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Proposal Issued That Would Deny SDG&E Recovery of Wildfire Expenses

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Proposal Issued That Would Deny SDG&E Recovery of Wildfire Expenses

 

On August 22, 2017, a proposal was issued by CPUC Administrative Law Judges that, if adopted by the CPUC’s Commissioners, would deny San Diego Gas & Electric’s (SDG&E) request to recover costs related to the 2007 Southern California Wildfires.  The proposal finds that SDG&E did not reasonably operate its facilities linked to the Witch, Guejito, and Rice Wildfires, and thereby prohibits the utility from recovering those costs in its rates.

 

Background

On September 25, 2015, SDG&E filed an application (A.15-09-010) seeking CPUC approval to recover $379 million recorded in its Wildfire Expense Memorandum Account.  The $379 million represents a portion of the $2.4 billion in costs and legal fees incurred by SDG&E to resolve third-party damage claims arising from the Witch, Guejito, and Rice Wildfires. 

 

Proposal Highlights

The proposal evaluates whether SDG&E’s operation, engineering, and management of its facilities involved in the ignition of the Witch, Guejito, and Rice Wildfires was reasonable.  Each of the three fires is addressed separately under the CPUC’s reasonable and prudent management standard. That standard requires that the CPUC disallow recovery of unreasonable costs that were the result of imprudent utility management.

       Witch Fire (October 21, 2007) proposed outcome: SDG&E’s operation and management of its facilities prior to the ignition of the Witch Fire was unreasonable.

       Guejito Fire (October 22, 2007) proposed outcome: SDG&E’s operation and management of its facilities prior to the ignition of the Guejito Fire was unreasonable.

       Rice Fire (October 22, 2007) proposed outcome: SDG&E’s operation and management of its facilities prior to the ignition of the Rice Fire was unreasonable.

Parties to the proceeding have the opportunity to file comments on the proposal before the CPUC votes on the matter. The first opportunity for the CPUC’s Commissioners to vote on the proposal is at the CPUC’s September 28, 2017, Voting Meeting at the Chula Vista Council Chambers, 276 Fourth Ave., Chula Vista.

 

The proposal is available on the CPUC’s website.

Don’t Miss CPUC’s Solar Eclipse Viewing Events in Sacramento and S.F.

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On August 21, 2017, the CPUC and our energy efficiency education program, Energy Upgrade California, will mark the coming together of communities and businesses throughout the state in an epic unifying experience – to witness the Great American Eclipse and collectively pledge to do their part to lower California’s electricity use on eclipse day, August 21, and every day.

We are holding two solar eclipse viewing events – one in San Francisco and one in Sacramento!

Sacramento

When: Monday, August 21, 2017, 9 a.m. – 11 a.m.

Where: California State Capitol, West Steps, 10th Street and Capitol Avenue, Sacramento

What: Join the CPUC, Energy Upgrade California, and California Assemblymember Chris Holden, along with California community based organizations and other state representatives, at a Solar Eclipse watch to folks  to unplug and head outside to watch the historic Solar Eclipse!  Before the eclipse viewing, host Assemblymember Holden will discuss the importance of saving energy so that California can burn fewer fossil fuels and emit fewer greenhouse gas emissions when the state’s solar energy production dips during the eclipse. By doing just one more thing to save energy on August 21 and every day moving forward, Californians can create a major positive impact on our environment.  Representatives from Energy Upgrade California will also distribute eclipse viewing glasses that double as coffee sleeves, and will share easy tips for consumers to save energy. Additional activities will include arts and crafts with Powerhouse Science Center, solar cell PV demonstration facilitated by statewide utilities companies, and discussions with NASA Ambassadors.

Read more in our media advisory.

San Francisco

When: Monday, August 21, 2017, 10 a.m. – 11 a.m.

Where: San Francisco Civic Center Plaza, Across from City Hall on Polk Street

What: The CPUC and Energy Upgrade California will join San Francisco Mayor Edwin M. Lee at a Solar Eclipse viewing event to encourage San Francisco residents and business owners to unplug and head outside to watch the historic Solar Eclipse! To kick off the viewing event, Energy Upgrade California will be on-site to distribute eclipse viewing glasses that double as coffee sleeves and will share tips for simple ways consumers can save energy when solar energy production dips during the solar eclipse. At 10 a.m., Mayor Lee and CPUC Commissioners Carla J. Peterman and Liane M. Randolph will discuss the importance of renewable energy and saving energy in order for California to burn fewer fossil fuels and emit fewer greenhouse gas emissions when the sun is partially eclipsed by the moon in the morning hours on August 21.

Read more in our media advisory.

Consumers can take a pledge to do one thing for the sun during the eclipse at CalEclipse.org.

Read more about how you can Do Your Thing to save energy on eclipse day and every day!

 

 

 

Debt Equivalency: An Introduction

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 Our Policy and Planning Division has issued a little light reading called, An Introduction to Debt Equivalency.

What is debt equivalency, you ask?  Debt equivalency is a term used by credit analysts to describe the financial risk inherent in the fixed financial obligation resulting from signing long-term contracts.  Although such contractual commitments are not reported on a balance sheet as debt, credit rating agencies view them as having risk characteristics similar to debt. 

The Policy and Planning Division’s report explores the issue of debt equivalency by explaining why it is important and reviews options for addressing it.

Happy reading!

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