ALJ/CAB/eap * Mailed 7/1/2002
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. |
FILED PUBLIC UTILITIES COMMISSION JUNE 27, 2002 SAN FRANCISCO OFFICE RULEMAKING 02-06-041 |
ORDER INSTITUTING RULEMAKING TO REQUIRE
CALIFORNIA NATURAL GAS AND ELECTRIC UTILITIES TO
PRESERVE INTERSTATE PIPELINE CAPACITY TO CALIFORNIA
I. SUMMARY
This Order Instituting Rulemaking (OIR) is issued in response to the May 31, 2002 Federal Energy Regulatory Commission (FERC) order authorizing marketers currently serving California to turn back up to 725 million cubic feet per day (MMcf/d) of firm capacity on the El Paso Natural Gas Company (El Paso) interstate pipeline to El Paso's East of California (EOC) customers. As a result, California could permanently lose up to 725 MMcf/d of El Paso capacity unless replacement shippers acquire the turned back capacity.
Permanent loss of existing interstate pipeline capacity to California can occur as early as July 31, 2002, therefore, time is of the essence. To ensure that California retains sufficient interstate pipeline capacity to meet the needs of its natural gas and electric consumers, the Commission issues two proposed rules for comment. So that the Commission can issue its decision at the July 17, 2002 meeting, initial comments are due by July 8, 2002, reply comments are due by July 12, 2002.
The first proposed rule would require California's natural gas utilities, Southern California Gas Company (SoCalGas), Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southwest Gas Corporation (Southwest Gas), as well as California's largest electric utilities, Southern California Edison Company (Edison), PG&E, and SDG&E, to sign up for as much of this turned back capacity as possible at appropriate El Paso delivery points unless other California replacement shippers sign up for the turned back capacity. The second proposed rule states that the Commission pre-approves and finds just and reasonable the California utilities' subscription to this turned back capacity.
Each of the above-mentioned California utilities are respondents in this proceeding and are required to file comments on these proposals. All other interested parties may file comments.
Because time is of the essence, the two proposed rules need to be acted upon by July 17, 2002. In a subsequent phase of this OIR, the Commission will address other issues that relate to these proposed rules.
