ALJ/MFG/avs Mailed 12/22/2003

Decision 03-12-063 December 18, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of SAN DIEGO GAS & ELECTRIC COMPANY (U 902-E) for: Adoption of its 2003 and 2004 Energy Resource Recovery Account (ERRA) Forecast Revenue Requirements and Related Estimates, Approval of an Allocation Methodology for its 2003 Year-end ERRA Balance, and Approval of its 2003 ERRA Trigger Amount.

Application 03-06-002 (Filed June 2, 2003)

Jeffrey M. Parrott, Attorney at Law, and Todd Cahill, for San Diego Gas & Electric Company, applicant.

Regina DeAngelis, Attorney at Law, for the Office of Ratepayer Advocates.

OPINION ON SAN DIEGO GAS & ELECTRIC COMPANY'S
ENERGY RESOURCE RECOVERY ACCOUNT

I. Summary

This decision adopts a 2003 Energy Resource Recovery Account (ERRA) revenue requirement forecast of $515.3 million and a 2004 ERRA revenue requirement forecast of $282.6 million for San Diego Gas & Electric (SDG&E). Any 2003 year-end ERRA over-collected balance shall be allocated on a basis consistent with the method SDG&E allocated its 2002 year-end Purchased Electric Commodity Account (PECA) over-collected balance and any 2003 year-end under-collected balance shall remain in its ERRA. This decision also sets SDG&E's 2003 ERRA trigger amount at $21.419 million and threshold amount at $26.773 million.