Natural Gas and California

The CPUC regulates fossil fuel utility service for roughly ten.8 million customers that receive fossil fuel from Pacific Gas and electrical (PG&E), Southern California Gas (SoCalGas), port of entry Gas (SDG&E), Southwest Gas, and a number of other smaller investor-owned fossil fuel utilities. The CPUC additionally regulates freelance storage operators Lodi Gas Storage, Wild Goose Storage, Central natural depression Storage and Gill

The overwhelming majority of California’s fossil fuel customers square measure residential and little business customers, mentioned as “core” customers, World Health Organization accounted for roughly thirty second of the fossil fuel delivered by California utilities in 2012. massive customers, like electrical generators and industrial customers, mentioned as “noncore” customers, accounted for roughly sixty eight of the fossil fuel delivered by California utilities in 2012.

The PUC regulates the California utilities’ fossil fuel rates and fossil fuel services, as well as in-state transportation over the utilities’ transmission and distribution pipeline systems, storage, procural, metering and charge.

Most of the fossil fuel utilized in California comes from out-of-state fossil fuel basins. In 2012, California customers received thirty fifth of their fossil fuel offer from basins situated within the Southwest, Sixteen Personality Factor Questionnaire from North American nation, four-hundredth from the range of mountains, and Sep 11 from basins situated inside California. California gas utilities might before long additionally begin receiving biogas into their pipeline systems.

Natural gas from out-of-state production basins is delivered into California via the interstate fossil fuel pipeline system. the main interstate pipelines that deliver out-of-state fossil fuel to California customers square measure the Gas Transmission Northwest Pipeline, composer watercourse Pipeline, Transwestern Pipeline, urban center Pipeline, the Ruby Pipeline, Questar Southern Trails and Mojave Pipeline. Another pipeline, the North Baja – Baja Norte Pipeline, takes gas off the urban center Pipeline at the California/Arizona border, and delivers that gas through California into Mexico. whereas the Federal Energy restrictive Commission (FERC) regulates the transportation of fossil fuel on the interstate pipelines, the CPUC typically participates in FERC restrictive proceedings to represent the interests of California fossil fuel customers.

Most of the fossil fuel transported via the interstate pipelines, still as a number of the California-produced fossil fuel, is delivered into the PG&E and SoCalGas intrastate fossil fuel transmission pipeline systems (commonly mentioned as California’s “backbone” fossil fuel pipeline system). fossil fuel on the utilities’ backbone pipeline systems is then delivered into the native transmission and distribution pipeline systems, or to fossil fuel storage fields. Some massive noncore customers take fossil fuel directly off the aggressive backbone pipeline systems, whereas core customers and different noncore customers take fossil fuel off the utilities’ distribution pipeline systems. The CPUC has restrictive jurisdiction over a hundred and fifty,000 miles of utility-owned fossil fuel pipelines, that transported eighty two of the entire quantity of fossil fuel delivered to California’s gas customers in 2012.

SDG&E and Southwest Gas’ southern division square measure wholesale customers of SoCalGas, and presently receive all of their fossil fuel from the SoCalGas system (Southwest Gas additionally provides fossil fuel distribution service within the lake area). another municipal wholesale customers square measure the cities of Palo Alto, Long Beach, and Vernon, that aren’t regulated by the CPUC.

Some of the fossil fuel delivered to California customers could also be delivered on to them while not being transported over the regulated utility systems. for instance, the composer River/Mojave pipeline system will deliver fossil fuel on to some massive customers, “bypassing” the utilities’ systems. abundant of California-produced fossil fuel is additionally delivered on to massive customers.

PG&E and SoCalGas own and operate many fossil fuel storage fields that square measure situated in Northern and Southern California. These storage fields, and 4 severally in hand storage utilities – Lodi Gas Storage, Wild Goose Storage, Central natural depression Storage, and Gill Ranch Storage – facilitate meet peak seasonal fossil fuel demand and permit California fossil fuel customers to secure fossil fuel provides additional expeditiously.

California’s regulated utilities don’t own any fossil fuel production facilities. All of the fossil fuel sold-out by these utilities should be purchased from suppliers and/or marketers. the value of fossil fuel sold-out by suppliers and marketers was deregulated by the FERC within the mid-1980’s and is decided by “market forces.” However, the CPUC decides whether or not California’s utilities have taken affordable steps so as to reduce the price of fossil fuel purchased on behalf of their core customers.

Although most of California’s core customers purchase fossil fuel directly from the regulated utilities, core customers have the choice to get fossil fuel from freelance, unregulated fossil fuel marketers. Most of California’s noncore customers, on the opposite hand, build fossil fuel offer arrangements directly with producers or purchase fossil fuel from marketers. Contact info for freelance fossil fuel marketers are often found on the utilities’ websites.

Prior to the late 1980’s, California’s regulated utilities provided just about all fossil fuel services to fossil fuel customers. Since then, the PUC has bit by bit restructured the fossil fuel business so as to offer customers additional choices whereas reassuring restrictive protections for those customers that would like to continue receiving utility-provided services. the choice to get fossil fuel from freelance suppliers, as noted higher than, is one among the results of this restructuring method.

Another option ensuing from the fossil fuel industry’s restructuring method occurred in 1993, once the CPUC removed the utilities’ storage service responsibility for noncore customers, in conjunction with the price of this storage service from noncore customers’ rates. In 1993, the PUC additionally adopted specific storage reservation levels for the utilities’ core customers.

In a 1997 call, the CPUC adopted PG&E’s “Gas Accord,” that unbundled backbone transmission prices from noncore transportation rates, and gave customers and marketers the chance to get pipeline capability rights on PG&E’s backbone pipeline system. The Gas Accord additionally needed PG&E to line aside an explicit quantity of pipeline capability so as to deliver fossil fuel to its core customers. ulterior CPUC choices changed and extended the initial terms of the Gas Accord. The “Gas Accord” framework continues to be in situ these days for PG&E’s backbone and storage rates and services.

In a Dec 2006 call, the CPUC adopted the same gas transmission framework for Southern California, referred to as the “firm access rights” system. SoCalGas and SDG&E enforced the firm access rights (FAR) system in Gregorian calendar month 2008. underneath the way system, customers might get firm receipt purpose capability rights for delivery on the integrated SoCalGas/SDG&E gas gear mechanism.