In this Order we dispose of the application for rehearing of Decision
(D.) 10-06-035 ("Decision") filed by Clean Energy Fuels Corporation ("Clean Energy").
In Decision (D.) 07-03-044, the Commission approved $1.047 billion in gas distribution costs for Pacific Gas and Electric Company ("PG&E"), to be adjusted annually.1 In D.10-06-035, we resolved PG&E's Biennial Cost Allocation Proceeding ("BCAP"), the proceeding which determines the allocation of the distribution costs, evaluates the gas throughput forecasts to allocate the costs, and designs the distribution-related transportation rates for the various customer classes.
D.10-06-035 adopted a partial settlement resolving most issues in the proceeding.2 We also resolved a contested issue concerning the natural gas vehicle ("NGV") compression cost component of PG&E's Schedule G-NGV2 transportation charge. The G-NGV2 rate applies to customers who purchase compressed natural gas ("CNG") at a PG&E fueling station to power their NGVs.3 PG&E owns and operates
35 NGV fueling stations in its service territory. Of those, 24 provide CNG service to the public.
PG&E proposed a compression cost of $0.74 per therm based on its cost study in which five of its high volume public NGV stations were studied. Clean Energy proposed a compression cost of $1.00 per therm using costs from all 24 of PG&E's public stations. Excluding PG&E's Folsom Street station, Clean Energy's proposed compression cost would be $0.93 per therm.4
In determining what the appropriate charge should be, our Decision considered a range using PG&E's $0.74 as the low end, and Clean Energy's $0.93 as the high end. Based on a resulting mid-point of $0.837, we adopted a compression cost of $0.83.5
Clean Energy filed a timely application for rehearing challenging the Decision based on the ground that it allegedly contains an arithmetic error. Clean Energy requests that the Commission adjust the compression rate to be $0.84 or $0.837, rather than $0.83, as approved by the Decision. A response was filed by PG&E.
We have carefully considered the arguments raised in the application for rehearing and are of the opinion that good cause has not been established to grant rehearing. Accordingly, we deny the application for rehearing of D.10-06-035 because no legal error has been shown.
1 See Application of Pacific Gas and Electric Company (U 39-M) for Authority, Among Other Things, to Increase Rates and Charges for Electric and Gas Service Effective on January 1, 2007, and Related Matter [D.07-03-044] (2007) __ Cal.P.U.C.3d __ , 2007 Cal. PUC LEXIS 173. The adopted $1.047 billion gas distribution cost was subsequently adjusted to $1.113 billion. (See D.10-06-035, at p. 2.)
2 Parties to the partial settlement were: PG&E, the Division of Ratepayer Advocates ("DRA"), The Utility Reform Network ("TURN"), Western Manufactured Housing Community Association ("WMHCA"); Bridge Housing, Inc. ("BHI"); Palo Alto Utilities; and the California Cogeneration Council ("CCC").
3 Typical public customers who use PG&E's fueling stations are individuals who own NGVs or government entities and companies with NGV fleets.
4 D.10-06-035, at pp. 25-30.
5 D.10-06-035, at pp. 33, 38 [Ordering Paragraph Number 2]. Rate changes flowing from the Decision will be effective August 1, 2010. (D.10-06-035, at p. 38 [Ordering Paragraph Number 4].) A typical residential gas customer using 37 therms per month will experience a 2.2% increase in their monthly gas bill, from about $50.50 per month to $51.60 per month. Small commercial and large commercial customers will experience a monthly increase of $0.7% and $1.7% respectively. (D.10-06-035, at
pp. 2-3.)