Details for: AL5603-C.pdf


Click on the image for full size preview

Document data

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

October 2, 2020

Advice No. 5603-C
(U 904 G)
Public Utilities Commission of the State of California
Subject: Supplement - 2021 and 2022 Ratemaking Forecasts for Natural Gas Leak
Abatement Program Memorandum Account (NGLAPMA), Natural Gas Leak
Abatement Program Balancing Account (NGLAPBA), and Natural Gas Leak
Abatement Program Subaccount (NGLAP) in the New Environmental
Regulation Balancing Account (NERBA)
Purpose
Pursuant to Energy Division’s request dated June 25, 2020, Southern California Gas
Company (SoCalGas) hereby submits a supplemental advice letter to its 2021 and 2022
Ratemaking Forecasts for the NGLAPMA, NGLAPBA, and NGLAP in the NERBA, previously
submitted in Advice Letter No. (AL) 5603-A on June 12, 2020 and AL 5603-B on June 29,
2020, as directed in Ordering Paragraph (OP) 10 of the California Public Utilities
Commission’s (CPUC or Commission) First Phase Decision (D.) 17-06-015 and Second
Phase D.19-08-020. This supplemental advice letter replaces AL 5603-A and AL 5603-B in
their entirety to correct inadvertent errors in Attachment A and Table 4 and include
Attachment B.
Background
On January 22, 2015, the Commission issued Rulemaking (R.) 15-01-008 to implement
provisions of Senate Bill (SB) 1371. Phase I of R.15-01-008 was established to specifically
address the overall policies and guidelines for a Natural Gas Leak Abatement Program
consistent with SB 1371 and included the following program development activities: 1)
information gathering, measurement, and Best Practices; 2) targets, compliance, and
reporting; and 3) training and enforcement.
On June 15, 2017, the Commission adopted D.17-06-015 which, among other things,
directed SoCalGas, on or prior to October 31, 2017, to submit a Tier 3 advice letter to provide





- Page 1 -

Advice No. 5603-C -2- October 2, 2020 the following to establish 2018 and 2019 revenue requirement forecasts and caps for the Natural Gas Leak Abatement Program: a) Identification of the incremental costs associated with each individual Best Practice, Pilot Projects and Research & Development (R&D), broken down by type of expenditure including capital, operations and maintenance, and administrative. b) Justifications consistent with the criteria to evaluate Pilot Projects and R&D in Pub. Util. Code § 740.1. c) Allocation methodology for amortization of the account and the corresponding Commission decision authorizing the allocation methodology.1 Additionally, OP 11 authorized the Director of Energy Division to recommend a process for reviewing cost forecasts and the methods for cost recovery in response to the Tier 3 advice letters. OP 12 states the ratemaking forecasts and caps that the Commission approves in response to the Tier 3 advice letters shall apply until ratemaking amounts and treatment for the Natural Gas Leak Abatement Program for 2020 and beyond, including Best Practices, Pilot Projects and R&D, are reviewed and established in each Utility’s2 next General Rate Case (GRC) or other gas ratemaking proceeding. On October 31, 2017, in compliance with D.17-06-015, SoCalGas submitted its Tier 3, AL 5211. After the total cost estimates were finalized for AL 5211, SoCalGas identified updates were needed to the cost estimates. On March 14, 2018, SoCalGas submitted supplemental AL 5211-A, which replaced AL 5211 in its entirety, to update the cost estimates. Pursuant to the Energy Division’s request to update the total cost estimates in AL 5211-A, on July 31, 2018, SoCalGas submitted supplemental AL 5211-B, which replaced AL 5211-A in its entirety. On October 19, 2018 the Commission approved supplemental AL 5211-B. On August 15, 2019, the Commission adopted a Second Phase Decision, D.19-08-020, establishing additional policies, including requiring use of the Utility Proposed CostEffectiveness Methodology and two Cost-Benefit Analyses and restriction on rate recovery beginning in 2025, for methane emissions greater than 20% below the 2015 baseline levels. On January 16, 2020, the CPUC voted to modify the Commission’s GRC plan, adopting an extension of the GRC cycle for each utility from three years to four years and extended SoCalGas’ current GRC through 2023.3 Therefore, this advice letter is submitted to provide forecasted costs for 2021, 2022, and associated Best Practices, as shown in Tables 1 through 3. D.17-06-015, OP 10 at pp. 161-162. The Utilities are Pacific Gas and Electric Company, SoCalGas, and San Diego Gas and Electric Company (SDG&E). 3 In compliance with D.20-01-002, on April 9, 2020 SoCalGas and SDG&E submitted a joint petition to modify the Test Year (TY) 2019 GRC Decision (D.19-09-051) to extend their current authorized GRC periods through 2023. SoCalGas’ next GRC application will be for a TY 2024 and will be filed by May 15, 2022. 1 2
- Page 2 -

