BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Diego Gas

& Electric Company (U902-E) for a Certificate of Application A.06-08-010
Public Convenience and Necessity for the Sunrise (Filed August 4, 2006)
Powerlink Transmission Project

NOTICE OF EX PARTE COMMUNICATION

Billy Blattner
Manager, Regulatory Relations
SAN DIEGO GAS & ELECTRIC COMPANY
601 Van Ness Avenue, Suite 2060
San Francisco, CA 94102
Telephone: (415) 202-9983
Facsimile: (415) 346-3630
Email: wblattner@semprautilities.com

November 19, 2008

 BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Diego Gas

& Electric Company (U902-E) for a Certificate of Application A.06-08-010
Public Convenience and Necessity for the Sunrise (Filed August 4, 2006)
Powerlink Transmission Project

NOTICE OF EX PARTE COMMUNICATION

In accordance with Rule 8.3 of the Commission’s Rules of Practice and

Procedure, San Diego Gas & Electric Company (SDG&E) hereby gives notice of the

following Ex Parte communication in the above proceeding.

On Friday, November 14, 2008 at 11:00 a.m., Billy Blattner, Manager, Regulatory

Relations for SDG&E, met with Lindsay Brown and Robert Kinosian, Advisors to

Commissioner Bohn. SDG&E requested the meeting to discuss SDG&E’s concerns

about the proposed decision (PD) and Commissioner Grueneich’s alternate decision

(AD). Communication was oral.

Mr. Blattner noted that SDG&E and the California Independent System Operator

Corporation (CAISO) demonstrated a grid reliability need for San Diego as early as 2010

that would be relieved by Sunrise. He added that the PD and AD defer the reliability

need by making assumptions that are contrary to State policy or inconsistent with CAISO

grid planning criteria. Among those assumptions is the retention of the South Bay power

plant, an out-dated once-through-cooled fossil-fueled power plant on the San Diego Bay.

Mr. Blattner stated that the Compliance Plan in the AD will create uncertainty that

will actually stifle development in the renewable resource-rich Imperial Valley region

and distort the renewable energy market, thereby increasing costs to consumers. The
AD’s conditional approval and Compliance Plan will actually be an impediment to

renewable developers and their ability to finance their projects, especially given the

challenging credit markets. He explained the voluntary commitments SDG&E would

make if the Sunrise Project was immediately approved with no Compliance Plan or

further conditions. These included the commitment to: (1) not contract with conventional

coal generators on Sunrise, (2) replace failed renewable energy contracts deliverable on

Sunrise, and (3) raise SDG&E’s renewables target to 33 percent by 2020. Mr. Blattner

stated that the total estimated cost of the project should be $1.883 billion which reflects

additional undergrounding included in the AD and corrected estimates from the record

for the coastal link and total mitigation costs.

To request a copy of this notice, please contact:

Cindy Zammit
601 Van Ness Avenue, Suite 2060
San Francisco, CA 94102
Telephone: (415) 202-9986
Facsimile: (415) 346-3630
Email: sfassist@semprautilities.com

Respectfully submitted,

/s/ BILLY BLATTNER

Billy Blattner
Manager, Regulatory Relations
SAN DIEGO GAS & ELECTRIC COMPANY
601 Van Ness Avenue, Suite 2060
San Francisco, CA 94102
Telephone: (415) 202-9983
Facsimile: (415) 346-3630
Email: wblattner@semprautilities.com

November 19, 2008

2
 CERTIFICATE OF SERVICE

I hereby certify that I have this day served a true copy of the foregoing NOTICE

OF EX PARTE COMMUNICATION on each party named in the official service list

for proceeding A.06-08-010 by electronic service, and by U.S. Mail to those parties who

have not provided an electronic address.

Executed this 19th day of November, 2008, at San Diego, California.

/s/ JOEL DELLOSA

Joel Dellosa