San Diego Gas & Electric Company (SDG&E)
Pipeline Safety Enhancement Plan

Note Regarding References to DRA: Until September 2013, ORA was previously known at DRA - the Division of Ratepayer Advocates. 

Background

In 2011, the CPUC ordered San Diego Gas & Electirc (SDG&E) to submit a PSEP. In August 2011, SDG&E forecasted $234.18 million during 2012-2015 period for safety upgrade measures, proposing to recover from customers:

  • $61 million during 2012-2015 for upgrade projects
  • $2.5 billion for 2011-2023 to implement the projects

SDG&E's parent company, Sempra, submitted to the CPUC a joint plan with SoCalGas.  

Evidentiary Hearings were held in August 2012 in the CPUC Courtroom.

 

ORA's Policy Position

ORA served its testimony in response to SDG&E's Pipeline Safety Enhancement Plans (PSEP) on June 19, 2012. While ORA provides an analysis of what SDG&E's cost estimates should be, ORA recommends that SDG&E customers should not be responsible for the vast majority of these costs. Instead, SDG&E shareholders should bear the cost of making improvements to ensure its pipeline system is safe. Specifically, ORA recommends:

  • Ratepayers should only pay for hydrostatic pressure testing of natural gas transmission pipelines installed before 1935.
  • SDG&E shareholders should pay all expenses for hydrostatic testing of natural gas transmission pipelines installed 1935 onwards and for the replacement of pipelines installed since 1955 for which a reliable record of a pressure test cannot be located.
  • SDG&E's rate of return on equity on the replacement of pipelines installed between 1935 and 1955, for which a reliable record of a pressure test cannot be located.

See ORA's May 1, 2015 Testimony in response to the second re-hearing of Sempra's Pipeline Safety Plan Application.

See ORA's June 19, 2012 Testimony on SDG&E's Pipeline Safety Plan:

 

Current Proceeding Status

See the proceeding docket.

 

Other Resources

See DRA's June 20, 2012 Press Release.

See DRA's Presentation on SoCalGas/SDG&E PSEP.