10. Comment on Proposed Decision

The proposed decision of the ALJ in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(d) and Rule 77.1 of the Rules of Practice and Procedure. Timely comments were separately filed by the Federal Executive Agency, the City of Chula Vista, the Utility Consumers Action Network, and The Alliance for Retail Energy Markets. Additionally, joint comments were filed by California City-County Streetlight Association, California Farm Bureau Federation, Federal Executive Agencies, Office of Ratepayer Advocates, and SDG&E. Based upon these comments the ALJ modified and corrected the proposed decision. One intended change was to delete tariff references to TRAC which could imply that the proposed mechanism was in fact adopted by the Commission instead of the cost allocation and rate design settlement. By renaming the rate design reallocation as the 2006 Rate Design Settlement Component, it is clear that SDG&E's proposed multi-year TRAC mechanism is not adopted beyond the life of rates set in this proceeding. Additionally, the decision has been corrected to ensure, consistent with the terms of the settlement, existing direct access customers do not pay the 2006 Rate Design Settlement Component. The parties' comments identified this error that would have imposed the 2006 Rate Design Settlement Component on existing Direct Access Customers and thus unintentionally altered the rate design settlement. That error is corrected and the adopted rates are from the settlement.

The joint comments also suggest that the proposed decision erred in requiring SDG&E to provide information in the next rate design window application on duct-firing in a combustion turbine to determine the marginal generation capacity costs. They suggest this requirement modifies a settlement which did not include such a provision. Since the settlement cannot control beyond the life of this rate cycle, and the settling parties cannot restrict the Commission's future review of marginal costs, this comment is rejected.