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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California gas Company and San Diego Gas & Electric Company to expand existing off system delivery authority A. 08-06-006 COMMENTS BY SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E ON THE PROPOSED DECISION DOUGLAS K. PORTER GLORIA M. ING WALKER A. MATTHEWS III Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626 302-1999 Facsimile: (626 302-3990 E-mail:Gloria.Ing@sce.com Dated: February 28, 2011 1801290

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California Gas Company and San Diego Gas & Electric Company to expand existing off system delivery authority A. 08-06-006 COMMENTS BY SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E ON THE PROPOSED DECISION Pursuant to the California Public Utilities Commission s Rules of Practice and Procedure, Southern California Edison Company ( SCE submits the following comments on the February 7, 2011 Proposed Decision ( PD of Administrative Law Judge Wong. SCE s comments focuses on a clarification needed with respect to the limited issue of the maximum tariff rate that can be set for the interruptible off-system delivery ( OSD service. As provided in the PD, the base rate for interruptible OSD service will be set at 5 cents per Dth, but could increase to a maximum of 15 cents per Dth. 1 SCE submits that the PD s language permitting Southern California Gas Company (SoCalGas to increase the OSD rate is vague and must be modified so that parties understand the Commission s intentions and to avoid disputes among the parties. Further, without such clarification, the PD would be in error because the ambiguity could open the door for SoCalGas to immediately change the discountable rate to any rate up to the 15 cents per Dth cap despite the decision s setting of the rate to 5 cents. 1 See Conclusion of Law No. 8. See also mimeo, pp. 2, 20-25. 1801290-1 -

SCE submits that the language in the PD needs to be clarified. There is no testimony in the record in Application No. 08-06-006 regarding the conditions under which the OSD rate could increase. Therefore, the Commission should eliminate SoCalGas ability to raise the OSD rate until the next cost allocation proceeding, when SoCalGas transportation rates are reviewed. This is consistent with the testimony of SCE s witness Dr. Michael Alexander who recommended that [c]onsideration of any changes to the off-system delivery charge should be made in a future Cost Allocation Proceeding. 2 The PD states that [t]he parties may revisit the rate cap for interruptible OSD in the applicants next cost allocation proceeding once more experience with such deliveries has occurred. 3 Based on the testimony of Dr. Alexander, SCE believes that the PD may have meant that parties may revisit the OSD charge in the next cost allocation proceeding. This would also be consistent with DRA s recommendation in its brief, DRA recommends that if the Commission allows SoCalGas /SDG&E to offer expanded OSDI as requested in the Application, that the Commission review any future OSDI rate-setting mechanism and SoCalGas/SDG&E s OSDI protocol in SoCalGas/SDG&E s next cost allocation proceeding. 4 It is worth noting that SoCalGas is due to file its next Cost Allocation Proceeding on September 1 of this year. 2 Direct Testimony of SCE witness Dr. Alexander, p. 12, September 25, 2009. 3 PD, mimeo p. 24 (emphasis added. 4 Opening Brief of the Division of Ratepayer Advocates, p. 7. 1801290-2 -

SCE thus proposes that Conclusion of Law No. 8 be modified to read: The base rate for interruptible OSD service shall be set at 5 cents per Dth, and allowed to be discounted to as low as 1.5 cents per Dth. Similar modifications would have to be made to page 2 and to Section 3.3.2.2 of the PD. Respectfully submitted, DOUGLAS K. PORTER GLORIA M. ING WALKER A. MATTHEWS III /s/ Gloria M. Ing By: Gloria M. Ing Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Facsimile: (626 302-3990 Facsimile: (626 302-3990 E-mail:Gloria.Ing@sce.com February 28, 2011 1801290-3 -

CERTIFICATE OF SERVICE I hereby certify that, pursuant to the Commission s Rules of Practice and Procedure, I have this day served a true copy of the COMMENTS ON SOUTHERN CALIFORNIA EDISON (U338-E ON THE PROPOSED DECISION on all parties identified on the attached service list. Service was effected by means indicated below: Transmitting the copies via email to all parties who have provided an email address. First class mail will be used if electronic service cannot be effectuated. Executed this 28th day of February, 2011, at Rosemead, California. /s/janice Velarde Janice Velarde SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 (626 302-4176 1

