ALJ/MLC/eap DRAFT Item 8

9/7/00

Decision DRAFT DECISION OF ALJ COOKE (Mailed 8/25/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation.	Rulemaking 94-04-031 (Filed April 20, 1994)
Order Instituting Investigation on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation.	Investigation 94-04-032 (Filed April 20, 1994)

OPINION REGARDING BILATERAL CONTRACTS

Summary

This decision authorizes San Diego Gas & Electric Company (SDG&E) to purchase energy and ancillary services and capacity products in the bilateral market and to set up a memorandum account to track related costs. Such transactions are confined to previously authorized limits in the forward market and must expire on or before December 31, 2002. Reasonableness reviews will be implemented consistent with the standards adopted in this decision.