Findings of Fact

1. On October 1, 2008, SDG&E submitted its 2009 ERRA Forecast Application.

2. DRA protested the application.

3. Following discovery and meet-and-confer efforts, SDG&E agreed to recalculate its ERRA and ongoing CTC revenue requirements, based on a gas price of $5.83.

4. The overall impact of using the lower natural gas forward price curve ending December 19, 2008 is to lower SDG&E's ERRA and ongoing CTC revenue requirements by $95.028 million and $10.905 million, respectively.

5. SDG&E's recalculated 2009 ERRA revenue requirement is $874.555 million.

6. SDG&E's recalculated 2009 ongoing CTC revenue requirement is $44.414 million.

7. Using the updated market benchmark data that Energy Division provided and the calculation methodology described in D.06-07-030 (as modified in D.08-01-030), SDG&E's final 2009 market benchmark price is $70.48/MWh (including distribution line losses).

8. Including the year-end balance (if that balance is below the 5% ERRA trigger threshold) in rates on January 1 will allow the year-end ERRA balance to self-correct more quickly, reduce the number of subsequent trigger-related filings, and allow ratepayers to would more quickly receive any year-end over-collections.

9. SDG&E is also proposing that beginning in 2009 it be allowed to include its year-end ERRA balance (in either the form of an over-collection or under-collection), if that balance is below the 5% ERRA trigger threshold, in rates on January 1 of each year through its annual electric regulatory account update filing. This filing is in the form of an advice letter submitted to Energy Division in October of each year and typically approved in time for the December consolidated rate filing and a January 1 implementation date.

10. Including the year-end balance in rates on January 1 will allow the year-end ERRA balance to self-correct more quickly and reduce the number of subsequent trigger-related filings. Also, SDG&E's ratepayers would more quickly receive any year-end over-collections under this proposal.