SoCalGas Gas Compression Project 

Background

On April 2012, SoCalGas submitted an Application to the CPUC requesting approval to design, build, own, operate and maintain gas compression equipment on non-residential customer premises. Gas compression is necessary for natural gas refueling services, and is a competitive market with a number of private companies providing such service in Southern California. The CPUC issued a Scoping Ruling in February 2012 to address issues of implementation.

In December 2012, the CPUC issued a Decision approving SoCalGas’ application with a number of added ratepayer protections, including:

  • Prohibition on ratepayers bearing any costs or risks associated with the service
  • Requirement that SoCalGas file semi-annual reports with the CPUC on the status of competition in the gas compression market.

A Petition to Modify the December Decision was filed by Clean Energy Fuels Corporation on July 11, 2013.

 

ORA Policy Position

ORA opposed SoCalGas’ application on the grounds that ratepayer funding of a monopoly utility entering into a competitive market would be inappropriate. ORA recommended that the CPUC deny SoCalGas’ request to implement a gas compression tariff and instead encouraged the utility to provide such service through an unregulated utility affiliate. Doing so would have served to protect ratepayers from the risk and cost of SoCalGas’ proposed service while protecting the competitive market for gas compression services from the utility’s competitive advantages. While opposed to the initial application, ORA intends to work to ensure the robust implementation of ratepayer protections included in the CPUC’s decision and to continue to monitor the state of competition in Southern California’s gas compression market.

See ORA’s February 22, 2013 Testimony.

See ORA’s December 20, 2011 Protest to SoCalGas’ Application.

 

Proceeding Status

See the Proceeding docket.