BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ) ) ) ) ) )

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 RESPONSE BY SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E TO MOTION TO CONSOLIDATE Pursuant to the procedural schedule set forth by Administrative Law Judge Wong in the above-referenced proceeding at the September 29, 2008 prehearing conference, Southern California Edison Company ( SCE submits the following response to the Southern California Generation Coalition s September 26, 2008 Motion for Consolidation of Application No. 08-06- 006 and Application No. 08-02-001 (Phase 2 of the Biennial Cost Allocation Proceeding. As SCE indicated at the prehearing conference, SCE generally supports the concept of expanding off-system deliveries because the company supports a fluid and transparent gas market. SCE believes that there are at least two issues that should be fully vetted regarding the expansion of off-system deliveries. First, SCE believes that expanding off-system deliveries would impact storage and flow issues, and that such impact raises factual questions that should preferably be addressed on the record subject to cross-examination, as SCGC requests in its motion. 1 Second, SCE believes that there are factual issues relating to the rate design and proper revenue allocation for this new service, which should be addressed in evidentiary hearings. SCE 1 SCGC Motion, pp. 2 and 5 6. 1576090-1 -

agrees with SCGC s motion that an offering of a new service like this has typically been raised in the BCAP. 2 With respect to rate design, SoCalGas charges a cost-based rate for services related to off-system deliveries into the PG&E system. Since customers outside of California will benefit from the expansion of off-system deliveries, SCE believes that the Commission should evaluate whether the same rate design is appropriate or whether market based rates would be a more appropriate option. With respect to revenue allocation, SCE submits that this is clearly a BCAP issue which involves consideration of which customer classes pay for the facilities that are used to provide this service and the allocation of revenues to these customers. In response to the Administrative Law Judge s inquiry as to whether or not the offering of this new service on an interruptible (as opposed to firm basis would impact the need for hearings, 3 SCE submits that the issues it raises above are relevant whether or not the service is interruptible or firm. For the above reasons, SCE urges the Commission to approve consolidation of this proceeding with Phase 2 of the BCAP, as set forth in SCGC s Motion to Consolidate. 2 SCGC s Motion, p. 7. 3 Prehearing Conference Agenda, paragraph 4a. 1576090-2 -

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 October 14, 2008 1576090-3 -

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 RESPONSE BY SOUTHERN CALIFORNIA EDISON (U338-E TO MOTION TO CONSOLIDATE 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 14th day of October, 2008, at Rosemead, California. /a/ Alejandra Arzola Alejandra Arzola 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 4 10/14/2008 CPUC Home CALIFORNIA PUBLIC UTILITIES COMMISSION Service Lists PROCEEDING: A0806006 - APPLICATION OF SOUTH FILER: SAN DIEGO GAS & ELECTRIC COMPANY LIST NAME: LIST LAST CHANGED: OCTOBER 1, 2008 DOWNLOAD THE COMMA-DELIMITED FILE ABOUT COMMA-DELIMITED FILES Back to Service Lists Index Parties JOEL L. GREENE STEPHEN G. KOERNER JENNINGS, STROUSS & SALMON, PLC EL PASO CORPORATION - WESTERN PIPELINES 1700 PENNSYLVANIA AVE., SUITE 500 NW 2 NORTH NEVADA AVE. WASHINGTON, DC 20006 COLORADO SPRINGS, CO 80903 FOR: SALT RIVER PROJECT AGRICULTURAL FOR: EL PASO NATURAL GAS/MOJAVE PIPELINE IMPROVEMENT AND POWER DISTRICT NORMAN A. PEDERSEN DANIEL W. DOUGLASS ATTORNEY HANNA AND MORTON LLP DOUGLASS & LIDDELL 444 SOUTH FLOWER ST. SUITE 1500 21700 OXNARD STREET, SUITE 1030 LOS ANGELES, CA 90071-2916 WOODLAND HILLS, CA 91367 FOR: SOUTHERN CALIFORNIA GENERATION FOR: TRANSWESTERN PIPELINE COMPANY COALITION KAVITA P. LESSER GLORIA ING SOUTH COAST AIR QUALITY MANAGEMENT DISTR 21865 COPLEY DRIVE SOUTHERN CALIFORNIA EDISON COMPANY DIAMOND BAR, CA 91765-0940 2244 WALNUT GROVE AVENUE FOR: SOUTH COAST AIR QUALITY MANAGEMENT ROSEMEAD, CA 91770 DISTRICT FOR: SOUTHERN CALIFORNIA EDISON COMPANY CARLOS F. PENA WILLIAM D. RAPP SEMPRA ENERGY 101 ASH STREET, HQ12 SEMPRA LNG SAN DIEGO, CA 92101 101 ASH STREET, HQ-12 FOR: SOUTHERN CALIFORNIA GAS COMPANY / SAN DIEGO, CA 92101 SAN DIEGO GAS & ELECTRIC COMPANY FOR: SEMPRA LNG JOHN W. LESLIE MICHEL PETER FLORIO SENIOR ATTORNEY

