San Diego Gas & Electric Co. will get another chance to plead its case before the California Public Utilities Commission over a reallocation of funds that left the utility holding the bag for $733 million in increased costs. No date has been set.
The PUC on Jan. 13 granted SDG & E; a limited rehearing on the board’s approval Dec. 2 of a permanent cost-allocation plan among the three investor-owned utilities. The formula distributes costs for long-term power-purchase contracts entered into with the state Department of Water Resources to make sure customers had power during the 2001 energy crisis.
While SDG & E; was socked with an increase in costs, Pacific Gas & Electric received a $418 million decrease and Southern California Edison got a $315 million decrease. SDG & E;’s $733 million bump could end up costing the typical San Diego industrial customer as much as $100,000 a year on its electric bill, according to PUC President Michael R. Peevey, whose own proposal was voted down Dec. 2.
“It is my hope that, through granting this limited hearing, SDG & E; in particular will have the opportunity to present evidence that, if persuasive, would result in a lower obligation for San Diego customers than the commission previously required,” Peevey said.
, Pat Broderick