly-owned utilities on a first-come, first-served basis.

10. The MDL eligible for applying for any unused CRS exception on a first-come, first-served basis shall not be limited to the MDL served by those entities set forth in the decision herein, but may include additional entities as provided for in this decision.

11. The publicly-owned utilities eligible to apply for the CRS exception on behalf of their MDL also must have been in existence as of the effective date of this decision, and serving at least 100 customers. The list of publicly-owned utilities who have already shown that they meet the criteria for eligibility to apply for any available CRS exception on behalf of their qualifying MDL are identified as follows:

a. The eligible Municipal Utilities are: Alameda, Anaheim, Azusa, Banning, Biggs, Burbank, Colton, Glendale, Gridley, Healdsburg, Lodi, Lompoc, Los Angeles, Needles, Palo Alto, Pasadena, Redding, Riverside, Roseville, Santa Clara, Shasta Lake, Ukiah, and Vernon.

b. The eligible Municipal Utility Districts are: Lassen and Sacramento.

c. The eligible Public Utility Districts: Plumas-Sierra, Trinity, and Truckee-Donner.

d. The eligible Irrigation Districts: Imperial, Merced, and Modesto.

12. Any entity that can show eligibility for exceptions granted in this decision and not listed in Ordering Paragraph 11 above must submit evidence pursuant to procedures that will be developed for the determination of eligibility consistent with today's decision.

13. The eligibility criteria for "existing publicly-owned utilities" who qualify for the limited CRS exception for transferred load, require that the publicly-owned utility (1) be providing electricity to retail end-use customers on or before the effective date of this decision; and (2) serving 100 or more customers.

14. Any necessary administrative measures required to implement the MDL CRS exceptions adopted in this order shall be addressed as part of the MDL billing and collection phase of this proceeding.

15. The motion of California Municipal Utilities Association to update Exhibit 80 and to amend its Petition to Modify is granted.

This order is effective today.

Dated , at San Francisco, California.

