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Home My WebLink About2021 Southern California Gas Company Para mis informaci6n en c6mo este cambio impactari su factura, [lame al 1-800-342-4545 RECEIVED SOUTHERNCOMPENSATION THROUGH TCALIFORNIA GAS HE GAS COSTPANY FINC� EA�I MOR A.21-06-010 CITY CLLkh CITY OF HUNTINGTON AEA(" WHY AM I RECEIVING THIS NOTICE? On June 15, 2021, Southern California Gas Company (SoCalGas(&) filed an Application (A.21-06-010) with the California Public Utilities Commission(CPUC)to request approval of its management of savings incurred during the purchase of natural gas for its customers. Natural gas purchases are reviewed through a mechanism referred to as the Gas Cost Incentive Mechanism (GCIM). The CPUC authorized the GCIM as a means of encouraging utilities to seek the best rates available for natural gas. Under the GCIM, a target price is set and if the utility secures a better rate, the savings is shared with customers and shareholders. If a higher rate is paid, the utility must absorb a portion of the higher rate. SoCalGas shares the savings with its"Core" customers, that is, customers who rely on the utility for all their natural gas needs, including both gas transportation and gas commodity service. WHY IS SOCALGAS REQUESTING COMPENSATION? In the latest GCIM year, SoCalGas purchased natural gas at$184.7 million below the target price during the program period of April 1, 2020, to March 31, 2021. Using the CPUC's formula to determine the incentive for purchasing gas below the target price, SoCalGas has calculated an $11.1 million allocation for its shareholders. This means that these purchases provided customers a benefit of$173.6 million in lower gas costs. In this application, SoCalGas requests that the CPUC approve SoCalGas' shareholder allocation of$11.1 million. HOW COULD THIS AFFECT MY MONTHLY GAS BILL? A typical residential customer's average monthly bill for 35 therms of gas has already increased by 11 cents/month, from$52.16 to $52.27. A typical residential customer's monthly summer bill for 23 therms of gas has already increased by 7 cents/month, from$35.60 to $35.67. The impact on each customer and customer class has varied depending on individual usage. If the CPUC approves SoCalGas' request, there will be no additional change in customer rates from this application. If the CPUC approves a different allocation for SoCalGas shareholders, the difference will be credited or charged to customers through a rate change in future months. HOW DOES THE REST OF THIS PROCESS WORK? This Application will be assigned to a CPUC Administrative Law Judge who will consider proposals and evidence presented during the formal hearing process. The Administrative Law Judge will issue a proposed decision that may adopt SoCalGas' Application, modify it,or deny it. Any CPUC Commissioner may sponsor an alternate decision with a different outcome. The proposed decision, and any alternate decisions, will be discussed and voted upon by the CPUC Commissioners at a public CPUC Voting Meeting. Parties to the proceeding are currently reviewing SoCalGas' Application, including the Public Advocates Office, which is an independent consumer advocate within the CPUC that represents customers to obtain the lowest possible rate for service consistent with reliable and safe service levels. For more information about the Public Advocates Office, please call 1-415-703-1584, email PublicAdvocatesOffice@cpue.ca.gov, or visit PublicAdvocates.cpuc.ca.gov. WHERE CAN I GET MORE INFORMATION? Contact SoCalGas Email: JMiddleto112@socalwas.com Mail: Jordan Middleton Regulatory Case Manager for SoCalGas 555 W 5`h St GT14D6, Los Angeles, CA 90013 A copy of the GCIM Application and any related documents may also be reviewed at https://socalgas.com/regulator-v/cpuc.shttiil Contact CPUC Please visit apps.epuc.ca.gov/c/A2106010 to submit a comment about this proceeding on the CPUC Docket Card. Here you can also view documents and other public comments related to this proceeding. Your participation by providing your thoughts on SoCalGas' request can help the CPUC make an informed decision. If you have questions about CPUC processes, you may contact the CPUC's Public Advisor's Office at: Phone: 1-866-849-8390 (toll-free) or 1-415-703-2074 Email: Public.Advisor@cpuc.ca.gov Mail: CPUC Public Advisor's Office 505 Van Ness Avenue San Francisco, CA 94102 Please reference Application A.21-06-010 in any communications you have with the CPUC regarding this matter. 