2. Background
In accordance with Ordering Paragraph 10 in Decision (D.) 06-12-031, SDG&E and SoCalGas filed the above-captioned application on February 4, 2008. This is the first cost allocation proceeding for both utilities since D.00-04-060 adjudicated the Biennial Cost Allocation Proceeding (BCAP) applications of SDG&E and SoCalGas that were filed in October 1998 in A.98-10-012 and A.98-10-031.2
Protests and responses to the application were filed by the City of Long Beach (Long Beach), Coral Energy Resources, L.P.,3 Division of Ratepayer Advocates (DRA), Indicated Producers, Pacific Gas and Electric Company, Southern California Edison Company (SCE), Southern California Generation Coalition (SCGC), The Utility Reform Network, Watson Cogeneration Company and the California Cogeneration Council, and the Western Manufactured Housing Community Association. SDG&E and SoCalGas filed a reply to the protests and responses on March 17, 2008.
A prehearing conference (PHC) to discuss the issues and procedural schedule for this proceeding was held on April 3, 2008. Following the PHC, a Scoping Memo and Ruling (Scoping Memo) was issued on April 17, 2008. The Scoping Memo bifurcated the proceeding into two phases, and established a separate procedural schedule for each phase.
Five days of evidentiary hearings were held in July 2008 on the Phase One issues. Following the close of these hearings, the parties met to discuss the possible settlement of the Phase One issues. On August 22, 2008, SDG&E, SoCalGas, and nine other parties filed the motion to adopt the Settlement Agreement.
As part of the motion to adopt the Settlement Agreement, the moving parties requested that the briefing schedule for the Phase One issues be suspended. In an August 25, 2008 e-mail to the service list, which was confirmed in an August 29, 2008 ALJ ruling, the schedule for the filing of opening and reply briefs in Phase One was suspended. The e-mail and ruling also notified the parties of the filing dates for comments and reply comments on the motion to adopt the Settlement Agreement. No comments were filed.
A number of letters were received by the Commission's Public Advisor's office concerning the application of SDG&E and SoCalGas. All of the letters oppose any increase in the gas rates of the customers of SDG&E and SoCalGas. Many of the letters expressed the concern that food costs, gasoline, and utility rates have all gone up, while the incomes of the utilities' customers have remained the same or increased at a significantly slower rate than the price increases.
2 Subsequent BCAP applications were filed by SDG&E and SoCalGas, but due to other proceedings, those BCAP applications were dismissed in D.03-05-050 and D.04-05-039.
3 Coral Energy Resources was merged into its parent company, and is now referred to as Shell Energy North America (US), L.P. (Shell Energy).