ATTACHMENT A

LIST OF APPEARANCES

************ APPEARANCES ************ James H. Butz AIR PRODUCTS AND CHEMICALS, INC. 7201 HAMILTON BLVD. ALLENTOWN PA 18195 (610) 481-4239 butzjh@apci.com Michael Alcantar Attorney At Law ALCANTAR & KAHL LLP 1300 SW FIFTH AVENUE, SUITE 1750 PORTLAND OR 97201 (503) 402-9900 mpa@a-klaw.com For: Cogeneration Association of California (CAC) Nora Sheriff EVELYN KAHL Attorney At Law ALCANTAR & KAHL LLP 120 MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO CA 94104 (415) 421-4143 nes@a-klaw.com For: EPUC/KCC/GAG Evelyn Kahl Attorney At Law ALCANTAR & KAHL, LLP 120 MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO CA 94104 (415) 421-4143 ek@a-klaw.com For: Energy Producers and Users Coalition Edward G. Poole Attorney At Law ANDERSON & POOLE 601 CALIFORNIA STREET, SUITE 1300 SAN FRANCISCO CA 94108 (415) 956-6413 X3015 epoole@adplaw.com For: California Independent Petroleum Assoc. (CIPA) James Mosher AREA ENERGY LLC 10000 MING AVENUE BAKERSFIELD CA 93311 jpmosher@aeraenergy.com	Merilyn Ferrara ARIZONA PUBLIC SERVICE 400 N 5TH ST. PHOENIX AZ 85004 (602) 250-3161 mFerrara@apsc.com Barbara R. Barkovich BARKOVICH & YAP, INC. 31 EUCALYPTUS LANE SAN RAFAEL CA 94901 (415) 457-5537 brbarkovich@earthlink.net For: CLECA Reed V. Schmidt BARTLE WELLS ASSOCIATES 1889 ALCATRAZ AVENUE BERKELEY CA 94703 (510) 653-3399 X 111 rschmidt@bartlewells.com For: California City-County Street Light Assoc. Barry Lovell BERRY PETROLEUM COMOPANY PO BOX 925 28700 HOVEY HILLS ROAD TAFT CA 93268 (661) 769-2328 bjl@bry.com Scott Blaising Attorney At Law BRAUN & BLAISING, P.C. 8980 MOONEY ROAD ELK GROVE CA 95624 (916) 682-9702 blaising@braunlegal.com For: City of Cerritos/California Municipal Utilities Association Chris Williamson BREITBURN ENERGY COMPANY, LLC 515 S. FLOWER STREET, SUITE 4800 LOS ANGELES CA 90071 (213) 225-5900 cwilliamson@breitburn.com For: BreitBurn Energy Company, LLC Maurice Brubaker BRUBAKER & ASSOCIATES, INC. 1215 FERN RIDGE PARKWAY, SUITE 208 ST. LOUIS MO 63141 (314) 275-7007 mbrubaker@consultbai.com For: Brubaker & Associates, Inc.
Darcie L. Houck Staff Counsel CALIFORNIA ENERGY COMMISSION 1516 9TH STREET, MS 14 SACRAMENTO CA 95814-5512 (916) 654-3855 dhouck@energy.state.ca.us For: California Energy Commission Karen Norene Mills Attorney At Law CALIFORNIA FARM BUREAU FEDERATION 2300 RIVER PLAZA DRIVE SACRAMENTO CA 95833 (916) 561-5655 kmills@cfbf.com For: California Farm Bureau Federation Ronald Liebert CALIFORNIA FARM BUREAU FEDERATION 2300 RIVER PLAZA DRIVE SACRAMENTO CA 95833 (916) 561-5657 rliebert@cfbf.com For: California Farm Bureau Federation Emilio Varanini Iii JEANNE CLINTON CALIFORNIA POWER AUTHORITY 901 P STREET, SUITE 142A SACRAMENTO CA 95814 (916) 651-9750 cpacounsel@dgs.ca.gov For: California Power Authority Steve Schleimer CALPINE CORPORATION PO BOX 11749 PLEASANTON CA 94588-1749 sschleimer@calpine.com Kathryn Phillips CEERT 1100 11TH STREET, SUITE 311 SACRAMENTO CA 95814 (916) 442-7785 kathryn@ceert.org For: CEERT - Center for Energy Efficiency and Renewable Technologies John A. Barthrop General Counsel COMMONWEALTH ENERGY CORP. 15901 RED HILL AVE., SUITE 100 TUSTIN CA 92780 (714) 259-2586 jbarthrop@electric.com	Edward Wheless COUNTY SANITATION DISTRICTS OF L.A. PO BOX 4998 WHITTIER CA 90607 (562) 699-7411 ewheless@lacsd.org R. Thomas Beach Principal Consultant CROSSBORDER ENERGY 2560 NINTH STREET, SUITE 316 BERKELEY CA 94710 (510) 649-9790 tomb@crossborderenergy.com Robert C. Cagen Legal Division RM. 5026 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2197 rcc@cpuc.ca.gov Edward W. O'Neill Attorney At Law DAVIS WRIGHT TREMAINE LLP ONE EMBARCADERO CENTER, SUITE 600 SAN FRANCISCO CA 94111-3834 (415) 276-6500 edwardoneill@dwt.com For: California Solar Energy Industries Association Lindsey How-Downing TREG TREMONT-TREGTREMONT@DWT.COM Attorney At Law DAVIS WRIGHT TREMAINE LLP ONE EMBARCADERO CENTER, SUITE 600 SAN FRANCISCO CA 94111-3834 (415) 276-6500 lindseyhowdowning@dwt.com For: Calpine Corporation Robert B. Gex ANDREW D. MASTIN Attorney At Law, DAVIS WRIGHT TREMAINE LLP ONE EMBARCADERO CENTER, SUITE 600 SAN FRANCISCO CA 94111-3611 (415) 276-6500 robertgex@dwt.com For: SF Bary Area Rapid Transit District
