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Ronald van der Leeden
Director
Regulatory Affairs
555 W. Fifth Street, GT14D6
Los Angeles, CA 90013-1011
Tel: 213.244.2009
Fax: 213.244.4957
RvanderLeeden@semprautilities.com

February 12, 2018

Advice No. 5255
(U 904 G)
Public Utilities Commission of the State of California
Subject: Modification of Preliminary Statement Part VIII Gas Cost Incentive
Mechanism (GCIM), Pursuant to Decision (D.) 18-01-005
Southern California Gas Company (SoCalGas) hereby submits for approval by the
California Public Utilities Commission (Commission or CPUC) revisions to its GCIM
Preliminary Statement, applicable throughout its service territory, as shown on
Attachment A.
Purpose
This filing complies with Ordering Paragraph (OP) 4 and OP 5 of D.18-01-005,
Decision Approving Southern California Gas Company’s Shareholder Reward for
Year 23 (2016-2017) of the Gas Cost Incentive Mechanism, which states:
4. Within 30 days from the issuance date of this Decision, Southern
California Gas Company (SoCalGas) shall file a Tier 1 Advice Letter to
modify its Tariff Preliminary Statement for the Gas Cost Incentive
Mechanism to note that SoCalGas is required to confer with the
Commission’s Office of Ratepayer Advocates (ORA) in the event that
SoCalGas anticipates that its mid-season core storage inventory will be
less than 47.0 billion cubic feet on July 31 of each calendar year.
5. Southern California Gas Company shall provide written notification of
its mid-season (July 31) and annual (November 1) core purchased
storage inventory targets to the Commission’s Energy Division.
The tariff modifications included as Attachment A are those necessary to implement
D.18-01-005.





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Advice No. 5255 -2- February 12, 2018 Background SoCalGas filed Application (A.) 17-06-016 on June 15, 2017 to request a shareholder reward of $4,235,030 for GCIM Year 23, which covered the period of April 1, 2016 through March 31, 2017. The GCIM compares the Actual Total Annual Purchased Gas Cost (Actual Annual Cost) to the Annual Benchmark Budget (Benchmark Budget). The Actual Annual Cost is the sum of: (1) actual gas commodity costs and transportation costs, (2) net gain or loss from certain gas hedging transactions, (3) net revenues from secondary market services (SMS), and (4) certain other revenues, expenses, and adjustments identified in SoCalGas’ GCIM tariff. The GCIM also includes gas storage inventory targets. Pursuant to D.06-10-029, an initial storage target of 49 billion cubic feet (Bcf) was established for July 31, 2006. For years beyond 2006, D.06-10-029 required SoCalGas to obtain agreement from ORA and The Utility Reform Network (TURN) for mid-season core-purchased inventory targets that must be met unless otherwise agreed to by ORA and TURN. Each agreed upon mid-season core-purchased inventory target was to be reflected in SoCalGas’ GCIM tariff. For GCIM Year 22, SoCalGas obtained agreement from ORA for a mid-season storage (i.e., July 31, 2015) storage target of 47 Bcf. SoCalGas and ORA were not able to come to an agreement regarding the mid-season storage target for GCIM Year 23.1 Pursuant to D.18-01-005 and beginning with GCIM Year 25, SoCalGas must confer with ORA in the event that SoCalGas anticipates that its mid-season core storage inventory will be less than of 47 Bcf. In addition, SoCalGas shall provide written notification of its mid-season (July 31) and annual (November 1) core purchased storage inventory targets to the Commission’s Energy Division. Proposed Revisions to GCIM Pursuant to D.18-01-005, SoCalGas proposes to modify its Sheet 5 of GCIM Preliminary Statement Part VIII as shown in redline below and in Attachment A. C. GAS COST INCENTIVE MECHANISM (GCIM) METHODOLOGY 7. SoCalGas must confer with the Office of Ratepayer Advocates in the event that SoCalGas anticipates that its mid-season core storage inventory will be less than 47 Bcf on July 31 of each calendar year. SoCalGas shall provide written notification of its mid-season (July 31) and annual (November 1) core TURN did not participate in either Year 22 or Year 23 mid-season storage target discussions due to time constraints. SoCalGas and ORA were also unable to come to an agreement regarding the mid-season storage target for GCIM Year 24. 1
