BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ) ) ) ) REPLY COMMENTS OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E)

Size: px

Start display at page:

Download "BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ) ) ) ) REPLY COMMENTS OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E)"

Anna May
5 years ago
Views:

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of San Diego Gas & Electric Company (U 902G and Southern California Gas Company (U 904G Updating Firm Access Rights Service and Rates. Application (Filed March 29, 2010 REPLY COMMENTS OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E GLORIA M. ING ANGELICA M. MORALES Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California Telephone: Facsimile: Dated: April 11,

2 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of San Diego Gas & Electric Company (U 902G and Southern California Gas Company (U 904G Updating Firm Access Rights Service and Rates. Application (Filed March 29, 2010 REPLY COMMENTS OF SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E I. INTRODUCTION Pursuant to Rule 14.3 of the Commission s Rules of Practice and Procedure, Southern California Edison Company ( SCE submits the following reply comments regarding the March 15, 2011 proposed decision ( PD of Administrative Law Judge Smith. Specifically, in Section 9.2.3, the PD agrees with the Joint Rate Recommendation ( JRR that the interruptible backbone transportation rate be equal to the daily SFV rate on a 100% load factor. SCE supports the PD s decision to adopt the JRR s rate proposal and offers the following response to the April 4, 2011 comments of Watson Cogeneration Company and the California Cogeneration Council ( Watson/CCC who oppose the PD on this issue. Contrary to Watson/CCC s assertion, 1 the PD correctly rejects Watson/CCC s proposal to set the interruptible rate at 134% of the daily SFV rate. 2 Based on the record, 3 the PD correctly concludes that it is not reasonable to price lower priority interruptible service higher than firm service. Further, as supported by the record, 4 the PD correctly notes that 97 percent of scheduled nominations during the October 2008 through December 2009 period were for firm service, thus 1 Watson/CCC s April 4, 2011 comments, pp PD, mimeo, pp Exhibit SCGC-2, pp Exh. SD/SCG-1, p

3 there would be little increase in firm service if interruptible service were priced higher. As stated in SCE s Reply Brief in this proceeding, the Commission should be mindful that it is economically unsound to set rates based on a strategy of encouraging one type of service at the expense of another. 5 Further, the Federal Energy Regulatory Commission ( FERC in FERC Order 637 has determined that it would be inappropriate to price interruptible service in a manner that would encourage interruptible shippers to purchase firm service. 6 The Commission should disregard Watson/CCC s attempt to shift the focus by stating that its proposal would encourage the use of the SoCalGas city-gate market 7 because there is nothing on the record to suggest that the city-gate market is not robust. 8 In its April 4, 2011 Comments, Watson/CCC misinterprets the plain language of FERC Order 637 to justify setting the interruptible rate higher than firm service. Watson/CCC s statement that the FERC s decision to permit a higher interruptible rate set higher than firm SFV rates during limited, peak periods 9 should not be construed to mean that FERC encourages the interstate pipelines to set higher rates for interruptible service. As explicitly stated by FERC in Order 637 and as quoted in SCE s December 6, 2010 reply brief, while higher interruptible rates are permitted under FERC Order 637 for a limited period of time (such as the peak period, the Order is abundantly clear that any increase in peak rates must be offset by decreases in off-peak rates, so that the annual rate would be no more than the uniform maximum daily rate for the same transportation volume. 10 Watson/CCC has not proposed term differentiated rates, such as corresponding decreases in off-peak periods, and therefore setting the interruptible rate at 134% of the daily SFV rate is not consistent with FERC Order 637. Finally, Watson/CCC s citation to the Commission s adoption of the PG&E Gas Accord as support for the proposition that the Commission recognizes the benefits of higher interruptible 5 See Section II.B of SCE s Reply Brief, p See Section II.B of SCE s Reply Brief, where SCE cites EPNG, 112 FERC 61,150 at pp. 55, 57 ( Watson/CCC s April 4, 2011 comments, p See Section II.B of SCE s Reply Brief, pp Watson/CCC s April 4, 2011 comments, footnote 28 on p. 11 and accompanying text. 10 See Section II.A of SCE s Reply Brief, pp