Steven F. Greenwald Attorney At Law DAVIS WRIGHT TREMAINE, LLP ONE EMBARCADERO CENTER, SUITE 600 SAN FRANCISCO CA 94111 (415) 276-6500 stevegreenwald@dwt.com For: Guardian Industries Corp. Norman J. Furuta Attorney At Law DEPARTMENT OF THE NAVY 2001 JUNIPERO SERRA BLVD., SUITE 600 DALY CITY CA 94014-3890 (650) 746-7312 norman.furuta@navy.mil For: Federal Executive Agencies William A. Mogel Attorney At Law DORSEY & WHITNEY LLP 1001 PENNSYLVANIA AVENUE, N.W. SUITE 400 SOUTH WASHINGTON DC 20004-2533 (202) 442-3537 mogel.william@dorseylaw.com For: 7-Eleven, Inc. Daniel W. Douglass Attorney At Law DOUGLASS & LIDDELL 21700 OXNARD STREET, SUITE 1030 WOODLAND HILLS CA 91367 (818) 593-3939 douglass@energyattorney.com For: AReM; WPTF Gregory Klatt Attorney At Law DOUGLASS & LIDDELL 411 E. HUNTINGTON DRIVE, SUITE 107-356 ARCADIA CA 91007 (626) 294-9421 klatt@energyattorney.com For: AREM/WPTF Dan L. Carroll Attorney At Law DOWNEY BRAND LLP 555 CAPITOL MALL, 10TH FLOOR SACRAMENTO CA 95814 (916) 444-1000 dcarroll@downeybrand.com For: Central Valley Project Group	Ann L. Trowbridge Attorney At Law DOWNEY, BRAND, SEYMOUR & ROHWER, LLP 555 CAPITOL MALL, 10TH FLOOR SACRAMENTO CA 95814 (916) 441-0131 atrowbridge@dbsr.com For: Merced Irrigation District/Real Energy/South San Joaquin Irrigation District Colin L. Pearce Attorney At Law DUANE MORRIS LLP 1 MARKET PLAZA, SPEAR TOWER, 20TH FLOOR SAN FRANCISCO CA 94105 (415) 371-2200 clpearce@duanemorris.com For: Wal-Mart Stores, Inc. Stuart Robertson Robertson-Bryan, Inc. EASTSIDE POWER AUTHORITY 9766 WATERMAN ROAD, SUITE L-2 ELK GROVE CA 95624 (916) 714-1801 stuart@robertson-bryan.com For: EASTSIDE POWER AUTHORITY Michael G. Nelson Attorney At Law ELECTRIC AMERICA 15901 REDHILL AVENUE, SUITE 100 TUSTIN CA 92780 (714) 259-2593 mnelson@electric.com For: Commonwealth Energy Corporation Lynn M. Haug Attorney At Law ELLISON & SCHNEIDER 2015 H STREET SACRAMENTO CA 95814-3109 (916) 447-2166 lmh@eslawfirm.com For: CITY OF INDUSTRY Andrew Brown Attorney At Law ELLISON, SCHNEIDER & HARRIS, LLP 2015 H STREET SACRAMENTO CA 95814 (916) 447-2166 abb@eslawfirm.com For: DEPARTMENT OF GENERAL SERVICES
Jan E. Mc Farland EMERGENT ENERGY GROUP 19 WINDSOR KENSINGTON CA 94708 (510) 559-7721 mcfarlandj@sbcglobal.net For: Emergent Energy Group Carolyn Kehrein ENERGY MANAGEMENT SERVICES 1505 DUNLAP COURT DIXON CA 95620-4208 (707) 678-9506 cmkehrein@ems-ca.com For: Energy Users Forum Kay Davoodi FEA 1314 HARWOOD STREET, S.E. WASHINGTON NAVY YARD DC 20374-5018 (202) 685-3319 khojasteh.davoodi@navy.mil For: Navy Rate Intervention James D. Squeri Attorney At Law GOODIN MACBRIDE SQUERI RITCHIE & DAY LLP 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 jsqueri@gmssr.com For: California Retailers Association Jeanne B. Armstrong MICHAEL B. DAY Attorney At Law GOODIN MACBRIDE SQUERI RITCHIE & DAY LLP 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 jarmstrong@gmssr.com For: Enron Energy Services, Inc/Enron Energy Marketing Corp Michael B. Day JEANNE BENNETT Attorney At Law GOODIN MACBRIDE SQUERI RITCHIE & DAY LLP 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 mday@gmssr.com For: Enron Energy Service, Inc., Enron North America Corp.	