DISCUSSION

The most contentious issues generated by SDG&E's ALs were those associated with whether to include Direct Access (DA) customers in the rate stabilization provisions of subsection (b) of AB 265. Since the guiding legislation and Commission decision do not explicitly direct SDG&E to include DA customers , SDG&E's withdrawal of AL 1264-E/-E-A, its DA Plan, renders DA inclusion moot. SDG&E has already implemented most aspects of the energy rate ceiling and the retroactive credit for bundled service customers. Having withdrawn AL 1264-E/-E-A, SDG&E's implementation, by targeting bundled service customers, complies with Section 332.1, as modified by ABX1 43 and D. 00-09-040. However, to foster our conservation goals, we will direct SDG&E to make certain modifications to the plan it has proposed.