The rich emerging from California’s tattered energy market may get richer later this year if California state regulators agree with an administrative law judge’s recommendation to reward Sempra Energy’s Southern California Gas Co. utility nearly $31 million for its gas-buying successes in 2001 that saved consumers an estimated $224 million in avoided wholesale costs for natural gas at a time when prices were skyrocketing.

However, the proposed decision by California Public Utilities Commission ALJ John Wong carries the caveat that other pending cases related to the utility’s gas-buying behavior make any award to shareholders subject to future refund. Both SoCalGas and its sister Sempra utility, San Diego Gas and Electric Co., are being investigated in two pending CPUC cases — one covering their roles in broader western wholesale natural gas price spikes in the 2000-2001 period and their ongoing transactions with Sempra merchant affiliates.

“Due to ongoing activities, the (CPUC) may adjust the shareholder award if that investigation reveals that the conduct of (SoCalGas) contributed to the price spikes at the California border,” Wong wrote in his proposed decision that was released June 25.

Nevertheless, under the gas-only utility’s seven-year gas cost incentive mechanism (GCIM) procedure, ALJ Wong calculated that SoCal shareholders are due a $106 million award that was reduced to $30.8 million as part of a stakeholder settlement, including the CPUC’s independent consumer advocacy group.

The proposed decision is silent on the utility’s request to extend the incentive procedure without any sunset since this case completes the seventh year of the seven-year GCIM.

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