Comments on Proposed Decision
The proposed decision of the ALJ in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(d) and Rule 77.1 of the rules of Practice and Procedure. Comments were filed on ______________________, and reply comments were filed on____________________________________.
1. Investigation 00-11-002 was prompted by high gas demand during the summer of 2000 that threatened gas curtailments for SDG&E's noncore customers.
2. SDG&E began gas service to a new EG in Rosarito, Mexico, in June of 2000, straining its system's capacity.
3. The OII was expanded to include an investigation into the adequacy of SoCalGas's gas transmission system to serve the needs of its customers within its service territory.
4. On December 11, 2002, the Commission issued D.01-12-018, in I.99-07-003, the Gas Industry Restructuring Proceeding, that adopted, with modifications, a comprehensive settlement. This decision resolved many pending issues in Phase II of this proceeding.
5. A key component of the future planning and system expansion plans of SDG&E is the reliability standard adopted for firm noncore customers, including EGs.
6. The reliability standard is connected to cost allocation issues and system expansion concerns, and determines the amount of excess capacity that is available on the system.
7. On June 7, 2000, the Commission issued D.01-06-008 establishing an interim order changing the curtailment protocol for noncore commercial and industrial customers and EGs.
8. SDG&E should be authorized to limit firm noncore service to firm capacity on its system, and to charge different rates for firm and interruptible service, to ensure that customers opting for, and paying for, firm service receive firm service.
9. Open seasons are a vehicle to allocate firm noncore capacity between existing customers, incremental new load of existing customers, and new customers.
10. The GIR decision created a structure of unbundled, firm, and tradable backbone transmission rights on SoCalGas' system that eliminated the need to consider receipt point capacity allocation in this proceeding.
11. Curtailment credits are an effective measure to motivate a utility to plan its system capacity and increase its service reliability.
12. Long-term contracts, when coupled with a system of tradable rights, would allow SDG&E to better its resource planning, but the record does not support the Commission's authorization of tradable rights at this time.
13. There is a two-to-four year lag period between the time a need for additional capacity is identified and the time the system is expanded and the capacity becomes available.
14. SDG&E's past planning of its gas transmission system did not prove adequate to meet its 1-in-5-reliability standard as evidenced by 17 days of curtailed service between November 2000 and March 2001.
15. The record does not permit the Commission to decide absolutely whether Sempra allowed its corporate affiliate interest to affect or influence SDG&E's service and system expansions, including the Baja Norte pipeline.
16. The Commission needs to establish a planning criteria and a reliability standard for SoCalGas.
17. SoCalGas A.L.s, 2966, 3002, and 3029 are all moot and no longer timely because of the passage of time and/or the issuance of the GIR decision.
18. Line 6900 is a common facility and the costs should be allocated equally across SoCalGas' and SDG&E's service territories and for all customers.
1. It is reasonable to establish a 1-in-10, cold year conditions, reliability standard for firm noncore customers in SDG&E's service territory to ensure that the utility can meet the needs of its core and noncore customers.
2. D.01-06-008, issued June 7, 2001, as an interim order changing the curtailment protocol for commercial, industrial, and EG customers, is now adopted, as the permanent order for changes to Rule 14.
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10. The reliability standard of 1-in-35 for core customers, 1-in-10 for noncore customers, and 1-in-35 for core local transmission customers is adopted for Southern California Gas Company (SoCalGas).
11. SoCalGas shall make new capacity from recent expansions available through open seasons.
12. The costs for Line 6900 shall be allocated across SoCalGas' and SDG&E's service territories and for all customers.
13. Order Instituting Investigation 00-11-002 is closed.
This order is effective today.
Dated _______________________, at San Francisco, California.
