Assignment of Proceeding

Dian M. Grueneich is the Assigned Commissioner and Peter V. Allen is the assigned ALJ in this proceeding.

Findings of Fact

1. The proposed Silvergate Substation Project would upgrade the electric transmission system in the downtown San Diego area by replacing the aging 138 kV Main Street Substation with the new 230 kV Silvergate Substation in the Barrio Logan neighborhood of the City of San Diego.

2. The load served by the Main Street Substation is projected to grow, and to exceed the reliable capacity of the Main Street Substation by 2008.

3. Construction of a gas-insulated substation would cost significantly more and take longer than construction of an air-insulated substation.

4. The longer construction time associated with a gas-insulated substation could adversely affect the reliability of the transmission system in the downtown San Diego area.

5. In this instance the environmental benefits of a gas-insulated substation over an air-insulated substation are minimal.

6. SDG&E's cost estimate for construction of an air-insulated substation is no longer accurate.

7. The proposed Silvergate Substation Project also includes the removal of two existing 138 kV lines, and the partial undergrounding of a third 138 kV line (Tie Line 13815), allowing for the removal of 18 steel lattice towers.

8. The undergrounding of the 138 kV Tie Line 13815 occurs in the same area as construction of the new underground Otay Mesa 230 kV transmission line.

9. The Commission staff has prepared a Final EIR for the project.

10. The Commission has considered the contents and conclusions of the Final EIR.

11. The Final EIR finds that approval of the project will have no impact, or less-than-significant impact, on the environment in two areas, and to the extent that approval of the project would have potentially significant impacts in other areas, it finds that each of the identified impacts can be mitigated to avoid the impact or reduce it to a less than significant level.

12. SDG&E has agreed to the mitigation measures contained in the Final EIR.

13. With the adoption of the mitigation measures contained in the Final EIR, the project will not have a significant effect on the environment.

Conclusions of Law

1. The Main Street Substation needs to be replaced.

2. The proposed Silvergate Substation is a reasonable replacement for the Main Street Substation.

3. The benefits of an air-insulated substation design outweigh the benefits of a gas-insulated substation design.

4. The Commission should impose a cost cap allowing for contingencies on the construction of the Silvergate Substation Project.

5. To reduce environmental and economic impacts, undergrounding of the 138 kV Tie Line 13815 transmission line should be combined to the extent possible with construction of the new underground Otay Mesa 230 kV transmission line.

6. The preparation and contents of the Final EIR for the Silvergate Substation Project comply with the requirements of CEQA.

7. The Final EIR for this project should be adopted in its entirety, and incorporated by reference in this decision.

8. The Silvergate Substation Project, as described in the Final EIR, should be approved.

ORDER

IT IS ORDERED that:

1. San Diego Gas & Electric Company's (SDG&E) request to construct the Silvergate Substation Project is granted.

2. The Silvergate Substation shall be an air-insulated substation.

3. We impose a cost cap on the Silvergate Substation Project, consisting of SDG&E's original estimated cost, with the addition of a 10% contingency.

4. Undergrounding of the 138 kilovolt (kV) Tie Line 13815 transmission line shall be combined to the extent possible with construction of the new underground Otay Mesa 230 kV transmission line.

5. The Final Environmental Impact Report (Final EIR) for the Silvergate Substation Project is adopted and incorporated by reference in this decision.

6. The Mitigation Monitoring, Compliance and Reporting Program in the Final EIR is adopted.

7. SDG&E is authorized to construct the Silvergate Substation Project as described in the Final EIR, subject to the mitigation measures and other conditions set forth in the Final EIR.

8. Application 05-03-024 is closed.

This order is effective today.

Dated September 7, 2006, at San Francisco, California.

