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ALJ/DUG/avs DRAFT Agenda ID # 4798

8/25/2005 Item 53

Decision PROPOSED DECISION OF ALJ LONG (Mailed 7/19/2005)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of SAN DIEGO GAS & ELECTRIC COMPANY under the Catastrophic Event Memorandum Account (CEMA) for Recovery of costs related to the 2003 Southern California Wildfires. (U 902-M)

Application 04-06-035
(Filed June 28, 2004)

OPINION ON THE REASONABLENESS OF SAN DIEGO GAS
AND ELECTRIC COMPANY'S RESPONSE TO THE 2003 WILDFIRES

(See APPENDIX A for Appearance Lists)

TABLE OF CONTENTS

TITLE PAGE

Findings of Fact 4040

Conclusions of Law 4545

ORDER 4646

APPENIDX A

1. Summary

This decision finds San Diego Gas & Electric Company (SDG&E) prudently managed its response and allows the recovery of certain recorded costs incurred to restore service and repair or replace those portions of its gas or electric distribution systems damaged or destroyed by a series of catastrophic wildfires. This decision requires SDG&E to capitalize rather than expense certain support costs ($7.376 million) and allows for an 15-month amortization of the remaining costs charged to expense. Three reductions are made to the total of recoverable costs: to adjust for certain avoided future costs for pole inspection and treatment ($42,348), to adjust for excessive costs charged to SDG&E for food service ($582,300), and disallow unjustified incentive compensation accruals ($426,000). This decision allows SDG&E to recover $39.752 million.

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