3. SDG&E's ERRA, CTC, and Market Benchmark Forecasts

In its amended Application, SDG&E requests a 2011 ERRA revenue requirement of $755.413 million, which is $72.543 million lower than its 2010 ERRA forecast; a 2011 CTC revenue requirement forecast of $63.354 million, which is $16.446 million higher than its 2010 CTC forecast; and 2011 market benchmark prices of $42.50/megawatt-hour (MWh) for calculating the CTC and $44.33/MWh for calculating the PCIA, which are $16.04 and $16.74 respectively less than its 2010 forecasts. Based on the proposed combined decrease in rates of $56.097 million,³ SDG&E states that a typical monthly bill for a residential inland customer who uses 1,000 kilowatt-hours (kWh) per month will decrease from approximately $232.83 to $227.01, or 2.5%, and from approximately $244.00 to $237.52, or 2.7%, for a residential coastal customer. SDG&E's small commercial customers will see a decrease of approximately $6.12 on their monthly summer electric bill or 2.0%.⁴

Except as noted below, with respect to the Otay Mesa PPA, no party criticized or provided alternatives to SDG&E's proposed forecast ERRA and CTC revenue requirements and market benchmarks. Additionally, no party claimed that SDG&E's proposed forecast ERRA and CTC revenue requirements or market benchmarks were not in compliance with existing applicable Commission decisions, rules, and regulations. We adopt SDG&E's requested forecast 2011 ERRA and CTC revenue requirements and market benchmarks.

³ SDG&E's proposed ERRA reduction of $72.54 million minus the proposed CTC increase of $16.446 million results in a net reduction in rates of $56.097 million.

⁴ Based on 1,500 kWh for secondary service.