Clay Faber
Director, Regulatory Affairs
8330 Century Park Court
San Diego, CA 92123-1548
cfaber@semprautilities.com

November 20, 2015
ADVICE LETTER 2822-E
(U-902-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
SUBJECT:

SDG&E NOTICE OF INTENT AND SUBMISSION OF REQUIRED
COMPLIANCE PLAN PURSUANT TO DECISION (D.) 12-12-036

PURPOSE
The purpose of this filing is to notify the California Public Utilities Commission (CPUC) that San
Diego Gas and Electric (SDG&E) is implementing a Compliance Plan (or Plan), as required by
D.12-12-036, related to communications that may include the subject of Community Choice
Aggregation (referred to herein as “CCA”). SDG&E’s Compliance Plan is attached hereto as
Attachment A. The Plan is fully consistent with the requirements of D.12-12-036. Among other
things, the Plan ensures that any communications that could be construed as marketing or
lobbying under D.12-12-036 are funded exclusively by shareholders by an entity that is
functionally and physically separate from the utility’s ratepayer-funded divisions. 1
NEED FOR PUBLIC DIALOGUE
Driven by the introduction of new technologies and environmental policies, the energy industry
is facing significant changes. System needs are changing, the technologies and alternatives that
are available to customers are growing in number, and the state needs to evolve to an updated
market structure with updated rate design policies to ensure fairness to all customers,
recognizing that while some customers opt for new technologies, others are likely to remain
with more traditional utility services for a long time into the future. As new distributed
technologies are deployed, it will be necessary to find ways to integrate those resources,
demand response, and electric vehicle charging demand with system needs to minimize cost,
maximize efficiency, and reduce emissions. These changes are confronting SDG&E’s customers
and policymakers with the need to make decisions on a long list of significant, but complicated
1

Communications on a wide range of energy industry issues, which may include CCA, will be made by a
covered affiliate that is functionally and financially independent from SDG&E. Notwithstanding the fact
that this activity will take place in a covered affiliate, SDG&E is implementing the Code of Conduct and
Compliance Plan being submitted herein as is required for an entity that could be construed as meeting
the definition of “Marketing Division” that was adopted in D.12-12-036. This entity will be funded entirely
by shareholders, located in a subsidiary of Sempra Energy, subject to both the Affiliate Transaction Rules
applicable to covered affiliates and the CCA Code of Conduct, and will be treated like a “covered affiliate”
under the Affiliate Transactions Rules with regard to separation requirements related to operations,
information technology, financial books, facilities and protection of non-public utility information. It, as
well as SDG&E, will also comply with the rules of the CCA Code of Conduct. Should these communication
responsibilities be moved in the future, SDG&E will update its compliance plan by Tier 2 advice letter
(refer to page 16 of Plan).

 Public Utilities Commission

2

November 20, 2015

issues ranging from how to best minimize costs and emissions associated with electricity
demand to the introduction of smart grid technologies and further advancement of distributed
energy resources. This dialogue requires a robust and full public discussion, with input and
debate that is balanced and unfiltered.
At the local government level, stakeholders are pursuing significant efforts to further address
climate change. These efforts oftentimes culminate in the development of local climate action
plans and measures that seek to go beyond state and federal requirements. SDG&E, as a key
regional energy service provider, regularly partners with local stakeholders in these efforts and
is often asked for its input and opinion regarding these critical energy-related issues. SDG&E
supports these local climate action efforts and believes it has proven itself a valuable
contributor to the San Diego region’s significant progress toward a carbon free future.
Understandably, at some point, the option of pursuing Community Choice Aggregation comes
up in the discussions between SDG&E and local stakeholders. In response, SDG&E consistently
states its support of a customer’s right to choose its electric service provider, including CCA, and
that SDG&E will fully cooperate with a potential CCA to provide the necessary information to
facilitate the process of investigating, forming, and implementing a CCA program, consistent
with state law and SDG&E’s CPUC-approved tariffs and rules. Moreover, for any CCA customer,
SDG&E will continue to provide safe and reliable transmission and distribution service and
ensure that customers receive accurate information concerning SDG&E’s other services.
SDG&E takes its compliance with the CCA Code of Conduct seriously. Given these extraordinary
restrictions, however, the effect of the Code of Conduct is to leave an informational vacuum for
those very local governments and stakeholders who are trying so hard to pursue the right path
toward a greener energy future. This vacuum is the product of the utility’s concern that it might
be accused of advocating against CCA, as opposed to the utility simply participating in a healthy
public discussion of the region’s efforts and progress toward a greener future. Moreover, this
vacuum is often filled by information from CCA proponents who seem to believe that non-utility
service is the only means by which to achieve a greener and more local energy supply, so that
the attendant benefits (e.g., jobs) are captured to a greater extent by the local area. SDG&E
understands the goal of such local efforts but does not believe that a CCA program is the only
means to such an end.2

SDG&E achieved renewable procurement under its RPS program equal to 31.6% of its energy
deliveries in 2014. As of July 2015, SDG&E has met California’s 33% renewable energy goal, and SDG&E
is on track to achieve at least 40% by 2018. Moreover, roughly 91% of SDG&E’s renewable energy
purchase contracts are with generation facilities located in California, with a total capacity of
approximately (~) 1,956 MW. Of that ~1,956 MW:
• ~1,247 MW or ~64% is located in Imperial County (11 projects)
• ~489 MW or ~25% is located in Kern County (8 projects)
• ~138 MW or ~7% is located in San Diego County (25 projects),
• ~59 MW or ~3% is located in Riverside and Orange Counties (5 projects),
• ~18 MW or ~1% is located in San Bernardino County (1 project), and
• ~5 MW or ~0.3% is located in Tehama County (1 project)

