The deal with Sempra Energy, parent company of San Diego Gas& Electric, could erase a balloon payment that would haveaveraged $400 for residential consumers, $1,400 for smallbusinesses and $12,000 for commercial customers, according to thegovernor.

SDG&E customers saw their power bills double and triple, asthe utility became the first in the state to lift a cap on retailelectricity rates. The utility began passing higher wholesale ratesonto their customers.

The agreement announced today would modify a previous dealstruck by Davis in September, which capped rates but allowed debtdeferral, with utility customers paying it off over a period ofyears.

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