Wong Comment Dec. Opinion Approving the 2003 Servicing Order Concerning SDG&E and the California Department of Water Resources
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ATTACHMENT A

SAN DIEGO GAS & ELECTRIC COMPANY

REPRESENTATIVES AND CONTACTS

A. Parties Representatives:

B. Contact Persons:

ATTACHMENT B

SAN DIEGO GAS & ELECTRIC COMPANY

REMITTANCE METHODOLOGY

A. Daily Remittances

B. Proposed Process and Sample Timeline for DWR Automated Daily Remittance

5. Adjustments for misapplied payments, returned checks, payment transfers, and miscellaneous adjustments will be reflected in the Remittance as those adjustments are made in Utility's billing system.

C. Collection of DWR Charges

D. Survival of Payment Obligations

E. Deposits Securing DWR Charges

F. Other Operating Revenue Collected by Utility

G. Payment Posting Priority

Sample:

Electric

Gas

Total

Bill Date 6/10/01

$100.00

$100.00

$200.00

% of Total

50%

50%

100%

Payment 6/25/01

$50.00

$50.00

$100.00

% of Total

50%

50%

100%

     

Sample:

SDG&E

DWR

FF/Taxes

Total

Bill Due 6/10/01

$35.00

$60.00

$5.00

$100.00

% of Total

35%

60%

5%

100%

Payment 6/25/01

$17.50

$30.00

$2.50

$50.00

% of Total

35%

60%

5%

100%

H. Transition to Billing Effective Date and Reconciliation

I. Transition

On and after the Operating Order Effective Date, Utility shall transition from using the More Precise Remittance Methodology to using the Post-Transition Remittance Methodology as provided in Attachment H hereto, consistent with the Contract Allocation Order and the Settlement Principles for Remittances and Surplus Revenues as set forth in Exhibit C of the Operating Order, this Servicing Order and Attachments B and H hereto. This transition will include the continuation of the More Precise Remittance Methodology true-up after the Operating Order Effective Date as long as necessary or appropriate (the "Transition Period") to account for DWR Power provided to Customers prior to the Operating Order Effective Date. True-Up remittances during the Transition Period using the More Precise Remittance Methodology shall be made in addition to Remittances made in accordance with the Post-Transition Remittance Methodology set forth in Attachment H hereto.

ATTACHMENT C

SAN DIEGO GAS & ELECTRIC COMPANY

SAMPLE DAILY AND MONTHLY REPORTS

A. Sample Daily Cash Receipts Report:

B. Sample Monthly Remittance Report:

San Diego Gas and Electric

        

Summary of DWR Energy Billings/Payments/Chargeoffs

  
             

Business Month:

  

mm/yyyy

      
             

Beginning DWR Balance

  

$x,xxx,xxx.xx

  

New Billings to Customers

  

$x,xxx,xxx.xx

ADD

Payments by Customers

  

$x,xxx,xxx.xx

SUBTRACT

Bad Debts charged off

    

$x,xxx,xxx.xx

SUBTRACT

Other program (I.e. 20/20) adjustments

$x,xxx,xxx.xx

  

Ending DWR Balance

    

$x,xxx,xxx.xx

  
             

C. Daily and Monthly Billing Report:

San Diego Gas & Electric

DWR Customer Billing Report

Day XXX or Month XXX

LINE

DESCRIPTION

System

kWh

  

DWR

kWh

DWR Billed Amount

           

1

SCHEDULE DR

        

2

SCHEDULE DR-LI

        

3

SCHEDULE DM

        

4

SCHEDULE DS

        

5

SCHEDULE DT

        

6

SCHEDULE DT-RV

        

7

SCHEDULE D-SMF

        

8

SCHEDULE DR-TOU

        

9

SCHEDULE DR-TOU-2

        

10

SCHEDULE EV-TOU

        

11

SCHEDULE EV-TOU-2

        

12

SCHEDULE EV-TOU-3

        

13

SCHEDULE A

        