4 rates is inappropriate. The PG&E Gas Accord was a settlement, and pursuant to Commission Rules 12.1 and 12.5, the Commission s adoption of a settlement does not constitute approval of any principle or issue in a proceeding or a future proceeding. The Gas Accord was the product of compromises of many issues among numerous parties, and Watson/CCC s reliance on the settlement to support its proposal is a red herring. Respectfully submitted, GLORIA M. ING ANGELICA M. MORALES /s/ GLORIA M. ING By: Gloria M. Ing Attorneys for SOUTHERN CALIFORNIA SCE COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California Telephone: Facsimile: Gloria.Ing@sce.com April 11,

5 CERTIFICATE OF SERVICE I hereby certify that, pursuant to the Commissioner s Rules of Practice and Procedure, I have this day served a true copy of REPLY COMMENTS OF SOUTHERN CALIFORNIA EDISON COMPANY S (U 338-E on all parties identified in the attached service list(s. Transmitting the copies via to all parties who have provided an address. First class mail will be used if electronic service cannot be effectuated. Executed this 11 th day of April, 2011 at Rosemead, California. /s/ JANICE VELARDE Janice Velarde Project Analyst SOUTHERN CALIFORNIA SCE COMPANY 2244 Walnut Grove Ave. Post Office Box 800 Rosemead, California 91770

6 CPUC - Service Lists - A Page 1 of 4 4/11/2011 CPUC Home CALIFORNIA PUBLIC UTILITIES COMMISSION Service Lists PROCEEDING: A SDG&E AND SOCAL GAS FILER: SAN DIEGO GAS & ELECTRIC COMPANY LIST NAME: LIST LAST CHANGED: APRIL 6, 2011 DOWNLOAD THE COMMA-DELIMITED FILE ABOUT COMMA-DELIMITED FILES Back to Service Lists Index Parties JOHN W. LESLIE, ESQ. KEITH R. MCCREA LUCE, FORWARD, HAMILTON & SCRIPPS, LLP SUTHERLAND, ASBILL & BRENNAN LLP 1275 PENNSYLVANIA AVE., N.W., STE 800, CA WASHINGTON, DC FOR: SHELL ENERGY NORTH AMERICA (US, FOR: CALIFORNIA MANUFACTURERS & L.P. TECHNOLOGY ASSOCIATION LISA SIMPKINS DANIEL J. BRINK VP - ENERGY POLICY COUNSEL CONSTELLATION ENERGY RESOURCES EXXON MOBIL CORP. 111 MARKET PLACE, SUITE BELL ST., RM BALTIMORE, MD HOUSTON, TX FOR: CONSTELLATION NEWENERGY-GAS FOR: EXXON MOBIL CORP. DIVISION, LLC KEITH BROWN JEFFERY L. SALAZAR SOUTHWEST GAS CORPORATION SOUTHERN CALIFORNIA GAS COMPANY 5241 SPRING MOUNTAIN ROAD 555 W. FIFTH STREET, GT14D6 LAS VEGAS, NV LOS ANGELES, CA FOR: SOUTHWEST GAS CORPORATION FOR: SAN DIEGO GAS & ELECTRIC COMPANY/SOUTHERN CALIFORNIA GAS COMPANY BETH MUSICH NORMAN A. PEDERSEN SEMPRA ENERGY UTILITIES ATTORNEY 555 W. FIFTH STREET, GT14D6 HANNA AND MORTON LLP LOS ANGELES, CA SOUTH FLOWER ST. SUITE 1500 FOR: SAN DIEGO GAS & ELECTRIC/SOCAL GAS LOS ANGELES, CA FOR: SOUTHERN CALIFORNIA GENERATION COALITION ANGELICA M. MORALES GLORIA M. ING