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Advice No. 5255 -3- February 12, 2018 purchased storage inventory targets to the Commission’s Energy Division. The Annual Storage Inventory target on November 1 is 83 Bcf of the physical gas supply, with an accepted variance of +0/-2 Bcf. This target does not include any park or net loan positions. If the November 1 target is not attained, deliveries must be made to insure that a minimum of 69 Bcf of actual physical gas in the core’s inventory is reached by December 1. SoCalGas’ share of the The January, February and March minimum month-end targets (equivalent to peak day minimums necessary for serving the core) must be met. Any deviation from these storage winter targets should be explained in SoCalGas’ annual GCIM filing. SoCalGas has obtained agreement from ORA for a mid-season storage target of 47 Bcf as of July 31, 2015, which is a minimum storage level SoCalGas must meet unless otherwise agreed to by ORA and TURN. TURN was unable to participate in the review process for this most recent mid-season storage target due to time constraints. This target may include net loan positions. Protest Anyone may protest this advice letter to the Commission. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. The protest must be made in writing and must be received within 20 days of the date of this advice letter, which is March 4, 2018. There is no restriction on who may file a protest. The address for mailing or delivering a protest to the Commission is given below. CPUC Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 A copy of the protest should also be sent via e-mail to the attention of the Energy Division Tariff Unit (EDTariffUnit@cpuc.ca.gov). A copy of the protest should also be sent via both e-mail and facsimile to the address shown below on the same date it is mailed or delivered to the Commission. Attn: Ray B. Ortiz Tariff Manager - GT14D6 555 West Fifth Street Los Angeles, CA 90013-1011 Facsimile No.: (213) 244-4957 E-mail: ROrtiz@SempraUtilities.com
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Advice No. 5255 -4- February 12, 2018 Effective Date SoCalGas believes this advice letter is subject to Energy Division disposition and, per OP 4 of D.18-01-005, should be classified as a Tier 1 (effective pending disposition) pursuant to General Order (GO) 96-B. Therefore, SoCalGas respectfully requests that the tariff sheets filed herein be made effective for service on February 12, 2018, which is the date filed. Notice A copy of this advice letter is being sent to SoCalGas’ GO 96-B service list and the Commission’s service list A.17-06-016. Address change requests to the GO 96-B service list should be directed by electronic mail to tariffs@socalgas.com or call 213244-2837. For changes to all other service lists, please contact the Commission’s Process Office at 415-703-2021 or by electronic mail at Process_Office@cpuc.ca.gov. _________________________________ Ronald van der Leeden Director- Regulatory Affairs Attachments
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CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No. SOUTHERN CALIFORNIA GAS COMPANY (U904G) Utility type: Contact Person: Ray Ortiz ELC GAS Phone #: (213) 244-3837 PLC HEAT WATER E-mail: ROrtiz@semprautilities.com EXPLANATION OF UTILITY TYPE ELC = Electric PLC = Pipeline GAS = Gas HEAT = Heat (Date Filed/ Received Stamp by CPUC) WATER = Water Advice Letter (AL) #: 5255 Subject of AL: Modification of Preliminary Statement Part VIII Gas Cost Incentive Mechanism (GCIM), Pursuant to Decision (D.) 18-01-005 Keywords (choose from CPUC listing): Storage AL filing type: Monthly Quarterly Annual One-Time Other Periodic If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D.18-01-005 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL No. N/A Summarize differences between the AL and the prior withdrawn or rejected AL1: N/A Does AL request confidential treatment? If so, provide explanation: No Resolution Required? Yes No Tier Designation: Requested effective date: 2/12/18 No. of tariff sheets: Estimated system annual revenue effect: (%): Estimated system average rate effect (%): 1 2 3 3 N/A N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: Preliminary Statement VIII - Gas Cost Incentive Mechanism (GCIM) and TOCs Service affected and changes proposed1: N/A Pending advice letters that revise the same tariff sheets: N/A Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Southern California Gas Company Attention: Tariff Unit Attention: Ray B. Ortiz 505 Van Ness Ave., 555 West 5th Street, GT14D6 San Francisco, CA 94102 Los Angeles, CA 90013-1011 EDTariffUnit@cpuc.ca.gov ROrtiz@semprautilities.com Tariffs@socalgas.com 1 Discuss in AL if more space is needed.