14

SCHEDULE A-TC

        

15

SCHEDULE A-TOU

        

16

SCHEDULE AD

        

17

SCHEDULE AL-TOU

        

18

SCHEDULE A6-TOU

        

19

SCHEDULE AO-TOU

        

20

SCHEDULE NJ

        

21

SCHEDULE AY-TOU

        

22

SCHEDULE A-V1

        

23

SCHEDULE A-V2

        

24

SCHEDULE A-V3

        

25

SCHEDULE RTP-1

        

26

SCHEDULE RTP-2

        

27

SCHEDULE S

        

28

SCHEDULE I-3

        

29

SCHEDULE PA

        

30

SCHEDULE PA-TOU

        

31

SCHEDULE PA-T-1

        

32

SCHEDULE SPEC

        

33

SCHEDULE LS1

        

34

SCHEDULE LS2

        

35

SCHEDULE LS3

        

36

SCHEDULE OL1

        

37

SCHEDULE DWL

        

38

SCHEDULE ATS

        

39

SCHEDULE ART

        

40

SCHEDULE DG6

        

41

UNDEFINED RATE

        

42

Total

        

ATTACHMENT D

SAN DIEGO GAS & ELECTRIC COMPANY

GENERAL TERMS AND CONDITIONS

For purposes of this Attachment D, Utility shall be deemed to be the "Contractor" hereunder. To the extent that Contractor's compliance with any of the terms of this Attachment D results in additional costs and expenses for Contractor (except to the extent the terms of this Attachment D merely require compliance with laws or regulations which apply to the Contractor irrespective of the existence of this Servicing Order), Contractor will invoice DWR for such additional costs and expenses, and DWR shall pay such invoices as Additional Charges, in the manner contemplated by Section 7 of the Servicing Order.

1. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of recycled content, both post consumer waste and secondary waste as defined in the Public Contract Code, Sections 12161 and 12200, in materials, goods, or supplies offered or products used in the performance of this Servicing Order, regardless of whether the product meets the required recycled product percentage as defined in the Public Contract Code, Sections 12161 and 12200. Contractor may certify that the product contains zero recycled content. (PCC 10233, 10308.5, 10354)

2. NON-DISCRIMINATION CLAUSE: During the performance of this Servicing Order, Contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Servicing Order by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

Contractor shall include the nondiscrimination and compliance provisions of this clause in all contracts with subcontractors to perform work under the Servicing Order.

3. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES attached hereto are hereby incorporated by reference and made a part of this Servicing Order.

4. CHILD SUPPORT COMPLIANCE ACT: "For any Agreement in excess of $100,000, the contractor acknowledges that:

5. UNION ORGANIZING: Contractor by signing this Servicing Order hereby acknowledges the applicability of Government Code Section 16645 through Section 16649 to this Servicing Order.

a. Contractor will not assist, promote or deter union organizing by employees performing work on a state service contract, including a public works contract.

b. No state funds received under this agreement will be used to assist, promote or deter union organizing.

c. Contractor will not, for any business conducted under this agreement, use any state property to hold meetings with employees or supervisors, if the purpose of such meetings is to assist, promote or deter union organizing, unless the state property is equally available to the general public for holding meetings.

d. If Contractor incurs costs, or makes expenditures to assist, promote or deter union organizing, Contractor will maintain records sufficient to show that no reimbursement from state funds has been sought for these costs, and that Contractor shall provide those records to the Attorney General upon request.

CERTIFICATION

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY, or EXECUTE THIS CERTIFICATION, in the manner required by Applicable Law, certifying thereby that I am duly authorized to legally bind the entity identified below to the clause(s) listed in the following numbered paragraphs 1-5. This certification is made under the laws of the State of California.

 

San Diego Gas & Electric Company

CONTRACTOR CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with the nondiscrimination program requirements. (GC 12990 (a-f) and CCR, Title 2, Section 8103) .

