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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@socalgas.com

February 13, 2020

Advice No. 5414-C
(U 904G)
Public Utilities Commission of the State of California
Subject: Partial Supplement - Establishment of San Joaquin Valley
Disadvantaged Communities Balancing Account Pursuant to Decision
(D.) 18-12-015
Southern California Gas Company (SoCalGas) hereby requests California Public
Utilities Commission (Commission) approval of modifications to its Preliminary
Statement - Part V, Balancing Accounts, applicable throughout its service territory,
as shown on Attachment A.
Purpose
Pursuant to Resolution (Res.) E-5055, SoCalGas submits this Advice Letter (AL) to
modify the San Joaquin Valley Disadvantaged Communities Balancing Account
(SJVDACBA) to begin tracking the costs identified in AL 5414-B, remove language
regarding how the tracked costs are allocated to customers, and note that SoCalGas
will not seek cost recovery for these tracked costs until the appropriate cost allocation
methodology is determined in its next Triennial Cost Allocation Proceeding (TCAP)
cycle.
This submittal partially supplements AL 5414-B, which itself had fully replaced AL 5414A, submitted on March 8, 2019. AL 5414-B provided updated budget totals and
described the type of expenses to be tracked in the SJVDACBA. AL 5414-B was
approved by Res. 5055-E, subject to the modifications described herein.
Background
On December 19, 2018, the Commission issued D. 18-12-015 approving the San
Joaquin Valley Disadvantaged Communities Pilot Projects. Ordering Paragraph (OP)
24 of D.18-12-015 directed SoCalGas to submit a Tier 1 AL within 45 days of the





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Advice No. 5414-C -2- February 13, 2020 issuance date of the decision to establish a one-way balancing account with two subaccounts: one subaccount to record the revenue requirement associated with all tothe-meter (TTM) costs that will be recovered in transportation rates until the TTM costs are rolled into base rates in connection with SoCalGas’ General Rate Case; and the second subaccount to track beyond-the-meter, non-leveraged costs that will be recovered in Public Purpose Program surcharge rates. Also, OP 29 of D.18-12-015 directed SoCalGas to recover its costs in the one-way balancing account authorized in OP 24 associated with pilot project process evaluation study, contracting to support development of an economic feasibility framework, and Community Energy Navigator. On January 11, 2019, SoCalGas submitted AL 5414 to establish the SJVDACBA, including both identified subaccounts. On March 8, 2019, SoCalGas submitted supplemental AL 5414-A in response to a request by the Public Advocates Office to provide a description of the cost-allocation methodology for SJVDACBA. Pursuant to Energy Division’s request to provide an updated budget total and description of the type of expenses to be tracked in the SJVDACBA, SoCalGas submitted AL 5414-B on June 25, 2019. On February 6, 2020, the Commission adopted Res. E-5055, which approved AL 5414B with specified modifications. OP 2 in Res. E-5055 directed SoCalGas to submit a supplemental Tier 1 AL within 15 days modifying AL 5414-B to: State that SoCalGas will begin tracking costs identified in AL 5414-B; remove language about how the tracked costs will be allocated to customers; and specify that SoCalGas shall not seek cost recovery for these tracked costs until the appropriate cost allocation methodology is determined in its next TCAP cycle. Authorized Budget and Expense Type As directed, SoCalGas will begin tracking the costs identified in AL 5414-B in the SJVDACBA. Rate Design and Cost Allocation Methodology As directed, the SJVDACBA, included on Attachment A, is revised to remove language about how tracked costs will be allocated to customers and state SoCalGas will not seek cost recovery for tracked costs until the appropriate cost allocation methodology is determined in its next TCAP cycle. Protests 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. Any protests must be made in writing and must be received within 20 days of the date of this AL, which is March 4, 2020. The address for mailing or delivering a protest to the Commission is:
