I & b :” RE G E=. I v tu ~ Solutions 2001 JUL -3 A 11: l€

DOCKET CONTROL CORPORATION COMMISSION 1200 W. Washington Street Phoenix, AZ 85007-2927

Subject: ACC request for information dated May 4 in the matter of the request by Sempra Energy Solutions (“SES”) to transfer the CC&N from Sempra Energy Trading (“SET”) to SES.

The following are the answers to the ACC questions:

A. Question: In our most recent conversation on April 23, 2001, you indicated that Sempra Energy Solutions (SES) is doing business in the state of only. Please provide a copy of any authority given to SES to provide electric services in the state of California.

A. Answer: SES is a California Public Utility Commission (“CPUC”) certified Energy Service Provider (“ESP”) and is authorized to operate in California under ESP # 1010. Also, SES is listed in the CPUC website (http:llwww.cpuc.ca. povlpublishediESP Listslesp udc.litm) as an authorized ESP.

B. Question: Please provide a detailed statement explaining why the companies wish to execute a transfer of a CC&N. In this statement include the number of customers being served by Sempra Energy Trading (SET) and how they will be affected by the transfer.

B. Answer: Part 1: With the recent internal changes within Sempra Energy (SES Parent Company), the business scope of SET, at the time when the ACC awarded them with CC&N, to offer retail electric and related energy services has changed and is now part of SES’s strategy and no longer SET’s. Part 2: SET does not serve any retail commodity customers in Arizona . Therefore, no customers will be affected by SES’s CC&N transfer request.

C. Question: Please provide a tariff for SES which includes a maximum rate to be charged for SES’s services. Please use the same format and maximum rate as stated in SET’s tariff if applicable. Please refer to the tariff I faxed you on April 23, 2001. If SES desired to increase the maximum rate of $25/kWh stated in SET’s tariff, then please supply a statement setting for the reasons for which a rate increase is required

C. Answer: Please see Attachment (SES Electricity Competitive Tariff). No changes to maximum rate or $25/Kwh where made.

D. Question: In recent correspondence you indicated that SES will not be providing Meter Service or Meter Reading Service. Please indicate whether SES will be reselling Meter Service or Meter Reading Service. Please note that SET requested authority to resell these services in its approved application.

D. Answer: SES intends to resell Meter Service and Meter Reading Service to its future customers in Arizona.

Sempra Energy Solutions is not the same company as the utility, SDG&E or SoCalGas, and Sempra Energy Solutions is not regulated by the California Public Utilities Commission. E. Question: For clarification purposed, please indicate whether SES will be collecting pre-payments deposits or advances from customers.

E. Answer: SES does not intent to collect prepayments or advances from its customers.

Finally, on the questions regarding compliance with A.C.C. R14-2- 1603(E), SES has notified the following potentially Affected Arizona Utility Distribution Companies:

1) Arizona Public Service APS State Regulation Group - Ms. Vicki DiCola P.O.Box 53999 Phoenix. AZ 85072-3999

2) Salt River Project Regulatory Affairs - Mr. Larry Nuslack 1521 N. Project Drive Tempe, AZ 85281-1298

If you have any further questions, please do not hesitate to contact me at 619-696-4630.

Director, Commodity Planning and Delivery

Attachment

Cc: Marcia Greenblatt, Sempra Energy Trading Donald Liddell, Sempra Energy Solutions COMPETITIVE ELECTRICITY TARIFF ACC NO.

Sempra Energy Solutions, Inc A.C.C. No. , CA Tariff No. RSESOl Effective: Later of July 1, 2001 or date Commission Approves Application for CC&N

NON-RESIDENTIAL TARIFF

DESCMPTTON

Under this Tariff, Sempra Energy Solutions, Inc. (“Sempra”) provides competitive retail electricity supply and other competitive energy services to NON-RESIDENTIAL customers eligible for direct access throughout the state of Arizona. Both single and aggregation accounts may receive service under this Tariff. Sempra is providing electricity as an Electric Service Provider (“ESP”) as defined in A.A.C. R14-2-1601 (15).

Pursuant to this Tarifc Sempra will provide and sell competitive electricity supply and billing services. Sempra will also sell, but not physically provide, the meter services of A.C.C. certificated providers of UDC’s.

Sempra will serve as agent for customers in arranging and coordinating regulated services including electric delivery services. Sempra does not provide regulated electric delivery services.

Sempra intends to sell and provide to customers who take service under this Tariff other competitive energy services (including financing options) which are not regulated by the Commission. These energy services are not addressed in this Tariff.

THIS IS NOT A “PROVIDER OF LAST RESORT” TARIFF. Retail customers are not required to select Sempra. This Tariff is not available to residential customers. Sempra is not a utility distribution company. Sempra is not the same company as either Southern California Gas Company or San Diego Gas & Electric Company, its California based utility affiliates.

AVAILABILITY

Sempra makes electric energy and capacity available under this Tariff to non-residential retail customers who are eligible under the Commission’s applicable rules. This Tariff is available throughout the state of Arizona at transmission and distribution voltage levels.

Sempra may rehse service to a customer for any of the following reasons: 1) The customer is not credit worthy; 2) The customer refuses to pay the price at which Sempra offers electricity supply; 3) Sempra is unwilling or incapable of providing the service requested by the customer at a price the customer is willing to pay; 4) The customer is located in a geographic area where Sempra is either not certificated to serve (or related agreements are not established) or the customer is not eligible to receive direct access services; 5) The customer refuses to sign a contract for service or refuses to accept offered prices, terms and conditions for electricity supply; 6) The customer is unwilling to wait for the period of time Sempra (or the UDC) deems is necessary to begin receiving service from Sempra; or 7) The customer does not have the proper electrical equipment infrastructure to receive electricity from Sempra.

