Background

On August 1, 2000, Sempra, on behalf of SDG&E, filed Advice Letter (AL) 1210-G requesting emergency review and approval of its proposal to temporarily revise the gas transportation service level elections of its large electric generation customers, i.e., those with an average daily gas usage of greater than 15 million cubic feet, from firm noncore service to interruptible noncore service. SDG&E's gas curtailment order is described in its Gas Tariff Rule 14. Under SDG&E's current curtailment rules, all firm service noncore customers, including (1) noncore commercial and industrial customers and (2) electric generators, would be curtailed in the event of inadequate supply. One block each of electric generators and one block of noncore commercial and industrial customers would be curtailed simultaneously, in rotating blocks. Because commercial and industrial customers consume such a small amount of gas relative to electric generators, SDG&E's proposal would have had the effect of curtailing only the three major electric generation plants ("Power Plants") served by SDG&E--Encina, South Bay, and Rosarito, Mexico.

Over this past summer, high electricity demand and prices drove electric generators to consume unusually high levels of natural gas. SDG&E also began to provide service to a new electric generator, in Rosarito, contributing to the increased capacity demands. In AL 1210-G, SDG&E stated that its "noncore customers are far more likely to be curtailed this summer than they have been at any time during the past ten years."

Numerous parties filed protests of AL 1210-G on a variety of issues, as summarized below. On October 3, 2000, SDG&E withdrew AL 1210-G.