2

 Public Utilities Commission

3

November 20, 2015

In order to ensure that the ongoing dialogue on issues key to the future of the energy industry
and San Diego region is able to benefit from a full range of expert input, SDG&E plans to
implement the Compliance Plan being submitted herein. Approval of this filing will benefit both
the public and policymakers as they consider a number of emerging electricity industry issues,
ranging from how to best enable a customer empowered, low emission energy future to the
many forms of customer choice that exist, and are emerging in the industry as well as their
potential implications for customers. Because one of the issues that may be addressed could
include Community Choice Aggregation, SDG&E is submitting this advice letter to ensure
compliance with D.12-12-036 with regard to all activities that will be undertaken.
REGULATORY BACKGROUND & DISCUSSION
On February 16, 2012, the CPUC adopted an Order Instituting Rulemaking (OIR) initiating a
proceeding, Rulemaking (R) 12-02-009, to implement Senate Bill 790. On December 20, 2012,
the CPUC issued D.12-12-036 which adopted a Code of Conduct and Expedited Complaint
Procedure governing the treatment of CCAs by electrical corporations.
Pursuant to Rule 22 of the Code of Conduct, an electrical corporation that intends to market or
lobby against a CCA is required to submit a compliance plan demonstrating to the CPUC that
there are adequate procedures in place to preclude any inappropriate sharing of information
and is in all other ways in compliance with the Code of Conduct. Rule 22 requires an electrical
corporation (utility) that previously filed an Advice Letter pursuant to D.12-12-036 indicating
that it does not intend to lobby or market against any CCA program to file a Tier 2 advice letter
with the CPUC if the utility thereafter decides that it wishes to engage in activity that could be
deemed to constitute lobbying or marketing activity against any community choice aggregation
program. On March 29, 2013, SDG&E submitted Advice Letter 2467-E3, indicating that it did not
intend to engage in activity that could be deemed to constitute lobbying or marketing activity
against any community choice aggregation program.
SDG&E now plans to implement the required Compliance Plan to ensure that the ongoing
dialogue on issues key to the future of the energy industry is able to benefit from a full range of
expert input. Because one of the issues that may be addressed could include Community Choice
Aggregation, SDG&E is submitting this advice letter to ensure that all such communications
comply with all applicable CPUC rules and regulations, including the CCA Code of Conduct.
Whether the issue is advancing distributed energy resources, reforming Net Energy Metering,
the future of demand response, investments in a smart grid, joint climate action efforts, or
Community Choice Aggregation, energy consumers and stakeholders are confronted with a
number of momentous challenges and their decisions could lead to significant benefits and
significant costs. The CCA Code of Conduct does permit SDG&E to provide factual answers to
explicitly asked questions. However, the Code of Conduct serves to deter and impede a more
robust and balanced dialogue on these critical energy-related matters. Accordingly, SDG&E
hereby submits its “Community Choice Aggregation Code of Conduct Compliance Plan”
(Attachment A) as directed by the CPUC in D.12-12-036.

3

http://regarchive.sdge.com/tm2/pdf/2467-E.pdf

 Public Utilities Commission

4

November 20, 2015

SDG&E will continue to support customer choice and cooperate in any CCA effort that may take
place within its service territory without regard to the existence of the marketing division
discussed herein.
EFFECTIVE DATE
SDG&E believes this Advice Letter is subject to Energy Division disposition and should be
classified as Tier 2 (effective pending disposition) pursuant to D.12-12-036 and GO 96-B.
SDG&E respectfully requests that this filing become effective on December 21, 2015, 30 days
from the date filed.
PROTEST
Anyone may protest this Advice Letter to the California Public Utilities Commission. The protest
must state the grounds upon which it is based, including such items as financial and service
impact, and should be submitted expeditiously. The protest must be made in writing and must
be received no later than December 10, 2015, which is 20 days of the date this Advice Letter
was filed with the Commission. There is no restriction on who may file a protest. The address
for mailing or delivering a protest to the Commission is:
CPUC Energy Division
Attention: Tariff Unit
505 Van Ness Avenue
San Francisco, CA 94102
Copies of the protest should also be sent via e-mail to the attention of the Energy Division at
EDTariffUnit@cpuc.ca.gov. A copy of the protest should also be sent via e-mail to the addresses
shown below on the same date it is mailed or delivered to the Commission.
Attn: Megan Caulson
Regulatory Tariff Manager
8330 Century Park Court, CP31-F
San Diego, CA 92123-1548
E-mail: MCaulson@semprautilities.com
NOTICE
A copy of this filing has been served on the utilities and interested parties shown on the
attached list, including interested parties in R.12-02-009 and R.03-10-003, by providing them a
copy hereof either electronically or via the U.S. mail, properly stamped and addressed.
Address changes should be directed to SDG&E Tariffs by facsimile at (858) 654-1879 or by email at SDG&ETariffs@semprautilities.com.
_______________________________
CLAY FABER
Director – Regulatory Affairs

 CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER FILING SUMMARY
ENERGY UTILITY
MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Company name/CPUC Utility No. SAN DIEGO GAS & ELECTRIC (U 902)
Utility type:

Contact Person: Megan Caulson

ELC

GAS

Phone #: (858) 654-1748

PLC

HEAT

WATER

E-mail: mcaulson@semprautilities.com

EXPLANATION OF UTILITY TYPE

ELC = Electric
PLC = Pipeline

GAS = Gas
HEAT = Heat

(Date Filed/ Received Stamp by CPUC)

WATER = Water

Advice Letter (AL) #: 2822-E
Subject of AL:) SDG&E Notice of Intent to form an Independent Marketing Division and Submission of
Required Compliance Plan Pursuant to Decision (D.) 12-12-036
Keywords (choose from CPUC listing):
AL filing type:

Monthly

Quarterly

Compliance, Marketing, CCA
Annual

One-Time

Other

If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #:
D.12-12-036
Does AL replace a withdrawn or rejected AL? If so, identify the prior AL
Summarize differences between the AL and the prior withdrawn or rejected AL1:

N/A

Does AL request confidential treatment? If so, provide explanation:
Resolution Required?
Requested effective date:

Yes

No

Tier Designation:

12/21/2015

No. of tariff sheets:

Estimated system annual revenue effect: (%):
Estimated system average rate effect (%):

1

2

3

0

N/A

N/A

When rates are affected by AL, include attachment in AL showing average rate effects on customer classes
(residential, small commercial, large C/I, agricultural, lighting).
Tariff schedules affected:

N/A

Service affected and changes proposed1:

N/A

Pending advice letters that revise the same tariff sheets:

N/A

Protests and all other correspondence regarding this AL are due no later than 20 days after the date of
this filing, unless otherwise authorized by the Commission, and shall be sent to:
CPUC, Energy Division
San Diego Gas & Electric
Attention: Tariff Unit
Attention: Megan Caulson
505 Van Ness Ave.,
8330 Century Park Ct, Room 31F
San Francisco, CA 94102
San Diego, CA 92123
EDTariffUnit@cpuc.ca.gov
mcaulson@semprautilities.com
1

Discuss in AL if more space is needed.

