2003 SERVICING ORDER

CONCERNING

STATE OF CALIFORNIA
DEPARTMENT OF WATER RESOURCES

And

SAN DIEGO GAS & ELECTRIC COMPANY

THIS ORDER HAS BEEN ISSUED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION ("COMMISSION") FOR USE BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES ("DWR") AND SAN DIEGO GAS & ELECTRIC COMPANY ("UTILITY").

Date of Commission Approval: ________________________

Effective Date: ________________________

2003 SERVICING ORDER

TABLE OF CONTENTS

Section Numbers Title Page

Section 1. Definitions. 2

Section 2. Energy Delivery, Surplus Energy Sales and Ownership. 8

Section 3. Billing Services. 11

Section 4. DWR Revenues; Remittance of DWR Revenues. 13

Section 5. Term and Termination; Events of Default. 15

Section 6. Confidentiality. 17

Section 7. Payment of Fees and Charges. 19

Section 8. Records; Audit Rights; Annual Certification. 21

Section 9. Representations and Warranties. 24

Section 10. Amendment Upon Changed Circumstances. 24

Section 11. Data Retention. 25

Section 12. Indemnity. 26

Section 13. Limitations on Liability. 26

Section 14. Miscellaneous. 27

ATTACHMENTS

Attachment Title

SA1 Service Attachment 1 - Consolidated Utility Billing Services

SA2 Service Attachment 2 - Wholesale Trading, Invoicing and Collection Services

A Representatives and Contacts

B Remittance Methodology

C Sample Daily and Monthly Reports

D General Terms and Conditions

E Additional Provisions

F Calculation Methodology for Reduced Remittances Pursuant to 20/20 Program

G Fee Schedule

H Adjustments to DWR Charges for Variances in DWR Power Delivered

I Reserved

J Surplus Energy Sales Revenues Remittance

2003 SERVICING ORDER

THIS 2003 SERVICING ORDER (the "Servicing Order") concerns the State of California Department of Water Resources ("DWR"), separate and apart from its powers and responsibilities with respect to the State Water Resources Development System, and San Diego Gas & Electric Company, a California corporation ("Utility"). This Servicing Order amends and restates that First Amended and Restated Servicing Agreement between DWR and Utility, approved by the Commission on April 22, 2002, as amended by the Amendment No. 1 to the First Amended and Restated Servicing Agreement, approved by the Commission on July 17, 2002. DWR and Utility are sometimes collectively referred to as the "Parties" and individually referred to as a "Party."