Shrinkage Changes Anticipated May 1st

Wednesday, March 23, 2011

On March 11, 2011, PG&E filed Advice 3194-G This link will open in a new window with the California Public Utilities Commission to revise its in-kind shrinkage rates. PG&E is requesting notice of this advice letter approval by April 11, 2011, with changes to Gas Rule 21 This link will open in a new window (Transportation of Natural Gas) to be effective May 1, 2011.

In this advice filing, PG&E proposes to update the base shrinkage allowances to reflect the current shrinkage forecast data for 2011, and additionally, to provide a temporary in-kind shrinkage credit adjustment to reduce an existing over-collection on the in-kind shrinkage volumes. Final approval of these rates or updates to this information will be posted on Pipe Ranger as it is received.

Summmary of Proposed Shrinkage Changes:

  Current Total Allowance Proposed Total Allowance Proposed Change
Transmission - Redwood to Off-System 0.9% 0.9% --
Transmission - Mission to On/Off-System 0.0% 0.0% --
Transmission - All Other Backbone Paths 1.1% 0.8% -0.3%
Distribution - Noncore 0.2% 0.2% --
Distribution - Core (Annual)* 2.6% 1.4% -1.2%

* If and when the Commission approves the Gas Accord V (GAV), PG&E will file to implement the corresponding core seasonal distribution shrinkage allowances via a separate compliance filing for GAV implementation. The proposed annual Core Distribution Shrinkage Allowance from this filing will be replaced with seasonal allowances including the proposed in-kind shrinkage credit adjustment, equaling 0.9% for summer (April - October) and 1.6% for winter (November - March).