Sempra shall not be deemed as having refused service to any potential customer if, in the opinion of such customer, Sempra did not respond to a sales inquiry or otherwise present or follow up on a specific sales contract proposal in a time frame desired by said customer. Sempra has the right to evaluate each and every potential customer opportunity and determine whether and in what time period to respond to such opportunity.

Sempra is not required to respond to any request for proposal issued by a potential customer seeking competitive bids from Energy Service Providers.

THIS TARIFF IS NOT AVAILABLE ON A PROVIDER OF LAST RESORT BASIS.

CHARGES

Sempra's monthly charges may include:

1. Electricity Supply: A market based charge, as negotiated, not to exceed $25 per kilowatt hour. Services include energy, capacity and competitive generation-related ancillary services. Billing determinants shall likewise be established through negotiation (e.g., a demand charge). Electric supply prices may be constant or variable and will be set forth in the NONRESIDENTIAL POWER SALES AGREEMENT executed with the customer.

Unless otherwise stated or provided for in the contract, this charge includes the cost of complying with the Solar Portfolio Standard pursuant to R14-2-1609.

2. Competitive Transition Charge: If applicable, a charge, as approved by the Commission for the UDC of the customer passed through without mark-up by Sempra.

3. Fuel or purchased power. If applicable, a charge, as approved by the Commission for the UDC of the customer passed through without mark-up by Sempra.

4. Distribution Services: A charge, as approved by the Commission for the UDC of the customer, passed though by Sempra as agent without mark-up to the customer.

5. Transmission Services: A charge, as approved by the F.E.R.C. for the UDC of the customer, passed through Sempra as agent without mark-up to the customer.

6. Ancillary Services: A charge for transmission related services, as approved by the F.E.R.C. for the UDC of the customer, passed through by Sempra as agent without mark-up to the customer. 7. Metering Services:

a) If provided by a Commission certificated meter service provider, a Market based charge not to exceed the provider’s maximum approved charge, passed through by Sempra without mark-up to the customer.

b) If provided by the UDC of the customer, a charge, as approved by the Commission passed through by Sempra without mark-up to the customer.

8. leter Reading Service:

a) If provided by a Commission certificated meter reading provider, a Market based charge of the provider, not to exceed the provider’s maximum approved charge, passed through by Sempra without further mark-up to the customer.

b) If provided by the UDC of the customer, a charge, as approved by the Commission, passed through by Sempra without mark-up to the customer.

9. Billing and Collection: A market based charge included in the charge for electricity supply. Only specialized billing and collections services charges, if any, will be itemized on a customer’s bill.

10. Systems Benefits: A charge, as approved by the Commission, and passed through by Sempra without mark-up to the customer.

11. Applicable taxes.

12. Such other charges as the Commission or the UDC may require which will be passed through by Sempra without mark-up.

13. Other charges for services provided by Sempra that are not subject to this Tariff

All of the above charges will appear only when Sempra provides consolidated ESP billing. In the case of consolidated UDC billing, the UDC controls the entire billing format although it is also required by the Commission to provide identical billing components. For dual billing, Sempra bills will display items: l), 7) a or b (as negotiated), 8) a or b (as negotiated), 9, 11, and 12 (if appropriate). The UDC’s bill would be expected to contain the remaining billing items.

Sempra has the right to express market based electricity supply prices in terms of discounts (percentage or otherwise) from bundled regulated services (i.e., Standard Offer Service) in contracts and monthly bills, or in any other manner or pricing structure. Sempra may include in the price for electricity supply the costs of any other energy services purchased by the customer pursuant to the contract between the customer and Sempra. Sempra shall be permitted to use any financing merchanisms (e.g., balanced payment) over the life of the contract that result in a customer’s actual monthly charges in any month being different than the amount determined for the charges above pursuant to the contract. Terms and conditions for all other items listed in this “CHARGES” section shall be as approved by the Commission for the individual UDC or certificated meter provider, as set forth in their filed tariffs for these services. Sempra and, in turn, customers shall comply with Commission’s Rules and UDC Open Access tariffs as regards loan profiling or meter specifications.

CONTRACT

Customer must execute a contract (i.e. NON-RESIDENTIAL POWER SALES AGREEMENT) with Sempra, Contract duration, market-based prices, UDC name(s), UDC account number(s), and customer address(es), and other terms and conditions of service to be negotiated by the parties must be stated in the contract.

N OTIFICAT1 ON S

Sempra is required under R14-2-1609 Solar Portfolio Standard to purchase and sell to retail direct access customers varying amounts of solar energy for electricity provided under Tariff. Unless otherwise separately itemized in the electricity supply charge pursuant to the contract, there is no separate charge for . Sempra may be required to pay penalties incurred under the solar program on behalf of its customers. Sempra will comply with R14-2-1618 Disclosure of Information unless exempted. Sempra has sole discretion as to whether to disclose to individual customers its exact and specific supply sources, except that if Sempra makes any representation about the generation sources or characteristics of its electricity supply to any customer, it shall be able, upon reasonable request of the customer, to verify the accuracy of its representations. There is no charge for switching away from Sempra to another supplier upon contract expiration.

MISCELLANEOUS

Sempra may seek to change, amend or revise this Tariff at any time upon application to this Commission. Any such amendments, changes, or revisions shall become effective only upon approval by this Commission, and shall be implemented by Sempra only prospectively. Such approved changes, amendments or revisions shall not operate to amend, modify, change or revise contracts entered into prior to the effective date of such approved changes, amendments or revisions of this Tariff,