Advice No. 5603-C -3- October 2, 2020 Pursuant to Energy Division’s request dated April 16, 2020, on June 12, 2020, SoCalGas submitted a supplemental advice letter to its 2021 and 2022 Ratemaking Forecasts for the NGLAPMA, NGLAPBA, and NGLAP in the NERBA, previously submitted in AL 5603 on March 12, 2020. AL 5603-A replaced AL 5603 in its entirety to eliminate the thousands reference in the title of Tables 1 through 3, provide updated cost forecasts, and include discussion on the emission reduction forecast. However, AL 5603-A included a request to waive the protest period because no protest was received to the initial advice letter. On June 25, 2020, Energy Division directed SoCalGas to supplement AL 5603-A with a shortened protest comment period of ten (10) days, since no protests were submitted to the initial advice letters. Therefore, AL 5603-B, submitted on June 29, 2020, replaced AL 5603-A in its entirety to revise the protest period. In this supplemental advice letter, SoCalGas updates the rate impact figures in Attachment A and the associated revenue requirements in Table 4, and rate impacts incorporating a $35 million forecasted rate impact decrease is in Attachment B. The updates include corrections to the rate impact figures that were calculated based on an incomplete revenue requirement. The rate impact calculations were inadvertently performed on the revenue requirements that had changed since the March 2020 submittal instead of the complete revenue requirement. Therefore, this supplemental advice Letter replaces AL 5603-B in its entirety to correct the rate impact figures in Attachment A and the inadvertent errors in Table 4.4 SoCalGas also forecasts rate impact figures associated with unspent funds collected in years 2018, 2019, and 2020 for implementation of the 2018 Compliance Plan as approved in Resolution G3538. SoCalGas anticipates returning approximately $35 million to ratepayers in the 2020 Annual Consolidated Rate Update submittal. This funding request of $218 million5 in loaded, escalated 2020 dollars is forecasted to achieve measurable emission reductions. Annual estimated emission reductions resulting from activities proposed in SoCalGas’ 2020 Compliance Plan from 2021 – 2030 are estimated at 498,985 MCF, an estimated 18% reduction from SoCalGas’ 2015 emissions inventory baseline of 2,779,851 MCF. It should be noted that the 2015 baseline is expected to be adjusted in the future due to reporting adjustments and corrections. As such, the estimated percentage reduction will likely change as a result of the updated 2015 baseline. In addition to emission reductions forecasted to be reduced from SoCalGas’ system, SoCalGas is proposing to use emerging technologies and data analytics to reduce emissions downstream of the meter from leaks on customer houseline and gas-powered appliances. As discussed in SoCalGas’ 2020 Compliance Plan in Chapter 6 (Advanced Meter Analytics Algorithm) and Chapter 14 (Aerial Monitoring), SoCalGas is forecasting an annual reduction of 99,994 MCF from behind-the-meter in customer-owned facilities. Although these 4 5 Rate impacts include SoCalGas/SDG&E NGV, EG and TLS adjustments. The total forecasted revenue requirement is $285 million, as illustrated on Tables 1-3 herein.
- Page 3 -

