ALJ/DKF/avs DRAFT Agenda ID #4352

Ratesetting

3/17/2005 Item 22

Decision ___________________

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of SAN DIEGO GAS & ELECTRIC COMPANY (U 902-E) for Adoption of its 2005 Energy Resource Recovery Account (ERRA) Forecast Revenue Requirement, Review of its Power Procurement Balancing Account, and Approval of its 2004 ERRA Trigger Amount.

Application 04-10-007 (Filed October 1, 2004)

OPINION ON SAN DIEGO GAS & ELECTRIC COMPANY'S
ENERGY RESOURCE RECOVERY ACCOUNT

Summary

This decision adopts a 2005 Energy Resource Recovery Account (ERRA) revenue requirement forecast of $301,106,000 for San Diego Gas & Electric Company (SDG&E). The associated 0.110 cents/kilowatt-hour rate increase (0.80% over current system average total rates) will not be implemented at this time. This decision also sets the 5% threshold for 2004 ERRA undercollections or overcollections at $30,013,000. Based on the historical and current status of the ERRA, there is no present need to adjust rates or order refunds in conjunction with the ERRA trigger mechanism.