 General Order No. 96-B
ADVICE LETTER FILING MAILING LIST
cc: (w/enclosures)
Public Utilities Commission (ORA)
R. Pocta
Energy Division
D. Lafrenz
M. Salinas
CA. Energy Commission
F. DeLeon
R. Tavares
Alcantar & Kahl LLP
K. Cameron
American Energy Institute
C. King
APS Energy Services
J. Schenk
BP Energy Company
J. Zaiontz
Barkovich & Yap, Inc.
B. Barkovich
Bartle Wells Associates
R. Schmidt
Braun & Blaising, P.C.
S. Blaising
California Energy Markets
S. O’Donnell
C. Sweet
California Farm Bureau Federation
K. Mills
California Wind Energy
N. Rader
Children’s Hospital & Health Center
T. Jacoby
City of Poway
R. Willcox
City of San Diego
J. Cervantes
G. Lonergan
M. Valerio
Commerce Energy Group
V. Gan
CP Kelco
A. Friedl
Davis Wright Tremaine, LLP
E. O’Neill
J. Pau
Dept. of General Services
H. Nanjo
M. Clark
Douglass & Liddell
D. Douglass
D. Liddell
G. Klatt

Duke Energy North America
M. Gillette
Dynegy, Inc.
J. Paul
Ellison Schneider & Harris LLP
E. Janssen
Energy Policy Initiatives Center (USD)
S. Anders
Energy Price Solutions
A. Scott
Energy Strategies, Inc.
K. Campbell
M. Scanlan
Goodin, MacBride, Squeri, Ritchie & Day
B. Cragg
J. Heather Patrick
J. Squeri
Goodrich Aerostructures Group
M. Harrington
Hanna and Morton LLP
N. Pedersen
Itsa-North America
L. Belew
J.B.S. Energy
J. Nahigian
Luce, Forward, Hamilton & Scripps LLP
J. Leslie
Manatt, Phelps & Phillips LLP
D. Huard
R. Keen
Matthew V. Brady & Associates
M. Brady
Modesto Irrigation District
C. Mayer
Morrison & Foerster LLP
P. Hanschen
MRW & Associates
D. Richardson
Pacific Gas & Electric Co.
J. Clark
M. Huffman
S. Lawrie
E. Lucha
Pacific Utility Audit, Inc.
E. Kelly
San Diego Regional Energy Office
S. Freedman
J. Porter
School Project for Utility Rate Reduction
M. Rochman
Shute, Mihaly & Weinberger LLP
O. Armi

Solar Turbines
F. Chiang
Sutherland Asbill & Brennan LLP
K. McCrea
Southern California Edison Co.
M. Alexander
K. Cini
K. Gansecki
H. Romero
TransCanada
R. Hunter
D. White
TURN
M. Hawiger
UCAN
D. Kelly
U.S. Dept. of the Navy
K. Davoodi
N. Furuta
L. DeLacruz
Utility Specialists, Southwest, Inc.
D. Koser
Western Manufactured Housing
Communities Association
S. Dey
White & Case LLP
L. Cottle
Interested Parties
R.12-02-009
R.03-10-003

 SDG&E Advice Letter 2822-E
Attachment A
SDG&E Community Choice Aggregation Code of Conduct
Compliance Plan

 SDG&E Community Choice Aggregation Code of Conduct Compliance Plan
Implementing Rules Adopted in D.12-12-036

November 20, 2015

1

 I.

INTRODUCTION

In accordance with Rule 22.b.i. of the California Public Utilities Commission’s (“CPUC”)
Community Choice Aggregation Code of Conduct rules (CCA COC) adopted in D.12-12-036,
issued on December 28, 2012, San Diego Gas & Electric Company (“SDG&E”) hereby submits a
Compliance Plan (“Plan”) apprising the CPUC of its intention to establish an Independent
Marking Division (“IMD” or “Division”). The Division shall be responsible for all marketing and
lobbying (as those terms are defined within the Rules) concerning community choice
aggregation. The 2015 Plan will be effective as of December 21, 2015 per Rule 22.
The filing of this Plan and implementation of the procedures and mechanisms delineated herein
is not meant to constitute a waiver of any legal rights that SDG&E may have to file for
rehearing or seek judicial review of any CPUC decision promulgating, interpreting, or applying
the CCA COC. While the CCA COC rules raise several First Amendment issues and are in various
places ambiguous and susceptible to multiple interpretations, this Plan, upon its approval,
brings SDG&E into compliance with reasonable interpretations wherever such vagueness or
ambiguity prevails, without waiving SDG&E’s right to raise legal issues pertaining to the CCA
COC rules themselves.
The Introduction to this Plan summarizes the compliance mechanisms and guidelines central to
SDG&E’s Affiliate Transaction Rule (“ATR”) compliance effort, which will also be used to ensure
compliance with the CCA COC. Thereafter, the Plan presents a rule-by-rule discussion of the
procedures and mechanisms that SDG&E has developed to help ensure compliance with the
CCA COC.
A.

LEVERAGING THE AFFILIATE TRANSACTION COMPLIANCE FUNCTION
TO ENSURE COMPLIANCE WITH COMMUNITY CHOICE AGGREGATION
CODE OF CONDUCT

To execute diligent, thorough, and systematic implementation of the CCA COC throughout the
company, SDG&E will leverage the Affiliate Transaction Rule Compliance functions that already
exist within SDG&E to implement this Plan.
The Chief Administrative Officer is the Chief Compliance Officer of SDG&E and the Vice
President – Controller & Chief Financial Officer serves as the Affiliate Compliance Officer for
SDG&E. SDG&E will report any CCA COC issues to the Compliance Officers and its Board of
Directors as is already the case for ATR issues.
SDG&E’s Affiliate Compliance Department (“ACD”) will be responsible for managing SDG&E’s
compliance with the CCA COC. The ACD already provides education, direction, and oversight of
all matters pertaining to the ATRs and will do the same for the CCA COC. Additionally, ACD will
be responsible for timely filing of any reports related to the CCA COC.
ACD resolves policy issues and directs the utility’s ATR compliance efforts on a day-to-day basis
and will do the same for the CCA COC. Compliance policy matters may be brought to the
Corporate Compliance Committee for final determination.

