The California Public Utilities Commission voted 5-0 on Oct. 29 to grant Southern California Gas Co. partial recovery of its request for $173.8 million in revenue requirements tied to transmission pipeline-integrity work conducted from 2019 through 2023.
In its discussion of agenda item 7 at the commission’s Oct. 29 voting meeting, the CPUC said the revised decision allows SoCalGas to recover roughly two-thirds of the request. The commission did not state the precise approved dollar amount during the meeting.
The decision disallows roughly $37 million in straight-time labor and associated vacation and sick leave because SoCalGas did not demonstrate that the costs were incremental to funding already authorized in its general rate case. It also rejects just under $700,000 associated with vendor 1190 after finding that the utility did not meet its burden of proof.
The commission also disallowed costs for specific projects for which SoCalGas did not provide workpapers. Those projects, each valued at less than $1 million, represented roughly 8% of the costs in the proceeding. Commissioners said the action was based on gaps in the evidence and documentation, not a finding that every dollar in that category was unreasonable.
For future TIMP cost-recovery requests, the utility must identify which Pipeline and Hazardous Materials Safety Administration requirements each project addresses and provide the timeline for meeting those requirements. Commissioners said the additional information should make future reviews of pipeline-safety spending clearer and allow customers and regulators to better understand what they are being asked to pay for.
The meeting record does not specify the final approved recovery total or include a response from SoCalGas. A subsequent final resolution would be needed to calculate the exact amount approved.
