Unbundling

Following approval of broader gas operations changes and unbundling of storage services late last year, the California Public Utilities Commission (CPUC) had approved various changes in Southern California Gas Co.’s (SoCalGas) storage services. The first of these changes, including rate caps, take effect Friday, but the Sempra utility said it may take until late next year for the full array of changes to be made.

On the 10th anniversary of adoption of Pacific Gas and Electric Co.’s unbundling and opening of its natural gas transmission pipeline and storage system in what has come to be called its Gas Accord, the California Public Utilities Commission (CPUC) Thursday approved a 31-party settlement creating Gas Accord IV covering 2008 through 2010.

On the 10th anniversary of adoption of Pacific Gas and Electric Co.’s (PG&E) unbundling and opening up of its natural gas transmission pipeline and storage system in what has come to be called its Gas Accord, the California Public Utilities Commission (CPUC) last Thursday approved a 31-party settlement creating Gas Accord IV covering 2008 through 2010. Separately, the CPUC also approved the utility’s proposed program for retail gas user rebates this winter as rewards for conserving energy in the height of the space heating season.

More than six months after California regulators approved a comprehensive settlement for the unbundling of Southern California Gas Co.’s intrastate pipeline transmission and storage system, the deal has yet to be implemented, and its prospects are uncertain at best, a SoCalGas official told an industry audience in San Diego Thursday.

Within the larger context of expanded capacity and a newly unbundling transmission/storage system, Sempra Energy’s Southern California Gas Co. utility has identified potential future constraints on its intrastate transmission pipeline system in the Imperial and San Joaquin Valleys where power plants and large industrial customers operate. These areas are potentially tight only on a seasonal basis, such as the summer in Imperial and winter in the San Joaquin valley, according to SoCalGas’ Steve Watson, capacity planning manager, who spoke Tuesday at a GasMart/Power panel discussion in Reno.

Within the larger context of expanded capacity and a newly unbundling transmission/storage system, Sempra Energy’s Southern California Gas Co. utility has identified potential future constraints on its intrastate transmission pipeline system in the Imperial and San Joaquin Valleys where power plants and large industrial customers operate. These areas are potentially tight only on a seasonal basis, such as the summer in Imperial and winter in the San Joaquin valley, according to SoCalGas’ Steve Watson, capacity planning manager, who spoke Tuesday at a GasMart/Power panel discussion in Reno.

Anticipating that its joint settlement will be approved by stateregulators by this fall, Sempra Energy’s utility subsidiaries arepushing a new “Customer Choice” campaign designed to increase thenatural gas volumes residential and small business customers buyfrom energy service providers (ESPs). Sempra is stressing to itsutility employees that the increased ESP business cannot beachieved without “major opening up” of the gas markets in thestate.

In accordance with Ohio’s electric industry competitionlegislation, Cinergy’s Cincinnati Gas & Electric Co. (CG&E)filed its transition plan with the Public Utilities Commission ofOhio (PUCO) yesterday. The plan extends a six-year rate freeze foranother six years, but also requests that the utility recover itsstranded costs through the frozen rates. Overall, the utility,which serves 650,000 electric customers in southwestern Ohio, saidthe plan would cause a $77 million reduction on residentialcustomers’ bills. The new law requires PUCO to rule on the plan byOctober 31.

Pennsylvania’s Senate convincingly voiced its support for SB601, a gas deregulation bill for residential and small commercial customers, with a 47-3 vote of approval early last week. The bill is now in the hands of Pennsylvania’s House of Representatives Consumer Affairs committee. If the bill is signed into law, each of Pennsylvania’s LDCs would be required to submit a restructuring plan by Nov. 1.