SoCalGas Pipeline Safety Enhancement Plans (PSEP)

Background

In 2011, the CPUC ordered Southern California Gas Company (SoCalGas) to submit a PSEP. In August 2011, SoCalGas forecasted $1.4 billion during 2012-2015 for safety upgrade measures, proposing to recover from customers:

• $587 million during 2012-2015 for upgrade projects
• $9.5 billion for 2011-2023 to implement the projects

SoCalGas's parent company, Sempra, submitted to the CPUC a joint plan with SDG&E.

Evidentiary Hearings were held at the CPUC in August 2012.

DRA's Policy Position

DRA served its testimony in response to SoCalGas's Pipeline Safety Enhancement Plans (PSEP) on June 19, 2012. While DRA provides an analysis of what SoCalGas's cost estimates should be, DRA recommends that SoCalGas customers should not be responsible for the vast majority of these costs. Instead, SoCalGas shareholders should bear the cost of making improvements to ensure its pipeline system is safe. Specifically, DRA recommends:

• Ratepayers should only pay for hydrostatic pressure testing of natural gas transmission pipelines installed before 1935.
• SoCalGas shareholders should pay all expenses for hydrostatic testing of natural gas transmission pipelines installed 1935 onwards and for the replacement of pipelines installed since 1955 for which a reliable record of a pressure test cannot be located.
• SoCalGas's rate of return on equity on the replacement of pipelines installed between 1935 and 1955, for which a reliable record of a pressure test cannot be located.

See DRA's detailed policy position:

• Executive Summary 
• DRA's PSEP Testimony 

Current Proceeding Status

DRA will submit Opening and Reply Briefs in October 2012.

See the proceeding docket.

Other Resources

See DRA's Press Release.
See DRA's Presentation on SoCalGas/SDG&E PSEP.