CPUC Proposes to Ban New Commercial and Industrial Gas Hook-Ups in Los Angeles County Area

Update: At its January 11 business meeting, the CPUC held this item over to its February 8, 2018 meeting. At the meeting Commissioner Randolph noted the business community's consternation with this draft resolution. Commissioners expressed interest in receiving more information from CPUC staff and the utilities on supply constraints.

On December 15th, the CPUC’s Energy Division issued a draft resolution, G-3536, which, if approved, would order SoCalGas to implement an “emergency moratorium on new commercial and industrial gas connections in the Los Angeles County area from January 11, 2018 until further action by the Commission, or March 31, 2018, whichever is earlier.”

Energy Division asserts that due to a series of pipeline outages on the SoCalGas system, ongoing restrictions on the availability of the Aliso Canyon storage field and a pipeline rupture in San Bernardino County on October 1, 2017, natural gas reliability for core and noncore customers is threatened during the winter heating season. Energy Division believes that its proposed emergency moratorium on new commercial and industrial gas connections will avoid increased gas demand which will help avoid curtailments to existing customers.

The comment period has been reduced to 20-days on the grounds the resolution is needed to deal with an “unforeseen emergency situation,” meaning comments on the draft resolution are due on January 4, 2018. The draft resolution is expected to be considered during the CPUC’s next voting meeting, on January 11, 2018.

Contact: Ron Liebert