PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

E-1

ENERGY DIVISION RESOLUTION E-3726

JULY 12, 2001

RESOLUTION

Resolution E-3726. San Diego Gas & Electric Company (SDG&E) filed an Interim Bill Stabilization Plan to implement D.00-08-037, Revisions to the Plan, and Implementation of the Energy Rate Ceiling Retroactive Credit in Compliance with Assembly Bill 265 and D.00-09-040. SDG&E's Interim Bill Stabilization Plan implementing D.00-08-037 is approved; SDG&E's revisions to the Plan and implementation of the Energy Rate Ceiling Retroactive Credit to comply with AB 265 and D.00-09-040 are approved with modifications.

By Advice Letters 1249-E filed August 28, 2000; 1254-E Filed on September 12, 2000; and 1260-E/-E-A filed on October 2/Oct 30, 2000.

SUMMARY

This Resolution approves with modifications, San Diego Gas & Electric Company's (SDG&E's) Advice Letters (ALs) 1254-E and 1260-E-A, which implement the expanded rate stabilization plan required by Assembly Bill (AB) 265 and adopted in Decision (D.) 00-09-040 for SDG&E's bundled service customers. ¹ SDG&E withdrew AL 1264-E-A, its proposal to implement a similar rate stabilization plan for Direct Access (DA) customers.

In approving SDG&E's rate stabilization plan for bundled service customers, we direct SDG&E to extend the eligibility requirements for this plan to include customers, on a month by month basis, that further our conservation objectives by reducing their load below 100 kW. This eligibility extension applies strictly to this Plan by request for otherwise ineligible customers. Such requesting customers shall receive rate ceiling benefits for months when their load was or is under 100 kW, retroactively to June 2000 and prospectively. We also explicitly exempt DA customers from future recovery of deferred charges in excess of the rate ceiling, including carrying costs.

SDG&E's AL 1249-E implemented a bill stabilization plan adopted in D.00-08-037. AL 1249-E was in effect for a short period of time until it was largely superceded by the rate stabilization plan required by AB 265. This Resolution also approves AL 1249-E, noting that the tariffs filed in that advice letter were subsequently revised in AL 1254-E.

1 1. AB 265 requires the Commission to establish an accounting procedure to track and recover reasonable and prudent costs of providing electric energy to retail customers unrecovered through retail bills due to the application of the ceiling. SDG&E's recovery of its reasonable and prudent costs of procuring energy at prices above the energy rate ceiling may thus be "deferred" to a future date.