appropriate that SDG&E requested authorization for this license agreement by Advice Letter. Under the proposed licensing agreement, San Diego Gas & Electric will earn royalties on the profit earned by qualifying sales (i.e. domestic sales not made to San Diego Gas & Electric, Sempra, or any of their affiliates) of products utilizing the Sleeve Flue Invention. These royalties will be split between ratepayers and shareholders at a 75%/25% split. This split was determined in San Diego Gas & Electric’s most recent General Rate Case Decision 13-05-010 that addressed these issues. This allocation scheme is consistent with General Order 173. The estimated cost of the development of the property is $292,000. This cost has already been paid by the utility ratepayers. The license agreement in Advice Letter 3092-E will not increase rates or affect service. San Diego Gas & Electric has stated that customers have zero risk of bearing the cost of any loss as a result of the licensure. Implementation of Advice Letter 3092-E will likely cause a small rate decrease than would otherwise be the case over the 25 year license period, due to ratepayers receiving 75% of the royalties from net revenue earned by Red Lion on qualified sales. Authorization of San Diego Gas & Electric‘s request will benefit both ratepayers and shareholders, and support the commercialization of the IP developed by San Diego Gas & Electric. The request of the San Diego Gas & Electric to license intellectual property to Red Lion Chem Tech, LLC and HCOR, LLC, as requested in Advice Letter 3092-E, is approved. This Resolution is effective today. I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on January 11, 2018; the following Commissioners voting favorably thereon:
appropriate that SDG&E requested authorization for this license agreement by Advice Letter. Under the proposed licensing agreement, San Diego Gas & Electric will earn royalties on the profit earned by qualifying sales (i.e. domestic sales not made to San Diego Gas & Electric, Sempra, or any of their affiliates) of products utilizing the Sleeve Flue Invention. These royalties will be split between ratepayers and shareholders at a 75%/25% split. This split was determined in San Diego Gas & Electric’s most recent General Rate Case Decision 13-05-010 that addressed these issues. This allocation scheme is consistent with General Order 173. The estimated cost of the development of the property is $292,000. This cost has already been paid by the utility ratepayers. The license agreement in Advice Letter 3092-E will not increase rates or affect service. San Diego Gas & Electric has stated that customers have zero risk of bearing the cost of any loss as a result of the licensure. Implementation of Advice Letter 3092-E will likely cause a small rate decrease than would otherwise be the case over the 25 year license period, due to ratepayers receiving 75% of the royalties from net revenue earned by Red Lion on qualified sales. Authorization of San Diego Gas & Electric‘s request will benefit both ratepayers and shareholders, and support the commercialization of the IP developed by San Diego Gas & Electric. The request of the San Diego Gas & Electric to license intellectual property to Red Lion Chem Tech, LLC and HCOR, LLC, as requested in Advice Letter 3092-E, is approved. This Resolution is effective today. I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on January 11, 2018; the following Commissioners voting favorably thereon:
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