SoCalGas 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 Southern California Gas Company (SoCalGas) to submit a PSEP. In August 2011, SoCalGas forecasted $1.4 billion during 2012-2015 for safety upgrade measures, proposing to recover from customers:

  • $587 million during 2012-2015 for upgrade projects
  • $9.5 billion for 2011-2023 to implement the projects

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

Evidentiary Hearings were held at the CPUC in August 2012.

 

ORA's Policy Position

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

  • Ratepayers should only pay for hydrostatic pressure testing of natural gas transmission pipelines installed before 1935.
  • SoCalGas 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.
  • SoCalGas'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 in response to SoCalGas' proposed Pipeline Safety Plan:

 

Proceeding Record

See the proceeding docket.

 

Other Resources

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