2

 ACD provides guidance and/or interpretations and responds to inquiries related to the ATRs,
including providing assistance in the resolution of affiliate compliance issues received through
Helplines, e-mail, internal publications, intranet and internet web sites to facilitate compliance
efforts and will do the same for the CCA COC. The information available includes a verbatim
copy of the ATRs, CPUC decisions, SDG&E’s ATR Compliance Plan, a listing of compliance
coordinators, and compliance-related procedures, forms, training materials, and recent filings
and, upon approval of this Advice Letter, will also include copies of this CCA COC Compliance
Plan. The Advice Letter containing SDG&E’s ATR Compliance Plan was posted on SDG&E’s
internet web site under the “Rates and Regulations” link when it was filed and the same will be
done with regard to this Advice Letter.
To facilitate affiliate compliance at the division or department level, SDG&E has designated
Affiliate Compliance Coordinators (“Coordinators”) to act as the first point of contact for
compliance efforts within their division or department. These Coordinators also serve as liaisons
by addressing compliance issues with the ACD related to their division or department and
relaying ACD guidance to their groups. At least once per year, coordinators representing
Sempra Energy Corporate Center and SDG&E meet with ACD staff to discuss areas of concern,
share best practices, and gain further knowledge of compliance matters. As needed, Corporate
Center, SDG&E and SoCalGas will host joint coordinators’ meetings to address common affiliate
compliance issues (e.g. CPUC audits). Upon approval of this Advice Letter, the CCA COC will be
included within the compliance activities of SDG&E’s Coordinators.
The ACD personnel currently consist of: a Project Manager, and an Affiliate Compliance
Specialist. The ACD reports to the Accounting Research & Business Controls Manager, who
reports to the Director - Financial Systems & Compliance, who in turn, reports directly to the
Vice President - Controller & Chief Financial Officer. The Vice President – Controller & Chief
Financial Officer serves as the Affiliate Compliance Officer for SDG&E and reports to the
SoCalGas Chairman/President/CEO.
In addition, SDG&E will undertake these activities to implement the CCA COC:
1. SDG&E will continue to cooperate with and assist local governments considering
Community Choice Aggregation by providing necessary information and responding to
requests for factual information.
2. If CCA is implemented within SDG&E’s service territory, SDG&E will work to ensure that
all of SDG&E’s CCA program obligations are met, including automatic enrollment of
customers that do not opt out, providing necessary information to the CCA and its
agents, and providing billing services as required by relevant CCA laws, tariffs, and
decisions.
3. If a CCA program is implemented within SDG&E’s service territory, SDG&E will work with
the CPUC and any such CCA to assure that customers requesting information receive
clear and accurate responses so they can make well-informed decisions that may impact
their energy bills.
4. Employees of SDG&E governed by these CCA COC will receive regular notice of the
documents that describe these CCA COC and their obligations hereunder.
3

 5. Periodic training and reminders will be provided to employees of SDG&E in conjunction
with ongoing ATR training programs. When needed, SDG&E will provide training to
targeted employee groups to sensitize them to the requirements of this CCA COC.
6. The Division will be staffed by personnel who do not have access to non-public SDG&E
information, whose day-to-day activities will not be managed by SDG&E management,
whose labor and overhead expenses will be charged to accounts paid for by Sempra
Corporation shareholders and who will be located at premises that are physically
separate from SDG&E. These personnel will be trained on the requirements of the CCA
COC, including the functional and physical separation requirements of the CCA COC.
7. All costs for personnel, services, physical plant, equipment, supplies, and other overhead
incurred by the Division will be charged to accounts paid for by SDG&E Corporation
shareholders. Existing below-the-line accounting CCA COC already address these
requirements, and these will be supplemented with new Community Choice Aggregation
Division Transactions Procedures prior to the start of any marketing or lobbying activities
by the Division.
8. Electrical corporate support services that meet the shared services definition in the ATR
will be provided to the Division. This will primarily be corporate oversight and related
compliance and other permitted shared services. All permitted corporate support
services rendered to a Division will be charged to SDG&E shareholders in accordance
with the Community Choice Aggregation Division Transactions Procedures. The
Procedures will be posted on the SDG&E Intranet prior to the start of marketing or
lobbying.
9. SDG&E will charge a one-time 25% transfer fee for each non-clerical Utility employee
transferred to work for the Division as provided in Rule 16(b) and will comply with all
other requirements of Rule 16 regarding movement of employees to the Division.
10. Detailed training will be completed to make sure that any Division is not given access to
competitively sensitive information to comply with Rule 5.
11. If a Division is formed, detailed additional information concerning its activities will be
provided quarterly as required by Rule 4 below.
In the following pages, each Rule adopted by the CPUC is shown in bold type. Following each
Rule, in normal type, is SDG&E’s description of its plan to assure compliance with the Rule.
Respectfully submitted on ______ __, 2015.

4

 Community Choice Aggregation Code of Conduct and Expedited Complaint
Procedures
CCA COC of Conduct for Electrical Corporations Relative to Community Choice
Aggregation Programs
1) The following definitions apply for the purposes of these CCA COC:
a) “Market” means communicate with customers, whether in oral, electronic, or
written form, including but not limited to letters, delivery of printed
materials, phone calls, spoken word, emails, and advertising (including on the
Internet, radio, and television), regarding the electrical corporation’s and
community choice aggregators’ energy supply services and rates. Marketing
under this definition does not include the following:
i) Communications provided by the electrical corporation throughout all of its
service territory to its retail electricity customers that do not reference
community choice aggregation programs.
ii) Communications that are part of a specific program that is authorized or
approved by the California Public Utilities Commission (CPUC), including
but not limited to customer energy efficiency, demand response,
SmartMeterTM, and renewable energy rebate, or tariffed programs such
as the California Solar Initiative and other similar CPUC-approved or
authorized programs. (See Decision (D.) 08-06-016, Appendix A.
iii) Provision of factual answers about utility programs or tariffs, including but
not limited to rate analyses, in answer to the questions of individual
customers.
b) “Lobby” means to communicate whether in oral, electronic, or written form,
including but not limited to letters, delivery of printed materials, phone calls,
spoken word, emails, and advertising (including on the Internet, radio, and
television), with public officials or the public or any portion of the public for
the purpose of convincing a government agency not to participate in, or to
withdraw from participation in, a community choice aggregation program.
(Cf. D.08-06-016, Appendix A.)21 Lobbying under this definition does not
include
i) Provision of factual answers about utility programs or tariffs, including but
not limited to rate analyses, in answer to questions from a government
agency or its representative.

1

The language from D.08-06-016, Appendix A has been modified to cover the conduct of electrical
corporations relative to consideration and formation of community choice aggregation programs, as
required by Cal. Pub. Util. Code § 707(a). All statutory references are to the California Public Utilities
Code unless otherwise stated.

5

 ii) Provision of information to potential Community Choice Aggregators
related to Community Choice Aggregation program formation CCA COC
and processes.
c) “Promotional or political advertising” means promotional or political
advertising as defined in 16 U.S.C. Sec. 2625(h).
d) "Competitively sensitive information" means non-public information and data
specific to a utility customer which the utility acquired or developed in the
course of its provision of utility services. This includes, without limitation,
information about which customers have or have not chosen to opt out of
community choice aggregation service. (See D.97-12-088, App. A, Part I.D.)
Procedures and Mechanisms for Ensuring Compliance
Rule 1.a through Rule 1.d requires no compliance action.
2) No electrical corporation shall market or lobby against a community choice
aggregation program, except through an independent marketing division that is
funded exclusively by the electrical corporation's shareholders and that is
functionally and physically separate from the electrical corporation's ratepayerfunded divisions.3 (See Pub. Util. Code § 707(a)(1).)
Procedures and Mechanisms for Ensuring Compliance
SDG&E has not, and will not market against any CCA, and has and will continue to limit its
communications with public officials or the public or any portion of the public on the subject of
CCA to the provision of factually accurate information in response to CCA questions, and to be
neutral when asked about SDG&E’s stance on Community Choice Aggregation.
The Division affiliate will pursue marketing and lobbying activities related to CCAs and this
Division affiliate is funded exclusively by the electric corporation’s shareholder and is
functionally and physically separate from the electric corporation’s ratepayer-funded divisions.
SDG&E has provided and will continue to provide CCA COC training to employees that may be
engaged in communications with public officials or the public and will expand its training to
assure Utility employees are aware of the CCA COC and comply with this Plan. A copy of this
Compliance Plan will be available to all employees of SDG&E via the SDG&E intranet. See Rule 4
through Rule 10 for compliance processes related to the Division maintaining functional
separation from the electrical corporation’s ratepayer-funded divisions.
See Rule 11 for compliance processes related to maintaining physical separation from the
electrical corporation’s ratepayer-funded divisions.
3) Not later than July 1, 2013, and annually thereafter, each electrical corporation
and any community choice aggregator (CCA) or CCAs within its service territory
shall prepare and distribute jointly to the customers within the CCA boundaries a
neutral, complete, and accurate written comparison of their average tariffs for
6

