SDG&E's Showing

A summary of SDG&E's testimony (Exhibit 17) is as follows:

· Chapter I (Overview) demonstrates that SDG&E complied with all Commission policies regarding the accounting mechanics of the TCBA.

· Chapter II (The Transition Cost Balancing Account (TCBA)) explains the month-to-month operation of the TCBA.


· Chapter III (Disaggregated Electric Revenue and the Transition Cost Balancing Account) describes how SDG&E calculated the Residual CTC Revenue (headroom) each month.


· Chapter IV (Regulatory Assets) describes the four major components (including generation-related post-retirement benefits other than pensions, or (PBOPs) that SDG&E is authorized to recover as regulatory assets through the TCBA.


· Chapter V (Status and Disposition of Certain Memorandum Accounts) describes the status and disposition of various memorandum accounts, including SDG&E's Employee Transition Costs subaccount of the Industry Restructuring Memorandum Account.


· Chapter VI (Amortization of Plant Related Assets) explains the methodology SDG&E used to calculate monthly depreciation and return.


· Chapter VII (Treatment of Property-Related Income Taxes) explains the assumptions and methodology SDG&E used to calculate CTC property-related income taxes.


· Chapter VIII (Embedded Cost of Debt) describes the impact on SDG&E's cost of debt due to redeeming high cost of debt and preserving certain tax-exempt debt series.


· Chapter IX (Treatment of Revenues from Power Purchase Contracts and SONGS Generation) describes the disposition of revenues SDG&E received for the sale of power from SONGS 2 and 3 generation and purchase power contracts to the California Power Exchange.


· Chapter X (Administration of the PNM Contract) describes how SDG&E administered its contract with Public Service of New Mexico during the record period.