Advice No. 5603-C -4- October 2, 2020 reductions will not be reflected in SoCalGas’ emissions report, the proposed activities support the state’s climate goals and spirit of SB 1371. The current estimate of an 18% reduction in emissions from the 2015 baseline by 2030 is based on the published 2015 baseline, currently approved reporting metrics, and emission models of cost-effective measures using currently available technologies and information. Emission models used to forecast reductions will have some degree of variation, and the projected reduction may vary in practice. Based on information and technologies currently available, SoCalGas is proposing to implement measures that maximize cost-effective emission reductions as reasonably as possible and then maintaining those lower levels through 2030. As proposed research projects and pilots are completed, more accurate modeling may become available for activities such as the installation of methane sensors, estimating emissions from transmission pipeline leaks, and estimating emissions associated above ground leak inspection and repair. In addition, as pilots are concluded, more accurate forecasts may be possible and new technologies may become commercially available to further reduce emissions beyond what is currently forecasted. SoCalGas cannot presently forecast a 40% emission reduction due to limitations in the emissions reporting metrics. Because SoCalGas currently reports 60% of emissions based on population-, facility-, or component-based emission factors (EFs), projecting and recording more than an 18% reduction will not be possible until these EFs are addressed. SoCalGas is working to improve reporting metrics in hopes of achieving a reporting format in which a 40% reduction can be demonstrated. SoCalGas performed an analysis of the emissions report based on approved reporting metrics, proposals to change metrics that have been submitted for approval but not yet adopted, and corrections to the baseline that have not yet been formally published. The goal of the analysis is to determine how these changes will affect the overall forecasted reductions. Based on adoption of reporting metrics and assumptions as discussed in SoCalGas’ 2020 Compliance Plan, SoCalGas anticipates reporting an estimated emissions reduction of 38% by 2030. SoCalGas’ Forecasted Costs for 2021 and 2022, and Associated Best Practices Table 1: Forecasted Costs for Two-Way Balancing Account by Chapter in Loaded 2019 Dollars6 Ch # Chapter Description Addressed Best Practice Program Summary (Direct) Program Summary (Revenue Requirement) 1 “Find It/Fix It” 21 27,465,600 Capital Total 21,146,852 2 Leak Survey 15, 16 4,321,839 - O&M Total 6 Program Summary (Loaded)* Totals may not add up due to rounding. Measure Total 48,612,452 4,321,839 43,945,887 Capital Total 23,653,494 Measure Total 67,599,381 Measure Total 88,917,882 9,736,604 - 9,736,604 10,029,051 O&M Total
- Page 4 -

Advice No. 5603-C -5- October 2, 2020 Ch # 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Chapter Description Addressed Best Practice Program Summary (Direct) Program Summary (Loaded)* Program Summary (Revenue Requirement) O&M Total Blowdown Reduction Large Leak Prioritization Damage Prevention Algorithm & Proactive Intervention Advanced Meter Analytics Algorithm Recordkeeping IT Project AVEVA Competency Based Training Development Enhancements to Training Facilities Storage Projects Stationary Methane Detectors Electronic Leak Survey Aerial Monitoring Damage Prevention Public Awareness Pipe Fitting Specifications Dig-Ins / Repeat Offenders Meter Calibration Factor Adjustment Gas Speciation Public Leak Maps Methane GHG Policy Vapor Collection Systems Capital Total Measure Total O&M Total Capital Total Measure Total Measure Total 23, 3-7 2,822,855 5,871,000 8,693,855 5,393,919 6,846,134 12,240,053 19,723,964 15, 16, 20a, 21 1,212,000 204,000 1,416,000 2,752,629 225,724 2,978,353 3,348,240 24,25,26 1,900,000 - 1,900,000 4,302,474 - 4,302,474 4,442,457 17 224,000 - 224,000 507,239 - 507,239 548,823 9 9,998,240 6,575,788 16,574,028 18,095,815 7,296,524 25,392,340 29,232,114 9, 20b 10,454,540 - 10,454,540 14,831,002 - 14,831,002 15,852,110 13 2,487,126 - 2,487,126 3,678,356 - 3,678,356 3,929,068 13 - 1,325,000 1,325,000 - 1,467,585 1,467,585 3,122,539 23 1,040,000 10,000,000 11,040,000 1,197,068 11,064,900 12,261,968 32,181,743 18 439,120 4,041,136 4,480,256 810,692 4,500,607 5,311,299 10,123,868 20b 427,700 7,588,672 8,016,372 473,245 8,396,790 8,870,035 11,678,460 15, 16, 20a, 21 16,600,000 - 16,600,000 21,841,644 - 21,841,644 22,552,270 24, 25, 26 2,047,280 - 2,047,280 2,821,122 - 2,821,122 3,006,740 22 1,000,000 - 1,000,000 2,264,460 - 2,264,460 2,450,103 26 691,286 38,400 729,686 1,565,390 44,031 1,609,421 1,759,238 23 16,000 - 16,000 36,232 - 36,232 38,589 17 200,000 - 200,000 452,892 - 452,892 490,021 20b 45,500 - 45,500 103,033 - 103,033 111,300 2 - - - - - - - 23 - - - - - - -
- Page 5 -

