4. Comments on Proposed Decision

The proposed decision of Administrative Law Judge Kim in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Comments were filed on October 4, 2010 by SCE and San Diego Gas & Electric Company and Southern California Gas Company and no reply comments were filed.

SCE contends that the Commission should employ its Advice Letter Process for fund-shifting. The process set forth in OP 85 will clearly establish a record of how those funds are shifted and the basis justifying any proposed shifts. We therefore decline SCE's proposed modification in that regard.

San Diego Gas & Electric Company and Southern California Gas Company (Joint Utilities) propose to modify OP 85 b (3) as follows:

Shifting of funds into or out of different the following program categories including, but not limited to: (a) administrative overhead costs, (b) regulatory compliance costs, (c) measurement and evaluation, and (d) the costs of pilots and studies;

We decline the above proposed modification by Joint Utilities. Instead, we confirm that the ALJ's prior approval is required for fund-shifting from any category to a different category.

Lastly, both SCE and Joint Utilities pointed out a minor typographical error which is incorporated herein.