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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
January 28, 2004
TO: ALL PARTIES OF RECORD IN RULEMAKING 02-06-041
Decision 04-01-047 is being mailed without the Concurrence of Commissioner Lynch. The Concurrence will be mailed separately.
Very truly yours,
/s/ ANGELA K. MINKIN by KKH
Angela K. Minkin, Chief
Administrative Law Judge
ANG:sid
Attachment
ALJ/CAB/sid Mailed 1/28/2004
Decision 04-01-047 January 22, 2004
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Require California Natural Gas and Electric Utilities to Preserve Interstate Pipeline Capacity to California. |
Rulemaking 02-06-041 (Filed June 27, 2002) |
OPINION ESTABLISHING COST ALLOCATION FOR
EL PASO TURNED BACK CAPACITY
OPINION ESTABLISHING COST ALLOCATION FOR
EL PASO TURNED BACK CAPACITY 2
I. Summary 2
II. Background 2
III. Phase II 4
IV. Procurement of Additional Capacity 5
V. Allocation of Costs 6
A. Edison 7
B. Southwest Gas 7
C. SDG&E 8
D. PG&E 10
E. SoCalGas 14
1. Direct Assignment 15
2. Increasing SoCalGas' Core Holdings 16
3. Allocation of Stranded Costs 18
a) Newly Acquired Turned Back El Paso Capacity 18
b) Pre-Existing Excess El Paso Capacity 19
F. Adjustment to Gas Cost Incentive Mechanisms 21
G. Date for Recovery of Costs for Turned Back Capacity 23
H. Releases of Capacity 23
I. Transwestern Pre-Existing Capacity on PG&E System 25
J. Strategic Storage Reserve 26
VI. Comments on Draft Decision 28
VII. Assignment of Proceeding 28
Findings of Fact 28
Conclusions of Law 31
ORDER 31
ATTACHMENT A - El Paso Pipeline Capacity Obtained by Utilities
OPINION ESTABLISHING COST ALLOCATION FOR
This opinion establishes cost allocation methodologies for Pacific Gas and Electric Company (PG&E), Southern California Gas Company (SoCalGas), Southern California Edison Company (Edison), Southwest Gas Corporation (Southwest Gas), and San Diego Gas & Electric Company (SDG&E) for the costs of the turned back capacity on El Paso Natural Gas Company's (El Paso) interstate pipeline that the utilities were ordered to procure pursuant to Decision (D.) 02-07-037.