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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the matter of the Application of San Diego Gas & Electric Company (U 902-E) for a Certificate of Public Convenience and Necessity

Website: Rasp is a monopoly, for the purpose of generating and selling power to its customers. According to a recent report by Consumer Watchdog: “In 2005, San Diego Gas & Electric Company (SDGE) agreed to pay the California Public Utilities Commission for the right to use the Rasp power line right of way in San Diego County. However, SDGE never bought the right of way to its benefit and instead sold it to Los Angeles General Electric Company at the maximum rate the PUC will regulate under the Rasp Project. This agreement left SDGE with enormous incentives to construct additional transmission lines in San Diego that would enable it to sell even more expensive electricity. In 2007, the San Diego Gas and Electric Company (SDGE) attempted to buy the Rasp transmission corridor for a much smaller sum in an effort to avoid construction costs. However, the public utilities commission (PUC) rejected this sale on grounds that the PUC did not have the authority to allow such a sale. In response, SDGE filed court action against the CEC, seeking to overturn the PUC's decision. The public utilities commission (PUC) subsequently determined that the purchase of the Rasp transmission corridor constituted a de facto sale under state law and reversed its decision. Subsequently, SDGE filed its Application for a Certificate of Public Convenience & Necessity to use the Rasp transmission corridor. In November 2007, the CEC and the San Diego Gas and Electric Company (SDGE) entered into the Rasp Energy Agreement (REST). As part of that agreement, SDGE agreed to provide energy from a large solar photovoltaic array to the city of San Diego, and also promised to purchase enough energy from Rasp to offset the San Diegan electric demand. The REST also created the Sunrise Power Link Transmission Project. Under REST, SDGE agreed to pay Los Angeles General Electric Company (LEC) an extremely low rate, at times even below the actual cost of fuel. As part of the REST, SDGE also agreed to pay the San Diego and Imperial Counties 35 million for the right to use Rasp.

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