Existing law, the Public Utilities Act, requires the Public Utilities Commission to establish a ceiling of 6.5¢ per kilowatthour on the energy component of electric bills for residential, small commercial, and lighting customers of the San Diego Gas and Electric Company, through December 21, 2002, retroactive to June 1, 2000. Existing law requires the commission to establish an accounting procedure to track and recover reasonable and prudent costs of providing electric energy to retail customers unrecovered through retail bills due to the application of that ceiling.

This bill would declare that it is the intent of the Legislature enact appropriate legislation that would prevent further San Diego Gas and Electric Company rate increases. This bill would also declare the intent of the Legislature to enact appropriate legislation that would reduce the rate for San Diego Gas and Electric customers by eliminating the portion of the rate that currently goes into the balancing account and to use budget surplus funds to pay off the balancing account.