Escalation Rates

SDG&E argues that D.04-12-015 under-stated the test year estimate by using an incorrect escalation so that the test year is understated by $0.779 million. In Ex. 170, (Appendix F-1) SDG&E presented its calculation for $5.319 million in total escalation from 2000 dollars to 2004 dollars. We accept this calculation and adopt SDG&E's request. This results in an increase of $0.779 million to the 2004 test year revenue requirement.