 each customer class, sample bills for a mutually agreed amount of usage under
residential tariffs, and generation portfolio contents. This comparison shall be
distributed to all customers within the CCA boundaries. In addition, the CCA and
electrical utility shall prepare a neutral, complete, and accurate comparison of all
their tariffs, sample bills under those tariffs, and generation portfolio contents,
and post these comparisons on their Web sites. The information posted on these
Web sites containing will be updated within 60 days after any tariff changes. The
comparison of average tariffs will refer customers to this Web site for more
complete information.
a) The electrical corporation and CCA(s) shall share equally the costs of the
design, preparation, and 7 distribution of the notice to customers, as well as
the design and preparation of the detailed tariff comparison to be posted on
their Web sites. Each entity will be responsible for its own costs for posting
the detailed tariff comparison in its Web site.
b) The Commission’s Public Advisor’s office must review and approve the
wording of the comparison before it is distributed to customers, and by this
final approval shall resolve any disputes about the contents of the written
notice or Web site contents that the CCA and utility cannot resolve informally.
Procedures and Mechanisms for Ensuring Compliance
SDG&E will cooperate with these CCA COC provisions should CCA tariffs be developed within its
service territory.
4) The cost of an electrical corporation's independent marketing division’s use of
support services from the electrical corporation's ratepayer-funded divisions
shall be allocated to the independent marketing division on a fully allocated
embedded cost basis, supported by detailed public reports of such use. For this
purpose, fully allocated embedded cost basis means a fully loaded cost basis
(i.e., the sum of all direct costs and all appropriately allocated indirect costs and
overhead costs; transfers from the utility to its independent marketing division
of goods and services not produced, purchased or developed for sale by the
utility will be priced at fully loaded costs plus 5% of direct labor cost). These
calculations shall be supported by public reports of such use. These reports shall
be filed quarterly with the Commission’s Energy Division as an information only
filing, no later than one month after the end of each quarter, and shall be made
available on the utility’s website at the same time. (See § 707(a)(2), D.97-12088, App. A, Part V.H.5.)
Procedures and Mechanisms for Ensuring Compliance
When support services are used between SDG&E and the Division affiliate, SDG&E will follow
the pricing provisions in this Rule, as well as maintain required supporting documentation to
comply with reporting requirements.

7

 5) An electrical corporation's independent marketing division shall not have access
to competitively sensitive information. (See § 707(a)(3).)
Procedures and Mechanisms for Ensuring Compliance
The Division will not be permitted access to the electrical corporation’s competitively sensitive
information as defined in Rule 1, which is non-public information and data specific to a utility
customer which the utility acquired or developed in the course of its provision of utility services.
This includes, without limitation, information about which customers have or have not chosen to
opt out of community choice aggregation service.
Note that non-customer specific, non-public utility information may be shared on an exclusive
basis with the Division affiliate, subject to their obligation to not act as a conduit to other
affiliates, if the information is: (1) necessary to perform support services; and (2) does not
create an opportunity for an unfair competitive advantage. Any non-public utility information
that does not meet the above criteria cannot be shared with an affiliate unless such information
is contemporaneously posted.
To reduce the risk of sharing non-public utility information that may contain competitively
sensitive information, Division is on a separate information system network and is not permitted
access to SDG&E’s information network and SDG&E is permitted access to the information
network used by the Division affiliate.
An annual communication will be issued to all SDG&E employees and employees of the Division
directing them to comply with this Rule. SDG&E will also provide training, as necessary, to
targeted groups affected by the CCA COC. (See, discussion following Rule 2 above).
6) No electrical corporation shall recover the costs of any direct or indirect
expenditure by the electric utility for promotional or political advertising,
including advertising distributed in billing envelopes or by other means, from any
person other than the shareholders or other owners of the utility. (See Pub. Util.
Code § 707(a)(5).)
Procedures and Mechanisms for Ensuring Compliance
The Division is a stand-alone affiliate and will incur all costs associated with promotional or
political advertising in compliance with Rule 6. These costs will then be billed to SDG&E and
recorded below-the-line to clearly demonstrate that the shareholders incurred the costs.
7) An electric corporation shall provide access to utility information, rates and
services to community choice aggregators on the same terms as it does for its
independent marketing division. (See D.97-12-088, App. A, Part III.B.1.)
Procedures and Mechanisms for Ensuring Compliance
The Division affiliate will obtain all of the information that is used in its operations from public
sources, such as the internet, or through studies that they conduct on their own, with no
assistance from SDG&E. SDG&E personnel will receive training not to provide any utility
8

 information regarding rates and services to the Division affiliate.
8) An electrical corporation shall not provide access to market analysis reports or
any other types of proprietary or non-publicly available reports, including but not
limited to market, forecast, planning or strategic reports, to its independent
marketing division. (See D.97-12-088, App. A, Part III.E.)
Procedures and Mechanisms for Ensuring Compliance
The Division affiliate will obtain all market analysis reports that are used in its operations from
public sources, such as the internet, or through studies that they conduct on their own, with no
assistance from SDG&E. SDG&E personnel will receive training not to provide any market
analysis reports or any other types of proprietary or non-publicly available reports to the
Division affiliate.
9) An electrical corporation shall refrain from: 1) speaking on behalf of a CCA
program; 2) giving any appearance of speaking on behalf of any CCA program; or
3) making any statement relating to the community choice aggregator’s rates or
terms and conditions of service that is untrue or misleading, and that is known,
or that, by the exercise of reasonable care, should be known, to be untrue or
misleading.
Procedures and Mechanisms for Ensuring Compliance
SDG&E will comply with Rule 9’s requirements by providing training that specifically addresses
that employees of SDG&E shall refrain from:
•
•
•

Speaking on behalf of any CCA program;
Giving any appearance of speaking on behalf of any CCA program; or
Making any statement relating to the community choice aggregator’s rates or terms and
conditions of services that is untrue or misleading, and that is known, or through the
exercise of reasonable care, should be known, to be untrue or misleading.

