PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
E-2
ENERGY DIVISION RESOLUTION G-3305
MAY 24, 2001
Resolution G-3305. Sempra Energy, on behalf of Southern California Gas Company (SoCalGas), requests approval of revisions to SoCalGas' tariff schedules and an amendment to the California Wholesale Gas Transportation and Storage Service Agreement between SoCalGas and Southwest Gas Corporation (SWG). SoCalGas' request is approved.
By Advice Letter 2951 Filed on August 24, 2000.
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SUMMARY
In Advice Letter (AL) 2951, Sempra Energy, on behalf of SoCalGas, requests authority to revise SoCalGas' rates applicable to SWG, and to amend the SoCalGas gas transportation service contract with SWG. SoCalGas requests approval of: 1) a SWG rate derived from the cost allocations and volumes approved by the Commission in Decision (D.) 00-04-060, and 2) a contract amendment to allow SWG the right to enter into annual pre-arranged deals for SoCalGas' pipeline capacity on El Paso Natural Gas (EPNG) pipeline capacity at 100% of the as-billed rate charged to SoCalGas by EPNG. The contract amendment would allow SWG to receive a credit for such costs against its annual Interstate Transition Cost Surcharge (ITCS) payments to SoCalGas.
This Resolution approves Advice Letter 2951. The proposed contract amendment would allow SWG to obtain firm interstate pipeline capacity for its southern division, offset its ITCS payments for the costs it incurs, and thereby lower its gas costs. Southwest Gas primarily serves core customers in its southern division. The proposed amendment does not harm other SoCalGas customers.
The contract amendment would also lower SoCalGas' transportation rates applicable to SWG, allowing SWG to lower its own transportation rates.
The Office of Ratepayers Advocates (ORA) protested AL 2951, saying that the ITCS crediting mechanism discriminated against other SoCalGas noncore customers since the mechanism may have been offered only to SWG. ORA recommended that the Commission reject the ITCS crediting mechanism, and suggested that SoCalGas file an application for an open season for a similar offer.
SoCalGas responded to ORA's protest by stating that any negotiation with one customer involves an element of discrimination, but that the discrimination is this case is not undue and the appropriate issue is whether the amendment is in the public interest. SoCalGas also says that an application for an open season is not appropriate in this case, given the varying circumstances of negotiations with different customers in different situations that SWG.
This Resolution denies ORA's protest. SoCalGas mailed Advice Letter 2951 to its noncore customers and posted it on SoCalGas' website. The Commission noticed Advice Letter 2951 on its calendar. We do not find adequate justification for an open season, and we believe the contract amendment is in the public interest.
