ALJ/DUG/oma Date of Issuance 9/16/2009

Decision 09-09-011 September 10, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of San Diego Gas & Electric Company (U902M) for authority to update its gas and electric revenue requirement and base rates effective on January 1, 2008.	Application 06-12-009 (Filed December 8, 2006)
And Related Matters.	Application 06-12-010 Investigation 07-02-013 (Filed February 15, 2007)

(See Appendix 1 for List of Appearances.)

DECISION ON THE PETITION TO MODIFY DECISION 08-07-046 TO ACCELERATE RECOVERY OF CONTRIBUTIONS FOR PENSION AND
POST-RETIREMENT BENEFITS OTHER THAN PENSIONS

1. Summary

San Diego Gas & Electric Company (SDG&E) filed
Application (A.) 06-12-009, a general rate case application, and Southern California Gas Company (SoCalGas) filed A.06-12-010, also a general rate case application. They are related companies with some shared services. In
Decision (D.) 08-07-046 dated July 31, 2008 the Commission adopted a ratemaking settlement for each company that included a Test Year 2008 revenue requirement, a mechanism for attrition adjustments until the next general rate case, and performance and safety incentive mechanisms, all of which are reasonable and necessary to provide safe and reliable service to ratepayers. In response to a petition filed by SDG&E and SoCalGas to modify D.08-07-046, this decision modifies the settlements to allow both SDG&E and SoCalGas to accelerate the recovery of minimum contributions to (1) the companies' pension funds recorded in the Pension Balancing Accounts and (2) Post-Retirement Benefits Other than Pensions recorded in Post-Retirement Benefits Other than Pensions Balancing Accounts. This decision denies SDG&E's request to record in its Pension Balancing Account any expenses associated with surety bonds or letters of credit. The final cost to ratepayers is unchanged because rate recovery is only accelerated. There is some savings created by reducing compounding interest otherwise accruing in the balancing accounts.