Coordination with Cost of Service

As ORA notes in its direct presentation, SDG&E's COS and this RDW proceeding are together equivalent to a general rate case, with COS being equivalent to Phase 1 and this RDW equivalent to Phase 2. With today's decision, we will have established all of the updated marginal cost, cost allocation and rate design guidance necessary for SDG&E to complete its electric distribution rate design and prepare and file tariffs once the TY2004 COS revenue requirement is known. Our interim D.03-12-057 in the COS proceeding established memorandum accounts in which SDG&E is tracking the revenue difference between its current rates and the revenue requirement ultimately adopted for TY2004. When we determine the TY2004 revenue requirement in the COS proceeding, our order there will authorize SDG&E to file the appropriate tariffs to begin recovering its TY2004 electric distribution revenue requirement.