CC SR 20220419 04 - SoCalGas Proposed Rates
CITY COUNCIL MEETING DATE: 04/19/2022
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action to participate in the Southern California Gas Company
(SoCalGas) 2022 Energy Efficiency Application.
RECOMMENDED COUNCIL ACTION:
(1) Review the proposed options to determine whether the City should participate in
the SoCalGas 2022 Energy Efficiency Application as a party and provide further
direction to Staff;
(2) In the event the City Council elects the participate as a party option:
a. Authorize the City Manager, or designee, to serve as a party in a proceeding
for the SoCalGas Energy Efficiency Application with the California Public
Utilities Commission (CPUC); and
b. Direct Staff to serve and file a Motion for Party Status in the Application
Proceeding (A.22-03-008);
(3) In the event the City Council elects to send a comment letter on the Energy
Efficiency Application option, authorize the Mayor to sign a letter to the Public
Advocates Office expressing concern regarding the proposed rate increase .
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: McKenzie Bright, Administrative Analyst
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Motion for Party Status (page A-1)
B. Draft letter to the Public Advocates Office regarding proposed rate increase
(page B-1)
C. SoCalGas Notice of 2022 Energy Efficiency Application (page C -1)
BACKGROUND AND DISCUSSION:
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On March 4, 2022, SoCalGas filed its Energy Efficiency Application with the CPUC for
approval of its eight-year business plan, and four-year program portfolio (see Attachment
C). If the application is approved by the CPUC, compared to October 2021 gas rates,
residents can expect to see their bills increase by $0.009/therm in 2024 and $0.010/therm
in 2025, 2026, and 2027.
The average residential customer uses 35 therms per month, so the average ratepayer
could expect to see the following bills for average usage, rounded to the nearest cent:
• 2021 (baseline): $58.56
• 2024 (proposed): $58.88
• 2025 (proposed): $58.89
• 2026 (proposed): $58.90
• 2027 (proposed): $58.92
The following graph illustrates the October 2021 baseline rate per therm compared to
approved increases in 2022 and 2023 (in gray), proposed increases for 2024 -2027 (in
blue), and projected increases for 2028-2031 (in light blue), included as part of the eight-
year business plan.
Graph 1: SoCalGas Residential Approved (2022-2023), Proposed (2024-2027), and
Projected (2028-2031) Rates
As of the writing of this report, the City has not received complaints from residents
regarding natural gas bills.
$0.004 $0.005
$0.009 $0.010 $0.010 $0.010 $0.011 $0.012 $0.013 $0.014
$1.673 $1.673
$1.677
$1.678
$1.682 $1.683 $1.683 $1.683 $1.684
$1.685
$1.686
$1.687
$1.665
$1.670
$1.675
$1.680
$1.685
$1.690
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Rate Increase Oct. 2021 Baseline Residential Rate ($/Therm)
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If the City Council determines that additional action is warranted, the following options are
available for consideration.
Option One: Participating as a Party
A party in a CPUC proceeding is a person or organization that is formally and directly
involved in the decision-making process. A party has the right to present evidence and
witnesses to strengthen its position; obtain information from other parties; and file relevant
motions, petitions, and briefs.
Parties are responsible for making witnesses available for cross -examination when they
have presented testimony, serving documents on all parties, and responding to data and
information requests from other parties.
The City is participating as a party in the two rate cases currently being heard by the
CPUC for California Water Service Company (Cal Water). In contrast to the SoCalGas
case considered in this report, the proposed Cal Water rate increases are significant for
Rancho Palos Verdes water customers, and the City received multiple complaints from
residents regarding their water bills.
Due to the active nature of party status, additional staff time, including significant support
from the City Attorney’s Office will be required. Given that the proposed increase is an
approximately one cent per therm increase, compared to October 2021 rates, and that
the City has not received complaints from residents regarding natural gas service, Staff
does not believe this option benefits pursuing. However, should the City Council elect to
move forward with Option 1, a draft motion for party status has been prepared and
attached for Council consideration (Attachment A).
