Subject: ALJ decision on RLS tariff
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked]
Date: Mon, 4 Jun 2001 05:23:47 -0700 (PDT)

This may have some impact on discussions with Questar....
CPUC ALJ Calls for Cost-Based Peaking Charge on SoCalGas 
A recommended decision by a California Public Utilities Commission administrative law judge would replace the controversial Residual Load Service (RLS) tariff on Southern California Gas mainlines with a cost-based peaking service (D.00-04-060). 
SoCalGas had proposed either a market-based or cost-based peaking rate in place of the RLS. ALJ Carol A. Brown rejected the market-based rates, saying the cost-based system "is consistent with our policy of promoting economic bypass." Opponents of SoCal's RLS rate have called it an "anti-bypass" tariff, saying it effectively kept new interstates out of SoCalGas territory since customers would have to pay the interstate's rates as well as SoCal's RLS charge (See Daily GPI, April 23 <http://intelligencepress.com/subscribers/daily/news/d20010423g.html>). 
The judge said "the cost-based peaking tariff should include a customer charge computed monthly, based on the higher of either the current monthly usage or the highest monthly usage over the prior 12-month period; a Public Purpose Program (PPP) charge based on the PPP rates adopted by the Commission in Resolution G-3303; a reservation charge for transportation using noncore coincident peak demand for the calculation of the demand charge; and an Interstate Transition Cost Surcharge, collected as a separate volumetric rate, to be applied to the actual recorded, monthly, throughput." 
Also the peaking tariff "shall: (a) be a system-wide rate; (b) customers shall balance their nominations and burns daily; (c) partial bypass customers shall not be eligible for SIC credit; and (d) the tariff shall apply on a facility-by-facility basis." It also will be subject to review in the SoCalGas Biannual Cost Allocation Proceeding. 
The judge recommended that SoCalGas file for a conforming peaking tariff within 10 days of approval of the decision. The decision must be reviewed by the full CPUC.