Conclusions of Law

1. As shown in its application, supporting testimony (including attachments to testimony), and filings, SDG&E `s (a) forecasted 2009 ERRA revenue requirement (of $874.555 million); (b) forecasted 2009 ongoing CTC revenue requirement (of $44.414 million); (c) proposed 2009 market benchmark price (of $70.48/MWh including distribution line losses); and (d) year-end ERRA balance proposal (as described in Finding of Fact 8) are reasonable and should be adopted.

2. SDG&E's proposal that it be allowed to include its year-end ERRA balance, if that balance is below the 5% ERRA trigger threshold, in rates on January 1 of each year through the annual electric regulatory account update filing, effective January 1, 2010, is reasonable and should be adopted.

3. SDG&E's motion to (a) receive its testimony, including attachments to testimony, into evidence as Exhibits 1-9; and (b) seal the confidential information found in Exhibits 1(c) through 9(c), pursuant to the confidential information guidelines set forth in D.06-06-066, should be granted.7

4. An evidentiary hearing is not necessary.

ORDER

IT IS ORDERED that:

1. San Diego Gas & Electric Company's modified 2009 Energy Resource Recovery Account forecast is adopted, consisting of: (a) 2009 Energy Resource Recovery Account forecast revenue requirement of $874.555 million; (b) a 2009 Competition Transition Charge forecast revenue requirement of $44.414 million; and (c) a 2009 market benchmark price of $70.48/megawatt-hour (including distribution line losses).

2. Effective January 1, 2010, San Diego Gas & Electric Company shall include its year-end Energy Resource Recovery Account balance, if that balance is below the 5% Energy Resource Recovery Account trigger threshold, in rates on January 1 of each year through the annual electric regulatory account update filing.

3. San Diego Gas & Electric Company's motion to receive its prepared testimony, including attachments to testimony, and seal confidential versions of such testimony and attachments is granted. San Diego Gas & Electric Company's confidential testimony and attachments shall remain sealed for a period of three years from the effective date of this decision.

4. San Diego Gas & Electric Company shall file an Advice Letter to implement the revenue requirement in this order, concurrent with pending rate adjustments filed by SDG&E in other advice letters that become effective May 1, 2009. The tariff sheets shall become effective on May 1, 2009, subject to a determination by Energy Division that they are in compliance with this order.

5. Application 08-10-004 is closed.

This order is effective today.

Dated April 16, 2009, at San Francisco, California

7 There is no Exhibit 8(c).

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