10) An electrical corporation and its independent marketing division shall keep
separate books and records. (See D.97-12-088, App. A, Part V.B.)
Procedures and Mechanisms for Ensuring Compliance
SDG&E and its Division affiliate maintain separate accounting books and records. SDG&E
follows and will continue to follow USOA and GAAP standards. The accounting books and
records of SDG&E and its Division affiliates are open for examination by the CPUC pursuant to
Public Utilities Code Sections 314(b) and 701.
11) An electrical corporation shall not share office space equipment, services, and
systems with its independent marketing division, nor shall an electrical
corporation access the computer or information systems of its independent
marketing division or allow its independent marketing division to access its
computer or information systems, except to the extent appropriate to perform
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 shared corporate support functions. Physical separation required by this rule
shall be accomplished by having office space in a separate building, or, in the
alternative, through the use of separate elevator banks and/or securitycontrolled access. (See D.97-12-088, App. A, Part V.C.)
Procedures and Mechanisms for Ensuring Compliance
As of the filing of this report, SDG&E’s headquarters are located at the Century Park facility in
San Diego. No Division affiliate personnel share this facility. Division affiliate personnel are
located at Sempra Energy’s Headquarters building.
Information Technology:
The SDG&E Data Center houses the majority of Information Technology (“IT”) production
processing operations.
The SDG&E Data Center is a stand-alone facility, specifically constructed and maintained to
house computer technology services and related activities in a high security environment. The
utility-operated facility provides computer technology services for the utilities and Corporate
Center. The SDG&E Data Center provides support for permissible shared services (under Rule
13), such as employee timekeeping, payroll, materials management and accounting functions.
To ensure compliance with the Rules for electronic corporation and Division affiliate separation,
the Utility information systems adhere to the following measures:
Office Space:
Affiliate personnel are not allowed physical access to the SDG&E Data Center without
escort. The Division affiliates operate their own independent IT organization and data
center for affiliate information systems. The Division affiliates’ Data Center is located
at Sempra Energy’s Headquarters building. With the exception of shared service
Facilities Management staff, utility employees cannot access the covered affiliates Data
Center without escort.
Shared Services:
The Utility network maintains physical and logical security controls to ensure that
affiliates can only view, input and export permissible information. Utility employees do
not have access to the Division affiliates’ network. Likewise, the Division affiliate does
not have access to the utility’s network.
Systems:
The Utility IT network is separated from the Division affiliate network by security
controls designed to physically and logically isolate the Utility and the Division affiliates’
systems and information. Additionally, employees receive training on the Division Rules
educating and raising awareness to prevent access to non-sharable systems.
Utility employees are not permitted to have access to the Division affiliate network.
Likewise, the Division affiliate is not permitted to access the utility’s network.
SDG&E and the Division affiliate each maintain their own systems including separate
contracts and licenses, directories, server hardware and software, and desktop
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 hardware and software. Communications systems such as e-mail, directories and
collaboration tools are also separated. Certain permissibly shared, corporate-wide
infrastructure systems served under a single Master Agreement can also be used for all
Sempra Energy companies.
Utility and the Division affiliate’s IT organizations may communicate intermittently in
the administration of technology issues associated with company-wide oversight and
governance activities, (e.g. training, IT employee development initiatives, etc.)
Internal guidelines are in place to manage the limited connectivity between the Utility
network and the Division affiliate’s network for access to allowable shared services.
These guidelines are approved by representatives of SDG&E IT; the Division affiliate’s IT
and ACD and is subject to audit by the Sempra Energy Audit Services Department.
12) An electrical corporation and its independent marketing division may make joint
purchases of goods and services, other than purchases of electricity for resale.
The electrical corporation shall ensure that all joint purchases are priced,
reported, and conducted in a manner that permits clear identification of the
portions of such purchases made by the Utility and its independent marketing
division, and in accordance with these CCA COC. (See D.97-12-088, App. A, Part
V.D.)
Procedures and Mechanisms for Ensuring Compliance
SDG&E’s Supply Management Department procures products and services (other than those
associated with the traditional utility merchant function) as a Rule 13 support service for SDG&E
and the Division affiliates. Supply Management trains its contracting agents that they may not
jointly procure goods and services associated with the traditional utility merchant function. Any
joint purchases will follow the shared service billing procedures that are in-place for billing a
covered affiliate under the Affiliate Transaction Rules and will be fully loaded.
13) As a general principle, an electrical corporation may share with its independent
marketing division joint corporate oversight, governance, support systems and
support personnel; provided that support personnel shall not include any persons
who are themselves involved in marketing or lobbying. Any shared support shall
be priced, reported and conducted in accordance with applicable Commission
pricing and reporting requirements. As a general principle, such joint utilization
shall not allow or provide a means for the transfer of competitively sensitive
information from the electrical corporation to the independent marketing
division, create the opportunity for preferential treatment or unfair competitive
advantage, lead to customer confusion, or create significant opportunities for
cross-subsidization of the independent marketing division. (See D.97-12-088,
App. A, Part V.E.)
Procedures and Mechanisms for Ensuring Compliance
Properly structuring the shared services to ensure separation between the SDG&E and all
affiliates, including the Division affiliate, is a significant step in ensuring compliance with the
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 Rules, however, SDG&E does not rely upon structure alone. Each shared services employee
must affirm their understanding of the Rules and acknowledge that they will comply with the
anti-conduit provisions as part of annual training, which includes community choice
aggregation, in addition to the Affiliate Transaction Rules. Taken together, these actions
demonstrate full compliance with the requirements of Rule 13.
For purposes of this Rule, SDG&E considers that shared services include, but are not limited
to: payroll, taxes, shareholder services, insurance, financial reporting, financial planning and
analysis, corporate accounting, corporate security, human resources (compensation, benefits,
employment policies), employee records, regulatory affairs, lobbying, legal and pension
management. The CPUC acknowledged in D.98-08-035 that the list of permissible shared
services presented in Rule V.E is not exhaustive. Communications and public affairs, for
instance, may also be shared.
Some of the key areas currently being shared between each utility, Sempra Energy and
affiliates include, Audit Services, Controller department (including Utility Accounting, as well as
Affiliate Transaction and CCA COC Compliance Department), Corporate Tax, Corporate
Relations, Corporate Security, Finance, Legal, Human Resources, Information Technology,
Investor Relations, Risk Analysis & Management, Supply Management, and Treasury.
Services that are currently shared with the Division affiliate are charged at fully loaded
allocated costs to the Division affiliate at month-end and recorded “below-the-line” on
SDG&E’s financial statements. Allowable shared services that are not currently shared will be
direct-charged to affiliates on an as-needed basis and recorded “below-the-line” on SDG&E’s
financial statements. Division personnel will not be permitted access to competitively sensitive
information as outlined in Rule 5.
14) An electrical corporation shall apply tariff provisions in the same manner to the
same or similarly situated entities if there is discretion in the application of the
provision.
Procedures and Mechanisms for Ensuring Compliance
SDG&E will comply with Rule 14’s requirements by applying tariff provisions to the Division
affiliate in the same manner to the same or similarly situated entities if there is discretion in the
application of the provision.
15) Except as permitted in Rule 13 of this Code of Conduct, employees of an
electrical corporation’s independent marketing division shall not otherwise be
employed by the electrical corporation. (See D.97-12-088, App. A, Part V.G.1.)
Procedures and Mechanisms for Ensuring Compliance
SDG&E interprets Rule 15 to apply to employees of SDG&E, and not to consultants/contractors
or employees of temporary third-party agencies. SDG&E includes anti-conduit provisions in all
contracting templates to address consultants/contractors or temporary third-party agency
personnel who perform work for both the utility and its affiliates.

