SAN DIEGO, April 26, 2002 - On behalf of its 1.3 million electric customers, San Diego Gas & Electric (SDG&E) today appealed a tentative decision by the Bureau of Indian Affairs (BIA), which would threaten the availability of reliable power in Southern California.
The BIA decision would block a critically needed corridor for the construction of the Valley-Rainbow Interconnect, a vital new transmission-line project that would improve reliability of the regional transmission grid and provide access to competitively priced power for Southern Californians in the future. SDG&E has called on U.S. Interior Secretary Gale Norton and U.S. Energy Secretary Spencer Abraham to intervene with the BIA to mediate a solution that allows for construction of the project.
"The BIA's tentative decision hurts our customers, as well as energy consumers throughout Southern California," said Steven D. Davis, senior vice president of customer service and external relations for Sempra Energy Utilities, SDG&E and Southern California Gas Company. "In separate letters to Secretaries Norton and Abraham, we have asked for their assistance to facilitate a compromise that will preserve a route to build this much-needed line, so that we can meet the needs of our customers for many years to come."
The BIA recently outlined its intention to place the Great Oak Ranch in southern Riverside County into trust on behalf of the Pechanga Band of Luiseno Mission Indians. If the BIA decision stands, SDG&E would need Pechanga approval to build the line along six of the utility's seven proposed routes.
"For months, we have tried to negotiate an agreement with the Pechanga Tribe, but its representatives have rejected those efforts," Davis said. "We respect the heritage, culture and history of the Pechanga Indian Tribe and support its application to place into trust the Great Oak Ranch, as long as an appropriate corridor is preserved for the Valley-Rainbow Interconnect. We filed this appeal as a last resort to ensure that a transmission- line corridor is preserved through the property."
In March 2001, SDG&E filed an application with the California Public Utilities Commission (CPUC) to build the Valley-Rainbow Interconnect. In the application, SDG&E identified routes that would cross a portion of the Great Oak Ranch, which at the time was owned by private individuals. After SDG&E had already submitted its application to the CPUC, the Tribe announced that they had bought the Great Oak Ranch and immediately sought BIA approval to place the land into trust.
"SDG&E reviewed more than 200 miles of alternatives to determine a corridor that would have the least impact on the residents, businesses and environment in southwest Riverside County," said Davis. "Unfortunately, unless the BIA's action is overturned, there may be no other feasible route for the transmission line, as the only other route outside of the Pechanga lands has greater impacts on the community and environment. We are hopeful that Secretary Norton and Secretary Abraham will act quickly to halt the BIA's actions and preserve a corridor for the Valley-Rainbow transmission line."
The California Independent System Operator (ISO), the state agency responsible for transmission planning, has stated there is a "clear and pressing need for a project like the Valley-Rainbow Interconnect" to maintain reliable electric service within SDG&E's service territory. In a Sept. 21, 2001, letter to Secretaries Norton, Abraham and White House Council on Environmental Quality Chair James Connaughton, the ISO expressly requested the agency not take the Great Oak Ranch property into trust, unless an appropriate corridor is provided for the Valley-Rainbow Interconnect.
The Valley-Rainbow Interconnect is a proposed 31-mile, 500-kV transmission line that would connect Southern California Edison's existing Valley Substation near Romoland in Riverside County with a new SDG&E substation near Rainbow in San Diego County. When complete, the project will deliver enough power to serve the electricity needs of more than 700,000 single-family homes. Supporters of the Valley-Rainbow Interconnect include the San Diego Regional Chamber of Commerce, San Diego Regional Economic Development Corporation and the San Diego-Imperial Counties Labor Council.
San Diego Gas & Electric is a regulated public utility that provides service to 3 million consumers through 1.3 million electric meters and 775,000 natural gas meters in San Diego and Southern Orange counties. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.