Shrinkage Changes Anticipated January 1; No Change to Rates

Friday, December 10, 2010

PG&E's California Gas Transmission will not receive a final Gas Accord V decision from the CPUC prior to January 1. Therefore, the Gas Accord IV interim 2011 rate provisions will take effect on January 1, 2011. These provisions dictate that backbone transportation and storage rates will stay at the 2010 levels. The CPUC currently expects to issue a Gas Accord V decision in March, 2011.

While it has not been approved at this time, CGT encourages customers to consider its proposed shrinkage rate changes when preparing for the upcoming bid week. On November 17, 2010, PG&E filed Advice 3164-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 This link will open in a new window (Transportation of Natural Gas). The shrinkage filing was not protested by any party and an approval is anticipated by early next week.

In this advice filing, PG&E proposes to decrease the existing backbone off-system transmission shrinkage allowance by 0.1 percent, the existing backbone on-system transmission shrinkage allowance by 0.3 percent, and the core distribution shrinkage allowance by 0.4 percent, effective January 1, 2011. If approved, these revisions update the Shrinkage Base Allowance to reflect the current shrinkage forecast for 2011 and eliminate the existing Shrinkage Adjustment Allowance (i.e., adder).

Summary of Proposed Shrinkage Changes:

  Current Total Allowance Proposed Total Allowance Proposed Change
Transmission - Redwood to Off-System 1.0% 0.9% -0.1%
Transmission - Mission to On/Off-System 0.0% 0.0% N/A
Transmission - All Other Backbone Paths 1.4% 1.1% -0.3%
Distribution - Noncore 0.2% 0.2% N/A
Distribution - Core 3.0% 2.6% -0.4%

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.

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