CPUC - Service Lists - A0806006 http://docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 2 of 4 10/14/2008 LUCE, FORWARD, HAMILTON & SCRIPPS, LLP THE UTILITY REFORM NETWORK (TURN 11988 EL CAMINO REAL, SUITE 200 711 VAN NESS AVENUE, SUITE 350 SAN DIEGO, CA 92130 SAN FRANCISCO, CA 94102 FOR: SHELL ENERGY NORTH AMERICA (US, FOR: THE UTILITY REFORM NETWORK L.P. DIANA L. LEE EVELYN KAHL LEGAL DIVISION ALCANTAR & KAHL, LLP ROOM 4107 120 MONTGOMERY STREET, SUITE 2200 505 VAN NESS AVENUE SAN FRANCISCO, CA 94104 SAN FRANCISCO, CA 94102-3214 FOR: INDICATED PRODUCERS FOR: DIVISION OF RATEPAYER ADVOCATES EDWARD G. POOLE JEANNE B. ARMSTRONG ANDERSON & POOLE GOODIN MACBRIDE SQUERI DAY & LAMPREY 601 CALIFORNIA STREET, SUITE 1300 505 SANSOME STREET, SUITE 900 SAN FRANCISCO, CA 94108-2818 SAN FRANCISCO, CA 94111 FOR: CALIFORNIA INDEPENDENT PETROLEUM FOR: QUESTAR SOUTHERN TRAILS PIPELINE ASSOCIATION COMPANY MICHAEL B. DAY WILLIAM H. BOOTH GOODIN MACBRIDE SQUERI DAY & LAMPREY LLP LAW OFFICE OF WILLIAM H. BOOTH 505 SANSOME STREET, SUITE 900 67 CARR DRIVE SAN FRANCISCO, CA 94111-3133 MORAGA, CA 94556 FOR: KERN RIVER PIPELINE COMPANY FOR: WOODSIDE NATURAL GAS, INC. GREGGORY L. WHEATLAND ELLISON SCHNEIDER & HARRIS L.L.P. 2015 H STREET SACRAMENTO, CA 95811-3109 FOR: CLEARWATER PORT LLC Information Only KELLY A. DALY GARY HINNERS STINSON MORRISON HECKER LLP RELIANT ENERGY, INC. 1150 18TH ST., SUITE 800 N.W. PO BOX 148 WASHINGTON, DC 20036 HOUSTON, TX 77001-0148 FOR: ARIZONA PUBLIC SERVICE COMPANY KIRBY BOSLEY SHELLEY A. CORMAN BEAR ENERGY LP SR. VICE-PRESIDENT 700 LOUISIANA ST. STE 1000, 10TH FLR TRANSWESTERN PIPELINE COMPANY, LLC HOUSTON, TX 77002 711 LOUISIANA STREET, SUITE 900 HOUSTON, TX 77002 SHEMEIKA S. LANDRY W. WAYNE TOMLINSON SENIOR COUNSEL EL PASO CORPORATION- WESTERN PIPELINES TRANSWESTERN PIPELINE COMPANY, LLC 2 NORTH NEVADA AVE. 711 LOUISIANA STREET, SUITE 900 COLORADO SPRINGS, CO 80903 HOUSTON, TX 77002 FOR: EL PASO CORPORATION LAURIE K. BROWN DAVID S. ANDERSEN PROJ. MGR., BUS. DEVELOPMENT QUESTAR PIPELINE COMPANY KERN RIVER GAS TRANSMISSION COMPANY 180 EAST 100 SOUTH, PO BOX 45360 2755 E. COTTONWOOD PARKWAY, STE. 300 SALT LAKE CITY, UT 84145-0360 SALT LAKE CITY, UT 84121 GAYLEN S. HAAG L. BRADLEY BURTON

