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SoCalGas Reschedules Auction on Kern River Rights

August 31, 1998
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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 Commission.

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&ampE 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 Bakersfield, CA.

Richard Nemec, Los Angeles

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ISSN © 2577-9877 | ISSN © 1532-1266
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