STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

April 24, 2001

TO: PARTIES OF RECORD IN APPLICATION (A.) 00-10-045 and A.01-01-044

This is the draft decision of Commissioner Wood and Administrative Law Judge (ALJ) Wetzell. It will be on the Commission's agenda at the regular meeting of May 3, 2001. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft 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.

Parties to the proceeding may file comments on the draft decision as provided in the attached section of the Commission's "Rules of Practice and Procedure." Please read them carefully and note the limitations on content of comments and the requirement of service on all other parties. Pursuant to Rule 77.7(f)(9), the Commission may reduce or waive the public review and comment period where it determines that public necessity so requires. Because this matter is being processed on an expedited schedule, comments are due on Monday, April 30, 2001, and reply comments are not permitted. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC:sid

Attachments

COM/ALJ/CXW/MSW/sid DRAFT Item 9

5/3/2001

Decision DRAFT DECISION OF COMMISSIONER WOOD AND
ALJ WETZELL (Mailed 4/24/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of San Diego Gas & Electric Company (U 902-E) for an Order Implementing Assembly Bill 265.	Application 00-10-045 (Filed October 24, 2000)
Application of San Diego Gas & Electric Company (U 902-E) for Authority to Implement an Electric Rate Surcharge to Manage the Balance in the Energy Rate Ceiling Revenue Shortfall Account.	Application 01-01-044 (Filed January 24, 2001)

INTERIM OPINION ON IMPLEMENTATION

OF ASSEMBLY BILL X1 43

1. Summary

This decision implements a portion of Assembly Bill (AB) X1 43 (Stats. 2001, Ch. 6), which was approved by Governor Gray Davis on April 11, 2001.¹ After further proceedings, additional action to implement this legislation may be considered by the Commission.

Pursuant to § 332.1(f),² as amended by ABX1 43, the Commission establishes an initial frozen rate of 6.5 cents ($0.065) per kilowatt hour (kWh) on the energy component of electric bills for electricity supplied by San Diego Gas & Electric Company (SDG&E) to all customers not subject to § 332.1(b). Subdivision (b) applies to SDG&E's residential, small commercial, and street lighting customers (hereinafter, smaller customers). Thus, today's action applies solely to the electric rates for SDG&E's larger commercial, industrial, and agricultural customers (hereinafter, larger customers), and does not affect rates for SDG&E's smaller customers.

In accordance with § 332.1(f), the initial frozen rate for larger customers adopted today is effective retroactive to February 7, 2001. It will remain in effect, subject to adjustment as provided in the statute, until the end of the § 368 rate freeze applicable to Pacific Gas and Electric Company (PG&E) and Southern California Edison Company (Edison).

Finally, this decision authorizes SDG&E to establish a memorandum account to record the revenues and revenue shortfall associated with the initial frozen rate established by the decision. This authorization is granted without prejudice to the Commission's subsequent determinations with respect to the means of compliance with § 332.2.