7 CPUC - Service Lists - A Page 2 of 4 4/11/2011 SOUTHERN CALIFORNIA EDISON COMPANY SENIOR ATTORNEY 2244 WALNUT GROVE AVE., PO BOX 800 SOUTHERN CALIFORNIA EDISON COMPANY ROSEMEAD, CA WALNUT GROVE AVE FOR: SOUTHERN CALIFORNIA EDISON COMPANY ROSEMEAD, CA FOR: SOUTHERN CALIFORNIA EDISON WILLIAM D. RAPP DIANA L. LEE ATTORNEY AT LAW SEMPRA LNG LEGAL DIVISION 101 ASH STREET, HQ-12 ROOM 4107 SAN DIEGO, CA VAN NESS AVENUE FOR: SEMPRA LNG SAN FRANCISCO, CA FOR: DRA MARCEL HAWIGER SEEMA SRINIVASAN ENERGY ATTY ALCANTAR & KAHL LLP THE UTILITY REFORM NETWORK 33 NEW MONTGOMERY STREET, SUITE SANSOME STREET, SUITE 900 SAN FRANCISCO, CA SAN FRANCISCO, CA FOR: INDICATED PRODUCERS FOR: TURN EDWARD W. O'NEILL BETH VAUGHAN DAVIS WRIGHT TREMAINE LLP CALIFORNIA COGENERATION COUNCIL 505 MONTGOMERY STREET, SUITE NORTH MARSH ELDER CT. SAN FRANCISCO, CA CONCORD, CA FOR: CITY OF LONG BEACH GAS & OIL FOR: CALIFORNIA COGENERATION COUNCIL DEPARTMENT R. THOMAS BEACH CALIFORNIA COGENERATION COUNCIL 2560 NINTH STREET, SUITE 213A BERKELEY, CA FOR: WATSON COGENERATION COMPANY Information Only CARRIE A. DOWNEY DANIEL W. DOUGLASS LAW OFFICES OF CARRIE ANNE DOWNEY DOUGLASS & LIDDELL, CA 00000, CA DAVID SANCHEZ GREGORY S.G. KLATT GAS SUPPLY OFFICER DOUGLASS & LIDDELL LONG BEACH GAS & OIL COMPANY NO ADDRESS, CA , CA MRW & ASSOCIATES, LLC, CA PEDRO VILLEGAS SEMPRA ENERGY UTILITIES, CA CHRISTOPHER D. YOUNG STEPHEN BAKER SR. COUNSEL CONSTELLATION ENERGY NEWENERGY-GAS DIV. CONSTELLATION ENERGY RESOURCES, LLC 9960 CORPORATE CAMPUS DR., STE MARKET PLACE, SUITE 500 LOUISVILLE, KY BALTIMORE, MD JOHN ELMORE KIRBY BOSLEY RRI ENERGY SERVICES, INC. JP MORGAN VENTURES ENERGY CORP MAINT ST. SUITE LOUISIANA ST. STE 1000, 10TH FLR HOUSTON, TX HOUSTON, TX 77002

