(U 904-G) for Approval of Natural Gas Energy Efficiency

108 Pages·2012·0.72 MB·English

BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Application of Southern California Gas Company

(U904G) for Approval of Natural Gas Energy
Efficiency Programs and Budgets for Years 2013
through 2014.
APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904-G) FOR
APPROVAL OF NATURAL GAS ENERGY EFFICIENCY PROGRAMS AND
BUDGETS FOR YEARS 2013 THROUGH 2014
STEVEN D. PATRICK
JASON EAGAN
Attorney for
SOUTHERN CALIFORNIA GAS COMPANY
555 West Fifth Street, Suite 1400
Los Angeles, CA 90013-1011
Phone: [phone]
Fax: [phone]
July 2, 2012 E-Mail: [email protected]
TABLE OF CONTENTS
I.  INTRODUCTION................................................................................................................... 2 
II.  SUMMARY OF APPLICATION .......................................................................................... 2 
III. STATUTORY AND PROCEDURAL REQUIREMENTS ................................................. 5 
A.  Proposed Category, Issues to be Considered, Need for Hearings and Proposed
Schedule .......................................................................................................................... 5 
B.  Statutory Authority – Rule 2.1 ........................................................................................ 5 
C.  Legal Name, Place of Business/Incorporation – Rule 2.1(a) .......................................... 6 
D.  Correspondence – Rule 2.1(b) ......................................................................................... 6 
E.  Articles of Incorporation - Rule 16.................................................................................. 6 
F.  Financial Statement, Balance Sheet, and Income Statement – Rule 3.2(a)(4) ................ 6 
G.  Rates – Rules 3.2(a)(2) and 3.2(a)(3) .............................................................................. 7 
H.  Property and Equipment – Rule 3.2(a)(4) ....................................................................... 7 
I.  Summary of Earnings – Rules 3.2(a)(5) .......................................................................... 7 
J.  Depreciation – Rule 3.2(7) .............................................................................................. 7 
K.  Proxy Statement – Rule 3.2(a)(8) .................................................................................... 8 
L.  Pass Through of Costs – Rule 3.2(a)(10) ........................................................................ 8 
M.  Service and Notice – Rule 3.2(b)..................................................................................... 8 
IV. RELIEF REQUESTED .......................................................................................................... 9 
VERIFICATION ....................................................................................................................... 12 

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BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Application of Southern California Gas Company

(U904G) for Approval of Natural Gas Energy
Efficiency Programs and Budgets for Years 2013
through 2014.
APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904-G) FOR
APPROVAL OF NATURAL GAS ENERGY EFFICIENCY PROGRAMS AND
BUDGETS FOR YEARS 2013 THROUGH 2014

