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ALJ Issued Proposed Decision In SoCalGas Rate Case seeking $4.4B ROR
In this case, SoCalGas requested a $4.426 billion revenue requirement, effective 1/1/24. This would represent an increase of $767 million or 20.9% over current rates.
ALJ issued proposed decision. Comments on proposed decision due by November 7, 2024; and reply comments due by November 12, 2024.
Among other things the Proposed decision: (1) adopts a 2024 test year (TY) “revenue requirement of $4.062 billion for SoCalGas,” an increase of $522.966 million, 14.8%, but $371.4 million lower than its updated request; (2) the average SoCalGas “residential non-California Alternate Rates for Energy (CARE) customer can expect an average monthly bill increase of $4.12,” 5.8%, and “average residential CARE customer can expect an average monthly bill increase of $2.33,” 5.9%; (3) adopt “a 2024 TY revenue requirement of $2.8 billion for SDG&E’s combined operations ($2.198 billion for electric and $602.123 million for its gas operations),” an increase of $266.962 million, 10.5%, but $206.659 million lower than its updated request; (4) a typical SDG&E non-CARE residential electric customer can expect a monthly bill increase of $4.46,” 2.7%, and “a CARE residential electric customer can expect a monthly bill increase of $2.90,” 2.7%; (5) “An average SDG&E non-CARE residential gas customer can expect a monthly bill increase of $5.01,” 8.6%, and “a CARE residential gas customer can expect an increase of $3.47,” 8.8%; (6) decline to adopt SDG&E’s and SoCalGas’ proposed post-test year (PTY) ratemaking framework; (7) authorize “a PTY base revenue increase (operations and maintenance and capital revenue requirement) of [4%] each year for 2025, 2026, and 2027: (i) for SoCalGas, “a PTY revenue requirement of $4.220 billion for 2025,$4.384 billion for 2026, and $4.555 billion for 2027; and (ii) for SDG&E, “a PTY revenue requirement of $2.910 billion for 2025, $3.025 billion for 2026, and $3.145 billion for 2027”; (8) authorize “funds to underground additional miles of electric lines, but not to the degree requested by SDG&E… upgrades to natural gas compressor stations, control centers, natural gas leak detection systems, and drones to inspect electric lines,” and “clean energy innovations that Sempra Utilities demonstrated would benefit ratepayers and be cost- effective, but not other innovations, such as using hydrogen, that have not been demonstrated to be directly related to its core function of providing safe and reliable gas service”; (9) find that “Ratepayer recovery for hydrogen projects under Clean Energy Innovations is premature and not reasonable”; and (10) highlight “a pattern of misclassification of costs at Sempra Utilities, where the company has charged ratepayers for lobbying, political activities, and expenses related to outside legal firms,” and require “SoCalGas to report its compliance with booking political activity costs as below-the-line costs to shareholders, not ratepayers, through annual affidavits or declarations.”
On October 10, 2024, parties filed Track 2 reply briefs on Wildfire Mitigation Plan Memorandum Account Years 2019–2022.
Multiple documents at main docket link below.
Proposed Order (10/18/2024)
A2205015 and A2205016 (Opened on 05/16/2022)
Consolidated rate cases for SoCalGas (A2205015) and SDG&E (A2205016)