8 CPUC - Service Lists - A Page 3 of 4 4/11/2011 PAUL GENDRON PAUL TRAMONTE JP MORGAN VENTURES ENERGYCORP. JP MORGAN VENTURES ENERGY CORP. 700 LOUISIANA STREET SUITE LOUISIANA ST., STE 1000, 10TH FLR HOUSTON, TX HOUSTON, TX CHRISTY BERGER JOHN OLENICK MGR - STATE REG AFFAIRS SOUTHWEST GAS CORPORATION SOUTHWEST GAS CORPORATION 5241 SPRING MOUNTAIN ROAD 5241 SPRING MOUNTAIN ROAD LAS VEGAS, NV LAS VEGAS, NV STEVE WILLIAMS DAVID J. GILMORE SOUTHWEST GAS CORPORATION SOUTHERN CALIFORNIA GAS COMPANY 5241 SPRING MOUNTAIN ROAD 555 WEST FIFTH STREET, GT-14E7 LAS VEGAS, NV LOS ANGELES, CA ROBERT L. PETTINATO TOM ROTH LOS ANGELES DEPARTMENT OF WATER & POWER ROTH ENERGY COMPANY NATURAL GAS GROUP ENERGY CONTROL CENTER 545 S. FIGUEROA STREET, SUITE 1235 PO BOX 51111, RM LOS ANGELES, CA LOS ANGELES, CA MICHAEL S. ALEXANDER STEVEN ENDO ENERGY SUPPLLY AND MANAGEMENT PASADENA DEPARTMENT OF WATER & POWER SOUTHERN CALIFORNIA EDISON 150 S. LOS ROBLES, SUITE WALNUT GROVE AVE PASADENA, CA ROSEMEAD, CA ERIC KLINKNER STEVEN G. LINS PASADENA DEPARTMENT OF WATER AND POWER ASSISTANT GENERAL MANAGER SUPPLY 150 SOUTH LOS ROBLES AVENUE, SUITE 200 GLENDALE WATER AND POWER PASADENA, CA N. GLENDALE AVENUE, LEVEL 4 GLENDALE, CA BRUNO JEIDER RICHARD J. MORILLO BURBANK WATER AND POWER PO BOX WEST MAGNOLIA BOULEVARD BURBANK, CA BURBANK, CA CASE ADMINISTRATION MARTINE BLAIR SOUTHERN CALIFORNIA EDISON COMPANY SEMPRA GLOBAL PO BOX 800 / 2244 WALNUT GROVE AVE. 101 ASH STREET, HQ09F ROSEMEAD, CA SAN DIEGO, CA MARCIE A. MILNER BILLIE OVERTURF SHELL ENERGY NORTH AMERICA (US, L.P. SAN DIEGO GAS & ELECTRIC COMPANY 4445 EASTGATE MALL, STE. 100 CP32D SAN DIEGO, CA CENTURY PARK COURT SAN DIEGO, CA CENTRAL FILES STEPHEN J. KEENE SAN DIEGO GAS AND ELECTRIC COMPANY ASST. GENERAL COUNSEL 8330 CENTURY PARK COURT, CP31E IMPERIAL IRRGATION DISTRICT SAN DIEGO, CA EAST BARIONI BLVD. IMPERIAL, CA CHARLES GUSS STEVEN SCIORTINO CITY OF ANAHEIM CITY OF ANAHEIM 200 SOUTH ANAHEIM BLVD. 200 SOUTH ANAHEIM BOULEVARD ANAHEIM, CA ANAHEIM, CA EVELYN KAHL ALCANTAR & KAHL, LLP KAREN TERRANOVA ALCANTAR & KAHL

9 CPUC - Service Lists - A Page 4 of 4 4/11/ NEW MONTGOMERY STREET, SUITE NEW MONTGOMERY STREET, SUITE 1850 SAN FRANCISCO, CA SAN FRANCISCO, CA BRIAN T. CRAGG SALLE E. YOO GOODIN, MACBRIDE, SQUERI, DAY & LAMPREY DAVIS WRIGHT TREMAINE LLP 505 SANSOME STREET, SUITE MONTGOMERY STREET, SUITE 800 SAN FRANCISCO, CA SAN FRANCISCO, CA CALIFORNIA ENERGY MARKETS CATHERINE E. YAP 425 DIVISADERO STREET, SUITE 303 BARKOVICH & YAP, INC. SAN FRANCISCO, CA PO BOX OAKLAND, CA CAROLYN KEHREIN ANDREW B. BROWN ENERGY MANAGEMENT SERVICES ELLISON, SCHNEIDER & HARRIS LLP 2602 CELEBRATION WAY 2600 CAPITOL AVENUE, SUITE 400 WOODLAND, CA SACRAMENTO, CA FOR: CONSTELLATION NEWENERGY GAS DIVISION, LLC State Service JACQUELINE GREIG JOYCE ALFTON ENERGY COST OF SERVICE & NATURAL GAS BRA ENERGY DIVISION ROOM 4102 AREA 4-A 505 VAN NESS AVENUE 505 VAN NESS AVENUE SAN FRANCISCO, CA SAN FRANCISCO, CA PAUL S. PHILLIPS PEARLIE SABINO EXECUTIVE DIVISION ENERGY COST OF SERVICE & NATURAL GAS BRA ROOM 5212 ROOM VAN NESS AVENUE 505 VAN NESS AVENUE SAN FRANCISCO, CA SAN FRANCISCO, CA RICHARD A. MYERS RICHARD SMITH ENERGY DIVISION DIVISION OF ADMINISTRATIVE LAW JUDGES AREA 4-A ROOM VAN NESS AVENUE 505 VAN NESS AVENUE SAN FRANCISCO, CA SAN FRANCISCO, CA TOP OF PAGE BACK TO INDEX OF SERVICE LISTS

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ) ) ) ) ) )

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California gas Company and San Diego Gas & Electric Company to expand existing off system delivery authority A.