Advice No. 5603-C -6- October 2, 2020 Ch Chapter Description # Addressed Best Practice Program Summary (Direct) Program Summary Program Summary (Loaded)* (Revenue Requirement) O&M Total 23 Differential Pressure Testing Distribution Above Ground Leak Surveys Storage Above Ground Leak Survey Methane Emissions Minimization Training Distribution Above Ground Leak Repair High Bleed Pneumatic Device Replacement 5-to-3 Year Leak Survey on SOTA Pipe 24 25 26 27 28 29 Capital Total Measure Total O&M Total Capital Total Measure Total Measure Total 23 - - - - - - - 19 - - - - - - - 19, 21 1,289,491 - 1,289,491 2,903,327 - 2,903,327 3,140,925 11, 12 - - - - - - - 19, 21 - - - - - - - 23 - - - - - - - 15, 16 - - - - - - - 84,682,577 56,790,848 141,473,425 137,713,030 63,495,789 201,208,820 266,679,505 Total *Costs are inclusive of a 10% contingency The assumptions for the cost estimates above can be found in the 2020 Leak Abatement Compliance Plan (Compliance Plan). The 2020 Compliance Plan is organized by chapter and not all Best Practices appear chronologically. Table 2: Forecasted Costs for One-Way Balancing Account in Loaded 2019 Dollars Ch Chapter Description Addressed Best Practice # R&D Program Summary (Direct) O&M Total Research & Development R&D 9,365,613 Capital Total - Measure Total Program Summary (Revenue Requirement) Measure Total 12,689,971 13,516,806 Program Summary (Loaded)* Measure Total O&M Total 9,365,613 12,689,971 Capital Total - *Costs are inclusive of a 10% contingency The assumptions and details for the R&D cost estimates above can be found in the 2020 Compliance Plan, which also provides the justifications consistent with the criteria to evaluate Pilot Projects and R&D pursuant to Pub. Util. Code § 740.1.
- Page 6 -

Advice No. 5603-C -7- October 2, 2020 Table 3: Forecasted Costs for Memorandum Account in Loaded 2019 Dollars Program Summary (Direct) Memo Account Measure Total Program Summary (Revenue Requirement) Measure Total 4,528,920 4,900,206 Program Summary (Loaded)* Program Administration O&M Total 2,000,000 Capital Total - Measure Total O&M Total 2,000,000 4,528,920 Capital Total - *Costs are inclusive of a 10% contingency The cost estimates for the program administration were based on historical costs and estimated labor to complete the Annual Emissions report and 2022 Compliance Plan. Allocation Methodology for Amortization of the Account and Corresponding Commission Decision Authorizing the Allocation Methodology Consistent with the 2018 Compliance Plan, SoCalGas proposes to allocate the projected year-end balances pertaining to Natural Gas Leak Abatement Programs using the Equal Percent of Authorized Margin (EPAM) method. The EPAM method allocates the balance in an account across customer classes based on each customer class share of the total GRC base margin allocated to that customer class, as shown in Table 4. This proposed method is consistent with how a regulatory account balance that benefits all customer classes is allocated in a GRC.7 Table 4: SoCalGas NGLAP Cumulative Revenue Requirement and Annual for 2021 and 2022 Cumulative Revenue Requirement (without FF&U) ($000) 165,614 Annual Revenue Requirement ($000) 2021 2022 80,588 85,026 Updated rate impacts can be found in Attachment A. The rate impacts are compared to current rates, with 2020 NGLAP amortization of $67.6 million. SoCalGas forecasts returning unspent funds to ratepayers in the 2020 Annual Consolidated Rate Update submittal. Unspent funds can be attributed to collection of funding for Best Practice 15, which SoCalGas was allowed an exception to implementing, and an approved alternative pilot implementation of Best Practice 18, as well as implementation ramping time For example, pursuant to D.16-06-054 (decision addressing SoCalGas’ 2016 GRC), the balance in the Research, Development and Demonstration Expense Account (RDDEA) is allocated across all customer classes using the EPAM method. The balance in this account reflects costs associated with activities to benefit all customer classes. 7
- Page 7 -