2. DRUG-FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a Federal court which orders Contractor to comply with an order of the National Labor Relations Board. (PCC 10296)

4. RECYCLED MATERIALS: Contractor hereby certifies under penalty of perjury that at least 0% of the materials, goods and supplies offered or products used in the performance of this Servicing Order meet or exceed the minimum percentage of recycled materials as defined in Sections 12161 and 12200 of the Public Contract Code.

5. UNION ACTIVITIES: In compliance with California Government Code Sections 16645 - 16649, Contractor hereby certifies that no request for reimbursement, or payment under this Servicing Order, will be made for costs incurred to assist, promote or deter union organizing.

DOING BUSINESS WITH THE STATE OF CALIFORNIA

The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current or former state employees. If Contractor has any questions on the status of any person rendering services or involved with the Servicing Order, the awarding agency must be contacted immediately for clarification.

Current State Employees (PCC 10410):

1) No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.

2) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (PCC 10411):

1) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.

2) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this Servicing Order void. (PCC 10420)

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (PCC 10430 (e))

2. LABOR CODE/WORKERS' COMPENSATION: Contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Contractor affirms to comply with such provisions before commencing the performance of the work of this Servicing Order. (Labor Code Section 3700)

3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

4. CONTRACTOR NAME CHANGE: An amendment is required to change the Contractor's name as listed on this Servicing Order. Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.

5. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

6. PAYEE DATA RECORD FORM STD. 204: All contractors that are not another state agency or other government entity must complete this form.

ATTACHMENT E

SAN DIEGO GAS & ELECTRIC COMPANY

ADDITIONAL PROVISIONS

1. The Restated Letter Agreement between San Diego Gas & Electric Company (SDG&E) and the California Department of Water Resources (DWR), dated June 18, 2001, as it may be amended or modified from time to time (the "Restated Letter Agreement"). The Restated Letter Agreement provides for continued DWR procurement for SDG&E customers of SDG&E's "full net short" (consisting of substantially all of the power and ancillary services not provided by SDG&E's retained generation) through December 31, 2002. The reference to the Restated Letter Agreement in this Attachment E provides no independent basis for enforcement of the Restated Letter Agreement.

2. Memorandum of Understanding (MOU) with the California Department of Water Resources (DWR), dated June 18, 2001, San Diego Gas & Electric Company (SDG&E) and its parent Company, Sempra Energy. The MOU contemplates the implementation of a series transactions and regulatory settlements and actions to resolve many of the issues affecting SDG&E and its customers arising out of the California energy crisis. The MOU contemplates, among other matters, the sale of SDG&E's transmission system to DWR or another state agency. The MOU also contemplates that DWR's net-short procurement obligations contained in the Restated Letter Agreement are subject to earlier termination upon the satisfaction of regulatory and other conditions intended to assure SDG&E's timely recovery of costs incurred in resuming power procurement for its customers. The reference to the MOU in this Attachment E provides no independent basis for enforcement of the MOU.

3. Letter Agreement between the California Department of Water Resources (DWR) and San Diego Gas & Electric Company (SDG&E). This Letter Agreement provides for the payment of SDG&E's costs to (i) implement and maintain a billing system to remit customer payments to DWR, (ii) implement the 20/20 program, and (iii) implement load curtailment programs under Assembly Bill (AB) 1X, related Executive Orders, and California Public Utilities Commission (CPUC) orders and decisions.

4. Notwithstanding (i) the terms, execution or operation of the Servicing Order, (ii) the approval of, any modification to, or any other action taken with respect to or having an effect on the Servicing Order by the Commission or any other Governmental Authority, or (iii) any other action taken by a Governmental Authority, Utility hereby reserves all rights (if any) in any forum to contest, oppose, appeal, comment on, or otherwise seek to revisit, alter, modify or set aside any present or future decisions, orders, opinions, rulings, or actions or omissions to act by the Commission or any other Governmental Authority, whether in draft, interim or final form, arising out of, relating to, or connected with (x) the calculation of DWR Charges or DWR Revenues and the allocation of costs and amounts of electric capacity and output among the customers of electrical corporations, (y) the interpretation and/or legality of Applicable Law or Applicable Commission Orders, or (z) remittance of such calculated amounts by Utility to DWR or its Assign(s) under Applicable Law or Applicable Commission Orders in a manner inconsistent with this Servicing Order or Utility's ability to perform its utility functions.

