On Friday, September 18th, PG&E filed its 2011 Gas Transmission and Storage (GT&S) rate case with the California Public Utilities Commission (CPUC). The filing asks the CPUC to approve rates that support the revenues required to maintain and operate our gas transmission and storage system, effective January 1, 2011 through December 31, 2014.

The GT&S rate case proposes modifications to the gas transmission rate structure which will simplify rate design and reduce rate volatility. In addition, the application proposes a symmetric customer/shareholder revenue sharing mechanism for at-risk revenues.

The regulatory application reflects an increased revenue requirement based on significant planned capital expenditure for backbone transmission, local transmission, and storage facilities and increased Operating and Maintenance (O&M) expenses. Some examples are:

• Replacing the Topock Compressor Station on the Baja path due to both reliability and environmental permit conditions.
• Replacing two of the three compressor units at the Delevan Compressor Station on the Redwood path.
• Reinforcing the local transmission system in the Sacramento and San Joaquin Valleys to meet planning standards for meeting peak load during cold weather conditions.
• Information Technology work necessary to maintain and enhance the INSIDEtracc system as well as other computer applications.

PG&E's currently effective rates were approved by the CPUC for a three-year term (2008 - 2010) under an all-party settlement known as "Gas Accord IV".

Here is a link to the rate case filing. If you have questions, please contact Roger Graham at 415.973.2293.