COM/DGX/ALJ/JHE/gd2 Date of Issuance 4/14/2010

Decision 10-04-027 April 8, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

DECISION ON APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY FOR APPROVAL OF ADVANCED METERING INFRASTRUCTURE

DECISION ON APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY FOR APPROVAL OF ADVANCED METERING INFRASTRUCTURE 1

1. Summary 2

2. Procedural Background 3

3. Late-Filed Exhibits 5

4. Summary of the Application 8

5. Standard of Review and Criteria for Review of Proposals 8

6. Overview of Party Positions 10

6.1. DRA 10

6.2. TURN 10

6.3. UWUA 10

7. Reasonableness and Feasibility of Technology Choices 11

7.1. Communications System 14

7.1.1. SoCalGas Proposal 14

7.1.2. Party Positions on Communications System 16

7.1.3. Discussion of Proposed Communications System 16

7.2. Battery Choice 18

7.2.1. Party Positions 19

7.2.2. Analysis 20

7.3. Additional Elements 21

7.3.1. Analysis of Additional Elements 21

8. Consistency with State Energy Policy Objectives 22

8.1. Party Positions 23

8.2. State Policy Supports Development and Implementation of
Cost Effective AMI for Gas or Electric Utilities 24

9. Cost Effectiveness 25

9.1. Benefits 26

9.1.1. Terminal Value 26

9.1.2. Cost Savings from Elimination of SoCalGas
Meter Reading Workforce 28

9.1.3. Conservation Benefits 30

9.1.3.1. SoCalGas Methodology for Estimating
Conservation Benefits 30

9.1.3.2. Party Positions on Conservation Benefits 31

9.1.3.3. Discussion of Conservation Benefits 33

9.2. Costs 37

9.2.1. Project Contingency Funding 37

9.2.2. Workforce Impacts and Retention Funding 38

9.3. The SoCalGas AMI Proposal is Cost Effective 39

9.4. The SoCalGas AMI Project is Approved 40

9.5. Ratepayer Protections 41

9.5.1. Sharing Mechanism 41

9.5.2. Access to AMI Data 43

9.5.3. Workshop and Reporting on Conservation Impacts 44

10. Categorization and Assignment of Proceeding 46

11. Comments on Proposed Decision 46

Findings of Fact 47

Conclusions of Law 50

ORDER 50

DECISION ON APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY FOR APPROVAL OF ADVANCED METERING INFRASTRUCTURE