2. Background

On May 17, 2010, San Diego Gas and Electric Company (SDG&E) filed Application (A.) 10-05-016 requesting authorization to: issue up to $800 million of new Debt Securities; issue up to $150 million of new Preferred or Preference Stock; fund capital expenditures; reimburse its treasury for monies expended or to be expended for the expansion and betterment of utility plant; enter into one or more interest rate risk management contracts; encumber utility property; guarantee obligations of regulated affiliates or regulated subsidiaries, and political subdivisions; and be exempted from selected portions of the Competitive Bidding Rule (CBR).

Notice of the application appeared in the Commission's Daily Calendar of May 19, 2010 and no protests were filed. On May 20, 2010, Resolution ALJ 176-3254 was issued, preliminarily categorizing this application as ratesetting, and that no hearings were needed.