Brian T. Cragg Attorney At Law GOODIN, MACBRIDE, SQUERI, RITCHIE & DAY 505 SANSOME STREET, SUITE 900 SAN FRANCISCO CA 94111 (415) 392-7900 bcragg@gmssr.com For: County Sanitation Districts of Los Angeles James Koontz ROGER K. MASUDA GRIFFITH & MASUDA 517 E. OLIVE STREET TURLOCK CA 95380 (209) 667-5501 jkoontz@calwaterlaw.com For: Turlock Irrigation District Clyde Murley GRUENEICH RESOURCE ADVOCATES 582 MARKET STREET, SUITE 1020 SAN FRANCISCO CA 94104 (415) 834-2300 cmurley@gralegal.com For: BOMA - Building Owners and Managers Association of California Clyde S. Murley GRUENEICH RESOURCE ADVOCATES 582 MARKET STREET, SUITE 1020 SAN FRANCISCO CA 94104 (415) 834-2300 cmurley@gralegal.com For: County of Los Angeles Dian Grueneich Attorney At Law GRUENEICH RESOURCE ADVOCATES 582 MARKET STREET, SUITE 1020 SAN FRANCISCO CA 94104 (415) 834-2300 dgrueneich@gralegal.com For: The Irvine Company/City of Rancho Cucamonga Dian Grueneich Attorney At Law GRUENEICH RESOURCE ADVOCATES 582 MARKET STREET, SUITE 1020 SAN FRANCISCO CA 94104 (415) 834-2300 dgrueneich@gralegal.com For: UC/CSU - University of California/California State University
Jack P. Mcgowan GRUENEICH RESOURCE ADVOCATES 582 MARKET STREET, SUITE 1020 SAN FRANCISCO CA 94104 (415) 834-2300 docket-control@gralegal.com For: Applied Materials Alan L. Schlang GUARDIAN INDUSTRIES CORP. 2300 HARMON ROAD AUBURN HILLS MI 48326 aschlang@guardian.com Norman A. Pedersen LAWRENCE G. WATKINS, JR. Attorney At Law HANNA AND MORTON LLP 444 SOUTH FLOWER ST., SUITE 2050 LOS ANGELES CA 90071-2922 (213) 430-2510 npedersen@hanmor.com For: Commonwealth Energy Corp. (Fred Bloom) Norman A. Pedersen SCOTT A. LEHECKA Attorney At Law HANNA AND MORTON LLP 444 SOUTH FLOWER STREET, SUITE 1500 LOS ANGELES CA 90071-2916 (213) 430-2510 npedersen@hanmor.com For: STRATEGIC ENERGY. L.L.C. Scott A. Lehecka Attorney At Law HANNA AND MORTON LLP 444 S. FLOWER STREET, 15TH FLOOR LOS ANGELES CA 90071 (213) 430-2508 slehecka@hanmor.com For: Strategic Energy, L.L.C. Richard Mrlik INTERTIE 2130 FILLMORE STREET, 211 SAN FRANCISCO CA 94115 (415) 567-0446 rmrlik@intertie.com For: City of Industry	Jackson W. Mueller JACKSON W. MUELLER, JR., LLC 12450 235TH PLACE NE REDMOND WA 98053 (425) 868-6638 jwmueller@attglobal.net For: Self William Marcus JBS ENERGY, INC. 311 D STREET, SUITE A WEST SACRAMENTO CA 95605 (916) 372-0534 bill@jbsenergy.com For: JBS Energy William H. Booth Attorney At Law LAW OFFICES OF WILLIAM H. BOOTH 1500 NEWELL STREET, 5TH FLOOR WALNUT CREEK CA 94596 (925) 296-2460 wbooth@booth-law.com For: CLECA - California Large Energy Consumers Association Jeffrey E. Gray Senior Corporate Counsel LOWE'S COMPANIES, INC. PO BOX 1111 NORTH WILKESBORO NC 28656 jeff.e.gray@lowes.com John Leslie Attorney At Law LUCE, FORWARD, HAMILTON & SCRIPPS 11988 EL CAMINO REAL, SUITE 200 SAN DIEGO CA 92130 (858) 720-6352 jleslie@luce.com For: Callaway Golf Randall W. Keen Attorney At Law MANATT PHELPS & PHILLIPS, LLP 11355 WEST OLYMPIC BLVD. LOS ANGELES CA 90064 (310) 312-4361 pucservice@manatt.com For: Kern Oil & Refining Co./Paramount Petroleum Co./Los Angeles Unified School
David L. Huard Attorney At Law MANATT, PHELPS & PHILLIPS, LLP 11355 WEST OLYMPIC BOULEVARD LOS ANGELES CA 90064 (310) 312-4247 dhuard@manatt.com For: LA Unified School District, City of Corona, Del Taco, Inc, Lowes Home Improvement Warehouse, et C. Susie Berlin DIS Attorney At Law MC CARTHY & BERLIN, LLP 2005 HAMILTON AVENUE, SUITE 140 SAN JOSE CA 95125 (408) 558-0950 sberlin@mccarthylaw.com For: City of San Marcos/Turlock Irrigation David J. Byers Attorney At Law MCCRACKEN, BYERS & HAESLOOP 1528 SO. EL CAMINO REAL, SUITE 306 SAN MATEO CA 94402 (650) 377-4890 btenney@landuselaw.com. For: California City-County Street Light Association Jeffrey H. Goldfien Assistant City Attorney MEYERS, NAVE, RIBACK, SILVER & WILSON 555 12TH ST STE.,1500 OAKLAND CA 94607-4095 (510) 351-4300 jhg@meyersnave.com Christopher J. Mayer MODESTO IRRIGATION DISTRICT PO BOX 4060 MODESTO CA 95352-4060 (209) 526-7430 chrism@mid.org For: Modesto Irrigation District Scott T. Steffen MODESTO IRRIGATION DISTRICT 1231 ELEVENTH STREET MODESTO CA 95354 (209) 526-7387 scottst@mid.org For: Modesto Irrigation District	Peter W. Hanschen Attorney At Law MORRISON & FOERSTER LLP 101 YGNACIO VALLEY ROAD, SUITE 450 WALNUT CREEK CA 94596 (925) 295-3450 