3. Jurisdictional Question

At hearing, the assigned Administrative Law Judge asked the parties to brief the question of whether this Commission will continue to have jurisdiction over SCE's gas operation in Catalina once SCE replaces its gas vaporization plant. The replacement will convert the operation from blended propane/butane liquefied gas to all-propane gas. The question arises because Pub. Util. Code § 221 defines "gas plant" in a manner that appears to exclude all-propane gas plants from Commission jurisdiction. A discussion of the jurisdictional question is attached to this decision as Appendix B.

The Commission addressed the jurisdictional question in the 1980 general rate case, concluding that since butane at that time was the principal ingredient in the butane/propane mix, the § 221 exclusion would not apply to SCE's Catalina gas operation. All parties agree that at the time of this application and hearing, Commission jurisdiction continued to apply. Our decision today assumes that continued jurisdiction, but we direct our Office of Governmental Affairs to seek clarification of this issue from the Legislature prior to SCE's next Catalina gas general rate case. In that connection, we also direct our General Counsel to consider an appropriate amendment to the Public Utilities Code, if deemed necessary, that we could recommend to the Governor and to the Legislature.