Option Two: Submit a Letter to the Public Advocates Office
The California Public Advocates Office is an independent organization within the CPUC
that advocates on behalf of utility ratepayers. The Public Advocates Office will submit a
formal protest in this case to evaluate that the proposed rate increases are reasonable
and just and do not cause an unfair burden on customers.
Staff believes this option allows the City to express concerns about rate increases in
general without formally participating as a party. Any arguments raised by the City will
also be addressed by the Public Advocates Office. Staff has prepared a draft letter to the
Public Advocates Office (Attachment B) expressing general concern that any rate
increase, even a marginal increase as proposed, may impact residents on a fixed income,
as the City has an older population compared to state and national averages. The median
age in the City, according to 2020 Census data, is 50 years old, whe reas the median age
in California is 34 and nationally is 38. Over a quarter of the City’s residents are 65 and
older, many of whom are on a fixed income. Any increase to utility rates has the potential
to cause additional financial burdens that residents are expected to bear.
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The letter as drafted states that the City is not requesting to be a formal party at this time,
but the letter can be modified if the City Council direct s Staff to both file the motion for
party status as well as send a letter to the Public Advocates Office.
CONCLUSION:
Staff seeks direction on the Council’s preferred action related to the SoCalGas 2022
Energy Efficiency Application as follows:
1. Participating in the proceeding as a party; and/or
2. Submitting a comment letter on the Energy Efficiency Application
Staff will continue to monitor the progress of the Energy Efficiency Application and will
provide updates to the public and City Council as appropriate.
ALTERNATIVES:
In addition to the Staff recommendation, the fo llowing alternative action is available for
the City Council’s consideration:
1. Determine that further action is not deemed warranted at this time, and receive
and file this report.
2. Take other action, as deemed appropriate.
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BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
MOTION FOR PARTY STATUS OF THE CITY OF RANCHO PALOS
VERDES
William Wynder
Aleshire & Wynder, LLP
1881 Von Karman Ave., Suite 1700
Irvine, CA 92612
Telephone: 310-527-6667
E-mail: wwynder@awattorneys.com
April 19, 2022 Attorneys for the City of Rancho Palos Verdes
Application of SOUTHERN CALIFORNIA
GAS COMPANY (U 904 G) for Approval of
2024-2031 Energy Efficiency Business Plan and
2024-2027 Portfolio Plan
Application 22-03-008
Filed March 4, 2022
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MOTION FOR PARTY STATUS OF THE CITY OF RANCHO PALOS
VERDES
I. Introduction
The City of Rancho Palos Verdes (“City”), respectfully moves for party status in this
proceeding in accordance with Section 1.4 of the California Public Utilities Commission
(“Commission”) Rules of Practice and Procedure.
II. Interest in this Proceeding
The City of Rancho Palos Verdes is a general law city, located in Los Angeles County on
the Palos Verdes Peninsula, with natural gas service for all residents and businesses within the
City provided by the Southern California Gas Company (“Applicant”).
A. The City requests party status in this proceeding to ensure the CPUC is informed of
the interests of the City, and all its citizens, that may be affected by this proceeding, and to
ensure the City has adequate notice and opportunity to respond to issues, claims and arguments
that may be raised by any party in the course of this proceeding.
B. The City has a direct interest in protecting its constituents by ensuring continuation of
the most cost-effective and deliverable natural gas supplies. In addition, the City has a direct
interest in ensuring the various components of the overall natural gas supply system on the Palos
Verdes Peninsula are effective and adequately reflect the public’s needs and wishes. To these
ends, the City promotes a full and balanced consideration of perspectives and a comprehensive
analysis of cost-effective service.
III. Notice
Service of notices, orders, and other correspondence in this proceeding should be directed
to the City at the address set forth below:
William Wynder, City Attorney Ara Mihranian
Aleshire & Wynder, LLP City Manager
1881 Von Karman Ave., Suite 1700 30940 Hawthorne Blvd.
Irvine, CA 92612 Rancho Palos Verdes, CA 90275
Tel: 310-527-6667 Tel: 310-544-5202
E-mail: wwynder@awattorneys.com E-mail: aram@rpvca.gov
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IV. Conclusion
For the foregoing reasons and pursuant to Rules 1.4 and 11.1, Rancho Palos Verdes
respectfully requests that the CPUC grant this Motion for Party Status filing.
