SAN DIEGO GAS & ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
APPLICATION UPDATING FIRM ACCESS RIGHTS SERVICE AND RATES
(A.10-03-028)
9th DATA REQUEST FROM SOCAL GENERATION COALITION (SCGC-DR-09)
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QUESTION 9.1:
9.1. Regarding SoCalGas Schedule G-RPA, Special Condition 19, which states: “The Utility Gas Procurement Department set-aside is equal to the average daily capacity of the qualifying upstream pipeline contracts (those exceeding 18 months during the applicable three-year period). The set-aside is established based on actual commitments in place three months before any three-year open season.”
9.1.1. Please explain how the “average daily capacity of the qualifying upstream pipeline contracts” are determined.
9.1.2. If the Utility Gas Procurement Department were to hold an upstream pipeline contract of 100,000 Dth/day for 24 months during the FAR period, please state the set aside that would be established for this contract under Special Condition 19.
9.1.3. Would the set aside capacity in the amount determined in response to the previous question be established for the entire FAR period?
9.1.4. If the Utility Gas Procurement Department were to hold an upstream pipeline contract of 100,000 Dth/day for 18 months during the FAR period, please state the set aside that would be established for this contract under Special Condition 19.
9.1.5. Would the set aside capacity in the amount determined in response to the previous question be established for the entire FAR period?
9.1.6. If the Utility Gas Procurement Department were to hold an upstream pipeline contract of 100,000 Dth/day for 12 months during the FAR period, as proposed by Mr. Schwecke in his testimony, please state the set aside that would be established for this contract under Special Condition 19 as it would be modified by his proposal.
9.1.7. Would the set aside capacity in the amount determined in response to the previous question be established for the entire FAR period?
RESPONSE 9.1.1:
Average Daily Capacity = (Sum of Daily CDQs) / Upstream Contract Term.
CDQ = Contracted Daily Quantity
RESPONSE 9.1.2:
100,000 dth/day
RESPONSE 9.1.3:
Yes.
RESPONSE 9.1.4:
100,000 dth/day
RESPONSE 9.1.5:
Yes. The set-aside amount established would be for use during the first step in the open season process. The set-aside recipient would have the option to accept up to the set-aside amount during Step 1 set-aside process. The set-aside amount accepted would apply to the entire FAR period.
RESPONSE 9.1.6:
100,000 dth/day
RESPONSE 9.1.7:
Yes. The set-aside amount established would be for use during the first step in the open season process. The set-aside recipient would have the option to accept up to the set-aside amount during Step 1 set-aside process. The set-aside amount accepted would apply to the entire FAR period.
QUESTION 9.2:
9.2. Regarding Mr. Schwecke’s Direct Testimony, which states at pages 8-9: “Between September 24, 2008, and March 2, 2010, 40 different parties participated in this secondary market for firm access rights. During that time 264 transactions were awarded ranging in terms of 1 day to 3 years deals. The volume-weighted average price paid for such firm access rights in the secondary market was $0.048; representing 103% of the volume weighted average reservation price. Only eight of these transactions were at rates that reached the 125% rate cap.”
9.2.1. Please update this statement so that is accurately characterizes the period October 1, 2008 through September 30, 2010.
9.2.2. For each individual secondary market transaction that has occurred between October 1, 2008 and September 30, 2010, please provide the following information:
9.2.2.1. Quantity of FARs subject to transaction
9.2.2.2. Number of days that FARs are transferred
9.2.2.3. Price paid for the FARs
9.2.2.4. Primary receipt point for FARs
9.2.2.5. Name of selling entity
9.2.2.6. Name of purchasing entity
9.2.2.7. Any other specific terms and conditions defined by the transaction
RESPONSE 9.2.1:
Between October 1, 2008 and September 30, 2010, different parties participated in this secondary market for firm access rights. During that time 280 transactions were awarded ranging in terms of 1 day to 1095 days. The volume-weighted average price paid for such firm access rights in the secondary market was $0.047; representing 102% of the volume weighted average reservation price. Only 11 of these transactions were at rates that reached the 125% rate cap
RESPONSE: 9.2.2:, (9.2.2.1, 9.2.2.2, 9.2.2.3. 9.2.2.4, 9.2.2.5, 9.2.2.6. 9.2.2.7)
See the attached spreadsheet
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