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Advice No. 5414-C -3- February 13, 2020 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 (EDTariffUnit@cpuc.ca.gov). 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: ROrtiz@socalgas.com Effective Date SoCalGas asserts this AL is subject to Energy Division disposition and should be classified as Tier 1 (effective pending disposition) pursuant to General Order (GO) 96-B and OP 2 of Res. E-5055. Accordingly, SoCalGas respectfully requests that this AL be made effective for service on January 11, 2019, which is the effective date requested in AL 5414. Notice A copy of this AL is being sent to SoCalGas’ GO 96-B service list and the Commission’s service list in R.15-03-010. Address change requests to the GO 96-B service list should be directed via e-mail to tariffs@socalgas.com 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 Process_Office@cpuc.ca.gov. _____________________________ 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: ROrtiz@socalgas.com E-mail Disposition Notice to: Tariffs@socalgas.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 5414-C Subject of AL: Partial Supplement - Establishment of San Joaquin Valley Disadvantaged Communities Balancing Account Pursuant to Decision (D.) 18-12-015 Keywords (choose from CPUC listing): Balancing Account, Tariffs AL Type: Monthly Quarterly Annual ✔ One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D.18-12-015 and Resolution E-5055 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 1/11/19 No. of tariff sheets: 4 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: Preliminary Statement (PS) - Part V - Balancing Accounts, San Joaquin Valley Disadvantaged Communities Balancing Account (SJVDACBA), and TOCs. 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: EDTariffUnit@cpuc.ca.gov 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: ROrtiz@socalgas.com 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: Tariffs@socalgas.com Clear Form
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ATTACHMENT A Advice No. 5414-C Cal. P.U.C. Sheet No. Original 57207-G Original 57208-G Revised 57209-G Revised 57210-G Title of Sheet PRELIMINARY STATEMENT - PART V – BALANCING ACCOUNTS, SAN JOAQUIN VALLEY DISADVANTAGED COMMUNITIES, BALANCING ACCOUNT (SJVDACBA), Sheet 1 PRELIMINARY STATEMENT - PART V – BALANCING ACCOUNTS, SAN JOAQUIN VALLEY DISADVANTAGED COMMUNITIES , BALANCING ACCOUNT (SJVDACBA), Sheet 2 TABLE OF CONTENTS TABLE OF CONTENTS 1 Cancelling Cal. P.U.C. Sheet No. Original 55870-G Original 56061-G, 56419G Original 55871-G Original 56062-G, 56420G Revised 57196-G Revised 56862-G
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SOUTHERN CALIFORNIA GAS COMPANY LOS ANGELES, CALIFORNIA CANCELING Original Original CAL. P.U.C. SHEET NO. CAL. P.U.C. SHEET NO. 57207-G 55870-G 56061-G, 56419-G PRELIMINARY STATEMENT - PART V – BALANCING ACCOUNTS SAN JOAQUIN VALLEY DISADVANTAGED COMMUNITIES BALANCING ACCOUNT (SJVDACBA) Sheet 1 1. Purpose The SJVDACBA is an interest-bearing account recorded on SoCalGas’ financial statements. Pursuant to Decision (D.) 18-12-015, “Decision Approving San Joaquin Valley Disadvantaged Communities (DACs) Pilot Projects,” and Resolution E-5055, the SJVDACBA will record the costs associated with the DACs Pilot Projects in two separate balancing accounts: • • To-the-Meter (TTM) Subaccount; and Beyond-the-Meter (BTM) Subaccount. 2. Applicability The SJVDACBA shall apply to gas customers except those excluded by the Commission. 3. Rates See Disposition Section. 4. Accounting Procedures – TTM Subaccount SoCalGas maintains this account by making monthly entries, net of applicable FF&U, as follows: a) A debit entry to record the incremental O&M administrative costs associated with the approved DACs Pilot Projects; b) A debit entry to record the incremental TTM capital-related costs (depreciation, return, and income taxes) associated with the approved DACs Pilot Projects; c) A credit entry equal to the amortization in gas transportation rates as authorized by Commission; and d) An entry equal to interest on the average of the balance in the account during the month, calculated in the manner described in Preliminary Statement, Part I, J. (Continued) (TO BE INSERTED BY UTILITY) 5414-C 18-12-015 ADVICE LETTER NO. DECISION NO. 1P5 ISSUED BY (TO BE INSERTED BY CAL. PUC) Dan Skopec SUBMITTED Vice President Regulatory Affairs EFFECTIVE Feb 13, 2020 RESOLUTION NO. E-5055 N