Dated: April 19, 2022 Respectfully submitted,
__ ___________________
William Wynder
Aleshire & Wynder, LLP
1881 Von Karman Ave., Suite 1700
Irvine, CA 92612
Attorneys for the City of Rancho Palos
Verdes
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April 19, 2022 Via Email
The Honorable Amy C. Yip-Kikugawa
California Public Advocates Office
505 Van Ness Avenue
San Francisco, California 94102
SUBJECT: Request for Careful Consideration of Palos Verdes Rates in Southern
California Gas Company (SoCalGas) 2022 Energy Efficiency Application (A. 22-03-
008)
Dear Director Yip-Kikugawa,
The City of Rancho Palos Verdes (City) is located on the Palos Verdes Peninsula in Los
Angeles County, with natural gas services for all residents and businesses within the City
provided by SoCalGas.
The City has an older population, compared to state and national averages. The median
age in the City, according to 2020 Census data, is 50 years old, whereas the median age
in California is 34 and nationally is 38. Over a quarter of the City’s residents are 65 and
older, many of whom are on a fixed income. Any increase to utility rates has the potential
to cause additional financial burdens that residents are expected to bear.
Following the recent filing of SoCalGas’s (U 904 G) 2022 Energy Efficiency Application,
the City asks that careful consideration be made for the SoCalGas request to raise rates
by $0.009/therm in 2024, as compared to October 2021 rates, and $0.010/therm in 2025,
2026, and 2027. At this time, the City does not request to participate formally as a part y,
however, these comments are being provided to the Public Advocates Office as it
prepares to protest the application to ensure that rates are just and reasonable.
The City appreciates the efforts of the CPUC and the Public Advocates Office to ensure
Californians’ access to safe and reliable utility infrastructure and services at low ratepayer
costs, and we appreciate that rate cases undergo rigorous review processes but would
ask that additional consideration be granted for the Palos Verdes area, to ensu re the
proposed increase is reasonable and justified.
Thank you for considering this request. We appreciate your considerable efforts to ensure
that ratepayers have access to safe, reliable, and affordable energy resources.
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Director Yip-Kikugawa
April 19, 2022
Page 2
Sincerely,
David Bradley
Mayor, City of Rancho Palos Verdes
cc: Public Advisor’s Office, via public.advisor@cpuc.ca.gov
Asia Powell, Local Government and Community Liaison, California Public Utilities
Commission
Rancho Palos Verdes City Council and City Manager
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Why am I receiving this notice?
NOTICE OF APPLICATION
SoCalGas's Request to Increase Gas Rates
APPLICATION A.22-03-008
On March 4, 2022, SoCalGas filed its Energy Efficiency Application (A.22-03-008} with the California Public Utilities
Commission (CPUC} for approval of its eight-year business plan, and four-year program portfolio. The application is
requesting funding approval of $164 million in 2024, $166 million in 2025, $168 million in 2026, and $171 million in 2027 for
the four-year program portfolio. This will result in an increase in gas rates, starting January 1, 2024.
If the CPUC approves this application, SoCalGas will recover forecasted costs in gas rates over a 4-year period beginning
January 1, 2024. This will impact your monthly bill.
Why is SoCalGas requesting this rate increase?
• SoCalGas was required by CPUC Decision (D.) 21-05-031 to file an application containing an eight-year business plan,
and four-year program portfolio. SoCalGas is submitting this application to comply.
• The business plan serves as a strategic plan for SoCalGas's energy efficiency efforts, and contains strategies, metrics,
and an eight-year budget.
• The program portfolio contains detailed program strategies; annual budgets, totaling to a four-year revenue
requirement; cost-effectiveness showings over the four-year period; and implementation plans, or links to them, for all
programs that are currently operating or planned to operate during the four-year portfolio period, with the exception
of third-party programs where the contract has not yet been awarded.