phanschen@mofo.com For: Agriculture Energy Consumers Association Seth Hilton Attorney At Law MORRISON & FOERSTER LLP 101 YGNACIO VALLEY ROAD, SUITE 450 WALNUT CREEK CA 94596-8130 (925) 295-3371 shilton@mofo.com For: El Paso Merchant Energy Sara Steck Myers Attorney At Law 122 - 28TH AVENUE SAN FRANCISCO CA 94121 (415) 387-1904 ssmyers@att.net William T. Bagley JOSE E. GUZMAN, JR. Attorney At Law NOSSAMAN GUTHNER KNOX & ELLIOTT 50 CALIFORNIA STREET, 34TH FLOOR SAN FRANCISCO CA 94111-4799 (415) 398-3600 jguzman@nossaman.com For: Poseidon Resources Corporation Martin A. Mattes DANIEL J. GERALDI Attorney At Law NOSSAMAN GUTHNER KNOX & ELLIOTT, LLP 50 CALIFORNIA STREET, 34TH FLOOR SAN FRANCISCO CA 94111-4799 (415) 398-3600 mmattes@nossaman.com For: Jack in the Box Inc. Jose Guzman NOSSAMAN, GUTHNER, KNOX & ELLIOTT, LLP 50 CALIFORNIA STREET, 34TH FLOOR SAN FRANCISCO CA 94111-4799 (415) 398-3600 jguzman@nossaman.com For: City of Irvine
Jeff Hanig OEHI/THUM 5 GREENWAY PLAZA, SUITE 1500 HOUSTON TX 77046 jeff_hanig@oxy.com Adam Chodorow PACIFIC GAS & ELECTRIC COMPANY 77 BEALE STREET, B30-A SAN FRANCISCO CA 94105 (415) 973-6673 asc5@pge.com For: PG&E Ann H. Kim Attorney At Law PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, ROOM 3101 SAN FRANCISCO CA 94105 (415) 973-7467 ahk4@pge.com For: PG&E Mark R. Huffman Attorney At Law PACIFIC GAS AND ELECTRIC COMPANY B30A PO BOX 770000 SAN FRANCISCO CA 94177 (415) 973-3842 mrh2@pge.com For: Pacific Gas and Electric Company Nina Bubnova Case Manager PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MAIL CODE B9A SAN FRANCISCO CA 94177 nbb2@pge.com For: PACIFIC GAS AND ENERGY COMPANY Paul V. Holton PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MAIL CODE B9A SAN FRANCISCO CA 94177-0001 (415) 972-5708 pvh1@pge.com For: PACIFIC GAS AND ELECTRIC COMPANY Peter Ouborg Attorney At Law PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, ROOM 3163 SAN FRANCISCO CA 94105 (415) 973-2286 pxo2@pge.com For: PG&E	Donald R. Schoonover Attorney At Law PACIFIC TELESIS GROUP 2600 CAMINO RAMON, 2W805 SAN RAMON CA 94583 (925) 823-8389 ds1957@camail.sbc.com For: California Large Energy COnsumers Association Steven D. Farkas PARAMOUNT PETROLEUM CORPORATION 14700 DOWNEY AVENUE PARAMOUNT CA 90723 (562) 531-2060 SFarkas@ppcla.com Peter Weiner ZACHARY R. WALTON PAUL HASTINGS JANOFSKY AND WALKER LLP 55 SECOND STREET, 24TH FLOOR SAN FRANCISCO CA 94105 (415) 856-7000 peterweiner@paulhastings.com For: hitachi global storage technologies Michael H. Hindus MICHAEL J. DAPONDE Attorney At Law PILLSBURY WINTHROP LLP 50 FREMONT STREET SAN FRANCISCO CA 94105 (415) 983-1851 mhindus@pillsburywinthrop.com For: Westside Power Authority/SBC Pacific Bell Michael J. Daponde Attorney At Law PILLSBURY WINTHROP LLP 400 CAPITOL MALL, SUITE 1700 SACRAMENTO CA 95814 (916) 329-4700 mdaponde@pillsburywinthrop.com For: Westside Power Authority James Ross Thums REGULATORY & COGENERATION SERVICES, INC. 500 CHESTERFIELD CENTER, SUITE 320 CHESTERFIELD MO 63017 (636) 530-9544 jimross@r-c-s-inc.com
Stuart Robertson ROBERTSON-BRYAN, INC 9766 WATERMAN ROAD, SUITE L2 ELK GROVE CA 95624 (916) 714-1801 stuart@robertson-bryan.com For: Central Valley Project Group Boyd Wilson ROBERTSON-BRYAN, INC. 9766 WATERMANN RD., SUITE L-2 ELK GROVE CA 95624 (916) 714-1803 rbi@robertson-bryan.com Jonathan J Reiger Legal Division RM. 5130 505 VAN NESS AVE San Francisco CA 94102 (415) 355-5596 jzr@cpuc.ca.gov Marco Gomez Attorney At Law S.F. BAY AREA RAPID TRANSIT PO BOX 12688 OAKLAND CA 94604-2688 (510) 464-6058 mgomez1@bart.gov Mark W. Ward SAN DIEGO GAS & ELECTRIC COMPANY 8330 CENTURY PARK COURT - CP22D SAN DIEGO CA 92123 (858) 654-1796 mward@semprautilities.com Paul A. Szymanski Attorney At Law SAN DIEGO GAS & ELECTRIC COMPANY 101 ASH STREET SAN DIEGO CA 92101 (619) 699-5078 pszymanski@sempra.com For: SDG&E Thomas Corr SEMPRA ENERGY 101 ASH STREET, HQ 15G SAN DIEGO CA 92101 (619) 696-4246 tcorr@sempra.com	Justin D. Bradley SILICON VALLEY MANUFACTURING GROUP 224 AIRPORT PARKWAY, SUITE 620 SAN JOSE CA 95110 (408) 501-7864 jbradley@svmg.org For: SILICON VALLEY MANUFACTURING GROUP Andrew Ulmer Attorney At Law SIMPSON PARTNERS LLP 900 FRONT STREET, SUITE 300 SAN FRANCISCO CA 94111 (415) 773-1790 andrew@simpsonpartners.com For: California Department of Water Resources James P. Scott Shotwell Attorney At Law SOUTHERN CALIFORNIA EDISON COMPANY 2244 WALNUT GROVE AVENUE ROSEMEAD CA 91770 (626) 302-4531 J.P.Shotwell@sce.com For: Southern Calirornia Edison Company Jennifer Shigekawa Attorney At Law SOUTHERN CALIFORNIA EDISON COMPANY 2244 WALNUT GROVE AVENUE ROSEMEAD CA 91770 (626) 302-6819 Jennifer.Shigekawa@sce.com For: SCE Steven P. Rusch STOCKER RESOURCES, INC. 5640 S. FAIRFAX LOS ANGELES CA 90056 (323) 298-2223 srusch@stockerresources.com For: Stocker Resources Keith Mccrea SUTHERLAND, ASBILL & BRENNAN 1275 PENNSYLVANIA AVENUE, NW WASHINGTON DC 20004-2415 (202) 383-0705 keith.mccrea@sablaw.com For: CMTA
Matthew Freedman Attorney At Law THE UTILITY REFORM NETWORK 711 VAN NESS AVENUE, SUITE 350 SAN FRANCISCO CA 94102 (415) 929-8876 X 314 freedman@turn.org Michel Peter Florio ROBERT FINKELSTEIN; MATT FREEDMAN THE UTILITY REFORM NETWORK 711 VAN NESS AVENUE, SUITE 350 SAN FRANCISCO CA 94102 (415) 929-8876 mflorio@turn.org For: TURN - The Utility Reform Network Robert Finkelstein Attorney At Law THE UTILITY REFORM NETWORK 711 VAN NESS AVE., SUITE 350 SAN FRANCISCO CA 94102 (415) 929-8876 bfinkelstein@turn.org For: TURN Christopher Conkling General Counsel USS-POSCO INDUSTRIES 900 LOVERIDGE ROAD PITTSBURG CA 94565 (925) 439-6507 cconklin@ussposco.com Bill Julian Attorney At Law UTILITIES & COMMERCE STATE CAPITOL, ROOM 2117 SACRAMENTO CA 95814 (916) 492-9194 Andrew Dalton Counsel, Environ Safety & Regulatory Aff VALERO ENERGY COMPANY ONE VALERO PLACE, ROOM 264 SAN ANTONIO TX 78212-2186 (210) 370-5954 Andrew.dalton@valero.com Andrew J. Van Horn VAN HORN CONSULTING 61 MORAGA WAY, SUITE 1 ORINDA CA 94563 (925) 254-3358 vhconsult@earthlink.net	Jerry R. Bloom Attorney At Law WHITE & CASE LLP 3 EMBARCADERO CENTER, SUITE 2210 SAN FRANCISCO CA 94111-4050 (415) 544-1100 jbloom@whitecase.com For: California Cogeneration Council John Rosenbaum WHITE & CASE LLP THREE EMBARCADERO CENTER, SUITE 2200 SAN FRANCISCO CA 94111 (415) 544-1110 jrosenbaum@whitecase.com For: California Cogeneration Council Lisa A. Cottle JERRY R. BLOOM/ENOCH H. CHANG Attorney At Law WHITE & CASE LLP 3 EMBARCADERO CENTER, SUITE 2210 SAN FRANCISCO CA 94111-4050 (415) 544-1100 lcottle@whitecase.com For: Simpson Timber Company ********** STATE EMPLOYEE *********** Peter Arth, Jr. Executive Division RM. 5300 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2576 paj@cpuc.ca.gov Kathryn Auriemma Energy Division RM. 4002 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2072 kdw@cpuc.ca.gov Christopher J. Blunt Office of Ratepayer Advocates RM. 4209 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1779 cjb@cpuc.ca.gov For: ORA
Gloria Bell CALIFORNIA DEPARTMENT OF WATER RESOURCES 3310 EL CAMINO AVENUE, SUITE 120 SACRAMENTO CA 95821 (916) 574-1299 gbell@water.ca.gov Jeannie S. Lee Office Of Chief Counsel CALIFORNIA DEPARTMENT OF WATER RESOURCES 3310 EL CAMINO AVENUE, ROOM 120 SACRAMENTO CA 95821 (916) 574-2220 jslee@water.ca.gov John Pacheco California Energy Resources Scheduling CALIFORNIA DEPARTMENT OF WATER RESOURCES 3310 EL CAMINO AVENUE, ROOM 120 SACRAMENTO CA 95821 (916) 574-0311 jpacheco@water.ca.gov Clare Laufenberg CALIFORNIA ENERGY COMMISSION 1516 NINTH STREET, MS 46 SACRAMENTO CA 95814 (916) 654-4859 claufenb@energy.state.ca.us Karen Griffin Executive Office CALIFORNIA ENERGY COMMISSION 1516 9TH STREET, MS 39 SACRAMENTO CA 95814 (916) 654-4833 kgriffin@energy.state.ca.us Mike Jaske CALIFORNIA ENERGY COMMISSION 1516 NINTH STREET, MS-22 SACRAMENTO CA 95814 (916) 