Assignment of Proceeding

Mark J. Ferron is the assigned Commissioner and Douglas Long is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Southwest, in common with other investor-owned gas and electric utilities in California, is incurring costs as the result of fees imposed by the ARB pursuant to AB 32. The Commission has not yet ruled on whether the costs for these fees are recoverable in rates.

2. Pending a decision on the recoverability of these costs, the Commission has authorized PG&E, SCE, SDG&E, and SoCalGas to establish memorandum accounts in which to record their AB 32 fees. Establishment of these accounts does not prejudge any cost recovery issues.

3. It is reasonable to authorize Southwest to file a Tier 1 advice letter to establish a memorandum account such as those described in Finding of Fact 2.

Conclusions of Law

1. Today's decision does not address whether or when cost recovery of the AB 32 Fee is warranted, and it does not prejudge the outcome of any subsequent decision on those issues.

2. Today's decision should be made effective immediately.

ORDER

IT IS ORDERED that Southwest Gas Corporation may file a Tier 1 advice letter to establish a memorandum account to record its actual expenditures to record the costs of fees imposed by the California Air Resources Board pursuant to Assembly Bill 32.

This order is effective today.

Dated July 14, 2011, at San Francisco, California.

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