CPUC - Service Lists - A0806006 http://docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 3 of 4 10/14/2008 QUESTAR PIPELINE COMPANY QUESTAR PIPELINE CO. 180 EAST 100 SOUTH, PO BOX 45360 180 EAST 100 SOUTH, PO BOX 45360 SALT LAKE CITY, UT 84145-0360 SALT LAKE CITY, UT 84145-0360 KENNETH NORDLANDER KARILEE S. RAMALEY ARIZONA PUBLIC SERVICE COMPANY SRP LEGAL SERVICES 400 N 5TH ST. MS 8974 PO BOX 52025 PHOENIX, AZ 85004 PAB 207 PHOENIX, AZ 85072 FOR: SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT LORI-LYNN PENNOCK ROBERT L. PETTINATO SR. FUEL SUPPLY ANALYST LOS ANGELES DEPARTMENT OF POWER & WATER MAIL STATION POBOO1 NATURAL GAS GROUP 6504 E. THOMAS ROAD 111 NORTH HOPE STREET, ROOM 1151 SCOTTSDALE, AZ 85251 LOS ANGELES, CA 90012-0100 FOR: SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT KARI KLOBERDANZ ALANA STEELE REGULATORY CASE ADMINISTRATOR SOUTHERN CALIFORNIA GAS COMPANY HANNA AND MORTON, LLP 555 WEST 5TH STREET, GT14D6 444 SOUTH FLOWER STREET, SUITE 1500 LOS ANGELES, CA 90013-1011 LOS ANGELES, CA 90071-2916 FOR: SOUTHERN CALIFORNIA GAS COMPANY GREGORY S. G. KLATT REN ZHANG DOUGLASS & LIDDELL CITY OF PASADENA WATER AND POWER 411 E. HUNTINGTON DRIVE, NO 107-356 150 S. LOS ROBLES AVENUE, SUITE 200 ARCADIA, CA 91006-8102 PASADENA, CA 91101 STEVE ENDO ERIC KLINKNER ATTN: STEVE ENDO PASADENA DEPARTMENT OF WATER AND POWER CITY OF PASADENA WATER AND POWER 150 SOUTH LOS ROBLES AVENUE, SUITE 200 150 S. LOS ROBLES AVENUE, SUITE 200 PASADENA, CA 91101-2437 PASADENA, CA 91101 STEVEN G. LINS BRUNO JEIDER GENERAL COUNSEL BURBANK WATER AND POWER GLENDALE WATER AND POWER 164 WEST MAGNOLIA BOULEVARD 613 EAST BROADWAY, SUITE 220 BURBANK, CA 91502 GLENDALE, CA 91206-4394 RICHARD J. MORILLO PO BOX 6459 BURBANK, CA 91510-6459 KURT R. WIESE SOUTH COAST AIR QUALITY MANAGEMENT DISTR 21865 COPELY DRIVE DIAMOND BAR, CA 91765 FOR: SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT CASE ADMINISTRATION DAVID J. GILMORE SOUTHERN CALFORNIA EDISON COMPANY ATTORNEY LAW DEPARTMENT, ROOM 370 SOUTHERN CALIFORNIA GAS COMPANY 2244 WALNUT GROVE AVENUE, ROOM 370 101 ASH STREET, HQ12 ROSEMEAD, CA 91770 SAN DIEGO, CA 92101 WILLIAM TOBIN DON LIDDELL SEMPRA GLOBAL 101 ASH STREET, HQ08C DOUGLASS & LIDDELL SAN DIEGO, CA 92101 2928 2ND AVENUE SAN DIEGO, CA 92103 MARCIE A. MILNER JEFFREY M. GARBER

CPUC - Service Lists - A0806006 http://docs.cpuc.ca.gov/published/service_lists/a0806006_76616.htm Page 4 of 4 10/14/2008 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 KAREN TERRANOVA CITY OF ANAHEIM ALCANTAR & KAHL 200 SOUTH ANAHEIM BOULEVARD 120 MONTGOMERY ST., STE. 2200 ANAHEIM, CA 92805 SAN FRANCISCO, CA 94104 SEEMA SRINIVASAN CALIFORNIA ENERGY MARKETS ALCANTAR & KAHL LLP 425 DIVISADERO ST. SUITE 303 120 MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO, CA 94117 SAN FRANCISCO, CA 94104 FOR: INDICATED PRODUCERS MRW & ASSOICATES, INC. JEFFERY D. HARRIS 1814 FRANKLIN STREET, STE 720 OAKLAND, CA 94612 ELLISON, SCHNEIDER & HARRIS LLP 2015 H STREET SACRAMENTO, CA 95811-3109 ANNIE STANGE ALCANTAR & KAHL LLP 1300 SW FIFTH AVENUE, SUITE 1750 PORTLAND, OR 97201 State Service JOHN S. WONG JOYCE ALFTON 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 EXECUTIVE DIVISION ENERGY DIVISION ROOM 5306 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