Advice No. 5603-C -8- October 2, 2020 for remaining Best Practices. The amount returned to ratepayers will be evaluated at year end, but is estimated at approximately $35 million. Table 5: SoCalGas NGLAP Cumulative Revenue Requirement and Annual for 2021 and 2022 Incorporating Estimated Return of $35 MM in 2020 Annual Consolidated Rate Update Submittal Cumulative Revenue Requirement (without FF&U) ($000) 130,614 Annual Revenue Requirement ($000) 2021 2022 45,588 85,026 Rate impacts incorporating this forecasted return can be found in Attachment B. The rate impacts are compared to current rates, with 2020 NGLAP amortization of $67.6 million. Future Costs for the Natural Gas Leak Abatement Program As directed in D.17-06-015 and D.19-08-020, future costs for the Natural Gas Leak Abatement Program for SoCalGas will ultimately be incorporated into the GRC. Currently, SoCalGas anticipates submitting a future Tier 3 advice letter forecasting costs for 2023 and 2024 to align cost forecasts with the 2023 and 2024 Compliance Plan at the same time the 2023 and 2024 Compliance Plan is submitted, unless directed otherwise by the Commission. Due to the timing of SoCalGas’ next GRC, SoCalGas will also include the 2024 NGLAP forecast in its 2024 GRC application. The 2024 NGLAP forecast will be the same forecast as submitted/approved in its Tier 3 advice letter submittal for 2023-2024 Compliance Plan and is not intended to be re-litigated in the 2024 GRC but only to establish the test year revenue requirements associated with the NGLAP. Should the implementation of the 2024 GRC be delayed beyond January 1, 2024 and the 2024 NGLAP revenue requirement is incorporated in the January 1, 2024 gas transportation rates, a reconciliation adjustment will be recorded in the GRC Memorandum Account that will be established for the 2024 GRC proceeding. This will avoid double recovery of these costs through rates implementing the NGLAP revenue requirements requested for authorization in this Tier 3 advice letter submittal and in the 2024 GRC. Protests 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. At the direction of Energy Division, SoCalGas requests that the Commission maintain the original protest period designated in AL 5603 and shorten the protest period for this supplemental submittal to 10 days. The protest must be made in writing and must be received within 10 days of the date of this advice letter, which is October 12, 2020. The address for mailing or delivering a protest to the Commission is given below.
- Page 8 -

Advice No. 5603-C -9- October 2, 2020 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 CPUC’s Energy Division Tariff Unit (EDTariffUnit@cpuc.ca.gov). Due to the COVID-19 pandemic and the shelter at home orders, SoCalGas is currently unable to receive protests or comments to this advice letter via U.S. mail or fax. Please submit protests or comments to this advice letter via e-mail to the address shown below on the same date it is mailed or e-mailed 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 OP 10 of D.17-06-015 directs SoCalGas to submit this advice letter as Tier 3 pursuant to GO 96-B and, as such, requires a Resolution to be issued by the Commission. SoCalGas respectfully requests that it be approved by the Commission at the earliest opportunity. Notice A copy of this advice letter is being sent to SoCalGas’ GO 96-B service list and the Commission’s service list in R.15-01-008. Address change requests to the GO 96-B service list should be directed by 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 by e-mail at Process_Office@cpuc.ca.gov. /s/ Ronald van der Leeden Ronald van der Leeden Director – Regulatory Affairs Attachments
- Page 9 -

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 GAS PLC HEAT ELC = Electric PLC = Pipeline WATER 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: 3 Advice Letter (AL) #: 5603-C Subject of AL: Supplement - 2021 and 2022 Ratemaking Forecasts for Natural Gas Leak Abatement Program Memorandum Account (NGLAPMA), Natural Gas Leak Abatement Program Balancing Account (NGLAPBA), and Natural Gas Leak Abatement Program Subaccount (NGLAP) in the NERBA Keywords (choose from CPUC listing): Balancing Accounts; Memorandum Accounts; Compliance AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision (D.) 17-06-015 and D.19-08-020 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 Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/ access to confidential information: Resolution required? Yes No Requested effective date: 11/1/20 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
- Page 10 -

