I. Summary

This decision addresses the system integration proposal of San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas). The proposal seeks to combine the transmission-related costs of SDG&E and SoCalGas so that customers of each utility share in the transmission costs of both utilities. The combined costs would then be allocated to the customers of SDG&E and SoCalGas to develop the rates shown in Appendix A of this decision. These integrated transmission rates would allow customers of SDG&E and SoCalGas to obtain gas at that rate from any existing or new receipt point on the SDG&E and SoCalGas systems.

In today's decision, we approve the system integration proposal. SDG&E and SoCalGas are permitted to combine the transmission costs of the two utilities, and to develop integrated transmission rates for the various customer classes of both utilities using the cost allocation methodology they proposed. These rates shall go into effect on the first day of the month in which regasified liquefied natural gas (LNG) is expected to flow through Otay Mesa.