ORA's Review of SDG&E's Showing

ORA's review of SDG&E's showing is set forth in Exhibits 20 and 23. Based on its review, ORA urged the Commission to adopt the following recommendations:

1. The entries to the TCBA during the record period July 1, 1998 through June 30, 1999 are reasonable.


2. The fossil generation and embedded debt costs for the record period July 1, 1998 through June 30, 1999 are reasonable.


3. SDG&E's qualifying facilities (QF) payments for the record period are reasonable and should be included in its TCBA account.


4. SDG&E's non-qualified facilities contracts' costs for the record period should be approved and included in its ATCP account.


5. The Commission should approve $11,605 in cost incurred for Employee Training for affected employees working at SDG&E's South Bay and Encina Power Plants in the Generation Business Department.


6. The Commission should approve $875,970 for Enhanced Severance and Pension benefits for 13 employees that were severed at the Encina, South Bay and Kearny Power Plants.


7. The Commission should disallow $8,360 in employee training costs that were incurred for ineligible employees and unsupported travel and living expenses claimed for training provided by General Electric Company that do not qualify for ratepayer-funded employee-related benefits.


8. The Commission should disallow $19,000 in costs incurred for employee training provided by Organization Performance Group. SDG&E has failed to provide sufficient documentation to substantiate these entries.


9. The Commission should approve $30,230 for Interest Expense (associated with employee-related transition costs] with the understanding that this amount is to be adjusted once a final decision is rendered in the 1998 ATCP.