ALJ/CAB/avs Date of Issuance 9/22/2008

Decision 08-09-037 September 18, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Establish Policies and Cost Recovery Mechanisms for Generation Procurement and Renewable Resource Development.

Rulemaking 01-10-024 (Filed October 25, 2001)

DECISION GRANTING INTERVENOR COMPENSATION TO THE UTILITY REFORM NETWORK AND THE UTILITY CONSUMERS' ACTION NETWORK FOR AWARD OF COMPENSATION FOR SUBSTANTIAL CONTRIBUTION TO DECISION (D.) 04-06-011, D.05-06-062, D.06-02-031, AND D.06-09-021

This decision awards The Utility Reform Network (TURN) and The Utility Consumers Action Network (UCAN), jointly, $315,896.16 in compensation for their substantial contributions to Decision (D.) 04-06-011, D.05-06-062, D.06-02-031 and D.06-09-021. This represents a slight decrease from the amount requested due to ineligible expenses claimed by UCAN/TURN. Today's award payment will be paid by San Diego Gas & Electric Company. This proceeding is closed.

1. Background

This request covers the time devoted by TURN/UCAN staff and consultants to litigation associated with a series of decisions involving generating resources (particularly Calpine's Otay Mesa) selected by San Diego Gas & Electric Company (SDG&E) as part of its 2003 Grid Reliability solicitation. TURN/UCAN participated in the original review and approval of the contracts submitted in SDG&E's October 7, 2003 motion. After hearings and briefing on the motion, the Commission considered the Proposed Decision of Administrative Law Judge (ALJ) Brown and two Alternate Decisions from Commissioners Wood and Peevey. After the issuance of D.04-06-011 approving SDG&E's motion, TURN/UCAN filed a joint application for rehearing on issues relating to the approval of Calpine's Otay Mesa generating plant. Based on this application for rehearing, the Commission granted limited rehearing in D.05-06-062 for purposes of determining the reasonableness of the Otay Mesa Power Purchase Agreement (PPA). Following the decision, the Commission initiated another set of evidentiary hearings which led to the issuance of D.06-02-013 approving the Otay Mesa PPA. Subsequent to this decision, TURN/UCAN filed another application for rehearing. In tandem with the filing of this compensation request, TURN/UCAN notified the Commission of the withdrawal of their application for rehearing of D.06-02-013. Prior to the Commission action on that application for rehearing, TURN/UCAN reached a compromise agreement with SDG&E that led to the submission of a joint petition for modification of D.04-06-011 and D.06-02-031. The joint petition was approved in D.06-09-021.