SAN DIEGO, Jan. 13, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) officials today said they were pleased that the California Public Utilities Commission (CPUC) has decided to review its recent decision allocating an additional $790 million in energy costs to SDG&E customers.
During the California energy crisis of 2000-2001, the California Department of Water Resources (CDWR) entered into long-term power-supply contracts to ensure that customers of cash-strapped utilities would continue to receive power. Last month, the CPUC approved a controversial methodology that shifted approximately $790 million to SDG&E customers over an eight-year period, according to Steven D. Davis, chief financial officer and senior vice president of external affairs for SDG&E. SDG&E filed a request for a rehearing, based on several significant procedural issues, which the CPUC granted today.
"We are very encouraged that the commission has decided to revisit this issue," said Davis. "We have said all along that we are willing to pay our fair share, but we do not believe that the CDWR allocation we received in December was fair."
SDG&E and a coalition of civic, labor and customer groups, as well as elected officials favored a more moderate alternative forwarded by CPUC President Michael Peevey that would have shifted approximately $450 million to SDG&E customers.
"We hope that the commission, once it reviews the facts, will be able to reach an equitable, impartial decision that will be fair to all Californians," said Davis.
SDG&E is a regulated public utility that provides safe and reliable energy service to 3.2 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters. The company's service territory encompasses 4,100 square miles in San Diego and southern Orange counties. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.