ALJ/VSK/jt2 Date of Issuance 4/1/2009

Decision 09-03-033 March 26, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of San Diego Gas and Electric Company (U902E) for Approval of Power Purchase Agreement with J-Power, USA Development Company, LTD and Wellhead Power Margarita, LLC for Recovery of Costs and for a limited Exemption from the Requirements of Public Utilities Code Section 851.

Application 07-05-023 (Filed May 11, 2007)

PROPOSED DECISION MODIFYING DECISION 07-09-010

1. Summary

On September 5, 2008, San Diego Gas & Electric Company (SDG&E) filed a petition for modification (Petition) of Decision (D.) 07-09-010 (the Decision) in proceeding Application 07-05-023, with a corresponding motion to file under seal. On October 6, 2008, Ladera Hope moved for party status and filed a response to the Petition. This decision grants Ladera Hope party status, partially grants the Petition's requested relief, orders SDG&E to amend the Petition regarding the remaining relief within 90 days (subject to extension for good cause), and modifies D.07-09-010 as set forth in Attachment 1. The proceeding remains open.