VI. Ex Parte Communications

In a quasi-legislative proceeding, ex parte communications are permitted without restriction, pursuant to Pub. Util. Code. Section 1701.4(b) and Rule 7(d).

IT IS ORDERED that:

1. An investigation is instituted on the Commission's own motion into whether respondents have violated relevant statutes and Commission decisions as described above. As a result of this investigation, the Commission may consider remedies, prospective rules, or conditions, as appropriate.

2. San Diego Gas & Electric Company, Southern California Gas Company, as well as their parent holding company, Sempra Energy, are made respondents to this Order Instituting Investigation (OII).

3. The category of the investigation is quasi-legislative as that term is defined in Rule 5(c) of the Commission's Rules of Practice and Procedure.

4. An initial service list for this proceeding shall be created by the Process Office and posted on the Commission's website ( www.cpuc.ca.gov) as soon as it is practicable after the first prehearing conference. Parties may also obtain the service list by contacting the Commission's Process Office at (415) 703-2021.

5. Persons interested in this proceeding shall follow the procedures described in this investigation to get on the service list.

6. A prehearing conference shall be scheduled at a date and time to be determined by the assigned Administrative Law Judge for the purpose of establishing a service list for this consolidated proceeding, setting a further schedule, and addressing other procedural issues. Interested persons may file prehearing conference statements or a response to this order as directed by the Administrative Law Judge, stating any objections to the order regarding the need for hearings, issues to be considered, or proposed schedule. Service shall be made in the manner described in Ordering Paragraph 12.

7. Until a service list is established at the prehearing conference, all documents that must be served in connection with this docket shall be served on the offices of all five Commissioners, and the assigned Administrative Law Judge.

8. The Executive Director shall cause this Order to be served by certified mail on all respondents' designated agents for service in California as follows: for SDG&E: Steven D. Davis, 101 Ash Street, San Diego, CA 92101-3017; and for Sempra Energy: Thomas C. Sanger, 101 Ash St., San Diego, CA  92101-3017.

9. Because action in this proceeding may modify past Commission decisions set forth in this order, the Executive Director shall serve this order on the parties to the following proceedings; A.94-11-013 (SDG&E's holding company application); and, A.96-10-038 (application of Pacific Enterprises and Enova Corporation for a Merger). Additionally, the Commission's Process Office shall serve parties to the following proceedings with this order: Rulemaking 97-04-011/Investigation 97-04-012 (Affiliate Transaction Proceeding).

This order is effective today.

Dated ________________________, at San Francisco, California.

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