I.
INTRODUCTION
In compliance the California Public Utilities Commission (“Commission” or “CPUC”)
Rules of Practice and Procedure, specifically Rule 3.2 and the terms of Decision (“D.”) 12-05-
015, Southern California Gas Company (“SoCalGas”) hereby files its Application for Natural
Gas Energy Efficiency Programs for Program Years 2013-2014.
II.
SUMMARY OF APPLICATION
SoCalGas’ Application is structured following the guidance outlined in D.12-05-015 and
is supported by the testimony of several witnesses. Gillian Wright, Director of Customer
Programs and Assistance, provides testimony regarding the Executive Summary of the
application (Chapter 1), how the proposed portfolio reflects the guidance of D.12-05-015
(Chapter 2), and on a proposed alternative program proposal that enhances the effectiveness of
several programs within the portfolio (Chapter 2.B). Kevin Shore, Commercial and Industrial
Mass Markets Segment Manager, provides testimony on how the portfolio fulfills energy
efficiency goals (Chapter 3). Mr. Shore also provides a summary of continuing, new, and
eliminated programs. Frank Spasaro, Energy Efficiency Partnerships Manager, provides a
summary of the financing and local government partnership programs. Lance DeLaura, Market
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Strategy and Codes & Standards Manager, provides a summary of the Codes & Standards
program. Andrew Steinberg, Regulatory Policy and Reporting Manager, offers testimony that
addresses the reasonableness of the funding request (Chapter 4), evaluation plans and budgets
(Chapter 5),and the proposed revenue requirements and cost recovery (Chapter 6).
The witnesses’ prepared direct testimony is served concurrently herewith, incorporated in
the Application by reference.
In Chapter 1, SoCalGas witness Wright summarizes SoCalGas’ policy and purpose in
filing its Application; SoCalGas’ energy efficiency (EE) portfolio savings and budget; activities
designed to strengthen the energy efficiency portfolio and increase benefits to customers; and
innovations to overcome challenges that SoCalGas faces in delivering gas-only energy efficiency
measures. It also discusses specific areas for collaborating with the Commission to develop the
portfolio for the cycle beginning in 2015 and changes that would increase the cost-effectiveness
of the portfolio.
Portfolio Reflects Guidance (Chapter 2)
In Chapter 2, SoCalGas witness Wright summarizes how the Application responds to the
specific guidance in the authoring decision. This testimony is supported by a Table of
Compliance presented in Appendix G.
Alternative Energy Efficiency Portfolio Proposal (Chapter 2.B)
In response to D.12-05-015, Ordering Paragraph (OP) 171, witness Wright presents an
alternative program proposal that outlines modifications to several programs in order to serve
customers better, increase cost-effectiveness, enable deeper retrofits, prompt higher participation,
and/or decrease risk.
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Portfolio Fulfills Energy Efficiency Goals (Chapter 3)
In Chapter 3, SoCalGas witness Shore discusses how SoCalGas’ Application fulfills
energy efficiency goals and discusses market potential. This testimony also provides an
overview of the Program Implementation Plans (PIPs) sponsored by witnesses Shore, Spasaro
and DeLaura presented in Appendix C.
Funding Request is Reasonable (Chapter 4)
In Chapter 4, SoCalGas witness Steinberg provides information regarding the proposed
budget by program and discusses spillover as addressed in D.12-05-015, pp. 362 – 363.
Evaluation Plans and Budgets (Chapter 5)
In Chapter 5, SoCalGas witness Steinberg presents statewide testimony regarding the
Evaluation, Measurement & Verification work plan and related considerations..
Revenue Requirements and Cost Recovery (Chapter 6)
In Chapter 6, SoCalGas witness Steinberg presents revenue and cost recovery
information regarding the proposed portfolio and discusses unspent funds from previous cycles.
Appendices to the testimony will be supported by several witnesses. Kevin McKinley,
Customer Programs Measurement & Evaluation Supervisor, will submit information on cost-
effectiveness requirements (Appendix A). Eric Kirchoff, Engineering Support Customer
Programs Supervisor, will present workpaper submittal requirements (Appendix B). Witnesses
Shore, Spasaro, and DeLaura will submit the Program Implementation Plan requirements
(Appendix C). Mr. McKinley will submit Placement budget and savings requirements
(Appendix D), and sponsors the majority of testimony application tables (Appendix E).
Witnesses Shore and Spasaro will provide additional program requirements (Appendix F), and
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witness Wright will submit the Table of Compliance (Appendix G). Mr. McKinley will provide
Market Transformation Indicators and supporting material (Appendix H).
III.
STATUTORY AND PROCEDURAL REQUIREMENTS
A. Proposed Category, Issues to be Considered, Need for Hearings and Proposed
Schedule
SoCalGas proposes to categorize this Application as a “rate-setting” proceeding within
the meaning of Rules 1.3(e) and 7.1. SoCalGas proposes the following schedule:
Schedule
ACTIVITY PROPOSED SCHEDULE
Applications Filed July 2, 2012
Daily Calendar Notice July 3, 2012
Responses to Applications August 3, 2012
Replies to Protests August 13, 2012
Prehearing Conference August 21, 2012
Scoping memo August 31, 2012
Workshops September 5-7, 2012
Concurrent Opening Comments September 18, 2012
Interim Funding Decision October 1, 2012
Concurrent reply comments October 2, 2012
ALJ Proposed Decision October 30, 2012
Final Decision November 29, 2012
B. Statutory Authority – Rule 2.1
This Application is made pursuant to Sections 451, 701, 702 , 728, and 729 of the Public
Utilities Code of the State of California; the Commission’s Rule of Practice and Procedure; and
the other relevant prior decisions, orders, and resolutions of the Commission.
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C. Legal Name, Place of Business/Incorporation – Rule 2.1(a)
Applicant’s legal name is Southern California Gas Company. SoCalGas is a public
utility corporation organized and exiting under the laws of the State of California, with its
principal place of business at 555West Fifth Street Los Angeles, California 90013.
D. Correspondence – Rule 2.1(b)
Correspondence or communications regarding this application should be addressed to:
Joy Yamagata
Regulatory Case Manager For:
Southern California Gas Company
8330 Century Park Court
San Diego, California 92123
Telephone: [phone]
Facsimile: [phone]
E-Mail: [email protected]
With a copy to:
Steven D. Patrick
Attorney For:
Southern California Gas Company
555 West 5th Street, Suite 1400
Los Angeles, CA 90013
Telephone: [phone]
Facsimile: [phone]
E-Mail: [email protected]
E. Articles of Incorporation - Rule 16
SoCalGas is incorporated under the laws of the State of California. A certified copy of
the restated Articles of Incorporation, as last amended, currently in effect and certified by the
California Secretary of State, was filed with the Commission on October 1, 1998 in connection
with SoCalGas Application No. 98-10-012, and is incorporated herein by reference.
F. Financial Statement, Balance Sheet, and Income Statement – Rule 3.2(a)(4)
Attachment A to this Application is SoCalGas' Financial Statement, Balance Sheet and
Income Statement as of March 31, 2012.
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G. Rates – Rules 3.2(a)(2) and 3.2(a)(3)
The current and proposed rates that will result from this Application are described in
Attachment B.
H. Property and Equipment – Rule 3.2(a)(4)
A general description of SoCalGas’ property and equipment was previously filed with
the Commission on October 5, 2001, in connection with SoCalGas’ Application No. 01-10-
005 and is incorporated herein by reference. A statement of the original cost and
depreciation reserve attributable thereto as of September 30, 2011 is Attachment C to this
Application.
I. Summary of Earnings – Rules 3.2(a)(5)
Attachment D to this Application is a Summary of Earnings for SoCalGas for the 3
months ended September 30, 2011.
J. Depreciation – Rule 3.2(7)
For financial statement purposes, depreciation of utility plant has been computed on a
straight-line remaining life basis at rates based on the estimated useful lives of plant properties.
For federal income tax accrual purposes, SoCalGas generally computes depreciation using the
straight-line method for tax property additions prior to 1954, and liberalized depreciation, which
includes Class Life and Asset Depreciation Range Systems, on tax property additions after 1954
and prior to 1981. For financial reporting and rate-fixing purposes, “flow through accounting”
has been adopted for such properties. For tax property additions in years 1981 through 1986,
SoCalGas has computed its tax depreciation using the Accelerated Cost Recovery System. For
years after 1986, SoCalGas has computed its tax depreciation using the Modified Accelerated
Cost Recovery Systems and, since 1982, has normalized the effects of the depreciation
differences in accordance with the Economic Recovery Tax Act of 1981 and the Tax Reform Act
of 1986.
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K. Proxy Statement – Rule 3.2(a)(8)

