Transmission and Distribution Shrinkage Changes Anticipated November 1

Monday, October 19, 2009

While it has not been approved at this time, Pacific Gas and Electric Company's California Gas Transmission encourages customers to consider its proposed shrinkage rate changes when preparing for the upcoming bid week. On September 25, 2009, PG&E filed Advice 3049-G This link will open in a new window with the California Public Utilities Commission to revise the in-kind shrinkage rates stated in gas Rule 21 - Transportation of Natural Gas. The filing was not protested by any party and an approval is anticipated by early next week; however, the final decision rests with the CPUC.

In the filing, PG&E proposes to increase the existing backbone transmission shrinkage allowances by 0.1 percent and to decrease the distribution core shrinkage allowance by 0.3 percent, effective November 1, 2009. If approved, the shrinkage allowances will be updated to reflect the shrinkage forecast for 2010 and to recover a shrinkage undercollection from prior years. Here's a summary of the proposed changes:

  Current Proposed Change
Redwood to Off-System 0.9% 1.0% 0.1%
Mission to On/Off-System 0.0% 0.0% N/A
All Other Backbone Paths 1.3% 1.4% 0.1%
Noncore Distribution 0.2% 0.2% N/A
Core Distribution 3.3% 3.0% -0.3%

Final approval of these rates or updates to this information will be posted on Pipe Ranger as it is received.

The current and historical shrinkage rates are available on Pipe Ranger. If you have any questions regarding shrinkage, please contact your CGT Account Services Representative.