654-4777 mjaske@energy.state.ca.us Scott Tomashefsky CALIFORNIA ENERGY COMMISSION 1516 - 9TH STREET SACRAMENTO CA 95814 (916) 654-4896 stomashe@energy.state.ca.us	Tim Tutt CALIFORNIA ENERGY COMMISSION 1516 9TH STREET, MS-45 SACRAMENTO CA 95814 (916) 654-4590 tutt@energy.state.ca.us Michael S Campbell Executive Division RM. 5303 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2721 msc@cpuc.ca.gov Sean F. Casey Office of Ratepayer Advocates RM. 4209 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1667 sfc@cpuc.ca.gov Judy Cooper Consumer Service & Information Division AREA 2-E 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2188 jms@cpuc.ca.gov Kevin P. Coughlan Energy Division RM. 4011 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1090 kpc@cpuc.ca.gov Tara M. Dunn 901 P STREET, SUITE 142A SACRAMENTO CA 95814 (916) 651-9750 tara.dunn@dgs.ca.gov Christopher Danforth Office of Ratepayer Advocates RM. 4209 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1481 ctd@cpuc.ca.gov
Paul Douglas Energy Division AREA 4-A 505 VAN NESS AVE San Francisco CA 94102 (415) 355-5579 psd@cpuc.ca.gov Julie A Fitch Executive Division RM. 5203 505 VAN NESS AVE San Francisco CA 94102 (415) 355-5552 jf2@cpuc.ca.gov David M. Gamson Executive Division RM. 5214 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1997 dmg@cpuc.ca.gov Peter Hanson Executive Division RM. 4104 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1053 pgh@cpuc.ca.gov Maxine Harrison Executive Division RM. 500 320 WEST 4TH STREET SUITE 500 Los Angeles CA 90013 (213) 576-7064 omh@cpuc.ca.gov Dexter E. Khoury Office of Ratepayer Advocates RM. 4209 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1200 bsl@cpuc.ca.gov Robert Kinosian Office of Ratepayer Advocates RM. 4205 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1500 gig@cpuc.ca.gov	Laura L. Krannawitter Office of Ratepayer Advocates RM. 4101 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1784 llk@cpuc.ca.gov Donald J. Lafrenz Energy Division AREA 4-A 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1063 dlf@cpuc.ca.gov Alan Lofaso Executive Division 770 L STREET, SUITE 1050 Sacramento CA 95814 (916) 327-7788 alo@cpuc.ca.gov Carlos A Machado Executive Division 770 L STREET, SUITE 1050 Sacramento CA 95814 (916) 327-3277 cm2@cpuc.ca.gov James Mcmahon Senior Engagement Manager NAVIGANT CONSULTING, INC. 3100 ZINFANDEL DRIVE, SUITE 600 RANCHO CORDOVA CA 95670 (603) 591-5898 JMcMahon@navigantconsulting.com Bradley N. Webb OFFICE OF LEGISLATIVE COUNSEL 925 L STREET, SUITE 400 SACRAMENTO CA 95814-3702 (916) 341-8326 bradley.webb@legislative.counsel.ca.gov Thomas R. Pulsifer Administrative Law Judge Division RM. 5005 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2386 trp@cpuc.ca.gov
Manuel Ramirez Executive Division AREA 5-A 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1826 mzr@cpuc.ca.gov Steve Roscow Energy Division AREA 4-A 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1189 scr@cpuc.ca.gov Steven C Ross Office of Ratepayer Advocates RM. 4209 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2140 sro@cpuc.ca.gov Karen M Shea Energy Division AREA 4-A 505 VAN NESS AVE San Francisco CA 94102 (415) 703-5404 kms@cpuc.ca.gov Maria Vanko Energy Division 320 WEST 4TH STREET SUITE 500 Los Angeles CA 90013 (213) 576-7096 mv1@cpuc.ca.gov Carlos A Velasquez Energy Division AREA 4-A 505 VAN NESS AVE San Francisco CA 94102 (415) 703-1124 los@cpuc.ca.gov Ourania M. Vlahos Legal Division RM. 5037 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2387 omv@cpuc.ca.gov	Steven A. Weissman Executive Division RM. 4103 505 VAN NESS AVE San Francisco CA 94102 (415) 703-5173 saw@cpuc.ca.gov Helen W. Yee Legal Division RM. 5034 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2474 yee@cpuc.ca.gov Amy C Yip-Kikugawa Legal Division RM. 5135 505 VAN NESS AVE San Francisco CA 94102 (415) 703-2004 ayk@cpuc.ca.gov

