Confidential Information

At SDG&E's request, the following exhibits will be received into evidence under seal:⁹

· Exhibit 1 - Direct Testimony of Mike McClenahan, San Diego Gas & Electric Company, and

· Exhibit 2 - Direct Testimony of Thomas L. Whelan, San Diego Gas & Electric Company.

According to SDG&E, portions of the testimony and exhibits accompanying its application contain commercially sensitive, confidential, and proprietary information on its electric energy resources and its plans throughout the 2005 forecast period for managing its power resources to meet customer needs on a least cost basis. SD&E claims that maintaining the confidentiality of this information is critical to protecting its ability to function effectively in both the electric and gas markets.

A review of Exhibits 1 and 2 indicates that the redacted portions relate to certain purchased power contract terms and costs, the bases of power price forecasts, residual net position cost assumptions and other information that might put SDG&E at a competitive disadvantage, if revealed. Maintaining this information under seal for a period of one year is reasonable and consistent with the provisions of Pub. Util. Code § 454.5(g), which states the Commission shall adopt appropriate procedures to ensure the confidentiality of any market sensitive information submitted in an electrical corporation's proposed procurement plan.