SoCalGas Reschedules Auction on Kern River Rights
Southern California Gas will hold a one-day auction Sept. 1 to
sell its exclusive rights to buy 370 miles of large-diameter
transmission pipeline and related facilities currently transporting
1.1 Bcf/d of supplies from Rocky Mountain and Southwest supply
sources. The winning bid(s) will be announced Sept. 16, SoCalGas
officials said last week.
A previously announced June 8-through-mid-July auction was
canceled because of state regulatory delays, they said. Both the
auction and results will be accessible through the large gas-only
distribution utility's on-line GasSelect service and company
website on the Internet (www.socalgas.com/3rdparty/kern).
The gas company would offer no predictions regarding prices or
the number of participants in the multi-round bidding, which was
delayed pending approvals from the California Public Utilities
Some California energy observers indicated earlier in the summer
that Kern River and Mojave pipelines, the two interstate pipelines
that connect with the California transmission pipelines for which
SoCalGas has exclusive rights, each may be bidders on the
California pipelines, which they now own and operate. PG&E Corp.
also could be a prospective bidder with its extensive transmission
pipeline presence in the state.
SoCalGas gained exclusive rights to buy the California portions
of Kern (700 MMcf/d) and Mojave (400 MMcf/d) in 2012 as part of a
deal struck in 1992 when the two out-of-state pipelines were
seeking authorization to build new gas supply lines into the state.
Subsequently, SoCal was mandated to sell its rights as part of
regulatory approvals of the recently completed merger that formed
San Diego-based Sempra Energy, the parent of both SoCalGas and San
Diego Gas and Electric.
Buying rights involved in the auction cover the following
facilities: Kern River's 120 miles of 36-inch-diameter pipeline
from the California-Nevada border to Daggett, about 150 miles
northeast of Los Angeles; Mojave's 145 miles of 30-inch-diameter
pipeline from the Colorado River to Daggett where it interconnects
with Kern; and about 105 miles of jointly owned, 42-inch-diameter
pipeline with two spurs and customer metering and other related
facilities in the south end of the San Joaquin Valley near
Richard Nemec, Los Angeles
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