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SOUTHERN CALIFORNIA GAS COMPANY LOS ANGELES, CALIFORNIA CANCELING Original Original CAL. P.U.C. SHEET NO. CAL. P.U.C. SHEET NO. 57208-G 55871-G 56062-G, 56420-G PRELIMINARY STATEMENT - PART V – BALANCING ACCOUNTS SAN JOAQUIN VALLEY DISADVANTAGED COMMUNITIES BALANCING ACCOUNT (SJVDACBA) (Continued) Sheet 2 5. Accounting Procedures – BTM Subaccount SoCalGas maintains this account by making monthly entries, net of applicable FF&U, as follows: a) A debit entry to record the incremental BTM, non-leveraged O&M costs associated with the approved DAC pilot projects; b) A debit entry to record costs associated with a pilot project process evaluation, contracting to support development of an economic feasibility framework, and for Community Energy Navigator (CEN) cost sharing detail as provided for in D.18-12-015; c) A credit entry equal to the recorded Public Purpose Program (PPP) gas surcharge billed for the month, net of actual bad debt write-offs; d) A debit entry equal to the PPP gas surcharge funds, net of any refunds to exempt customers, remitted to the State Board of Equalization (BOE) pursuant to Assembly Bill 1002; e) A debit entry equal to refunds to customers that are exempt from the surcharge under Section 896 of the Public Utilities Code and the California Energy Resources Surcharge Regulation Sections 2315 and 2316; f) A credit entry equal to the reimbursement of the gas surcharge funds, including actual interest earned in the Gas Consumption Surcharge Fund while the funds were in the possession of the State. The amount reimbursed excludes the funds retained by the BOE/Commission to offset their administration costs and any refunds paid by the BOE to customers that are exempt from the surcharge; and g) An entry equal to interest on the average of the balance in the account during the month, calculated in the manner described in Preliminary Statement, Part I, J. 6. Disposition The SJVDACBA balance will be addressed in SoCalGas’ next Triennial Cost Allocation Proceeding (TCAP). Recovery of costs is limited to the allocated budget approved by the Commission, and any over-expenditures may not be recovered from ratepayers. Shareholders absorb the balance in the event that actual costs exceed authorized budget levels allocated to SoCalGas. (Continued) (TO BE INSERTED BY UTILITY) 5414-C 18-12-015 ADVICE LETTER NO. DECISION NO. 2P6 ISSUED BY (TO BE INSERTED BY CAL. PUC) Dan Skopec SUBMITTED Vice President Regulatory Affairs EFFECTIVE Feb 13, 2020 RESOLUTION NO. E-5055 D,N N
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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. 57209-G 57196-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 ................. 57209-G,57210-G,56863-G,57044-G Table of Contents--Service Area Maps and Descriptions ............................................................ 53356-G Table of Contents--Rate Schedules ................................................................ 57194-G,57195-G,57176-G Table of Contents--List of Cities and Communities Served ......................................................... 55739-G Table of Contents--List of Contracts and Deviations ................................................................... 56669-G Table of Contents--Rules ............................................................................................... 56619-G,56671-G Table of Contents--Sample Forms .................... 56285-G,56672-G,51537-G,54745-G,55947-G,52292-G PRELIMINARY STATEMENT Part I General Service Information .................................. 45597-G,24332-G,54726-G,24334-G,48970-G Part II Summary of Rates and Charges ............ 57178-G,57179-G,57180-G,57008-G,57009-G,57181-G 57132-G,46431-G,46432-G,57076-G,57141-G,57142-G,57143-G,57014-G Part III Cost Allocation and Revenue Requirement ....................................... 57015-G,50447-G,57016-G Part IV Income Tax Component of Contributions and Advances ................................. 55717-G,24354-G Part V Balancing Accounts Description and Listing of Balancing Accounts .................................................... 52939-G,56825-G Purchased Gas Account (PGA) ............................................................................. 55465-G,55466-G Core Fixed Cost Account (CFCA) ......................................... 56826-G,53434-G,55692-G,56827-G Noncore Fixed Cost Account (NFCA) ................................................... 53255-G,55693-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) ........................................................................ 