CPUC - Service Lists - A0806006 http:docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 1 of 5 2/28/2011 CPUC Home CALIFORNIA PUBLIC UTILITIES COMMISSION Service Lists PROCEEDING: A0806006 - SOCAL GAS AND SDG&E FILER: SAN DIEGO GAS & ELECTRIC COMPANY LIST NAME: LIST LAST CHANGED: FEBRUARY 8, 2011 DOWNLOAD THE COMMA-DELIMITED FILE ABOUT COMMA-DELIMITED FILES Back to Service Lists Index Parties DANIEL W. DOUGLASS JOHN W. LESLIE, ESQ. DOUGLASS & LIDDELL LUCE, FORWARD, HAMILTON & SCRIPPS, LLP, CA 00000, CA 00000 FOR: TRANSWESTERN PIPELINE COMPANY FOR: SHELL ENERGY NORTH AMERICA (US, L.P. JOEL L. GREENE MARK A. MINICH JENNINGS, STROUSS & SALMON, PLC SENIOR COUNSEL 1350 I STREET, N.W., STE. 810 EL PASO CORPORATION-WESTERN PIPELINES WASHINGTON, DC 20005-3305 2 N. NEVADA AVENUE FOR: SALT RIVER PROJECT AGRICULTURAL COLORADO SPRINGS, CO 80903 IMPROVEMENT AND POWER DISTRICT FOR: EL PASO CORPORATION-WESTERN PIPELINES STEPHEN G. KOERNER JOHN ELLIS EL PASO CORPORATION - WESTERN PIPELINES SDG&E AND SOCALGAS 2 NORTH NEVADA AVE. 555 WEST FIFTH STREET, SUITE 1400 COLORADO SPRINGS, CO 80903 LOS ANGELES, CA 90013-1034 FOR: EL PASO CORPORATION FOR: SOUTHERN CALIFORNIA GAS COMPANY / SAN DIEGO GAS & ELECTRIC COMPANY NORMAN A. PEDERSEN KAVITA P. LESSER ATTORNEY SOUTH COAST AIR QUALITY MANAGEMENT DISTR HANNA AND MORTON LLP 21865 COPLEY DRIVE 444 SOUTH FLOWER ST. SUITE 1500 DIAMOND BAR, CA 91765-0940 LOS ANGELES, CA 90071-2916 FOR: SOUTH COAST AIR QUALITY MANAGEMENT FOR: SOUTHERN CALIFORNIA GENERATION DISTRICT COALITION DOUGLAS K. PORTER WILLIAM D. RAPP

CPUC - Service Lists - A0806006 http:docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 2 of 5 2/28/2011 ATTORNEY AT LAW ATTORNEY AT LAW SOUTHERN CALIFORNIA EDISON COMPANY SEMPRA LNG 2244 WALNUT GROVE AVENUE 101 ASH STREET, HQ-12 ROSEMEAD, CA 91770 SAN DIEGO, CA 92101 FOR: SOUTHERN CALIFORNIA EDISON FOR: SEMPRA LNG EVELYN KAHL DIANA L. LEE ALCANTAR & KAHL, LLP CALIF PUBLIC UTILITIES COMMISSION 33 NEW MONTGOMERY STREET, SUITE 1850 LEGAL DIVISION SAN FRANCISCO, CA 94015 ROOM 4107 FOR: INDICATED PRODUCERS 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3214 FOR: DIVISION OF RATEPAYER ADVOCATES MICHEL PETER FLORIO EDWARD G. POOLE THE UTILITY REFORM NETWORK ANDERSON & POOLE 115 SANSOME STREET, SUITE 900 601 CALIFORNIA STREET, SUITE 1300 SAN FRANCISCO, CA 94104 SAN FRANCISCO, CA 94108-2812 FOR: THE UTILITY REFORM NETWORK FOR: CALIFORNIA INDEPENDENT PETROLEUM ASSOCIATION JEANNE B. ARMSTRONG MICHAEL B. DAY GOODIN MACBRIDE SQUERI DAY & LAMPREY LLP GOODIN MACBRIDE SQUERI DAY & LAMPREY LLP 505 SANSOME STREET, SUITE 900 505 SANSOME STREET, SUITE 900 SAN FRANCISCO, CA 94111 SAN FRANCISCO, CA 94111-3133 FOR: QUESTAR SOUTHERN TRAILS PIPELINE FOR: KERN RIVER PIPELINE COMPANY COMPANY WILLIAM H. BOOTH GREGGORY L. WHEATLAND LAW OFFICES OF WILLIAM H. BOOTH ELLISON SCHNEIDER & HARRIS L.L.P. 67 CARR DRIVE 2600 CAPITOL AVENUE, SUITE 400 MORAGA, CA 94556 SACRAMENTO, CA 95816-5905 FOR: WOODSIDE NATURAL GAS, INC. FOR: CLEARWATER PORT LLC Information Only DONALD C. LIDDELL GREGORY S.G. KLATT DOUGLASS & LIDDELL DOUGLASS & LIDDELL, CA 00000, CA 00000 TARYN CIARDELLA MRW & ASSOCIATES, LLC SR. LEGAL SECRETARY NV ENERGY, CA 00000, NV 00000 KELLY A. DALY KIRBY BOSLEY STINSON MORRISON HECKER LLP JP MORGAN VENTURES ENERGY CORP. 1150 18TH ST., SUITE 800 N.W. 700 LOUISIANA ST. STE 1000, 10TH FLR WASHINGTON, DC 20036 HOUSTON, TX 77002 FOR: ARIZONA PUBLIC SERVICE COMPANY SHELLEY A. CORMAN SHEMEIKA S. LANDRY SR. VICE-PRESIDENT SENIOR COUNSEL TRANSWESTERN PIPELINE COMPANY, LLC TRANSWESTERN PIPELINE COMPANY, LLC 711 LOUISIANA STREET, SUITE 900 711 LOUISIANA STREET, SUITE 900 HOUSTON, TX 77002 HOUSTON, TX 77002 W. WAYNE TOMLINSON W. WAYNE TOMLINSON EL PASO CORPORATION- WESTERN PIPELINES EL PASO CORPORATION- WESTERN PIPELINES 2 NORTH NEVADA AVE. 2 NORTH NEVADA AVENUE COLORADO SPRINGS, CO 80903 COLORADO SPRINGS, CO 80903

