ALJ/CAB/sid Date of Issuance 1/30/2009

Decision 09-01-008 January 29, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of San Diego Gas & Electric Company (U902E) for Expedited Approval of the Miramar Energy Facility II Project.

Application 08-06-017 (Filed June 16, 2008)

DECISION APPROVING APPLICATION BY SAN DIEGO GAS & ELECTRIC COMPANY FOR THE MIRAMAR ENERGY FACILITY II PROJECT

1. Summary

This decision approves the application by San Diego Gas & Electric Company (SDG&E) for a project with Miramar Energy Facility II (MEF II) for an Engineering, Procurement and Construction contract with Wellhead Services, Inc., and a contract with General Electric for the supply of a simple cycle gas-fired combustion turbine with a capacity of approximately 46.5 megawatts to provide peaking energy and capacity. The MEF II project will interconnect to the SDG&E system via the existing Miramar substation that also serves the Miramar Energy Facility I Project unit that is on the same site and was brought on-line in summer 2005. SDG&E owns the Miramar site, as well as the turbine/generator, and offered the MEF II project to the market for a competitive bid on a turnkey basis in its 2008 Peaker Request for Offers. Upon completion, the project will be owned and operated by SDG&E. SDG&E is authorized to recover in rates the cost of constructing and operating the MEF II project, consistent with the construction-related risk and reward incentive mechanism described in this decision.