Fight over DWR Costs Rekindled

By Published On: January 16, 2005

Behind closed doors, the CPUC agreed to reopen the dispute over the allocation of Department of Water Resources power contracts among the three investor-owned utilities. Last month, the commission finally adopted a permanent methodology for divvying up the costs, which increased the cost to San Diego Gas & Electric ratepayers. The debate has focused on how to divide up the above-market contract costs, projected to be $7.4 million (<i>Circuit</i>, Dec. 3, 2004). ?It is my hope that, through granting this limited rehearing, SDG&E in particular will have the opportunity to present evidence that, if persuasive, would result in a lower obligation for San Diego customers than the commission previously required,? CPUC president Mike Peevey said in a statement released after the private hearing. The matter was not openly debated because all rehearings are held in closed session, said commission spokesperson Terrie Prosper.

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