ALJ/GEW/sid Mailed 6/10/2002
Decision 02-06-023 June 6, 2002
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Southern California Gas Company Regarding Year Six (1999-2000) Under Its Experimental Gas Cost Incentive Mechanism and Related Gas Supply Matters. (U 904 G) |
Application 00-06-023 (Filed June 15, 2000) |
David B. Follett, Judith L. Young, and John R. Ellis, Attorneys at
Law, for Southern California Gas Company, applicant.
Patrick L. Gileau, Attorney at Law, for the Office of Ratepayer
Advocates and Marcel Hawiger, Attorney at Law, for The Utility Reform Network, intervenors.
Stephen E. Pickett, Douglas Kent Porter, Gloria Ing, and Kevin J.
Lipson, Attorneys at Law, for Southern California Edison Company and Norman A. Pedersen, Attorney at Law, for the Southern California Generation Coalition, protestants.
1. Summary
In Phase 2 of this proceeding, we turn to the question of whether to extend the Gas Cost Incentive Mechanism (GCIM) for Southern California Gas Company (SoCalGas), and, if so, whether modifications of the mechanism are appropriate. Following two days of hearings and extensive briefing, we conclude that the public interest is served by extending the GCIM and by adopting changes agreed to by SoCalGas, the Commission's Office of Ratepayer Advocates (ORA) and The Utility Reform Network (TURN). The changes aim generally at reducing consumer costs of gas. We also approve the Settlement Agreement (with one proposed change dealing with storage) entered into by SoCalGas, ORA and TURN that, among other things, caps the amount of shareholder award that can be recovered under the GCIM and increases consumer benefits beginning in Year Seven of the program. In response to concerns about causes of the extreme border price spikes in 2000/2001, our order today also directs the Energy Division to prepare an Order Instituting Investigation for our consideration. This application is closed.