(END OF ATTACHMENT A)

Appendix 1

Summary of Bypass Forecasts for Irrigation Districts
and Municipalization Included in PG&E's Bypass Report

Type of Bypass	PG&E Bypass Forecast Through 2000 (MWh)	PG&E Bypass Forecast Through 2001 (MWh)y	PG&E Bypass Forecast Through 2002 (MWh)	PG&E Bypass Forecast Through 2003 (MWh)	PG&E Bypass Forecast Through 2004 (MWh)
Traditional Self-Gen	6,285,655	6,289,855	6,296,855	6,303,855	6,310,855
Over-the-Fence	115,226	555,414	555,414	555,414	555,414
Irrigation Districts	351,713	406,500	514,468	588,252	662,052
Municipalization	100,800	104,900	147,025	151,506	155,991
Ag Engines	188,000	190,400	192,800	195,200	197,600
Total	7,041,394	7,547,069	7,706,562	7,794,227	7,881,912

(END OF APPENDIX 1)

Appendix 2

PG&E's Estimated Lost Customers and Sales Due to Customer Bypass to Irrigation Districts

1996-2000

		Lost Sales (MWh/yr)
		To	To				Lost Sales	Trend Line
Year		Modesto ID	Merced ID	Total			(MWh)	(MWh)
1996		1,657	33,059	34,717		1996	34,717	20,962
1997		37,000	65,581	102,581		1997	102,581	93,833
1998		70,867	76,342	147,209		1998	147,209	166,705
1999		97,130	100,176	197,306		1999	197,306	239,577
2000		114,526	205,213	319,739		2000	351,713	312,449
5-yr Total		321,181	480,371	801,552		2001		385,321
						2002		458,192
						2003		531,064
Addl EOY 2000		10%	10%			2004		603,936
2000 (Adj.)		125,979	225,734	351,713		2005		676,808
5-yr Total (Adj.)		332,634	500,893	833,526		Intercept	-145,431,072
						Slope	72,872
Note: Lost customers in 2000 are as of 4/15/00. Lost sales in 2000 are limited to already departed customers projected
over the remainder of the year, and will be higher if more customers are lost. "2000 Adj" includes estimated lost
sales in 2000 from customers departing after 4/15/00.
Cumulative		Modesto &	Laguna ID	SSJID	Other ID	Total ID
Bypass Ests.		Merced Ids	Condemnation	Condemnation	Bypass	Bypass
By Year (MWh)		(MWh)	(MWh)	(MWh)	(MWh)	(MWh)
2000		351,713	0	0	0	351,713
2001		385,321	0	21,179	0	406,500
2002		458,192	34,885	21,391	0	514,468
2003		531,064	35,583	21,605	0	588,252
2004		603,936	36,295	21,821	0	662,052
2005		676,808	37,021	22,039	0	735,868
				1.0%

(END OF APPENDIX 2)

Appendix 3

PG&E's Estimated Lost Customers and Sales

Due to Customer Bypass to Municipalization

Bypass during 1991-2000 period--annexations	100,800
by existing munis (MWh)
Estd. additional bypass during 2001-2005 period--annexations	20,500
by existing munis (MWh)
Estd. additional bypass per year during 2001-2005 period--annexations	4,100
by existing munis (MWh)
Potential bypass from new muni/ID formation, 2001-2005 (MWh)
Brentwood	250,000
Davis	380,000,000
Laguna ID
	Existing Muni	Potential Condemnations				Estimated	Condemnation	Total Muni
	Annexations	Brentwood	Davis	San Francisco	Total	Probability of	Expected Value	Bypass Estimate
Cumulative Bypass Estimates by Year	(MWh)	(MWh)	(MWh)	(MWh)	(MWh)	Success	(MWh)	Success
2000	100,800				0		0	100,800
2001	104,900				0		0	104,900
2002	109,000	250	380,000	0	380,250	10%	38,025	147,025
2003	113,100	260	383,800	0	384,060	10%	38,406	151,506
2004	117,200	270	387,638	0	387,908	10%	38,791	155,991
2005	121,300	281	391,514	0	391,796	10%	39,180	160,480
	Growth rate =>	4.0%	1.0%	2.0%

(END OF APPENDIX 3)

CERTIFICATE OF SERVICE

I certify that I have by mail and email, to those on the service list who have provided electronic addresses, this day served a Notice of Availability of Proposed Alternate Decision of President Peevey on Opinion Regarding Municipal Departing Load Rehearing and Related Issues, on all parties of record in this proceeding or their attorneys of record.

Dated November 5, 2004, at San Francisco, California

/s/ Sally Cuaresma

Sally Cuaresma

NOTICE

Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.

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