CPUC - Service Lists - A0806006 http:docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 3 of 5 2/28/2011 FOR: EL PASO CORPORATION LAURIE K. BROWN DAVID S. ANDERSEN PROJ. MGR., BUS. DEVELOPMENT SR. CORP COUNSEL KERN RIVER GAS TRANSMISSION COMPANY QUESTAR PIPELINE COMPANY 2755 E. COTTONWOOD PARKWAY, STE. 300 180 EAST 100 SOUTH, PO BOX 45360 SALT LAKE CITY, UT 84121 SALT LAKE CITY, UT 84145-0360 GAYLEN S. HAAG L. BRADLEY BURTON QUESTAR PIPELINE COMPANY MGR - FED REG AFFAIRS 180 EAST 100 SOUTH, PO BOX 45360 QUESTAR PIPELINE CO. SALT LAKE CITY, UT 84145-0360 180 EAST 100 SOUTH / PO BOX 45360 SALT LAKE CITY, UT 84145-0360 KENNETH NORDLANDER NORM SPOONER ARIZONA PUBLIC SERVICE COMPANY ARIZONA PUBLIC SERVICE 400 N 5TH ST. MS 8974 410 N. 5TH ST. PHOENIX, AZ 85004 PHOENIX, AZ 85004 ROBERT R. TAYLOR LORI-LYNN PENNOCK SALT RIVER PROJECT SR. FUEL SUPPLY ANALYST PO BOX 52025, PAB 221 MAIL STATION POBOO1 PHOENIX, AZ 85072 6504 E. THOMAS ROAD FOR: SALT RIVER PROJECT SCOTTSDALE, AZ 85251 FOR: SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT CHRISOPHER A. HILEN ROBERT L. PETTINATO NV ENERGY L.A. DEPT. OF POWER & WATER-NAT. GAS GRP 6100 NEIL ROAD 111 NORTH HOPE STREET, ROOM 1150 RENO, NV 89511 LOS ANGELES, CA 90012-0100 FOR: NV ENERGY DAVID J. GILMORE JEFFREY L. SALAZAR SOUTHERN CALIFORNIA GAS COMPANY SOUTHERN CALIFORNIA GAS COMPANY 555 WEST FIFTH STREET, GT-14E7 555 WEST FIFTH STREET, GT14D6 LOS ANGELES, CA 90013 LOS ANGELES, CA 90013 KARI KLOBERDANZ SCOTT A. LEHECKA SOUTHERN CALIFORNIA GAS COMPANY ATTORNEY AT LAW 555 WEST 5TH STREET, GT14D6 HANNA AND MORTON LLP LOS ANGELES, CA 90013-1011 444 S. FLOWER STREET, 15TH FLOOR FOR: SOUTHERN CALIFORNIA GAS COMPANY LOS ANGELES, CA 90071 ALANA STEELE SYLVIA CANTOS ATTORNEY AT LAW HANNA AND MORTON LLP HANNA AND MORTON, LLP 444 SOUTH FLOWER STREET, SUITE 1500 444 SOUTH FLOWER STREET, SUITE 1500 LOS ANGELES, CA 90071-2916 LOS ANGELES, CA 90071-2916 HANS LAETZ, J.D. MICHAEL S. ALEXANDER ZUMA IMPACT LLC ENERGY SUPPLLY AND MANAGEMENT 6402 SURFSIDE WAY SOUTHERN CALIFORNIA EDISON MALIBU, CA 90265 2244 WALNUT GROVE AVE ROSEMEAD, CA 91006 REN ZHANG STEVE ENDO CITY OF PASADENA WATER AND POWER ATTN: STEVE ENDO 150 S. LOS ROBLES AVENUE, SUITE 200 CITY OF PASADENA WATER AND POWER PASADENA, CA 91101 150 S. LOS ROBLES AVENUE, SUITE 200 PASADENA, CA 91101 ERIC KLINKNER PASADENA DEPARTMENT OF WATER AND POWER STEVEN G. LINS ASSISTANT GENERAL MANAGER SUPPLY

