ALJ/JSW/eap Mailed 11/21/2005
Decision 05-11-027 November 18, 2005
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of SOUTHERN CALIFORNIA GAS COMPANY for Authority to Transfer Cushion Gas in its Aliso Canyon And La Goleta Storage Fields to Alleviate the Impact of High Gas Prices on CARE Customers. (U 904 G). |
Application 05-10-012 (Filed October 11, 2005) |
1. Summary
On October 11, 2005, Southern California Gas Company (SoCalGas) filed its application requesting, among other things, authorization to reclassify 4 billion cubic feet (Bcf) of cushion gas from two of its natural gas storage fields to working gas, and that the gas in kind be transferred to its ratepayers in the California Alternate Rates for Energy (CARE) program at the book value of about $1.5 million. The reclassification of the gas will occur as the result of reworking the wells so that less cushion gas will be needed to maintain the minimum gas reservoir pressure while continuing to provide the current level of deliverability.
Today's interim opinion authorizes SoCalGas to reclassify the 4 Bcf of cushion gas as working gas, to withdraw the gas, and to transfer the gas in kind to SoCalGas' CARE customers at book value. We also authorize SoCalGas to include all of the project costs in rate base, and to recover the associated revenue requirement from CARE customers. In a later phase of this proceeding, we will address who should benefit from the revenues generated from the sale of the additional 4 Bcf of gas storage capacity that will be created as a result of the rework project.