12

 The Division will be a separate affiliate and employees cannot be employed by the Division
affiliate and SDG&E at the same time. The only exceptions that permit SDG&E employees to
provide services to the Division affiliate are: 1) for shared services provided in Rule 13; and 2)
for SDG&E officers to be on the Board of the Division affiliate to provide the purpose and
oversight governance to the Division affiliate. Note that D.97-12-088, App. A, Part V.E. included
restrictions on the use of Utility officers but Rule 13 excluded these restrictions. The SDG&E
employees that fall into the two exception categories will be trained not to be conduits of
competitively sensitive information and not to provide utility information concerning rates and
services. Additionally personnel that perform services under the two exceptions will be trained
to charge the time they support to Division affiliate to be billed to the Division affiliate. The
appropriate loaders and overheads will be added to the direct costs being billed to ensure that
there is no cross-subsidization by ratepayers.
16) All employee movement between the independent marketing division and other
divisions of the electrical corporation shall be consistent with the following
provisions:
a) An electrical corporation shall track and report to the Commission all
employee movement between the independent marketing division and other
divisions of the electrical corporation. The electrical corporation shall report
this information annually pursuant to our Affiliate Transaction Reporting
Decision, D.93-02-016, 48 CPUC2d 163, 171-172 and 180 (Appendix A,
Section I and Section II H.).
b) Once an employee of an electrical corporation becomes an employee of the
independent marketing division, the employee may not return to another
division of the electrical corporation for a period of one year. In the event
that such an employee returns to another division of the electrical
corporation after the one year period, such employee cannot be retransferred,
reassigned, or otherwise employed by the independent marketing division for
a period of two years. Employees transferring to the independent marketing
division are expressly prohibited from using competitively sensitive
information gained from the electrical corporation, to the benefit of the
electrical corporation or to the detriment of community choice aggregators.
Any electrical corporation employee transferring to the independent
marketing division shall not remove or otherwise provide information to the
independent marketing division which the independent marketing division
would otherwise be precluded from having pursuant to these CCA COC. An
electrical corporation shall not make temporary or intermittent assignments,
or rotations to its independent marketing division. (See D.97-12-088, App. A,
Part G.)
c) When an employee of a utility is transferred, assigned, or otherwise employed
by the independent marketing division, the independent market division shall
make a one-time payment to the utility in an amount equivalent to 25% of
the employee’s base annual compensation, unless the utility can demonstrate
that some lesser percentage (equal to at least 15%) is appropriate for the

13

 class of employee included. This transfer payment provision will not apply to
clerical workers. (D.97-12-088, App. A, Part V.G.2.c.)
Procedures and Mechanisms for Ensuring Compliance
SDG&E tracks all employees who transfer between the utility, Sempra Energy and its affiliates,
including the Division affiliate, and will report the additional Division affiliate information
annually to the Commission in its Affiliate Transactions Report. This will include transfers from
and to the Division affiliate.
SDG&E will comply with Rule 16.b’s “residency” requirements, as well as the requirement that
prohibits the use of “loaned labor” to the Division affiliate. Note that under the Affiliate
Compliance Transaction Rules “loaned labor” is permitted to non-Energy Marketing Affiliates.
SDG&E also monitors all transfers between the utility, Sempra Energy and its affiliates, including
the Division affiliate and that transfer fees are paid in accordance with this Rule. SDG&E has
established a distinct account for recording all transfer fees pursuant to Rule 16.c.
17) Neither electrical corporations nor their marketing divisions can offer to
provide, or provide, any goods, services, or programs to a local government or
to the customers within a local government’s jurisdiction on the condition that
the local government not participate in a community choice aggregation
program, or for the purpose of inducing the local government not to participate
in a community choice aggregation program.
This restriction applies regardless of whether the goods, services, or programs
are funded by ratepayers or shareholders. This restriction also applies to any
plan whereby the utility would pay someone else to provide such goods,
services, or programs. (See Resolution E-4250, Ordering Paragraph 4.) This
restriction does not apply to optional rates, programs, and services authorized
or approved by the Commission that are only available to bundled service
customers.
Procedures and Mechanisms for Ensuring Compliance
SDG&E will comply with Rule 17’s requirements not to use any goods, services, or programs to
influence governmental agencies not to participate in aggregation programs.
18) An electrical corporation shall not, through a tariff provision or otherwise,
discriminate between its own customers and those of a CCA in matters relating
to any product or service that is subject to a tariff on file with the Commission.
An electrical corporation shall not condition or tie the provision of any product,
service, or rate agreement to a customers’ participation or non-participation in
a CCA program. This restriction does not apply to optional rates, programs, and
services authorized or approved by the Commission that are only available to
bundled service customers.
Procedures and Mechanisms for Ensuring Compliance