CPUC - Service Lists - A0806006 http:docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 4 of 5 2/28/2011 150 SOUTH LOS ROBLES AVENUE, SUITE 200 GLENDALE WATER AND POWER PASADENA, CA 91101-2437 141 N. GLENDALE AVENUE, LEVEL 4 GLENDALE, CA 91206-4394 BRUNO JEIDER RICHARD J. MORILLO BURBANK WATER AND POWER PO BOX 6459 164 WEST MAGNOLIA BOULEVARD BURBANK, CA 91510-6459 BURBANK, CA 91502 KURT R. WIESE CASE ADMINISTRATION ATTORNEY AT LAW SOUTHERN CALIFORNIA EDISON COMPANY SOUTH COAST AIR QUALITY MANAGEMENT DISTR LAW DEPARTMENT, ROOM 370 21865 COPELY DRIVE 2244 WALNUT GROVE AVENUE, ROOM 370 DIAMOND BAR, CA 91765 ROSEMEAD, CA 91770 FOR: SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT TRISTAN REYES CLOSE WILLIAM TOBIN SOUTHERN CALIFORNIA EDISON COMPANY SEMPRA GLOBAL 2244 WALNUT GROVE AVENUE 101 ASH STREET, HQ08C ROSEMEAD, CA 91770 SAN DIEGO, CA 92101 MARCIE A. MILNER JEFFREY M. GARBER SHELL ENERGY NORTH AMERICA (US, L.P. GENERAL COUNSEL 4445 EASTGATE MALL, STE. 100 IMPERIAL IRRIGATION DISTRICT SAN DIEGO, CA 92121 333 EAST BARIONI BOULEVARD IMPERIAL, CA 92251 MICHAEL E. CAMPBELL GEORGE DEHART INTERIM GENERAL MANAGER CITY OF ANAHEIM IMPERIAL IRRIGATION DISTRICT 200 SOUTH ANAHEIM BOULEVARD 333 EAST BARIONI BOULEVARD ANAHEIM, CA 92805 IMPERIAL, CA 92251 STEVEN SCIORTINO SEEMA SRINIVASAN CITY OF ANAHEIM ALCANTAR & KAHL LLP 200 SOUTH ANAHEIM BOULEVARD 33 NEW MONTGOMERY STREET, SUITE 1850 ANAHEIM, CA 92805 SAN FRANCISCO, CA 94015 FOR: INDICATED PRODUCERS KAREN TERRANOVA DIANE I. FELLMAN ALCANTAR & KAHL NRG WEST 33 NEW MONTGOMERY STREET, SUITE 1850 73 DOWNEY STREET SAN FRANCISCO, CA 94105 SAN FRANCISCO, CA 94117 HILARY CORRIGAN CATHERINE E. YAP CALIFORNIA ENERGY MARKETS BARKOVICH & YAP, INC. 425 DIVISADERO ST. SUITE 303 PO BOX 11031 SAN FRANCISCO, CA 94117-2242 OAKLAND, CA 94611 JEFFERY D. HARRIS ANNIE STANGE ELLISON, SCHNEIDER & HARRIS LLP ALCANTAR & KAHL LLP 2600 CAPITOL AVENUE, SUITE 400 1300 SW FIFTH AVENUE, SUITE 1750 SACRAMENTO, CA 95816-5905 PORTLAND, OR 97201 MIKE CADE ALCANTAR & KAHL, LLP 1300 SW 5TH AVE, SUITE 1750 PORTLAND, OR 97201 State Service

CPUC - Service Lists - A0806006 http:docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 5 of 5 2/28/2011 JOHN S. WONG JOYCE ALFTON CALIF PUBLIC UTILITIES COMMISSION CALIF PUBLIC UTILITIES COMMISSION DIVISION OF ADMINISTRATIVE LAW JUDGES ENERGY DIVISION ROOM 5106 AREA 4-A 505 VAN NESS AVENUE 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3214 SAN FRANCISCO, CA 94102-3214 PAUL S. PHILLIPS RICHARD A. MYERS CALIF PUBLIC UTILITIES COMMISSION CALIF PUBLIC UTILITIES COMMISSION EXECUTIVE DIVISION ENERGY DIVISION ROOM 5212 AREA 4-A 505 VAN NESS AVENUE 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3214 SAN FRANCISCO, CA 94102-3214 TOP OF PAGE BACK TO INDEX OF SERVICE LISTS