Discussion

In summary, ORA challenges two aspects of SDG&E's application: SDG&E's request for recovery of generation-related PBOPs costs and SDG&E's request for recovery of employee-related transition costs. ORA's recommendation with respect to PBOPs was striken from the record pursuant the ALJ's April 27, 2000 ruling. SDG&E does not contest ORA's recommendations (Numbers 7 and 8) to disallow $8,360 and $19,000, respectively, in employee-related transition costs. Thus, SDG&E requests that the Commission adopt as reasonable SDG&E's TCBA entries for the record period, SDG&E's requested employee transition costs ($945,165), less ORA's proposed disallowances ($27,360), for a total of $917,805 plus interest, SDG&E's administration and costs of its QF and other purchase power contracts, and the remaining, uncontested aspects of SDG&E's application.

We will adopt ORA's recommendations. We cannot approve employee-related transition costs for ineligible employees or when the utility has failed to substantiate its requests. ORA's proposed disallowances are reasonable.