XIV. Hub Services

SoCalGas' Hub services provide interruptible parking, loaning, and wheeling gas service. Currently, revenue from Hub services is credited to core customers through the GCIM. This treatment is based upon a finding by the Commission that the assets used to provide the services are funded by core customers. SCGC claims that SoCalGas has a conflict of interest in operating its Hub services and to remedy this conflict the Commission should remove Hub revenues from the GCIM and allocate them to all customers on an EPMC basis. Since Hub services rely on core assets, ORA continues to support the current mechanism. SCGC suggests a variety of changes to SoCalGas' operating procedures to circumscribe what it perceives to be SoCalGas' ability to use its control over monopoly services to promote its optional Hub and unbundled storage services. In addition, Edison argues that Hub revenues should be shared with noncore customers.¹⁰

All the foregoing issues are currently being reviewed in GIR. It is appropriate that they remain, and are decided in, that proceeding. D.99-07-015 states as part of GIR (I.99-07-003) the Commission will "examine the possibility of a conflict of interest between SoCalGas' hub services and core procurement in the cost/benefit phase of this proceeding" (D.99-07-015, mimeo., at 48). This examination will include the possibility that "hub service revenues would be removed from the GCIM calculation." (Id., at 49.) Furthermore, many of the issues addressed involve operational matters and procedures clearly outside of the parameters of a BCAP proceeding, the purpose of which is cost allocation and rate design.