ALJ/MFG/avs Date of Issuance 3/17/2009

Decision 09-03-024 March 12, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Joint Application of San Diego Gas & Electric Company (U902G), Southern California Gas Company (U904G) and Pacific Gas and Electric Company (U39G) to Reallocate the Costs of Natural Gas Public Purpose Programs and Other Mandated Social Programs Among Customer Classes.

Application 07-12-006 (Filed December 11, 2007)

Sempra, by Jonny J. Pong, Attorney at Law,
for San Diego Gas & Electric Company and
Southern California Gas Company
Robert B. McLennan, Attorney at Law, for Pacific Gas

and Electric Company; applicants.

Sutherland Ashill & Brennan, by Keith McCrea,
Attorney at Law, for California Manufacturers & Technology Association; Alcantar & Kahl, LLP, by Nora Sheriff, Attorney at Law, for Indicated Producers; The Dolphin Group,
by Dan Geis, for the Agricultural Energy Consumers Association; California League of Food Processors, by Rob Neenan, for California League of Food Processors; Nina Suetake, Attorney at Law, for The Utility Reform Network; Enrique Gallardo, for Latino Issues Forum; Alexis K. Wodtke, Attorney at Law, for Consumer Federation of California;

Mary-Lee E. Kimber, for Disability Rights Advocate;

interested parties.

Harvey Y. Morris, Attorneys at Law, for the Division of Ratepayer Advocates.

DECISION ON REALLOCATION OF NATURAL GAS

PUBLIC PURPOSE PROGRAMS COSTS

TABLE OF CONTENTS

Title Page

DECISION ON REALLOCATION OF NATURAL GAS PUBLIC PURPOSE PROGRAMS COSTS 22

1. Summary 22

2. Background 22

3. Request 33

4. Procedural History 44

5. Discussion 55

5.1. California Economy and Competitiveness
of California Businesses 88

5.1.1. Guardian Glass 99

5.1.2. ernon 1010

5.1.3. Alternative Service Providers 1111

5.1.4. Business Customers' Feedback 1111

5.1.5. Conclusion 1212

5.2. Equitable and Consistent Distribution of Cost 1414

5.2.1. Applicant's Reality Check 1515

5.2.2. Equity of the EPBR 1717

6. Comments on Proposed Decision 1919

7. Assignment of Proceeding 1919

Findings of Fact 1919

Conclusions of Law 2121

ORDER 2222

APPENDIX A Public Purpose Programs

APPENDIX B Acronyms

DECISION ON REALLOCATION OF NATURAL GAS
PUBLIC PURPOSE PROGRAMS COSTS

1. Summary

This decision denies the joint request of San Diego Gas & Electric Company, Southern California Gas Company and Pacific Gas and Electric Company's, collectively identified as "the utilities," to change the cost allocation methods by which their natural gas customers are charged for the costs of their public purpose programs from the various cost allocation methods currently in use to a single cost allocation method.¹

¹ See Appendix B for an alphabetical list of all acronyms.