2. Background on Decision 08-07-046

The settlement agreements provided for (1) $53.5 million annual pension funding for SDG&E and $0 for SoCalGas, and (2) annual Post-Retirement Benefits Other than Pensions (other benefits) funding of $15.5 million for SDG&E and $31.4 million for SoCalGas. The forecasts were based on an assessment made at the time of settlement of the funding required to ensure funding each utility's pension in accordance with minimum standards of the Employee Retirement Income Security Act of 1974 as amended by the Pension Protection Act of 2006. Other benefits' funding was the estimated expense for the rate case period. (Petition at 2.) Under the settlement, if actual pension contributions and actual other benefits expenses are greater than the allowances in the settlement then SDG&E and SoCalGas may record the difference in Pension Balancing Accounts and Post-Retirement Benefits Other than Pensions Balancing Accounts (Balancing Accounts), and recover the accrued amounts in a subsequent general rate case.