17. Other Proposed Modifications to the FAR system
SDG&E/SoCalGas propose other modifications to the FAR system, including permitting customers to aggregate their firm capacity rights into a single contract number for each receipt point, increasing firm capacity at the Kramer Junction receipt point by 50 million cubic feet per day (MMcfd) to
550 MMcfd and offer such capacity in the 2011 FAR Open Season, and modifying certain regulatory accounts to more clearly reflect the costs and revenues associated with unbundling backbone transmission costs from end-use transportation rates. These proposals are unopposed.
17.1. Aggregation of Firm Capacity into a Single
Contract Number
SoCalGas/SDG&E must build functionality into the EBB system and associated systems to allow customers to aggregate their firm capacity into one contract number if they so choose for each receipt point for the purposes of nominations and scheduling, and must make the other information technology modifications adopted in this decision that are needed for the next FAR cycle.82
SDG&E/SoCalGas propose to build functionality into the EBB system that will permit customers, for the purposes of nominating and scheduling, to aggregate their firm capacity rights into a single contract number for each receipt point that a customer can use to make its nominations. This proposal is in response to customer requests to reduce the number of contracts required for nomination purposes that are created as a result of exchanging capacity rights, additional capacity purchases or secondary market trades.
It is reasonable to build functionality into the EBB system and associated systems to allow customers the option to aggregate their firm capacity into one contract number for each receipt point because this will simplify the SoCalGas/SDG&E scheduling process, facilitate exchanges and transfers of firm capacity between receipt points and the secondary market transaction process, and provide customers other administrative benefits.
Because modification of the SDG&E/SoCalGas information technology systems to allow BTS customers the option to aggregate their firm capacity into one contract number for each receipt point might not be ready by October 1, 2011, it is reasonable for this modification to the SDG&E/SoCalGas information technology systems be implemented on a phased-in basis as soon thereafter as it is ready.83 It is reasonable to recover the cost of building contract aggregation functionality into the SDG&E/SoCalGas information technology systems through the BTBA because this functionality will benefit BTS customers.
17.2. Increase Available Firm Capacity at
Kramer Junction
We authorize SDG&E/SoCalGas to increase available firm capacity to
550 MMcfd at the Kramer Junction receipt point in the 2011 FAR Open Season.84
When the expansion of the Kern River Pipeline is completed, SDG&E/SoCalGas will be able to offer 50 MMcfd of additional capacity at the Kramer Junction receipt point. As a result, SDG&E/SoCalGas propose to offer 550 MMcfd of firm capacity at the Kramer Junction receipt point in the 2011 Open Season. Because 50 MMcfd of additional capacity will be available at the Kramer Junction receipt point, it is reasonable to offer 550 MMcfd of firm capacity at the Kramer Junction receipt point in the 2011 FAR Open Season.
The increase in firm capacity at Kramer Junction will not increase in the capacity of the Northern zone or of the SDG&E/SoCalGas backbone transmission system. The capacity of the Northern zone will remain at 1,590 MMcfd, and the capacity of the SDG&E/SoCalGas backbone transmission system (excluding local production) will remain at 3,875 MMcfd.
17.3. Modifications to Regulatory Accounts
SDG&E/SoCalGas propose changes to existing regulatory accounts to ensure all costs and revenues associated with BTS are removed from end use transportation rates. According to SDG&E/SoCalGas, these changes will ensure that all costs and revenues associated with BTS are properly recorded in the BTBA and reflected in the backbone charge, while all costs and revenues associated with local transmission service are recorded in the Integrated Transmission Balancing Account (ITBA) and reflected in end-use transportation rates.
For the upcoming three-year backbone transmission cycle, SDG&E/SoCalGas must record in the BTBA account, instead of the Firm Access and Storage Rights Memorandum Account (FASRMA), the information technology costs required to enhance BTS.85
D.06-12-031 created the Firm Access Rights Memorandum Account (FARMA) to recover the implementation costs to establish the FAR system.86 The information technology costs to initially establish the FAR system have been recovered through the FARMA/FASRMA.
To the extent, however, new information technology costs are incurred to enhance the BTS, SDG&E/SoCalGas propose to track and recover those costs through a subaccount to the BTBA. SDG&E/SoCalGas propose to allocate to BTS customers all future information technology costs associated with providing additional backbone transmission system services.
For the upcoming three-year backbone transmission cycle, it is reasonable to record in the BTBA account, instead of the FASRMA, the information technology costs required to enhance BTS.
SDG&E/SoCalGas currently record off-system revenues from the Pacific Gas and Electric Company (PG&E) in the ITBA.87 D.11-03-029 authorized SDG&E/SoCalGas to expand their off-system deliveries to points other than to PG&E.
We authorize SDG&E/SoCalGas to record revenues from off-system deliveries in the BTBA instead of the ITBA88, consistent with the requirements of D.11-03-029.89 It is reasonable for SDG&E/SoCalGas to record revenues from off-system deliveries in the BTBA instead of the ITBA.
We authorize SDG&E/SoCalGas to modify the ITBA account so as not to record transmission fuel costs.90 Because, as discussed above, we authorize SDG&E/SoCalGas to establish an in-kind fuel factor to recover the cost of fuel used to operate backbone transmission compressors, and because the in-kind fuel factor will be assessed on BTS customers, it is reasonable to discontinue recording backbone transmission fuel costs in the ITBA.
82 This adopts Recommendation No. 11 of Exhibit No. JRO-1.
83 This adopts Recommendation No. 15.a of Exhibit No. JRO-1.
84 This adopts Recommendation No. 3 of Exhibit No. JRO-1.
85 This adopts Recommendation No. 13.b of Exhibit No. JRO-1.
86 D.07-12-019 replaced the FARMA with the FASRMA to track information technology costs for both the FAR system and trading system for storage capacities.
87 D.06-04-033 approved the integration of the SDG&E/SoCalGas gas transmission systems, and established the ITBA to record the difference between the actual transmission revenues and the adopted transmission revenues for SDG&E and SoCalGas on a combined basis.
88 This adopts Recommendation No. 13.c of Exhibit No. JRO-1.
89 D.11-03-029 requires that the revenues from off-system deliveries from the Southern System first go to pay for the fixed deliveries for the day to offset the System Reliability Memorandum Account (SRMA) costs, and any revenues over and above the day's SRMA costs then be credited to the ITBA for sharing purposes.
90 This adopts Recommendations No. 13.d of Exhibit No. JRO-1.
