XXXII. Electric Rate Design - SDG&E

On April 22, 2004, the Commission adopted D.04-04-042,494 a decision that approved a contested settlement agreement and resolved most of the disputed issues among SDG&E and all but one of the other active parties in SDG&E's 2003 Rate Design Window proceeding. It was ordered that when this decision is issued for A.02-12-028, the Test Year 2004 Cost of Service proceeding, SDG&E is to allocate its 2004 electric distribution revenue requirement based on an equal percentage of marginal cost methodology, using caps and floors designed to moderate increases that would otherwise disproportionately impact residential and street lighting customers. SDG&E was also ordered in D.04-04-042 to accommodate the provisions of Assembly Bill 1X by applying the residential class revenue requirement allocation in a manner consistent with the Commission's determination in D.04-02-057, its Final Opinion on Phase 2 Issues in R.01-05-047. 495

494 A.03-03-029, filed March 17, 2003.

495 D.04-04-042, Conclusions of Law 7 and 8, and Ordering Paragraph 2; mimeo., pp. 18 and 19.

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