56828-G,56829-G Post-Retirement Benefits Other Than Pensions Balancing Account (PBOPBA) .. 56830-G,56831-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) 5414-C 18-12-015 ADVICE LETTER NO. DECISION NO. 1P5 ISSUED BY (TO BE INSERTED BY CAL. PUC) Dan Skopec SUBMITTED Vice President Regulatory Affairs EFFECTIVE Feb 13, 2020 RESOLUTION NO. E-5055 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. 57210-G 56862-G TABLE OF CONTENTS (Continued) PRELIMINARY STATEMENT (Continued) Part V Balancing Accounts (Continued) Compressor Station Fuel and Power Balancing Account (CFPBA) ................................... 54460-G Distribution Integrity Management Program Balancing Account (DIMPBA) ................... 49314-G Rewards and Penalties Balancing Account (RPBA) ............................................ 49315-G,49316-G On-Bill Financing Balancing Account (OBFBA) ................................................................. 45195-G Company Use Fuel for Load Balancing Account (CUFLBA) ............................................ 45279-G Backbone Transmission Balancing Account (BTBA) ........................................... 55694-G,53438-G Advanced Metering Infrastructure Balancing Account (AMIBA) .......... 56832-G,53972-G,53973-G 53974-G,56833-G New Environmental Regulation Balancing Account (NERBA) .......... 56834-G,52946-G,56835-G Transmission Integrity Management Program Balancing Account (TIMPBA) ..... 56836-G,56837-G Post-2011 Distribution Integrity Management Program Balancing Account (Post-2011 DIMPBA) ....................................................................... 56838-G Compression Services Balancing Account (CSBA) ........................................................... 48857-G Biogas Conditioning/Upgrading Services Balancing Account (BCSBA) ............................. 49864-G Master Meter Balancing Account (MMBA) .......................................................... 56839-G,56840-G Safety Enhancement Capital Cost Balancing Account (SECCBA) ....... 56231-G, 56232-G, 56233-G Safety Enhancement Expense Balancing Account (SEEBA) ................................ 56234-G,56235-G Greenhouse Gas Balancing Account (GHGBA) ..................................... 52049-G,52950-G,52051-G Advanced Meter Opt-Out Program Balancing Account (AMOPBA) ..................... 56841-G,56842-G Low-Carbon Fuel Standard Balancing Account (LCFSBA) ................... 55059-G,55060-G,55061-G Biomethane Cost Incentive Program Balancing Account (BCIPBA) .................... 53709-G,53710-G Distributed Energy Resources Services Balancing Account (DERSBA) ............................. 52276-G Storage Integrity Management Program Balancing Account (SIMPBA) .............. 56843-G,56844-G Natural Gas Leak Abatement Program Balancing Account (NGLAPBA)………..54133-G,54134-G Statewide Energy Efficiency Balancing Account (SWEEBA) .............................. 55437-G,55438-G Dairy Biomethane Project Balancing Account (DBPBA) ..................................................... 55742-G San Joaquin Valley Disadvantaged Communities Balancing Account (SJVDACBA) ......... 57207-G 57208-G Safety Enhancement Expense Balancing Account - Phase 2 (SEEBA-P2) ............ 56236-G,56237-G Safety Enhancement Capital Cost Balancing Account - Phase 2 (SECCBA-P2) …56238-G,56239-G Liability Insurance Premium Balancing Account (LIPBA) ................................... 56845-G,56846-G Part VI Memorandum Accounts Description and Listing of Memorandum Accounts ............................................. 53089-G,56847-G PCB Expense Account (PCBEA) ......................................................................................... 49317-G Research Development and Demonstration Expense Account (RDDEA) ............. 56848-G,56849-G Curtailment Violation Penalty Account (CVPA) ................................................................. 53440-G Economic Practicality Shortfall Memorandum Account (EPSMA) .................................... 40896-G Catastrophic Event Memorandum Account (CEMA) ........................................... 40897-G,40898-G Vernon Avoided Distribution Cost Memorandum Account (VADCMA) ........................... 40899-G (Continued) (TO BE INSERTED BY UTILITY) 5414-C 18-12-015 ADVICE LETTER NO. DECISION NO. 2P4 ISSUED BY (TO BE INSERTED BY CAL. PUC) Dan Skopec SUBMITTED Vice President Regulatory Affairs EFFECTIVE Feb 13, 2020 RESOLUTION NO. E-5055 T T
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