Sdge Ex Parte Notice

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of San Diego Gas & Electric Company (U902-E) for a Certificate of Public Convenience and Necessity for the Sunrise Powerlink Transmission Project

Application A.06-08-010 (Filed August 4, 2006)

NOTICE OF EX PARTE COMMUNICATION

Billy Blattner Manager, Regulatory Relations SAN DIEGO GAS & ELECTRIC COMPANY 601 Van Ness Avenue, Suite 2060 San Francisco, CA 94102 Telephone: (415) 202-9983 Facsimile: (415) 346-3630 Email: [email protected] November 18, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of San Diego Gas & Electric Company (U902-E) for a Certificate of Public Convenience and Necessity for the Sunrise Powerlink Transmission Project

Application A.06-08-010 (Filed August 4, 2006)

NOTICE OF EX PARTE COMMUNICATION In accordance with Rule 8.3 of the Commission’s Rules of Practice and Procedure, San Diego Gas and Electric Company (SDG&E) hereby gives notice of the following Ex Parte communication in the above proceeding. On Thursday, November 13, 2008 at 2:30 p.m., SDG&E representatives Dan Skopec, Vice President of Regulatory Affairs, Matt Burkhart, Vice President of Electric and Gas Procurement, Billy Blattner, Manager of Regulatory Affairs, and Lisa Urick, attorney for SDG&E, attended an all-party meeting in the above-captioned matter. Traci Bone, Advisor to Commissioner Grueneich, and Administrative Law Judge Jean Vieth, were also in attendance from the Commission. A sign-in sheet of other attendees is attached. The meeting was requested by Commissioner Grueneich to discuss Section 19 of her alternate decision (AD) and possible changes to the Compliance Plan proposed in the AD. The communication was oral. The meeting was also transcribed by a CPUC reporter. Mr. Skopec explained SDG&E’s concerns about the Compliance Plan, including in particular the lack of finality of any decision contingent on the Compliance Plan. He also noted the difficulty of demonstrating “binding commitments” for new renewable generation on the day that Sunrise is placed into service because many of those details are

beyond SDG&E’s control. Finally, the Compliance Plan’s requirements are problematic given the open access nature of the transmission grid. Mr. Skopec described the voluntary commitments SDG&E would make if the Sunrise Project is immediately approved with no Compliance Plan or further conditions. These commitments include: (1) not contracting with conventional coal generators across Sunrise, (2) replacing current renewable energy contracts deliverable on Sunrise that fail, and (3) voluntarily raising SDG&E’s renewables target to 33 percent by 2020. Mr. Skopec also described the robust reporting and compliance mechanisms that already exist that can be used to monitor and enforce SDG&E’s compliance with its voluntary commitments. Mr. Burkhart addressed issues regarding SDG&E’s no conventional coal commitment and SDG&E’s current procurement practices regarding coal contracting. He noted that the commitment provides assurance that SDG&E would not be using Sunrise capacity to contract for coal. He also explained that SDG&E’s commitment does not restrict system purchases, such as to address outages, unexpected peaks and resource adequacy requirements. Mr. Skopec also added that renewables goals and AB 32 put limits on the amount of coal that will feed into Sunrise. Mr. Burkhart also provided additional detail regarding how SDG&E would promptly replace current renewables contracts that might fail and the amount of energy that may be subject to being replaced on a least cost, best fit basis.

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To request a copy of this notice, please contact: Cindy Zammit 601 Van Ness Avenue, Suite 2060 San Francisco, CA 94102 Telephone: (415) 202-9986 Facsimile: (415) 346-3630 Email: [email protected]

Respectfully submitted, /s/ BILLY BLATTNER Billy Blattner Manager, Regulatory Relations SAN DIEGO GAS & ELECTRIC COMPANY 601 Van Ness Avenue, Suite 2060 San Francisco, CA 94102 Telephone: (415) 202-9983 Facsimile: (415) 346-3630 Email: [email protected] November 18, 2008

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Attachment

CERTIFICATE OF SERVICE I hereby certify that I have this day served a true copy of the foregoing NOTICE OF EX PARTE COMMUNICATION on each party named in the official service list for proceeding A.06-08-010 by electronic service, and by U.S. Mail to those parties who have not provided an electronic address. Executed this 18th day of November, 2008, at San Diego, California.

/s/ JOEL DELLOSA Joel Dellosa