************ APPEARANCES ************

Evelyn Kahl
Attorney At Law
ALCANTAR & KAHL, LLP
120 MONTGOMERY STREET, SUITE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
ek@a-klaw.com

For: Goodrich Aerostructures Group

Geoffrey Robinson
Attorney At Law
BINGHAM MC CUTCHEN
1333 NORTH CALIFORNIA BLVD.
WALNUT CREEK CA 94596
(925) 975-5335
geoffrey.robinson@bingham.com

For: Goodrich Aerostructures Group

Kelly M. Morton
Attorney At Law
SAN DIEGO GAS & ELECTRIC
101 ASH STREET
SAN DIEGO CA 92123
(619) 699-1500
kmorton@sempra.com

For: San Diego Gas & Electric

E. Gregory Barnes
Attorney At Law
SAN DIEGO GAS & ELECTRIC COMPANY
101 ASH STREET, HQ 13D
SAN DIEGO CA 92101
(619) 699-5019
gbarnes@sempra.com

For: San Diego Gas & Electric

Kevin O'Beirne
SAN DIEGO GAS & ELECTRIC COMPANY
8330 CENTURY PARK COURT, CP32D
SAN DIEGO CA 92123
(858) 654-1765
ko'beirne@semprautilities.com

For: San Diego Gas & Electric









********** STATE EMPLOYEE ***********


Peter V. Allen
Administrative Law Judge Division
RM. 5022
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-1123
pva@cpuc.ca.gov


Michael T. Meacham
CITY OF CHULA VISTA
276 FOURTH AVENUE
CHULA VISTA CA 91910
(619) 691-5031
mmeacham@ci.chula-vista.ca.us

Traci Bone
Legal Division
RM. 5206
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-2048
tbo@cpuc.ca.gov


Clare Laufenberg
CALIFORNIA ENERGY COMMISSION
1516 NINTH STREET, MS 46
SACRAMENTO CA 95814
(916) 654-4859
claufenb@energy.state.ca.us

For: CALIFORNIA ENERGY COMMISSION

Jensen Uchida
Energy Division
AREA 4-A
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-5953
jmu@cpuc.ca.gov


********* INFORMATION ONLY **********


Karen Terranova
ALCANTAR & KAHL, LLP
120 MONTGOMERY STREET, STE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
filings@a-klaw.com


Nora Sheriff
Attorney At Law
ALCANTAR & KAHL, LLP
120 MONTGOMERY STREET, SUITE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
nes@a-klaw.com


CALIFORNIA ENERGY MARKETS
517-B POTRERO AVENUE
SAN FRANCISCO CA 94110-1431
(415) 552-1764
shaunao@newsdata.com


Elizabeth Hull
Deputy City Attorney
CITY OF CHULA VISTA
276 FOURTH AVENUE
CHULA VISTA CA 91910
(619) 691-5037
ehull@ci.chula-vista.ca.us



Mike Harrington
GOODRICH ASG
MAIL ZONE 54/A - 850 LAGOON DRIVE
CHULA VISTA CA 91910
(619) 691-2560
mike.harrington@goodrich.com


Paul Scheuerman
SCHEUERMAN CONSULTING
3915 RAWHIDE ROAD
ROCKLIN CA 95677
(916) 630-7073
pgs@starstream.net


Ruth Kolb
CITY OF SAN DIEGO
1970 B STREET, MS 27A
SAN DIEGO CA 92102
(619) 525-8636
For: CITY OF SAN DIEGO

John Porteous
DUDEK & ASSOCIATES
605 THIRD STREET
ENCINITAS CA 92024
(760) 942-5147
jporteous@dudek.com


Chris Keller
VIEW POINT WEST
PO BOX 1152
23475 GOVERNMENT SPRINGS ROAD
MONTROSE CO 81401
(970) 252-7321
vpwest@montrose.net


Myloc Nguyen
DUDEK & ASSOCIATES
605 THIRD STREET
ENCINITAS CA 92024
(760) 942-5147
mnguyen@dudek.com


Bruce Foster
Vice President
SOUTHERN CALIFORNIA EDISON COMPANY
601 VAN NESS AVENUE, STE. 2040
SAN FRANCISCO CA 94102
(415) 775-1856
bruce.foster@sce.com

(END OF APPENDIX A)

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