Proposed $640M San Diego Gas Transmission Line Shot Down

A proposed California Public Utilities Commission decision rejects a bid by San Diego Gas & Electric and SoCal Gas for a permit to build a 47-mile long gas transmission line at a cost of $639 million.

The tentative ruling issued May 2 finds no need for the project, which would increase gas capacity in the area by 200 million cubic feet/day. The new project would replace a gas line with a capacity of 70 MMcfd, which was built in 1947.

“Applicants have not justified why a 200 MMcf pipeline at tremendous expense is needed to meet a relatively small deficit of 25 MMcfd if Line 1600 is derated,” stated the proposed decision by Administrative Law Judge Colette Kersten. She called addressing a deficit of 25 MMcfd with a project supplying 200 MMcfd or more “a mismatch.”

Many of the project opponents, including the Sierra Club, Southern California Generation Coalition and consumer advocates, warned that the real aim of the project is to increase exports of natural gas supplies to the utility’s parent company, Sempra. The San Diego-based parent company has an LNG import terminal in Mexico to which a liquefaction unit is being added to enable gas exports to Asian markets.

Opponents also warned that the project would ignore California’s efforts to decarbonize the energy sector.

The ruling does point out another risk, that much of the proposed 36-inch transmission pipe—41 miles— would run through urban areas, including the cities of San Diego, Escondido and Poway. It also would raise backbone transmission service charges by a whopping 51 percent, at 8.3 cents/dekatherm.

The tentative ruling, which could be before the CPUC as early as June 21, rejects approval of a certificate of public convenience and necessity, noting specifically a recent California Energy Commission forecast that gas demand will decline.

The proposed decision also points out that the sister utilities are able to meet reliability needs in various ways, including by battery storage and imports from Mexico. It notes that SDG&E’s plan to install 331 MW of battery storage can meet reliability needs. In addition, Kersten points out, up to 70 MMcfd of gas supplied at the Mexican border can be sent to Otay Mesa. — Elizabeth McCarthy

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Proposed $640M San Diego Gas Transmission Line Shot Down

William J. Kelly

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