1. © 2005 San Diego Gas and Electric and Southern California Gas Company. All copyright and trademark rights reserved 2006 Low Income Energy Efficiency Program Plans Presentation to the LIOB by: San Diego Gas & Electric and Southern California Gas Company May 2, 2006

2. 2 Commission Decision 05-12-026 Authorized the 2006/2007 program plans and funding levels Directed the utilities to plan to treat 5 – 10% more homes during 2006 than originally planned Directed utilities to file a 2006 budget augmentation application by no later than April 14, 2006

3. 3 Summary of Recent Filings March 30, 2006 – Filed a motion requesting authorization to continue targeted self-certification (TSCE) for the LIEE program pending a decision on the April 14 th filing. April 14, 2006 – Compliance filing stating SDG&E and SoCalGas have sufficient LIEE funds for 2006 to meet the Commission’s directive to increase the number of homes treated by 5 – 10%. Also asked for authorization to continue TSCE through the end of 2006.

4. 4 2006 Plans 2006 Budget ($ Million) SDG&E SoCalGas Authorized Budget 13.368 33.325 Unspent Funds from Prior Yrs 2.600 6.600 Total $15.968 $39.925 # Homes to be Treated SDG&E SoCalGas Number Planned 10,900 40,000 Increase w/o TSCE 11,500 (+6.0%) 44,000 (+10.0%) Increase with TSCE 12,900 (+18.0%) 48,000 (+20.0%)

5. 5 TSCE Process April 30, 2006 is sunset date for 2005/2006 winter initiatives On May 1, 2006, TSCE has been stopped pending Commission action on the March 30 th Motion and the April 14 th Compliance Filing