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SoCalGas Files Final Settlement Proposal to CPUC
Once again up against a regulator-imposed deadline, SouthernCalifornia Gas Co. is expected to file today its latest attempt ata final, all-parties settlement in California’s never-ending gasindustry restructuring, which has been dragging on for more thantwo years.
This will be the latest of many proposed settlements given tothe California Public Utilities Commission, if the large gas LDCmakes its filing as it indicated to parties last week. Pacific Gas& Electric Co. has proposed two settlements related tobalancing and other issues on its system, and SoCalGas earlierfiled an interim settlement proposal, which is designed to beeffective through next year. The final settlement would becomeeffective in 2002, running through Sept. 1, 2006.
SoCalGas was scrambling last week to get as many of the almost75 stakeholders in the settlement talks to sign on to the proposedfinal deal.
One of the key goals of regulators has been to have a gastransmission and storage system statewide that was more uniformbetween the north-south systems of PG&E and SoCalGas, but oneof the major stumbling blocks in the discussions has been theaspects of the southern transmission pipeline system that areunique to the southern half of the state.
At the 11th hour in the review process late last week, PG&Eexpressed concerns about the details of how designated primary andsecondary receipt points are treated on the SoCal transmissionsystem, particularly those receipt points for PG&E’s system andthe Kern/Mojave interstate pipeline.
Included in the proposed final settlement are new receipt pointsat Hector Road in the high desert west of the Arizona border andthe OXY point near Wheeler Ridge and the Kern County area. PG&Eexpressed last-minute concerns about the market not being allowedto determine who gets primary access rights as a means of ensuringthat SoCal does not over-sell these rights at any given receiptpoint which would eliminate chances for interruptible rights to beavailable there.
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