How could this affect my monthly gas rates?
If SoCalGas's rate request is approved by the CPUC, the average residential monthly bill using 35 therms per month would
increase by approximately $0.32 or 0.5% per month in 2024, by approximately $0.33 or 0.6% per month in 2025, by
approximately $0.34 or .0.6% per month in 2026, and by approximately $0.36 or 0.6% per month in 2027.
How does the rest of this process work?
This application will be assigned to a CPUC Administrative Law Judge who will consider proposals and evidence presented
during the formal hearing process. The Administrative Law Judge will issue a proposed decision that may adopt SoCalGas's
application, modify it, or deny it. Any CPUC Commissioner may sponsor an alternate decision with a different outcome. The
proposed decision, and any alternate decisions, will be discussed and voted upon by the CPUC Commissioners at a public
CPUC Voting Meeting.
Parties to the proceeding may review SoCalGas's application, including the Public Advocates Office. The Public Advocates
Office is an independent consumer advocate within the CPUC that represents customers to obtain the lowest possible rate
for service consistent with reliable and safe service levels. For more information, please call 1-415-703-1584, email
Pub I icAdvocatesOffi ce@cpu c. ca .gov, or visit Pu blicAdvocates.cpuc.ca .gov.
Where can I get more information?
Contact SoCalGas
Phone: (213) 231-6987
Email: KHuliganga@socalgas.com
Mail: Kristine Huliganga
Regulatory Case Manager for SoCalGas
555 West Fifth Street -GT14D6, Los Angeles, CA 90013
A copy of the Application and any related documents may also be reviewed at
https://www.socalgas.com/regulatory/cpuc
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Table 1: Proposed Gas Rates increase
Customer Class Current 2024 2025 2026 2027
Rates
(as of
Oct.
2021)
Core-CARE $/th $/th increase % increase % increase in % Increase %
in$ increase in$ increase $ increase in$ increase
Residential 0.7% $0.010 $0.010 0.8%
$1.3049 $1.3141 $0.009 0.7% $0.010 0.8%
Commercial/ $
Industrial 0.9612 $0.9897 $0.028 3.0% $0.030 3.1% $0.031 3.2% $0.032 3.3%
Gas AC
$0.8239 $0.9211 $0.097 11.8% $0.101 12.3% $0.104 12.6% $0.109 13.2%
Core-Non CARE
Residentia I
$1.6731 $1.6822 $0.009 0.5% $0.010 0.6% $0.010 0.6% $0.010 0.6%
Commercial/
Industrial $1.2343 $1.2627 $0.028 2.3% $0.030 2.4% $0.031 2.5% $0.032 2.6%
Gas AC
$1.0282 $1.1255 $0.097 9.5% $0.101 9.8% $0.104 10.1% $0.109 10.6%
Gas Engine
$0.8728 $0.8971 $0.024 2.8% $0.025 2.9% $0.026 3.0% $0.027 3.1%
Natural Gas
Vehicle $0.8842 $0.8842 $0 0% $0 0% $0 0% $0 0%
Noncore
Commercial/
Industrial $0.1565 $0.1592 $0.003 1.7% $0.003 1.8% $0.003 1.8% $0.003 1.9%
Contact CPUC
Please visit apps.cpuc.ca.gov/c/A2203008 submit a comment about this proceeding on the CPUC Docket Card. Here
you can also view documents and other public comments related to this proceeding.
Your participation by providing your thoughts on SoCalGas's request can help the CPUC make an informed decision.
If you have questions about CPUC processes, you may contact the CPU C's Public Advisor's Office at:
Phone: 1-866-849-8390 {toll-free) or 1-415-703-2074
Email: Public.Advisor@cpuc.ca.gov
Mail: CPUC Public Advisor's Office
505 Van Ness Avenue
San Francisco, CA 94102
Please reference Application A.22-03-008 in any communications you have with the CPUC regarding this matter.
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