6. Additional Postings on the
Electronic Bulletin Board (EBB)
6.1. Parties' Position
SoCalGas/SDG&E's EBB is the primary system that manages gas flow on the pipeline system at a customer level, facilitating gas system operations, planning, and regulatory compliance. Applicants propose that postings of information on the SoCalGas/SDG&E EBB be augmented to disclose the following on a weekly basis: net hub position, net volumes loaned and parked, withdrawal schedules for all hub volumes parked, repayment schedules for all hub volumes loaned, and physical core storage inventory positions. Applicants argue that these additional posting provisions will benefit customers and other market participants by increasing the transparency of hub operations and disclosing weekly information about the core's storage inventory positions that would otherwise be kept confidential.
Coral and Indicated producers argue that the additional EBB postings, as proposed by Applicants, do not go far enough, and that all core procurement department information should be posted on the EBB on a daily basis. Coral and Indicated Producers propose that information regarding core storage, core hub, and core operations be posted on the EBB on a daily basis. They argue that the daily posting of this information is needed to assess whether the core procurement department was improperly using core assets to limit noncore deliveries or to influence prices. Coral claims that because of the potential for the market power possessed by SoCalGas and its potential for abuse, it is appropriate to subject it to higher levels of scrutiny than other market participants.
Applicants argue that the additional postings of core customer transactions proposed by Coral would place core customers at a significant disadvantage relative to all other market participants, including Coral. Applicants argue the provisions for postings resulting from the Continental Forge and Edison settlements are the result of extensive litigation and negotiation and far in excess of any requirements imposed on other gas utilities. Moreover, Applicants already provide the core's transaction activity in detail to DRA on a monthly basis, and SoCalGas' core procurement group has bi-weekly conference calls with DRA, TURN, and the Commission's Energy Division. These practices will continue after the portfolios are combined.
Applicants argue that because SoCalGas' core procurement department is a competitor in the southern California gas market, it could be disadvantaged if its operational information was required to be posted on a daily basis. Competitors could thereby be able to analyze SoCalGas' activities over time to establish patterns of conduct in gas purchase and sales, even though other market participants are not required to disclose similar information.71
6.2. Discussion
We conclude that the additional EBB postings proposed by Applicants, as identified above, are appropriate as a basis to increase the increasing the transparency of hub operations. The SoCalGas/SDG&E EBB already discloses various operating data without sharing any proprietary information.72 Remedial Measures 12, 14, and 16 require physical separation and the posting of communications on SoCalGas' EBB. The Remedial Measures also address how the Commission will enforce these measures and provides for audit authority after the fact. The Commission already has authority to impose penalties on the utility for violation of these measures. Thus, we agree that there is no need for additional requirements for penalties. We agree with Applicants that public disclosure of SoCalGas/SDG&E core operational information on a daily basis could result in harm to utility customers by impairing the utilities' bargaining position relative to all other market participants. Daily core postings could enable certain market participants to "front run" core procurement whenever core had a storage target that it needed to reach. We reject Coral's claims that the additional postings are required to counteract SoCalGas market power. We approve Applicants' proposal regarding additional EBB postings.
71 See Goldstein Ex. 37 at 4; and Tr. 5/751-52.
72 SoCalGas' Rule 33.