ATTACHMENT F

SAN DIEGO GAS & ELECTRIC COMPANY

CALCULATION METHODOLOGY FOR REDUCED REMITTANCES PURSUANT TO 20/20 PROGRAM

A. Reimbursement of 20/20 Rebate Costs

B. Customer credits under the 20/20 Program will be applied to Customer accounts as follows:

C. Reimbursement of 20/20 Program Implementation Costs

DWR agrees to pay to Utility an implementation fee and recurring fees in order to cover Utility's reasonable development and on-going costs for the procedures, systems and mechanisms that are necessary to implement and support the 20/20 Program. Utility shall invoice DWR for payment of the implementation fee and recurring fees with reasonable supporting documentation in accordance with Section 7.2 of the Servicing Order. Final invoice to be submitted to DWR no later than February 28, 2003.

D. Estimated Costs:

Footnote: SDG&E will receive a percentage of the presently estimated $3 million cost to implement a statewide advertising campaign which is contemplated by the CPUC and the Governor. This cost will be proportionately allocated among the three utilities.

E. 20/20 Program Reporting

Sample Daily Report - 20/20 Program

Report Id:

XXXXXXX

SAN DIEGO GAS & ELECTRIC

Process Date:

XX/XX/XXXX

Page:

  

PGM ID:

XXXXXX

  

DWR 20/20 CREDIT REPORT

Run Date:

Time:

XXXX

FOR THE DAY ENDING

TOTAL 20/20 CREDITS PAID:
AMOUNT

$ XXX.XX

CUSTOMERS:

Sample Monthly Report - 20/20 Program

["Summary Results of 20/20 Conservation Program: August 2002" table that was approved in D.02-07-038 to be inserted here.]

ATTACHMENT G

SAN DIEGO GAS & ELECTRIC COMPANY

FEE SCHEDULE

A. DWR Billing Agent Cost Estimates:

B. Billing Service Implementation Costs

Description

Set-Up Cost Estimate

Recurring Costs

Additional Charges

Comments

Energy Data Management

$32,000

$8,000

    

DWR Remittance & Reporting

  

20,000

    

Customer Billing/Payment Processing

300,000

93,000

    

Training

12,000

      

Fact Sheet

11,000

11,000

    

Bill Insert

5,500

    

Shared cost due to multiple communication - DWR @ 20%

Brochure Revision

2,500

    

Shared cost due to multiple communication - DWR @ 20%

Website Changes

3,500

      

Direct Mail

    

$500,000

Each mailing to all customers

DWR Revenue Req. Ntc

500,000

    

May/June direct mailing to Large & Small customers

Bill Insert

    

26,500

One bill insert to all customers

Customer Contacts

    

6.25

Per contact

Rebilling - Load Profile

    

3.50

Per month, per meter

Rebilling - IDR metering

    

49.00

Per month, per meter

Increased Postage

    

.21

Per piece mailed

Actual Invoice Cost of Annual Report (Section 8.4)

    

TBD

Cost dependent on audit requirements

Total

$866,500

$132,000

    

Monthly Recurring

  

$11,000

    

ATTACHMENT H

SAN DIEGO GAS & ELECTRIC COMPANY

ADJUSTMENTS TO DWR CHARGES FOR VARIANCES IN DWR POWER DELIVERED

This Attachment H consists of two parts: Part I provides the detailed process of the More Precise Remittance Methodology applicable for DWR Power Charges before the Operating Order Effective Date and Part II provides the detailed process of the Post-Transition Remittance Methodology applicable for DWR Power Charges on and after the Operating Order Effective Date.

