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As PG&E's California Gas Transmission committed to in its last Rate Case article,  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 (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.

Please contact your CGT Sales Representative with any questions.