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GT&S Rate Case Update

Friday, July 25, 2014


GT&S Rate Case icon

As PG&E's California Gas Transmission committed to in its last Rate Case article This link will open in a new window, we plan to bring you regular Rate Case updates here on Pipe Ranger.

As we have shared, at this point it is unlikely that the 2015 GT&S Rate Case will be fully resolved before January 1, 2015. Therefore, the central question is: What will CGT's rates be, effective January 1st?

According to the Gas Accord V Settlement This link will open in a new window (GAV),should new rates not be approved by January 1, 2015, the interim transmission and storage rates will equal the rates in effect on December 31, 2014, plus a two percent escalator.

In looking at the December 31st rates, two adjustments need to be made before the two percent escalator is applied. These two adjustments relate to terms of Gas Accord V that will end on December 31st. They are the Local Transmission Bill Credit backbone surcharge (described in Section 9.5 of GAV), the removal of which will reduce backbone rates; and the Revenue Sharing Mechanism Seed Value (described in Section 10.1 of GAV), the removal of which will increase backbone rates.

The table below shows CGT's best estimate of the interim rates which will be effective January 1, 2015. Please be aware that these rates are not approved numbers. CGT will include 2015 Interim GT&S Rates in its 2015 Annual Gas True-Up (AGT) advice letter, which CGT anticipates filing with the CPUC by the first week of November 2014. The approved, final rates are anticipated to be available during the first half of December 2014.




2014 Rates Estimated Rates Effective January 1, 2015
Redwood to On-System - Core
Reservation Charge ($/Dth/Mo) $4.5126 $4.9663
Usage Charge ($/Dth) $0.0705 $0.0749
Total ($/Dth @ Full Contract) $0.2188 $0.2382
Redwood to On-System - Noncore
Reservation Charge ($/Dth/Mo) $5.2050 $5.7105
Usage Charge ($/Dth) $0.0952 $0.1018
Total ($/Dth @ Full Contract) $0.2663 $0.2896
Baja to On-System - Core
Reservation Charge ($/Dth/Mo) $5.3466 $5.8170
Usage Charge ($/Dth) $0.0831 $0.0878
Total ($/Dth @ Full Contract) $0.2588 $0.2790
Baja to On-System - Noncore
Reservation Charge ($/Dth/Mo) $5.9939 $6.5151
Usage Charge ($/Dth) $0.1093 $0.1162
Total ($/Dth @ Full Contract) $0.3063 $0.3304
Silverado and Mission to On-System
Reservation Charge ($/Dth/Mo) $3.1566 $3.4544
Usage Charge ($/Dth) $0.0500 $0.0522
Total ($/Dth @ Full Contract) $0.1538 $0.1657

Please contact your CGT Sales Representative with any questions.



"PG&E" refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. © 2009 Pacific Gas and Electric Company. All rights reserved.