Part I. More Precise Remittance Methodology

The methodology in this Part I shall be applied for remittance of DWR Power Charges before the effective date of the Operating Order.

A. SDG&E Remittance Percentage Calculation and True-up

In accordance with SDG&E's Schedule EECC, as it may be modified or superceded by the CPUC from time to time, SDG&E calculates each hour the percentage of Customers electricity use that is supplied by DWR (the "Hourly Percentage Factor'). This percentage is calculated using Final Hour-Ahead Schedules that reflect estimated Customer electricity use. "Estimated Customer Use" shall be defined as the forecasted Customer usage used to establish the Final Hour-Ahead Schedule adjusted using other data that may become available within one day of the Trade Day, as appropriate, to more accurately reflect actual Customer usage. As final settlement statements reflecting actual meter data and electricity deliveries are received from the ISO, SDG&E will calculate the actual Hourly Percentage Factors. For each hour, the estimated Hourly Percentage Factor will be subtracted from the actual Hourly Percentage Factor to determine the Hourly Percentage Factor difference. At the end of each month, a weighted average Hourly Percentage Factor difference will be calculated using all trade dates for which SDG&E has received from the ISO final settlement statements during such month. This weighted average difference will then be adjusted, if necessary, by commodity revenue dollars for the different periods to obtain an adjustment percentage that will be applied as an hourly adjustment in the next month's calculations of Hourly Percentage Factors.

B. Detailed Process

These two components, along with output from the True-up Process, will be used to calculate the Hourly Percentage Factor. SDG&E will calculate the Hourly Percentage Factor for each hour of a trade day T by: (i) dividing the CERS' Final Hour Ahead Schedule plus estimated imbalance energy schedule for such hour by the SDG&E Estimated Customer Usage for such hour; and (ii) adding the true-up adjustment percentage applicable for the current month, calculated in accordance with Section B.2, below.

Part II. Post-Transition Remittance Methodology

The methodology in this Part II shall be applied for remittance of DWR Power Charges on and after the effective date of the Operating Order.

A. SDG&E Remittance Percentage Calculation and True-up

In accordance with SDG&E's Schedule EECC, as it may be modified or superceded by the CPUC from time to time, SDG&E calculates each hour the percentage of Customers electricity use that is supplied by DWR (the "Hourly Percentage Factor"). This percentage is calculated using Final Hour-Ahead Schedules and other information reasonably available to SDG&E within one day of the Trade Day that reflect estimated dispatched quantities of SDG&E integrated portfolio resources including the Allocated Contracts as well as estimated Customer electricity use. "Estimated Customer Use" shall be defined as the forecasted Customer usage used to establish the Final Hour-Ahead Schedule adjusted using other data that may become available within one day of the Trade Day, as appropriate, to more accurately reflect actual Customer usage. As final settlement statements reflecting actual meter data and electricity deliveries are received from the ISO, SDG&E will calculate the actual Hourly Percentage Factor. For each hour, the estimated Hourly Percentage Factor will be subtracted from the actual Hourly Percentage Factor to determine the Hourly Percentage Factor difference. At the end of each month, a weighted average Hourly Percentage Factor difference will be calculated using all trade dates for which SDG&E has received from the ISO final settlement statements during such month. This weighted average difference will then be adjusted, if necessary, by commodity revenue dollars for the different periods to obtain an adjustment percentage that will be applied as an hourly adjustment in the next month's calculations of Hourly Percentage Factor.

B. Detailed Process

For each day T (trade date) SDG&E will retrieve from ISO published hour-ahead final schedules of SDG&E integrated portfolio resources including the Allocated Contracts.

For each day T, SDG&E will develop estimates of Customer usage.

These two components, along with output from the True-up Process, will be used to calculate the Hourly Percentage Factor. SDG&E will calculate the Hourly Percentage Factor for each hour of a trade day T in accordance with the principles provided in Exhibit C of the Operating Order; and (ii) adding the true-up adjustment percentage applicable for the current month, calculated in accordance with Section B.2, below.

2. True-up Process

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