STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

October 15, 2001 2

11/8/01

TO: PARTIES OF RECORD IN APPLICATION 00-10-008

This is the proposed decision of Administrative Law Judge (ALJ) Robert Barnett. It will be on the Commission's agenda at the meeting on November 8, 2001. The Commission may act then, or it may postpone action until later.

When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Public Utilities Code Section 311(d) provides that there must be a 30-day review and comment period on proposed decisions, unless there is an unforeseen emergency situation, the parties to the proceeding so stipulate, or otherwise provided by law. In this case, SDG&E and ORA, the active parties to this phase of the proceeding, have stipulated to reduce the review and comment period. We therefore shorten the time for comments. Opening comments will be due on October 29 and reply comments will be due on November 5 by noon.

Parties to the proceeding may file comments on the proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. In addition to service by mail, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, including ALJ Barnett at rab@cpuc.ca.gov. Finally, comments must be served separately on the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious methods of service.

/s/ LYNN T. CAREW (by ANG)

Lynn T. Carew, Chief

Administrative Law Judge

LTC:tcg

Attachment

ALJ/RAB/tcg DRAFT 2

11/8/01

Decision PROPOSED DECISION OF ALJ BARNETT (Mailed 10/15/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of San Diego Gas & Electric Company (U 902 -E) in The Third Annual Transition Cost Proceeding Addressing (1) the Transition Cost Balancing Account (TCBA), and (2) the Reasonableness of San Diego Gas & Electric Company's Energy Procurement Practices.

Application 00-10-008 (Filed October 2, 2000)

DECISION ADOPTING SETTLEMENT AGREEMENT

Introduction

Pursuant to Rule 51 of the Commission's Rules of Practice and Procedure, San Diego Gas & Electric Company (SDG&E) and the Office of Ratepayer Advocates (ORA) (Settling Parties) move for adoption of the Settlement Agreement (Attachment 1) entered into by the Settling Parties in this proceeding. The Settling Parties assert that the Settlement Agreement disposes of all issues raised in this proceeding in connection with the reasonableness of SDG&E's electric procurement practices during the period from July 1, 1999 through February 7, 2001. The Settling Parties believe the Settlement Agreement is "reasonable in light of the whole record, consistent with law, and in the public interest" as required by Rule 51.1(e). Accordingly, the Settling Parties request that the Commission adopt the Settlement Agreement without modification.