Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Jean Vieth is the assigned ALJ in this proceeding.

Findings of Fact

1. SDG&E and CPSD have entered into a voluntary settlement to resolve Phase 3 issues.

2. The parties' Settlement Agreement is supported by both of the active parties eligible to participate in Phase 3 of this proceeding.

3. The active parties are fairly reflective of the interests affected by Phase 3 of this proceeding.

4. No term of the parties' Settlement Agreement contravenes prior Commission decisions or other law.

5. The terms of the Settlement Agreement are reasonable given the Phase 3 record and the Commission's resolution of prior Rule 1 matters.

6. The terms of the Settlement Agreement are consonant with the public interest.

7. In order to provide the Commission with sufficient information to monitor SDG&E's performance under the terms of the Settlement Agreement the Commission should require SDG&E to report on the status of its performance.

8. The Settlement Agreement is unopposed.

9. The exhibits listed in Attachment 2 to today's decision are documents the parties request we identify and receive as the evidence of Phase 3.

10. No hearing is necessary on Phase 3 issues.

Conclusions of Law

1. The Settlement Agreement is an uncontested agreement as defined in Rule 12.1(d) and an all-party settlement under San Diego Gas & Electric, 46 CPUC 2d 538 (1992). The proposed settlement satisfies the requirements of Rule 12.1(d) and San Diego Gas & Electric.

2. All of the provisions set forth in the Settlement Agreement's Paragraph 3, entitled "Professional Responsibility Class," shall be met within one-year of the effective date of today's decision, as Paragraph 3 requires, including, but not limited to, participation in the Professional Responsibility Class by SDG&E's Directors and Officers.

3. The Settlement Agreement, as clarified, is reasonable in light of the whole record, consistent with law, and in the public interest.

4. The exhibits listed in Attachment 2 of today's decision should be identified and received in evidence upon the effective date of today's decision.

5. The parties' motion for adoption of the Settlement Agreement should be granted and the Settlement Agreement should be approved.

6. This decision should be made effective immediately to provide certainty regarding resolution of Phase 3 and to enable SDG&E to implement the Settlement Agreement without delay.

7. Phase 3 of this proceeding should be closed.

ORDER

IT IS ORDERED that:

1. The March 6, 2009 Joint Motion of the Consumer Protection and Safety Division and San Diego Gas & Electric Company for Approval of Settlement Agreement, as amended by the March 20, 2009 Amendment to the Joint Motion of the Consumer Protection and Safety Division and San Diego Gas & Electric Company for Approval of Settlement Agreement, is granted and the Settlement Agreement, appended to today's decision as Attachment 1, is approved.

2. San Diego Gas & Electric Company shall report on the status of its performance under the Settlement Agreement at six month intervals from the effective date of today's decision until all provisions of the Settlement Agreement have been fulfilled. Such status reports shall be verified by an officer of the corporation, filed in this proceeding, and served on the service list. Attendance by San Diego Gas & Electric Company's Directors and Officers at the Professional Responsibility Class provided for in Paragraph 3 of the Settlement Agreement shall be verified by an officer of the corporation and such verification shall be included in a status report.

3. All of the provisions set forth in Paragraph 3 of the Settlement Agreement shall be met within one-year of the effective date of today's decision, including, but not limited to, participation in the Professional Responsibility Class by San Diego Gas & Electric Company's Directors and Officers.

4. The exhibits listed in Attachment 2 of today's decision are identified as indicated therein and are received in evidence on the effective date of today's decision.

5. The parties shall comply with all provisions of the Settlement Agreement referred to in Ordering Paragraph 1.

6. No Phase 3 hearing is necessary.

7. The issues raised by the Assigned Commissioner's Revised Scoping Memo and Ruling Regarding Possible Rule 1.1 and Rule 8.3 Violations, Order to Show Cause, August 1, 2008, have been timely addressed and Phase 3 of this proceeding is resolved for purposes of compliance with Public Utilities Code Section 1701.5(a).

8. Phase 3 of this proceeding is closed.

9. Application 06-08-010 remains open solely to address matters pending in Phases 1 and 2 after issuance of Decision 08-12-058.

This order is effective today.

Dated July 9, 2009, at San Francisco, California.

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