'RECEIVED Para mas informacion en como este cambio impactaM su facturt{lFEff a4l-� 314545. SOUTHERN CALIFORNIA GAS COMPAN'L I T Y C L t R Notice of Request to Increase Your Rates CITY OF . CITY BEt !'a The Storage Integrity Management Program Balancing Account APPLICATION NO. A.21-01-016 Why am I receiving this notice? On January 28, 2021, SoCalGas filed its Application to Recover Costs Recorded in the Storage Integrity Management Program Balancing Account(A.21-01-016)with the California Public Utilities Commission(CPUC). The Application seeks to recover a total of$34.4 million. If the CPUC approves this Application, SoCalGas will recover forecasted costs in gas rates over a 12-month period beginning in 2022. This will impact your monthly bill. Why is SoCalGas requesting this rate increase? • This Application will cover the implementation of the Storage Integrity Management Program (SIMP), and recovery of related costs recorded in the SIMP Balancing Account (SIMPBA) from 2016-2018. • The SIMP is a comprehensive program to enhance underground gas storage well safety and integrity, and is in compliance with new federal and state regulations enacted over the 2016-2018 timeframe. • The CPUC approved the SIMP with an approximately $19 million revenue requirement for the years 2016-2018. To the extent SoCalGas exceeds the authorized revenue requirement for the three-year period, SoCalGas is authorized to seek recovery of up to 35% above the authorized revenue requirement. SoCalGas is requesting recovery of amounts above 35%through this Application. How could this affect my monthly gas rates? If SoCalGas' rate request is approved by the CPUC,the average residential monthly bill using 33 therms per month would increase by approximately $0.37 or 1%per month over a 12-month period, or until the costs are recovered. Customer Classification Current Proposed % Rate Change (in Average Rates Average Rates Increase cents Residential $/th 106.6600 107.7950 1.1% 1.135 ¢ Commercial $/th 57.9260 58.4620 0.9% 0.5360 Natural Gas Vehicles $/th 29.4750 29.6560 0.6% 0.1810 Large Industrial (distribution 17.1070 17.225 ¢ 0.7% 0.1180 level service) $/th Large Industrial (transmission 3.6470 3.6710 0.6% 0.023 ¢ level service) $/th Backbone Transmission Service $/dth/day 40.141 ¢ 40.141 ¢ 0.0% 0.0000 System Total 42.1700 42.5500 0.9% 0.3800 How does the rest of this process work? This Application will be assigned to a CPUC Administrative Law Judge who will consider proposals and evidence presented during the formal hearing process. The Administrative Law Judge will issue a proposed decision that may adopt SoCalGas' Application, modify it, or deny it. Any CPUC Commissioner may sponsor an alternate decision with a different outcome. The proposed decision, and any alternate decisions, will be discussed and voted upon by the CPUC Commissioners at a public CPUC Voting Meeting. Parties to the proceeding are currently reviewing SoCalGas' Application, including the Public Advocates Office, which is an independent consumer advocate within the CPUC that represents customers to obtain the lowest possible rate for service consistent-with reliable and safe service levels. For more information about the Public Advocates Office, please call 1-415-703-1584, email PublicAdvocatesOffice,(iDcpuc.ca.gov, or visit PublicAdvocates.cpuc,ca.gov. Where can I get more information? Contact SoCalGas Email: LSarkisyan@socalgas.com • Mail: Lucy Sarkisyan • Regulatory Case Manager for SoCalGas • 555 West Fifth Street, Los Angeles, CA 90013-1011 (GT14D6) A copy of the Application and any related documents may also be reviewed at https,://www.socalgas.com/regulatog/epue. Contact CPUC Please visit cpuc.ca.gov/A21-01-016Comment to submit a comment about this proceeding on the CPUC Docket Card. Here you can also view documents and other public comments related to this proceeding. Your participation by providing your thoughts on SoCalGas' request can help the CPUC make an informed decision. If you have questions about CPUC processes,you may contact the CPUC's Public Advisor's Office at: Phone: 1-866-849-8390 (toll-free) or 1-415-703-2074 Email: Public.Advisor@cpuc.ca.gov Mail: CPUC Public Advisor's Office 505 Van Ness Avenue San Francisco, CA 94102 Please reference Application A.21-01-016 in any communications you have with the CPUC regarding this matter.