ALJ/DKF/sid Date of Issuance 11/19/2007

Decision 07-11-046 November 16, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of San Diego Gas & Electric Company (U902E) for Approval of Election to Exercise Option to Purchase Power Plant Owned by El Dorado LLC.

Application 07-08-006 (Filed August 8, 2007)

OPINION ON SAN DIEGO GAS & ELECTRIC COMPANY

OPTION TO PURCHASE EL DORADO POWER PLANT

1. Summary

This decision approves the request of San Diego Gas & Electric Company (SDG&E) to exercise an option to purchase a power plant located in Nevada and owned by El Dorado Energy LLC, a Sempra Energy affiliate (the El Dorado Option). Beginning in October 2011, the El Dorado plant will provide approximately 480 megawatts (MW) of power to help meet the energy and reliability needs of SDG&E's bundled customers. This decision also approves SDG&E's proposed framework for recovery of costs related to owning and operating the plant.