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
- Page 11 -

ATTACHMENT A Advice No. 5603-C Natural Gas Transportation Rate Revenues Leak Abatement Years 2021 & 2022
- Page 12 -

Attachment A Advice No. 5603-C Natural Gas Transportation Rate Revenues Southern California Gas Company Leak Abatement 2021 May-1-20 Volumes Mth A 1 2 3 4 5 6 7 8 9 10 11 CORE Residential Commercial & Industrial Present Rates Average Rate $/therm B May-1-20 Revenues $000's C Proposed Rates Jan-1-21 Proposed Volumes Rate Mth $/therm D E Jan-1-21 Revenues $000's F Changes Revenue Rate Change Change $000's $/therm G H % Rate change % I 2,346,353 992,706 $1.01536 $0.53094 $2,382,399 $527,065 2,346,353 992,706 $1.01964 $0.53296 $2,392,442 $529,073 $10,044 $2,008 $0.00428 $0.00202 0.4% 0.4% 178,769 178,769 178,769 $0.28106 $0.00450 $0.28555 $50,244 $804 $51,048 178,769 178,769 178,769 $0.28182 $0.00454 $0.28636 $50,381 $812 $51,192 $137 $8 $144 $0.00076 $0.00004 $0.00081 0.3% 0.9% 0.3% Gas A/C Gas Engine Total Core 416 22,302 3,540,545 $0.21475 $0.22482 $0.83762 $89 $5,014 $2,965,616 416 22,302 3,540,545 $0.21537 $0.22482 $0.84106 $90 $5,014 $2,977,811 $0 $0 $12,196 $0.00063 $0.00000 $0.00344 0.3% 0.0% 0.4% 12 13 14 15 16 NONCORE COMMERCIAL & INDUSTRIAL Distribution Level Service Transmission Level Service (2) Total Noncore C&I 919,735 626,080 1,545,814 $0.16284 $0.04280 $0.11422 $149,773 $26,793 $176,567 919,735 626,080 1,545,814 $0.16329 $0.04290 $0.11453 $150,184 $26,856 $177,040 $411 $63 $473 $0.00045 $0.00010 $0.00031 0.3% 0.2% 0.3% 17 18 19 20 21 22 23 24 NONCORE ELECTRIC GENERATION Distribution Level Service Pre Sempra Wide Sempra Wide Adjustment Distribution Level Post Sempra Wide Transmission Level Service (2) Total Electric Generation 331,442 331,442 331,442 2,246,336 2,577,778 $0.14005 ($0.00106) $0.13899 $0.03723 $0.05031 $46,417 ($351) $46,066 $83,623 $129,689 331,442 331,442 331,442 2,246,336 2,577,778 $0.14049 ($0.00102) $0.13947 $0.03733 $0.05046 $46,565 ($339) $46,225 $83,847 $130,073 $147 $12 $159 $225 $384 $0.00044 $0.00004 $0.00048 $0.00010 $0.00015 0.3% -3.5% 0.3% 0.3% 0.3% 25 26 TOTAL RETAIL NONCORE 4,123,593 $0.07427 $306,256 4,123,593 $0.07448 $307,113 $857 $0.00021 0.3% 359,267 $0.03298 $11,850 359,267 $0.03308 $11,886 $36 $0.00010 0.3% $0.39791 $353,958 $3,637,679 1,118,614 9,142,019 $0.39935 $354,082 $3,650,892 $125 $13,214 $0.00145 0.4% $0.10032 $20,961 208,941 9,350,960 $0.10070 $21,040 $79 $0.00038 0.4% NGV - Pre SempraWide SempraWide Adjustment NGV - Post SempraWide 27 28 29 30 31 OTHER SERVICES (SDG&E, UBS, & BTS) SYSTEM TOTAL w/BTS 1,118,614 9,142,019 32 33 34 EOR Revenues Total Throughput w/EOR Mth/yr 208,941 9,350,960 WHOLESALE & INTERNATIONAL (excluding SDG&E) 1) These rates are for Natural Gas Transportation Service from "Citygate to Meter." The BTS rate is for service from Receipt Point to Citygate. 2) All rates include Franchise Fees & Uncollectible charges.
- Page 13 -

