On October 23, 2017, FERC approved San Diego Gas & Electric
Company's ("SDG&E") and Sempra Gas & Power
Marketing, LLC's ("Sempra"; collectively,
"Applicants") request for authorization for SDG&E to
purchase Resource Adequacy capacity at market-based rates from its
affiliate, Sempra, pursuant to a competitive solicitation
process. In doing so, FERC concluded that the solicitation
did not unduly favor Sempra and thus satisfied FERC's concerns
regarding affiliate abuse.
On June 30, 2017, Applicants requested authority for Sempra to
sell Resource Adequacy capacity at market-based rates to its
affiliate, SDG&E, after SDG&E conducted a competitive
solicitation process that resulted in the selection of a portfolio
of resources, including Sempra. Applicants explained that the
competitive solicitation was conducted in anticipation of the 2018
Local Resource Adequacy showing—an annual demonstration each
load serving entity under the California Public Utilities
Commission's
