SDG&E Letter To City Attorney Saying No 1-Year Extension On Franchise Agreement
SDG&E Letter To City Attorney Saying No 1-Year Extension On Franchise Agreement
SDG&E Letter To City Attorney Saying No 1-Year Extension On Franchise Agreement
Tel: 619.699.5054
Fax: 858.650.6117
dday@sdge.com
Dear Mara,
SDG&E is, and always has been, grateful for the opportunity to partner with the City to benefit
our community, including ways to find appropriate agreements to govern our long-standing
relationship. This process has occurred not just now, but over the past years, and has allowed us
to understand the City’s priorities while further aligning our mutual interests in providing clean,
safe and reliable energy to the community. I am writing regarding the Electric and Gas
Franchise Agreements between SDG&E and the City of San Diego. As you know, those
Agreements will expire on January 17, 2021, and the City has issued Invitations to Bid (ITB) for
both the electric and gas franchises to take effect on the expiration of our current Agreements.
Recent events have caused us some concern. In the middle of this process, after bids have been
submitted, we learned that Council President Georgette Gómez wrote a memorandum, dated
November 9, 2020, which stated that the City Council “will not be docketing the responses to the
Invitations to Bid.” Even more surprisingly, the letter requested that City staff “bring forward
for the City Council’s consideration a one-year extension to the current agreements to ensure that
an extension is in effect prior to the January 17, 2021 expiration.”
We do not believe that a one-year extension is in the best interest of the City or San Diego
electric and gas consumers. As your office has correctly recognized, any extension would
require SDG&E’s concurrence. In an August 25, 2020 Memorandum MS 59, your office
addressed the legal requirements applicable to an extension of the current Agreements, and
correctly stated that “the City has the option of extending the current franchise agreements
beyond January 2021 subject to SDG&E’s concurrence.” SDG&E will comply with the lawful
requirements that the City imposes with respect to the Agreements, but cannot and will not agree
to a one-year extension of the Agreements.
SDG&E would be disappointed if the City Council President does not docket the responses to
the ITB. We stand ready to fairly and openly compete for the new Electric and Gas Franchise
Agreements. SDG&E has a demonstrated and long history of providing clean, safe and reliable
energy to the San Diego community, and reaffirms its commitment to continuing this proud
tradition.
Sincerely,
Diana Day
Diana L. Day
Senior Vice President & General Counsel
San Diego Gas & Electric Company
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