Attachment A Advice No. 5603-C Natural Gas Transportation Rate Revenues Southern California Gas Company Leak Abatement 2022 Present Rates Proposed Rates Changes May-1-20 Commercial & Industrial Jan-1-22 Revenue Rate % Rate Rate Revenues Volumes Rate Revenues Change Change change $/therm $000's Mth $/therm $000's $000's $/therm % B C D E F G H I 2,346,353 $1.01536 $2,382,399 2,346,353 $1.02111 $2,395,879 $13,480 $0.00574 0.6% 992,706 $0.53094 $527,065 992,706 $0.53365 $529,760 $2,695 $0.00271 0.5% CORE Residential Proposed A 3 Jan-1-22 Mth 2 May-1-20 Volumes 1 Average 4 5 NGV - Pre SempraWide 6 7 SempraWide Adjustment NGV - Post SempraWide 178,769 $0.28106 $50,244 178,769 $0.28208 $50,428 $183 $0.00103 0.4% 178,769 $0.00450 $804 178,769 $0.00445 $795 ($9) ($0.00005) -1.1% 178,769 $0.28555 $51,048 178,769 $0.28653 $51,223 $174 $0.00098 0.3% 8 9 Gas A/C 10 11 Gas Engine Total Core 416 $0.21475 $89 416 $0.21559 $90 $0 $0.00084 0.4% 22,302 3,540,545 $0.22482 $0.83762 $5,014 $2,965,616 22,302 3,540,545 $0.22482 $0.84223 $5,014 $2,981,965 $0 $16,349 $0.00000 $0.00462 0.0% 0.6% 919,735 $0.16284 $149,773 919,735 $0.16344 $150,325 $551 $0.00060 0.4% 626,080 1,545,814 $0.04280 $0.11422 $26,793 $176,567 626,080 1,545,814 $0.04292 $0.11463 $26,873 $177,197 $79 $631 $0.00013 $0.00041 0.3% 0.4% 12 13 NONCORE COMMERCIAL & INDUSTRIAL 14 Distribution Level Service 15 16 Transmission Level Service (2) Total Noncore C&I 17 18 19 NONCORE ELECTRIC GENERATION Distribution Level Service 20 Pre Sempra Wide 331,442 $0.14005 $46,417 331,442 $0.14064 $46,615 $198 $0.00060 0.4% 21 Sempra Wide Adjustment 331,442 ($0.00106) ($351) 331,442 ($0.00110) ($364) ($13) ($0.00004) 3.6% 22 23 24 25 26 27 28 29 30 31 Distribution Level Post Sempra Wide Transmission Level Service (2) Total Electric Generation TOTAL RETAIL NONCORE WHOLESALE & INTERNATIONAL (excluding SDG&E) OTHER SERVICES (SDG&E, UBS, & BTS) SYSTEM TOTAL w/BTS 331,442 $0.13899 $46,066 331,442 $0.13954 $46,251 $185 $0.00056 0.4% 2,246,336 2,577,778 $0.03723 $0.05031 $83,623 $129,689 2,246,336 2,577,778 $0.03735 $0.05049 $83,908 $130,158 $285 $470 $0.00013 $0.00018 0.3% 0.4% 4,123,593 $0.07427 $306,256 4,123,593 $0.07454 $307,356 $1,100 $0.00027 0.4% 359,267 $0.03298 $11,850 359,267 $0.03311 $11,896 $46 $0.00013 0.4% 1,118,614 9,142,019 $0.39791 $353,958 $3,637,679 1,118,614 9,142,019 $0.39984 $354,125 $3,655,341 $167 $17,662 $0.00193 0.5% 208,941 $0.10032 $20,961 208,941 $0.10076 $21,053 $92 $0.00044 0.4% 32 33 EOR Revenues 34 Total Throughput w/EOR Mth/yr 9,350,960 9,350,960 1) These rates are for Natural Gas Transportation Service from "Citygate to Meter." The BTS rate is for service from Receipt Point to Citygate. 2) All rates include Franchise Fees & Uncollectible charges.
- Page 14 -

ATTACHMENT B Advice No. 5603-C Natural Gas Transportation Rate Revenues Leak Abatement Year 2021 with SoCalGas $35 Million Decrease
- Page 15 -

