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2015 GT&S Rate Case Phase II Final Decision Issued

Tuesday, December 06, 2016

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On December 5, 2016, the California Public Utilities Commission (CPUC) issued a Final Decision (D.16-12-010) in Phase II of PG&E’s 2015 Gas Transmission and Storage (GT&S) Rate Case. This decision finalizes the authorized revenue requirements for 2015-2018 and adopts PG&E’s recommended list of safety related programs and projects to fund the $850 million San Bruno penalty, allocated 81 percent to capital and 19 percent to expense. This Decision also closes the proceeding.

PG&E is directed to file a Tier 2 advice letter within 10 days of the effective date of this decision (December 1, 2016) to revise its unbundled backbone and storage tariffs to implement the rate adjustments adopted in this decision. The revised tariff sheets will become effective on January 1, 2017, if the CPUC’s Energy Division approves PG&E’s Advice Letter by December 20, 2016. If the Energy Division provides its approval after December 20, 2016, then the new tariffs will be implemented as part of PG&E’s next monthly gas rate changes.

The tables below illustrate the Phase II Final Decision annual firm backbone transmission rates ($/Dth@Full Contract), for 2017 and 2018 only. In addition to reflecting the $850 million San Bruno penalty, these rates incorporate the backbone portion of the $30 million seed value credit that is part of the Revenue Sharing Mechanism.

Rates Phase II Final Decision1 Phase I Final Decision Differences
2017 2017 2017
Noncore Redwood $0.4190 $0.4639 ($0.0449)
Noncore Baja $0.4590 $0.5039 ($0.0449)
Core Redwood $0.3581 $0.3980 ($0.0399)
Core Baja $0.3981 $0.4380 ($0.0399)
Silverado/Mission $0.2611 $0.2903 ($0.0292)
G-XF $0.1884 $0.1902 ($0.0018)
1Reflects $850 million San Bruno penalty and Revenue Sharing Mechanism $30 million seed value credited to rates.

Rates Phase II Final Decision1 Phase I Final Decision Differences
2018 2018 2018
Noncore Redwood $0.4508 $0.4949 ($0.0441)
Noncore Baja $0.4908 $0.5349 ($0.0441)
Core Redwood $0.3898 $0.4291 ($0.0393)
Core Baja $0.4298 $0.4691 ($0.0393)
Silverado/Mission $0.2829 $0.3117 ($0.0288)
G-XF $0.1906 $0.1924 ($0.0018)
1Reflects $850 million San Bruno penalty and Revenue Sharing Mechanism $30 million seed value credited to rates.

If you have any questions, please contact Allen DeBrum at 925.244.3498. Please stay tuned for posted final rate tables on Pipe Ranger.