Background

In January 2001, in response to the energy crisis facing California, the Legislature gave DWR the authority to purchase electricity and sell it to the retail customers of California's electric utilities. This authority was provided in Assembly Bill 1 of the First Extraordinary Session of 2001-2002 (Stats. 2001, Ch. 4) (AB1X). In March 2001, the Commission ordered SDG&E to segregate, and hold in trust for the benefit of DWR, certain amounts its customers had paid for DWR's electricity. (D.01-03-081.) This arrangement was formalized in the Servicing Agreement that was entered into between SDG&E and DWR, and approved with certain modifications in D.01-09-013. As described in Footnote 1, supra, D.02-04-048 modified D.01-09-013 in response to an earlier petition by SDG&E.²

In its June 21, 2002 petition for modification of D.01-09-013, SDG&E seeks to have the Commission shorten the time for processing the petition and for issuance of a final Commission decision on the petition in order to expedite both the implementation of the 2002 20/20 program and the issuance of DWR's bonds under AB1X. In particular, SDG&E requests that the Commission grant the petition and approve Amendment No. 1 at the June 27, 2002 Commission meeting. A ruling shortening the time for parties to respond to the petition was issued on June 24, 2002.³ At its June 27 meeting the Commission deferred action on the item to a carry-over meeting scheduled for July 11, 2002. On June 28, 2002 the ALJ issued a ruling providing additional opportunity for responses, with responses due July 3, 2002. No one filed any response to SDG&E's petition.