TITLE
Recommendation to authorize City Manager to execute the Partial Settlement Agreement in Phase 2 of California Public Utilities Commission Docket A.11-11-002, the San Diego Gas & Electric Company and Southern California Gas Company Triennial Cost Allocation Proceeding. (Citywide)
DISCUSSION
The City of Long Beach (City) contracts for the purchase of out-of-state natural gas supply which is transported by interstate pipelines to the California border. The City utilizes intrastate pipelines owned by the Southern California Gas Company (SoCalGas) to transport this natural gas from the California border to Long Beach Gas and Oil’s (LBGO) natural gas utility distribution system.
On January 18, 2000, the City Council authorized the City Manager to execute a long-term Master Services Contract (No. 26729) in conjunction with Schedule A, the Intrastate Transmission Service Agreement, between the City and SoCalGas. Schedule A sets forth the terms and conditions of intrastate transmission service as approved by the California Public Utilities Commission (CPUC). On October 6, 2009, the City Council authorized the City Manager to execute the current Schedule A, which became effective November 1, 2009. Later, the CPUC revised the intrastate transmission service which became effective on February 1, 2010.
In November 2011, SoCalGas and San Diego Gas & Electric Company (SDG&E) filed Application 11-11-002 with the CPUC for authority to revise their rates effective January 1, 2013, through the CPUC’s Triennial Cost Allocation Proceeding (TCAP) process. The TCAP is a process by which the CPUC revises rates for natural gas service to reflect changes in the cost of SoCalGas and SDG&E providing service and the allocation of such costs among different customer classes for the three-year TCAP period 2013-2015.
The proceeding has been conducted in phases. Phase 1 addressed issues pertaining to the costs SoCalGas and SDG&E are expected to incur in providing service, inc...
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