5. Other Issues

In this phase of the proceeding, SDG&E filed a proposal for a shareholder incentive framework that includes shareholder incentives for energy efficiency investments, as well as for beating certain market benchmarks in short-term procurement activities (e.g., short-term contracting and sales, contract renegotiations, among others).36 SDG&E requests that we accept its incentive proposal here or, in the alternative, order further evaluation of this proposal in the future.

We decline to do so here. SDG&E's proposal does not fit within the scope or goals of our inquiry in this proceeding. Here, we are examining the interaction between GHG policies and potential financial incentives for resource investments that will be consistent with the preferred loading order identified in our procurement policy decisions and in the EAP.

SDG&E is free to propose elements of its incentive framework proposal in the energy efficiency rulemaking (or its successor proceeding) or SDG&E's rate case, as appropriate. However, we do not approve SDG&E's request for approval of its incentive proposal in this proceeding.

36 Pre-Workshop Comments of SDG&E on Procurement Incentive Framework, February 11, 2005.

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