SDG&E and SoCalGas Pipeline
Safety & Reliability Project - Line 3602
Certificate of Public Convenience and Necessity (CPCN)
September 30, 2015, SDG&E and SoCalGas submitted a joint Application
to the CPUC requesting approval for:
authorizing SDG&E to construct the proposed project.
of the project revenue requirements in customer rates.
Applicants’ proposal purports to address safety, reliability, and system
capacity concerns and consists of:
of Line 3602: A new 47-mile long, 36-inch natural gas
transmission Pipeline from Rainbow Station to Miramar in San Diego County.
Replacement: Line 3602 would replace a 16-inch natural gas
transmission pipeline from Rainbow Station to Miramar, which will be
downgraded to a lower-pressure distribution pipeline.
utilities estimate construction costs to be $596 million with a forecasted
annual revenue requirement of $82.7 million. However, the amount requested for
rate recovery is based on actual costs that will be incurred, not the estimated
costs presented in the application. The Project has no proposed cost cap.
approved, the proposed Project could increase the SoCalGas Backbone Transmission
Service (BTS) rates by 45.3% over current levels. BTS
rates are applied to both SDG&E and SoCalGas customers, as the CPUC set a
“postage-stamp” style system where customers pay a common rate to deliver
gas from the Citygate to any receipt point.
Utilities' Amended Application
January 22, 2016 the CPUC issued a Ruling
updating the proceeding schedule, and requiring the utilities submit an amended
Application by March 21, 2016.
ORA has reviewed the SDG&E/SoCalGas' amended application and
recommends that the CPUC deny the utilities’ request to approve the CPCN to
construct the Line 3602 Pipeline because SoCalGas and SDG&E have failed to
demonstrate that the pipeline is necessary to address the SDG&E Southern
System safety, reliability, and system capacity issues.
Specifically, as directed by the CPUC's January 2016 Ruling, the utilities fail to:
- Provide specific Ten-Year forecasted information regarding the area served by proposed Line 3602
- Provide Ten-Year historic monthly daily annual maximum volumes through Line 1600
- Use the Proponent’s Environmental Assessment (PEA) definitions in SoCalGas/SDG&E’s comparison for cost effectiveness of other alternatives.
Additionally, ORA filed a Motion to Dismiss the Application for Line 3602, and requested the CPUC order the utilities to pressure test Line 1600 as soon as possible. SoCalGas/SDG&E’s costs would be subject to reasonableness review.
June 17, 2016 Motion to Dismiss the Line 3602 Application
April 21, 2016 Protest to the Amended Application
October 30, 2015 initial Protest
to the Application
CPUC Proceeding Docket
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