Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Darwin E. Farrar is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. On October 1, 2009, SDG&E submitted its 2010 ERRA Forecast Application.

2. DRA was the only party that protested the application.

3. Following discovery and meet-and-confer efforts, the parties resolved the issues giving rise to the protest filed by DRA.

4. SDG&E is not seeking authority to increase ERRA or CTC related rates.

5. SDG&E's recalculated 2010 ERRA revenue requirement is $827.956 million.

6. SDG&E's recalculated 2010 CTC revenue requirement is $46.908 million.

7. SDG&E's updated ERRA and CTC forecast are a total of $44 million lower than forecast for 2009.

8. 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 2010 market benchmark price for calculating PCIA is $61.05/MWh and $58.54/MWh for calculating CTC.

Conclusions of Law

1. As shown in its application, supporting testimony (including attachments to testimony), and filings, SDG&E `s (a) forecasted 2010 ERRA revenue requirement (of $827.956 million); (b) forecasted 2010 ongoing CTC revenue requirement (of $46.908 million); (c) proposed 2010 market benchmark price of $61.05/MWh for calculating PCIA and $58.54/MWh for calculating CTC are reasonable and should be adopted.

2. SDG&E's motion to (a) receive its testimony, including attachments to testimony, into evidence as SDG&E 1 - 5; and (b) seal the confidential information pursuant to the confidential information guidelines set forth in D.06-06-066, should be granted.

3. An evidentiary hearing is not necessary.

ORDER

IT IS ORDERED that:

1. San Diego Gas & Electric Company's modified 2010 Energy Resource Recovery Account forecast is adopted, consisting of: (a) 2010 Energy Resource Recovery Account forecast revenue requirement of $827.956 million; (b) a 2010 Competition Transition Charge forecast revenue requirement of $46.908 million; and (c) a 2010 market benchmark price of $58.54/megawatt-hour for calculating the Competition Transition Charge and $61.05/megawatt-hour for calculating the Power Charge Indifference Adjustment.

2. 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 will remain sealed for a period of three years from the effective date of this decision, except as to the following portions of Tony Choi's testimony, which will remain sealed as follows:

If San Diego Gas & Electric Company believes further protection is needed after that time, it may file a motion stating the justification for further withholding of the material from public inspection as least 30 days before the expiration of this order.

3. San Diego Gas & Electric Company shall file a Tier - 1 Advice Letter to implement the revenue requirement in this order within 10 days of the date of this decision. The tariff sheets will become effective on May 1, 2010, subject to a determination by the California Public Utilities Commission's Energy Division that they are in compliance with this order. Implementation of the change in rates due to the revenue requirement adopted in this order shall occur on May 1, 2010.

4. Application 09-10-003 is closed.

This order is effective today.

Dated April 8, 2010, at San Francisco, California.

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