14

 SDG&E will comply with Rule 18 and strictly enforce tariff provisions when discretion is not
permitted
19) Electrical corporations shall not make available to their customers any
mechanism for opting out of community choice aggregation programs unless
requested to do so by the CCA. (See D.10-05-050, Ordering Paragraph 1.)
Procedures and Mechanisms for Ensuring Compliance
SDG&E will comply with Rule 19 and not make available to their costumers any mechanism for
opting out of the community choice aggregation programs.
20) Electrical corporations may not refuse to make economic sales of excess
electricity to a community choice aggregation program, nor refuse in advance to
deal with any community choice aggregation program in selling electricity
because it is a community choice aggregation program. (See Resolution E-4250,
Ordering Paragraph 5.)
Procedures and Mechanisms for Ensuring Compliance
SDG&E will comply with Rule 20 and will not refuse to make economic sales of excess electricity
to a community choice aggregation program, nor refuse in advance to deal with any community
choice aggregation program in selling electricity because it is a community choice aggregation
program.
21) The electrical corporation shall maintain a log of all new, resolved, and pending
complaints submitted in writing relating to services provided for the CCA and
CCA customers. The log shall be subject to review by the CCA and the
Commission, and shall include the date each issue was received; the customer's
name, address, and Service Account ID number if the issue is in relation to a
specific customer; a written description of the complaint; and the resolution of
the complaint, or the reason why the complaint is still pending.
Procedures and Mechanisms for Ensuring Compliance
SDG&E will comply with Rule 21 and establish a log of all new, resolved, and pending
complaints submitted in writing related to services provided for the CCA and CCA customers.
The will be available for review by the CCA and the Commission. The required information will
be included in the log. This information on the log will be maintained for three years from the
date that the complaint has been resolved.
22) No later than March 31, 2013, each electrical corporation that intends to market
or lobby against a CCA shall submit a compliance plan demonstrating to the
Commission that there are adequate procedures in place that will preclude the
sharing of information with its independent marketing division that is prohibited
by these CCA COC, and is in all other ways in compliance with these CCA COC.
The electrical corporation shall submit its compliance plan as a Tier 1 advice
letter to the Commission's Energy Division and serve it on the parties to this
15

 proceeding. The electrical corporation’s compliance plan shall be in effect
between the submission and Commission disposition of the advice letter.
a) An electrical corporation shall submit a revised compliance plan thereafter by
Tier 2 advice letter served on all parties to this proceeding whenever there is
a proposed change in the compliance plan for any reason. Energy Division
may reject the Tier 2 advice letter and require resubmission as a Tier 3 advice
letter if Energy Division believes the change requires an additional level of
review.
b) An electrical corporation that does not intend to lobby or market against any
community choice aggregation program shall file a Tier 1 advice letter no
later than March 31, 2013, stating that it does not intend to engage in any
such lobbying or marketing.
(i) If such an electrical corporation thereafter decides that it wishes to lobby
or market against any community choice aggregation program, it shall not
do so until it has filed and received approval of a compliance plan as
described above, with its compliance plan filed as a Tier 2 advice letter
with Energy Division. (See D.97-12-088, App. A, Part VI.A.)
c) Any CCA alleging that an electrical corporation has 1) violated the terms of its
filed compliance plan or 2) has engaged in lobbying and/or marketing after
filing an advice letter stating that it does not intend to conduct such
activities, may file a complaint under the expedited complaint procedure
authorized in § 366.2(c)(11).
Procedures and Mechanisms for Ensuring Compliance
SDG&E makes this Tier 2 Advice Letter filing in compliance with this Rule.
23) Beginning in 2015 and every other year thereafter, the Commission’s Executive
Director shall have audits prepared by independent auditors verifying that each
electrical corporation was in compliance with the CCA COC set forth herein
during the preceding two years. The Commission shall have the auditor serve a
copy of the audit report on each party to this proceeding, and publish the audit
at the same time on the Commission’s website. The Energy Division shall send
an invoice to each electrical corporation for payment of auditor expenses. The
cost of audits of utilities that form an independent marketing division
according to these CCA COC shall be at shareholder expense. Audits of nonmarketing electrical corporations shall be at ratepayers’ expense, but audit
costs will be charged to shareholders if the audit finds a violation of the
restrictions on their operations. (See D.06-12-029, App. A-1, Part VI.C.)
Procedures and Mechanisms for Ensuring Compliance
Rule 23 requires no compliance action at this time. SDG&E will follow this rule and cooperate
with the Energy Division and its independent auditors during the audit. The Division affiliate
16

 will pay for the cost of the audit and will then bill these costs to SDG&E. SDG&E will record
these costs below-the-line to ensure that Sempra Energy’s corporate shareholders are
responsible for these costs.
CCA COC Regarding Enforcement Procedures
24) A complaint filed pursuant to § 366.2(c)(11) by an existing or prospective
community choice aggregator or community choice aggregation program
alleging a violation of an electrical corporation’s obligation to cooperate fully
with community choice aggregators or community choice aggregation programs,
or any other provision of § 366.2 or § 707, shall be resolved in no more than 180
days following the filing of the complaint.
This deadline may only be extended under either of the following circumstances:
a) Upon agreement of all of the parties to the complaint.
b) The commission makes a written determination that the deadline cannot be
met, including findings for the reason for this determination, and issues an
order extending the deadline. A single order pursuant to this subparagraph
shall not extend the deadline for more than 60 days.
25) The complaint shall be filed pursuant to Commission CCA COC for complaints
(Article 4 of the Commission’s CCA COC of Practice and Procedure), except to the
extent provided otherwise herein. The complainant shall serve the complaint on
the defendant electrical corporation, and the complaint shall be accompanied by
documentary evidence, prepared testimony supporting the complaint, and a
declaration affirming that the complainant has made a good faith attempt to
meet and confer with the defendant electrical corporation in an attempt to
resolve the dispute informally.2 In the caption under the blank docket number,
the complaint shall specifically state that the expedited procedures adopted in
these CCA COC are applicable to the case by the following language: (Subject to
CAA expedited complaint procedures).
26) Unless otherwise specified by the assigned Commissioner or Administrative Law
Judge, answers to complaints filed by a CCA under these procedures shall be
filed and served within 15 days of the date the complaint is filed, and shall be
accompanied by documentary evidence and prepared testimony supporting the
answer. All parties to the complaint shall respond to related discovery requests
on an expedited basis.
27) The assigned Commissioner or Administrative Law Judge (ALJ) shall set the
matter for evidentiary hearing for 30 to 45 days after the initiation of the
proceeding or as soon as practicable after the Commission makes the
assignment.
2

Service by complainant will help expedite the proceeding. The Commission will also perform service, as
required by Pub. Util. Code § 1704. (See also Rule 4.3 of the Commission’s CCA COC of Practice and
Procedure.).

17

 28) Unless otherwise directed by the assigned ALJ, three business days before the
scheduled beginning of hearings, parties shall file a joint case management
statement. This statement shall include any agreements or stipulations by the
parties that narrow the issues since the filing of testimony, an updated
discussion of the issues to be resolved, a proposed order of witnesses for
hearing, any other information parties believe the
Commission would find useful for the efficient disposition of the case, and any
other information that may be required by the assigned ALJ.
29) In its expedited adjudication of the complaint, the Commission may impose
fines, injunctive relief, or grant any other appropriate remedy without the
initiation of a separate Order Instituting Investigation. (§ 366.2(c)(9), §
366.2(c)(10), §§ 366.2(c)(11), 701, 702, 2100-2109.)
Procedures and Mechanisms for Ensuring Compliance
If a complaint is filed against SDG&E under the CCA COC, SDG&E will follow all provisions of
CCA COC Rules 24-29.

18