7. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. In D.06-12-033, the Commission adopted the currently effective annual CSI revenue requirement for each utility.

2. On December 31, 2006, SCE transferred $104.6 million and SDG&E transferred $37.2 million in unspent solar funds from SGIP to their respective CSI balancing accounts.

3. Both SCE and SDG&E have an overcollection in their CSI balancing accounts, in part due to the transfer of funds from SGIP in December 2006.

4. The Commission established funding for CSI in such a manner that annual revenue requirements are high in early years and decline in later years.

5. A suspension of the collection of CSI funds from ratepayers in 2009 will provide a rate decrease to the electric customers of SCE and SDG&E.

6. Joint Petitioners filed their petition more than one year from the date of the decision they seek to modify.

Conclusions of Law

1. The petition should be accepted for consideration because it arises from the significant lag in payment of CSI incentives over time and the current economic climate.

2. It is reasonable for SCE and SDG&E to suspend collections of CSI revenue requirement in 2009 due to each utility's current overcollection in its CSI balancing account.

3. The annual revenue requirement for CSI, previously adopted in D.06-12-033, should be modified as set forth in Table 2 of this order.

4. Future CSI revenue requirement changes should be considered through petition to modification of the relevant Commission decision.

ORDER

IT IS ORDERED that:

1. The joint petition filed by Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E) is granted in part to allow SCE and SDG&E to suspend 2009 collections for the California Solar Initiative (CSI).

2. The joint petition is denied with regard to its request to establish an advice letter process for further revenue requirement changes.

3. The revenue requirement for the CSI set forth in Table 2 of this order is adopted, replacing the schedule set forth in Decision 06-12-033.

This order is effective today.

Dated December 4, 2008, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

TIMOTHY ALAN SIMON

Commissioners