10. Comments on Proposed Decision

On November 19, 2001, the alternate decision in this proceeding of Commissioner Wood was filed with the Commission and served on the parties in accordance with Section 311(d) of the Public Utilities Code and Rule 77.1 of the Commission's Rules of Practice and Procedure. Comments were filed by Smart Safety Systems.

Findings of Fact

1. A notice of the filing of the application appeared in the Daily Calendar on July 28, 2000.

2. Applicant began its EQV program of its own volition.

3. While EQV installation is required in some areas, there is no requirement that EQVs be installed on the utility's side of the meter.

4. Other utilities subject to our jurisdiction are not required to allow installation of EQVs on their facilities.

5. Applicant's proposed charges are reasonable.

6. Applicant's EQV program is supposed to be paid for by the participants who benefited from it.

7. No ratepayers, other than program participants, have directly benefited from the program.

8. EQVs installed on Applicant's side of the meter are installed downstream of the pressure regulator, and operate at the same pressure as the customer's facilities.

9. Serious gas leaks can easily be detected by smelling the odorant present in the gas, and would be quickly reported by the EQV customer or Applicant's meter readers performing routine safety checks while reading the meter.

10. The inspections by Applicant of EQV installations not previously inspected have revealed no serious safety issues or immediate safety hazards, and Applicant does not expect any to be found.

11. Charging the inspection costs to EQV program participants would be unfair.

12. Charging the inspection costs to core customers would be unfair.

13. Applicant has made no showing in this proceeding that would allow the Commission to determine whether Applicant is responsible for the proper operation of EQVs installed on its side of the meter in the event of an earthquake or for leaks in the EQV itself.

Conclusions of Law

1. Applicant's request to discontinue installation of EQVs on its side of the meter should be approved.

2. Applicant's proposed charges should be authorized.

3. Core customers should not be required to pay for the costs of inspecting EQVs not previously inspected.

4. Applicant's request to recover from core customers the costs of inspecting EQVs not previously inspected should be denied.

5. This decision should be made effective immediately to enable Applicant to discontinue EQV installations on its side of the meter and to implement the proposed charges without delay.

ORDER

IT IS ORDERED that:

1. The request of Southern California Gas Company (Applicant) to discontinue installation of automatic earthquake gas shut-off valves (EQVs) on its side of the meter is granted.

2. Applicant's request to recover from core customers the costs of inspecting EQVs not previously inspected is denied.

3. Applicant may continue its inspections of existing EQVs not previously inspected.

4. Applicant's proposed charges are authorized.

5. Except as specifically provided for herein, the application is denied.

6. This application is closed.

This order is effective today.

Dated November 29, 2001, at San Francisco, California.

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