Aliso Canyon: CPUC Approves Request to Extend Settlement Addressing Southern California Gas System Operations

Today the CPUC approved a Proposed Decision that further extends the termination date of the “Settlement Agreement Regarding Balancing Issues” from Nov. 30, 2017 to Nov. 30, 2018. SoCalGas, SDG&E and most of the parties to the original and modified settlement had filed a joint Petition for Modification (PFM) of D.16-12-015, as modified by D.17-03-020, requesting the extension. No party contested the PFM.

In March, 2016, in response to concerns about the impacts to the gas operations of SoCalGas and SDG&E resulting from the ongoing problems at and reduced availability of the Aliso Canyon gas storage facility, the two utilities proposed a variety of operational constraints, including the imposition of +/- 5% daily balancing requirements. After discussions with interested parties, including shippers and non-core customers that would be negatively affected by the utilities’ proposals, a settlement was reached, which, in particular, avoided the need for daily balancing requirements. The settlement was approved by the CPUC in Decision (D.) 16-12-015. The settlement was subsequently modified and its expiration date extended, in D.17-03-020, through Nov. 30, 2017.

Ronald Liebert