Attachment B Advice No. 5603-C Natural Gas Transportation Rate Revenues Southern California Gas Company Leak Abatement 2021 with SoCalGas $35 Million Decrease Present Rates Proposed Rates Changes May-1-20 Commercial & Industrial Jan-1-21 Revenue Rate % Rate Rate Revenues Volumes Rate Revenues Change Change change $/therm $000's Mth $/therm $000's $000's $/therm % B C D E F G H I 2,346,353 $1.01536 $2,382,399 2,346,353 $1.00812 $2,365,406 ($16,992) ($0.00724) -0.7% 992,706 $0.53094 $527,065 992,706 $0.52752 $523,668 ($3,397) ($0.00342) -0.6% -0.5% CORE Residential Proposed A 3 Jan-1-21 Mth 2 May-1-20 Volumes 1 Average 4 5 NGV - Pre SempraWide 6 7 SempraWide Adjustment NGV - Post SempraWide 178,769 $0.28106 $50,244 178,769 $0.27976 $50,013 ($231) ($0.00129) 178,769 $0.00450 $804 178,769 $0.00466 $833 $29 $0.00016 3.5% 178,769 $0.28555 $51,048 178,769 $0.28442 $50,846 ($203) ($0.00113) -0.4% 8 9 Gas A/C 10 11 Gas Engine Total Core 416 $0.21475 $89 416 $0.21368 $89 ($0) ($0.00106) -0.5% 22,302 3,540,545 $0.22482 $0.83762 $5,014 $2,965,616 22,302 3,540,545 $0.22482 $0.83180 $5,014 $2,945,023 $0 ($20,592) $0.00000 ($0.00582) 0.0% -0.7% 919,735 $0.16284 $149,773 919,735 $0.16209 $149,078 ($695) ($0.00076) -0.5% 626,080 1,545,814 $0.04280 $0.11422 $26,793 $176,567 626,080 1,545,814 $0.04264 $0.11371 $26,697 $175,776 ($96) ($791) ($0.00015) ($0.00051) -0.4% -0.4% 12 13 NONCORE COMMERCIAL & INDUSTRIAL 14 Distribution Level Service 15 16 Transmission Level Service (2) Total Noncore C&I 17 18 19 NONCORE ELECTRIC GENERATION Distribution Level Service 20 Pre Sempra Wide 331,442 $0.14005 $46,417 331,442 $0.13929 $46,168 ($249) ($0.00075) -0.5% 21 Sempra Wide Adjustment 331,442 ($0.00106) ($351) 331,442 ($0.00093) ($309) $42 $0.00013 -12.1% 22 23 24 25 26 27 28 29 30 31 Distribution Level Post Sempra Wide Transmission Level Service (2) Total Electric Generation TOTAL RETAIL NONCORE WHOLESALE & INTERNATIONAL (excluding SDG&E) OTHER SERVICES (SDG&E, UBS, & BTS) SYSTEM TOTAL w/BTS 331,442 $0.13899 $46,066 331,442 $0.13836 $45,859 ($207) ($0.00062) -0.4% 2,246,336 2,577,778 $0.03723 $0.05031 $83,623 $129,689 2,246,336 2,577,778 $0.03707 $0.05010 $83,279 $129,138 ($344) ($551) ($0.00015) ($0.00021) -0.4% -0.4% 4,123,593 $0.07427 $306,256 4,123,593 $0.07394 $304,914 ($1,342) ($0.00033) -0.4% 359,267 $0.03298 $11,850 359,267 $0.03283 $11,795 ($55) ($0.00015) -0.5% 1,118,614 9,142,019 $0.39791 $353,958 $3,637,679 1,118,614 9,142,019 $0.39548 $353,747 $3,615,479 ($211) ($22,200) ($0.00243) -0.6% 208,941 $0.10032 $20,961 208,941 $0.09983 $20,858 ($103) ($0.00049) -0.5% 32 33 EOR Revenues 34 Total Throughput w/EOR Mth/yr 9,350,960 9,350,960 1) These rates are for Natural Gas Transportation Service from "Citygate to Meter." The BTS rate is for service from Receipt Point to Citygate. 2) All rates include Franchise Fees & Uncollectible charges.
- Page 16 -