PG&E Files 2023 General Rate Case Application

Date: June 30, 2021

PG&E filed its 2023 General Rate Case (GRC) Phase 1 application on June 30, 2021. As required by the Rate Case Plan Decision (D.20-01-002), this GRC application integrates Gas Transmission and Storage (GT&S), gas distribution and many other aspects of PG&E’s gas and electric operations revenue requirements in a single rate case.

 

The forecasted expenditures in the exhibit for Gas Operations are to operate and maintain PG&E’s extensive natural gas transmission, storage, and distribution system safely and reliably from 2023 through 2026. The application provides proposed revenue requirement and illustrative rate information that covers this 4-year period.

 

Given the consolidation of GT&S revenue requirement into the GRC, certain aspects of prior GT&S rate cases will not be presented in this GRC Phase 1, but in a separate cost allocation and rate design proceeding (CARD) to be filed in September 2021. The following are topics that will be included in the CARD filing: Demand and Throughput Forecast, Cost Allocation and Rate Design related to GT&S functions, Backbone Load Factor, and Core Gas Supply capacity holdings. PG&E is proposing that the 2023 GRC and 2023 GT&S CARD decisions be implemented simultaneously.

 

Parts of PG&E’s GRC filing that we believe you, our customers, will be most interested in are below:

  • Natural Gas Storage Strategy Update
    • Increasing peak day demand is driving the need for additional gas storage withdrawal capacity from 857 MMcf/day to 1017 MMcf/day by the end of the rate case period
    • Retaining Los Medanos is the least cost option to meet the new gas storage capacity needs
    • No change to Inventory Management or Reserve Capacity
  • Proposal to retire Tionesta compressor station in 2025 which will reduce the Redwood Path capacity by approximately 145 MMcf/day, or just over 7%

 

Keep in mind, the illustrative backbone rates in the table below utilize the current approved 2019 GT&S final decision (D.19-09-025) rate design methodology and assume the same rate differentials between the Baja and Redwood backbone paths. The actual rates adopted by the Commission could be higher or lower depending on outcomes adopted in the two proceedings. As mentioned above, changes to the cost allocation and rate design will be filed in a separate application later this year. In 2023, the illustrative backbone rates are going down and then back up in 2024 through 2026. The main reason for the 2023 decrease and the 2024-2026 increase is the true-up of actual expenditure among the backbone transmission, local transmission, and storage functions prior to 2023.

PG&E’s illustrative backbone rates are as follows:

PathPresent RatesIIlustrative
 2021 20222023% Change from 2021 2024%Change2025%Change2026%Change
Noncore Redwood Annual$0.7294$0.7518$0.6094-16.5%$0.738621.2%$0.78235.9%$0.84638.2%
Noncore Baja Annual$0.8994$0.9318$0.7794-13.3%$0.908616.6%$0.95234.8%$1.01636.7%
Core Redwood Annual$0.6875$0.7180$0.6120-11.0%$0.737120.4%$0.77605.3%$0.83467.6%
Core Redwood - Seasonal$0.8250$0.8616$0.7344-11.0%$0.884620.5%$0.93125.3%$1.00167.6%
Core Baja - Seasonal$1.0290$1.0776$0.9384-8.8%$1.088616.0%$1.13524.3%$1.20566.2%
Silverado/Mission Annual$0.5731$0.5919$0.4765-16.9%$0.591624.1%$0.62095.0%$0.67098.0%
G-XF$0.1848$0.1885$0.1736-6.1%$0.18074.1%$0.18693.4%$0.19263.1%

($/Dth @ Full Contract)
- backbone transmission rate per Dth incurred by a firm shipper that uses its full contract quantity at a 100 percent load factor.

 

To read the filing, go here and in the "Case" dropdown select 2023 General Rate Case [A. 21-06-021], click "Search."

 

Further details of an Open Season for firm Redwood and Baja capacities will follow the week of July 5th. Please stay tuned to Pipe Ranger for updates as the 2023 General Rate Case continues to move forward. Contact Allen DeBrum at (925) 244-3498 with questions.

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