ALJ/CAB/avs DRAFT CA-8
10/5/2000
Decision DRAFT DECISION OF ALJ BROWN (Mailed 9/5/00)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Southern California Gas Company for Authority to Revise Its Rates Effective January 1, 1997, In Its Biennial Cost Allocation Proceeding. |
Application 96-03-031 (Filed March 15, 1996) |
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In the Matter of the Application of San Diego Gas & Electric Company for Authority to Revise Its Rates Effective January 1, 1997, In Its Biennial Coat Allocation Proceeding. |
Application 96-04-030 (Filed April 15, 1996) |
OPINION AWARDING COMPENSATION
This decision grants The Utility Reform Network (TURN) an award of $124,063.12, plus interest from March 20, 2000, until date paid, in compensation for its contributions and participation in Decision (D.) 99-11-021.
1. Background
The above-captioned applications were resolved initially by D.97-04-082, where the Commission determined that surcharges paid by Southern California Gas Company (SoCalGas) to El Paso and Transwestern pipelines related to the release of firm capacity reservation (step-down costs) were new costs, and allocated these surcharges in proportion to the step-down costs of SoCalGas' core and noncore customers. The distribution resulted in the $161.8 million surcharge costs being apportioned so that the core customers would pay $122 million and noncore customers would pay $39.8 million.
The Commission granted limited rehearing of D.97-04-082 for the purpose of hearing evidence on the issue of the proper allocation of the step-down costs between the core and noncore customers. TURN is seeking compensation for work performed during the Rehearing phase.
In the rehearing phase of this proceeding, TURN's position was that the allocation of the surcharge costs to core customers as set forth in D.97-04-082, was in error. TURN argued that core customers should not pay any of the surcharge costs, since the benefit of the step-down costs that caused the surcharges accrued to noncore customers. The Commission adopted TURN's position, and in D.99-11-021, reallocated $88.1 million of the costs originally allocated to core customers. The final allocation of the surcharge costs as established in D.99-11-021 was that the core customers would pay $33.9 million, instead of $122 million.