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5P5
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SOUTHERN CALIFORNIA GAS COMPANY LOS ANGELES, CALIFORNIA CANCELING Revised Revised CAL. P.U.C. SHEET NO. CAL. P.U.C. SHEET NO. 54724-G 54722-G TABLE OF CONTENTS The following listed sheets contain all effective Schedules of Rates and Rules affecting service and information relating thereto in effect on the date indicated thereon. GENERAL Cal. P.U.C. Sheet No. Title Page ...................................................................................................................................... 40864-G Table of Contents--General and Preliminary Statement ................. 54724-G,54561-G,54562-G,54725-G Table of Contents--Service Area Maps and Descriptions ............................................................ 53356-G Table of Contents--Rate Schedules ............................................................... 54720-G,54721-G,54702-G Table of Contents--List of Cities and Communities Served ......................................................... 52484-G Table of Contents--List of Contracts and Deviations ................................................................... 52484-G Table of Contents--Rules ............................................................................................... 53910-G,54515-G Table of Contents--Sample Forms .................... 53958-G,53707-G,51537-G,53998-G,54253-G,52292-G PRELIMINARY STATEMENT Part I General Service Information .................................. 45597-G,24332-G,24333-G,24334-G,48970-G Part II Summary of Rates and Charges ............ 54704-G,54705-G,54706-G,54569-G,54570-G,54707-G 54670-G,46431-G,46432-G,54550-G,54679-G,54680-G,54681-G,54575-G Part III Cost Allocation and Revenue Requirement ...................................... 54576-G,50447-G,53583-G Part IV Income Tax Component of Contributions and Advances ................................. 52273-G,24354-G Part V Balancing Accounts Description and Listing of Balancing Accounts .................................................... 52939-G,54130-G Purchased Gas Account (PGA) ............................................................................. 52769-G,53254-G Core Fixed Cost Account (CFCA) ......................................... 53433-G,53434-G,54507-G,53436-G Noncore Fixed Cost Account (NFCA) .................................................. 53255-G,54508-G,54509-G Enhanced Oil Recovery Account (EORA) ........................................................................... 49712-G Noncore Storage Balancing Account (NSBA) ...................................................... 52886-G,52887-G California Alternate Rates for Energy Account (CAREA) ................................... 45882-G,45883-G Hazardous Substance Cost Recovery Account (HSCRA) .................... 40875-G, 40876-G,40877-G Gas Cost Rewards and Penalties Account (GCRPA) ........................................................... 40881-G Pension Balancing Account (PBA) ........................................................................ 54544-G,52941-G Post-Retirement Benefits Other Than Pensions Balancing Account (PBOPBA) .. 54545-G,52943-G Research Development and Demonstration Surcharge Account (RDDGSA) ....................... 40888-G Demand Side Management Balancing Account (DSMBA) .................................... 45194-G,41153-G Direct Assistance Program Balancing Account (DAPBA) .................................... 52583-G,52584-G Integrated Transmission Balancing Account (ITBA) ........................................................... 49313-G (Continued) (TO BE INSERTED BY UTILITY) 5255 D.18-01-005 ADVICE LETTER NO. DECISION NO. 1P4 ISSUED BY (TO BE INSERTED BY CAL. PUC) Dan Skopec DATE FILED Vice President Regulatory Affairs EFFECTIVE Feb 12, 2018 RESOLUTION NO. T
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SOUTHERN CALIFORNIA GAS COMPANY LOS ANGELES, CALIFORNIA CANCELING Revised Revised CAL. P.U.C. SHEET NO. CAL. P.U.C. SHEET NO. 54725-G 54602-G TABLE OF CONTENTS (Continued) PRELIMINARY STATEMENT (Continued) Part VII Tracking Accounts Description and Listing of Tracking Accounts ...................................................................... 49865-G Other Hazardous Substance Tracking Account (OHSTA) ..................................................... 40921-G Vernon Revenue Tracking Account (VRTA) ........................................................................ 40926-G Montebello True-Up Tracking Account (MTTA) .................................................................. 40927-G Native Gas Tracking Account (NGTA) ................................................................................. 42598-G Compression Services Tracking Account (CSTA) ................................................................. 49857-G Biogas Conditioning/Upgrading Services Tracking Account (BCSTA)...................................49866-G Aliso Canyon True-Up Tracking Account (ACTTA) ............................................ 49761-G,49762-G Distributed Energy Resources Services Tracking Account (DERSTA) ................................ 52278-G Part VIII Gas Cost Incentive Mechanism (GCIM) ........................... 45890-G,45891-G,42774-G,45892-G 54723-G,42777-G Part IX Hazardous Substances Mechanism (HSM) ......................................... 48973-G,26200-G,26201-G Part XI Performance Based Regulation (PBR) ................................. 52810-G,52811-G,49328-G,49329-G 49330-G,49331-G,54577-G,49333-G,49334-G 49335-G,50458-G,49337-G,493338-G,49339-G,49340-G Part XII Gain/Loss On Sale Mechanism …. .... 42134-G,42135-G,42136-G,42137-G,42138-G,42138.1-G Part XIII Native Gas Program Mechanism (NGPM) ...................... 42599-G, 42600-G, 42601-G, 42602-G 47166-G, 42604-G, 42605-G Part XIV Cost of Capital Mechanism (CCM) ................................................................................ 49802-G (TO BE INSERTED BY UTILITY) 5255 D.18-01-005 ADVICE LETTER NO. DECISION NO. 4P4 ISSUED BY (TO BE INSERTED BY CAL. PUC) Dan Skopec DATE FILED Vice President Regulatory Affairs EFFECTIVE Feb 12, 2018 RESOLUTION NO. T
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