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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

ENERGY DIVISION RESOLUTION G-3293

RESOLUTION

Resolution G-3293. Sempra Energy, on behalf of Southern California Gas Company (SoCalGas), requests a deviation from the two-year contract term specified by Special Condition 4 of Tariff Rate Schedule G-CS for two core subscription service customers. SoCalGas' request is denied without prejudice.

By Advice Letters 2924 and 2925 filed on June 1, 2000.

By Advice Letters 2924-A and 2925-A filed on July 6, 2000.

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SUMMARY

This resolution denies SoCalGas requests by Advice Letters (AL) 2924-A and 2925-A to deviate from the two-year contract term specified by Special Condition 4 of the core subscription tariff, G-CS, for two core subscription customers. SoCalGas has not provided adequate justification to warrant a deviation from Special Condition 4.

In AL 2924 and AL 2925, SoCalGas requested that two core subscription customers be allowed to leave the core subscription rate schedule prior to the required two-year term. The customers wished to switch to different rate schedules and purchase gas supply from an alternative supplier.

The Utility Reform Network (TURN) protests that the requests in ALs 2924 and 2925 involve preferential treatment by SoCalGas on behalf of the two customers and may result in cost-shifting to other core customers of the Interstate Transition Cost Surcharge (ITCS). TURN also states a concern that Special Condition 4 would become informally modified by individual deviation requests. TURN requests that the Commission require SoCalGas to provide further information and justification to support its request for the deviation for the two customers and respond with additional data regarding its core subscription program. Without this information, TURN recommends that the Commission reject SoCalGas' request in ALs 2924 and 2925.

SoCalGas filed 2924-A and 2925-A, modifying its request in response to TURN's protest. In AL 2924-A and AL 2925-A, SoCalGas requested that the two customers be allowed to switch to alternative core rate schedules. Alternatively, if the customers choose a noncore rate schedule, the customers would be required to pay the reservation charges remaining for the contract term.

SoCalGas has failed to provide adequate reasons to justify why these customers should be allowed to leave the core subscription rate schedule.

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