III. Issues Presented

This phase of the proceeding addresses three principal issues. These issues are as follows: (1) whether the Commission should adopt a system of FAR as the gas market structure for SDG&E and SoCalGas, or should it retain the current system of allocating capacity; (2) whether SoCalGas should be permitted to provide off-system transmission service to PG&E; and (3) whether this Commission should retain the SoCalGas peaking rate. Other issues are whether the Commission should authorize a citygate pooling service, when SDG&E and SoCalGas should file their next Biennial Cost Allocation Proceeding (BCAP), and what impact today's decision has on D.01-12-018 and D.04-04-015.

Although this proceeding is addressing many of the issues addressed in the CSA and in I.99-07-003, this proceeding is not addressing gas balancing operations, diversion and curtailment procedures, and gas storage and hub transactions. (See May 24, 2005 Scoping Memo.)