III. CONCLUSION

The rehearing applicants have failed to demonstrate grounds for granting rehearing of D.03-12-035. However, D.03-12-035 shall be modified to clarify the admission of the testimony filed by Peninsula Ratepayers' Association. Rehearing of D.03-12-035, as modified, shall be denied.

THEREFORE, IT IS ORDERED THAT:

1. On page 72 of D.03-12-035, the last sentence on the page is deleted and replaced with the following:

"The rulings of the ALJ regarding admissibility of evidence, status as an intervenor, and status regarding intervenor compensation are affirmed, except for the following: (1) those portions of Peninsula Ratepayers' Association testimony that were referenced or used by other parties in this proceeding are admitted, and (2) Peninsula Ratepayers' Association is authorized to seek intervenor compensation."

2. On page 85 of D.03-12-035, Ordering Paragraph 8 is deleted and replaced with the following:

"8. The rulings of the Presiding Administrative Judge are affirmed, except that Peninsula Ratepayers' Association is authorized to seek intervenor compensation."

3. CCSF's request for oral argument is denied.

4. Rehearing of D.03-12-035, as modified, is denied.

This order is effective today.

Dated March 16, 2004, at San Francisco, California.

MICHAEL R. PEEVEY

President

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners

I abstain, and reserve the right to file

my reasons for abstaining.

/s/ CARL W. WOOD