SDG&E, SoCal Gas Cost-of-Service Settlements in the Works

Signaling moves that will likely affect ratepayers? monthly bills, San Diego Gas & Electric and Southern California Gas announced separate tentative settlements on their cost-of-service cases being handled at the California Public Utilities Commission. However, the utilities have not pinned down ratepayer costs. Overall, cost-of-service cases set rates to cover operations, investment capital, and other costs for investor-owned utilities. Though two settlements are being negotiated, SDG&E?s and SoCal Gas?s cost-of-service cases have been folded into one proceeding at the CPUC. Numbers in the case have been in flux, and parties to the proposed settlements have been mum about terms. Currently, according to documents filed at the US Securities and Exchange Commission, SoCal Gas is seeking revenue increases for 2004 of about $45 million. SDG&E asked for an increase of $76 million. After analyzing the utilities? cost forecasts, the Office of Ratepayer Advocates earlier this year recommended slicing $140 million from SoCal Gas?s cost-of-service request and $52.4 million from SDG&E?s numbers. On December 18, the CPUC is slated to vote on a draft plan that would allow SDG&E and SoCal Gas to track revenue shortfalls or overcollections starting in January?until new rates are approved. Administrative law judge John Wong?s plan contends the cost-of-service case is a ?less than traditional general rate proceeding? where every cost of test-year operations is scrutinized. For instance, procurement costs and energy-efficiency costs are not in the mix.

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SDG&E, SoCal Gas Cost-of-Service Settlements in the Works

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