Details for: AL5405.pdf

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

December 28, 2018

Advice No. 5405
(U 904 G)
Public Utilities Commission of the State of California
Subject: SoCalGas Annual Disconnection Goal Pursuant to Decision 18-12-013
In compliance with Ordering Paragraph (OP) 1(a) of Decision (D.) 18-12-013, Southern
California Gas Company (SoCalGas) hereby submits this advice letter (AL) to notify the
California Public Utilities Commission (Commission) of SoCalGas’ annual disconnection
On September 28, 2017, Governor Brown signed Senate Bill (SB) 598 into law. SB 598
states that disconnections of gas and electric utility customers have been rising and
notes the public health impacts in terms of hardship and stress resulting from
disconnections, especially among vulnerable populations. Among other things, SB 598
requires the Commission to develop rules, policies or regulations with a goal of reducing
the statewide disconnection rate of gas and electric utility customers by January 1,
2024. SB 598 also sets forth circumstances under which a customer shall not be
disconnected for nonpayment, including a customer receiving a medical baseline
allowance, a customer (or member of their household) receiving hospice care, customer
dependence on life-support equipment, or the presence of medical conditions requiring
electric and natural gas service to sustain life or prevent deterioration of the medical
On July 20, 2018, the Commission initiated a rulemaking proceeding, Rulemaking (R.)
18-07-005, to consider new approaches to disconnections and reconnections to
improve energy access across California’s electric and gas investor-owned utilities and
to implement specific requirements in SB 598. The Commission also intended to
analyze the current disconnection paradigm more broadly to determine if more effective


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Advice No. 5405 -2- December 28, 2018 structures or policies can be adopted to reduce disconnections, reduce costs, and improve the disconnection process across utilities. R.18-07-005 intends to undertake a comprehensive assessment of the root causes of (or events that correlate with) residential customer disconnections while also evaluating the rules, processes and procedures regarding disconnections and reconnections at both a statewide and utility specific level. On December 13, 2018, the Commission adopted D.18-12-013, which establishes interim rules to reduce residential customer disconnection for California-jurisdictional energy utilities while continuing to consider longer term solutions in the rulemaking proceeding. Pursuant to OP 1(a), effective January 1, 2019, each respective utility is to set a goal of limiting residential customer disconnections to its recorded 2017 percentage. Disconnections implemented for each subsequent year are to remain below the interim annual disconnection goal. OP 1(a) directs the utilities to calculate their annual goals by applying their 2017 disconnection percentages to their residential populations as of the effective date of D.18-12-013 (i.e., December 13, 2018). The recorded 2017 disconnection percentages to be used are set forth in Appendix A of D.18-12-013 (or, 2.10% for SoCalGas). The decision notes that the goal will remain in effect until the end of Phase 1 of the Rulemaking proceeding, but no later than 18 months from the decision (i.e., June 13, 2020).1 OP 3 of the decision adopts reporting requirements should a utility exceed its annual disconnections goal. Pursuant to OP 1(a) of D.18-12-013, utilities are required to submit an advice letter presenting their annual disconnection goals. Calculation of Annual Disconnection Goal As noted previously, SoCalGas’ 2017 disconnection rate of 2.10% is to be applied to its December 13, 2018 residential population in order to determine the annual disconnection goal. SoCalGas’ best available information for its residential population is as of December 3, 2018, and therefore uses that information as a proxy for the calculation. SoCalGas’ residential population on December 3, 2018 was 5,581,041. Accordingly, SoCalGas’ annual disconnection goal for the purposes of D.18-12-013 is 117,202 (i.e., 2.1% * 5,581,041). Protest Anyone may protest this AL 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 from the date of this AL, which is January 17, 2019. The address for mailing or delivering a protest to the Commission is: 1 D.18-12-013 at p. 18.
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Advice No. 5405 -3- December 28, 2018 CPUC Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Copies of the protest should also be sent via e-mail to the attention of the Energy Division Tariff Unit ( A copy of the protest shall 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: Effective Date This submittal is subject to Energy Division disposition and should be classified as Tier 1 (effective after approval) pursuant to General Order (GO) 96-B and OP 1(a) of D.1812-013. Therefore, SoCalGas respectfully requests that this submittal be approved and made effective December 28, 2018. Notice A copy of this AL is being sent to SoCalGas’ GO 96-B service list and the Commission’s service lists for R.18-07-005. Address change requests to the GO 96-B service list should be directed via e-mail to or call 213-244-2837. For changes to all other service lists, please contact the Commission’s Process Office at 415-703-2021 or via e-mail at _________________________________ Ronald van der Leeden Director – Regulatory Affairs Attachments
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ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Southern California Gas Company (U 904G) Utility type: ELC PLC ELC = Electric PLC = Pipeline ✔ GAS WATER HEAT Contact Person: Ray B. Ortiz Phone #: (213) 244-3837 E-mail: E-mail Disposition Notice to: EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 5405 Subject of AL: SoCalGas Annual Disconnection Goal Pursuant to Decision 18-12-013 Keywords (choose from CPUC listing): Disconnect Service AL Type: Monthly Quarterly Annual ✔ One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D.18-12-013 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: No Summarize differences between the AL and the prior withdrawn or rejected AL: N/A Yes Yes ✔ No ✔ No 12/28/18 No. of tariff sheets: 0 Estimated system annual revenue effect (%): N/A Estimated system average rate effect (%): 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: N/A Service affected and changes proposed1: N/A Pending advice letters that revise the same tariff sheets: N/A 1 Discuss in AL if more space is needed. Clear Form
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Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Email: Name: Ray B. Ortiz Title: Regulatory Tariff Manager Utility Name: Southern California Gas Company Address: 555 West Fifth Street, GT14D6 City: Los Angeles Zip: 90013-1011 State: California Telephone (xxx) xxx-xxxx: (213) 244-3837 Facsimile (xxx) xxx-xxxx: (213) 244-4957 Email: Name: SoCalGas Tariffs Title: Utility Name: Southern California Gas Company Address: 555 West Fifth Street, GT14D6 City: Los Angeles State: California Zip: 90013-1011 Telephone (xxx) xxx-xxxx: (213) 244-2837 Facsimile (xxx) xxx-xxxx: (213) 244-4957 Email: Clear Form
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