8. Additional Customer Services
8.1. Fifth Nomination Cycle
Applicants propose establishment of a service that facilitates customers' ability to manage transportation imbalances by permitting arrangements with SoCalGas' storage and third-party storage providers directly connected to the SoCalGas system (e.g., a fifth nomination cycle before the end of the flow day). This fifth nomination cycle will be deemed the intraday three-cycle. SoCalGas would be entitled to recover in retail rates all reasonable costs of establishing and providing this new service.85 No party opposed the proposal to establish this new service.
We agree that this new service will assist customer in managing their gas supplies and potential imbalances on the SoCalGas/SDG&E system. We hereby approve this proposal as described in the testimony of Schwecke (Ex. 29).
8.2. Optional Enhanced Balancing Services
Applicants propose that, within three months after Commission approval of their proposal, SoCalGas will meet and confer with any customers interested in optional enhanced tariff balancing services relative to existing imbalance tolerances to determine if market interest warrants a new tariff service or if individual customer needs can be met with contract services under existing tariffs. So long as the proposed new services are physically practical and cannot be affirmatively demonstrated to impact the reliability of service to other customers, SoCalGas would thereafter present the new services to the Commission for approval. Applicants propose that SoCalGas be entitled to recover from customers all reasonable costs of establishing and providing these new services. Applicants do not oppose the SCGC's proposal to seek approval through application rather than advice letter filing.
We grant Applicants' request for approval of the proposal to meet and confer with customers interested in optional enhanced balancing services with the stipulation that Commission approval of any such services shall be sought through formal application rather than by advice letter.
In accordance with terms of the Edison Settlement, Applicants propose that SoCalGas and SDG&E will annually publish the capacity and projected average daily usage of their combined backbone transmission system for the upcoming year. If actual usage for any 12-month period exceeds 75%, SoCalGas and SDG&E will convene a public workshop to review the forecast and determine whether a change to the five-year forecast is warranted.
No party opposed this proposal, and DRA and Indicated Producers expressed support for it. We find the proposal reasonable and hereby approve it.
Applicants propose that, within one year after approval of their proposal, and at least once every three years thereafter, SoCalGas and SDG&E will develop a system expansion study of the SoCalGas and SDG&E interconnect points, backbone system, and storage facilities as described in their testimony. SoCalGas and SDG&E seek authorization to recover from customers all reasonable costs related to performing these studies and having the studies reviewed by an independent third party.
No party opposed this proposal. Indicated Producers expressed support for it. All customers have the potential to benefit from the expansion of system capacity. We accordingly approve Applicants proposal to develop a system expansion study of the SoCalGas/SDG&E interconnect points, backbone system, and storage facilities. Interested parties will have the ability to comment upon and challenge these studies, including key supporting assumptions and reliability parameters.86
85 Ex. 29 (Schwecke) at 14-15 and Sheet 6 of Appendix L to Schweke's testimony sets forth the details of this new service.
86 The timing and scope of these studies are set forth in Ex. 45 (Trinooson) at 3-4.