A copy of SoCalGas’ most recent proxy statement, dated April 27, 2011, as sent to all
shareholders of SoCalGas’ parent company, Sempra Energy, was mailed to the Commission
on May 4, 2011, and is incorporated herein by reference.
L. Pass Through of Costs – Rule 3.2(a)(10)
The changes that SoCalGas seeks in this Application reflect estimated costs to SoCalGas,
and SoCalGas proposes to pass through to customers only costs that SoCalGas incurs for the
services and commodities it furnishes.
M. Service and Notice – Rule 3.2(b)
SoCalGas is serving this Application on all parties to R.09-11-014, R.07-01-041,
R.12-01-005, A.11-03-002, A.11-05-017 and R.10-05-004. Within ten days of filing this
application, SoCalGas will mail notice of this Application to the State of California and to cities
and counties within SoCalGas’ service territory and SoCalGas will post the notice in its offices
and publish the notice in newspapers of general circulation in each county in its service territory.
In addition, SoCalGas will include notices with the regular bills mailed to all customers affected
by the proposed rate changes. The service list of state and government agencies is attached
hereto as Attachment E.
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IV.
RELIEF REQUESTED
For the reasons set forth in this Application and accompanying testimony, SoCalGas
respectfully asks the Commission to
1) Approve SoCalGas’ Preferred EE portfolio as filed; and
2) Not approve the aspects of its Compliant EE program portfolio that are
inconsistent with the Alternative EE Program Portfolio and ; and
3) Approve SoCalGas’ request for funding to support SoCalGas’ EE program
activities as follows:
Program Budgets and Savings
2013‐14 Gross 
 Program   2013‐14 Budget  Therm Savings
Agricultural        5,254,633      1,983,825
Codes & Standards        1,674,228      5,395,135
Commercial      36,918,227    10,661,477
Cross Cutting      15,965,433
DSM Coordination & Integration            650,000
Emerging Technologies        4,831,302
 Industrial      33,075,776    25,529,086
Local Government Partnership        9,525,433
Local Marketing & Outreach        1,337,693
Residential      53,372,775      9,678,869
Workforce, Education & Training        6,154,553
Evaluation Measurement & Verification        7,198,505
   Total 175,958,559 53,248,392
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