The Gas Company proposes framework to ensure reliable, long-term natural gas supplies for California
The Gas Company proposes framework to ensure reliable, long-term natural gas supplies for California
Feb 25, 2004
"For more than 100 years, The Gas Company has provided safe, reliable natural gas to its customers," said Edwin A. Guiles, chairman and chief executive officer of The Gas Company. "Now, as California faces uncertain and challenging times as it emerges from the grip of the energy crisis of 2000 to 2001, we are asking the CPUC to adopt new policies that will allow us to provide the resources that will help California's economy prosper now and in the future."
"California's long-term economic livelihood will require a growing supply of natural gas," Guiles said. "Southern California leads the nation in the percentage of homes, businesses and electric generation fueled by natural gas and we need new supply sources to meet these needs over the long term."
California consumers would benefit from access to new sources of natural gas supply into California, such as natural gas from the Rocky Mountains and LNG (liquefied natural gas), Guiles said, and this supply diversification should be encouraged. "A greater diversity of supply will lead to competition and help drive down natural gas prices for consumers. In addition, it is an essential element to ensuring future supply reliability."
As part of a two-phase proceeding, the CPUC this week began accepting proposals and recommendations on how the natural gas market in California should be structured and what new rules and policies should be in place to ensure that California will receive reliable, long-term supplies of natural gas.
In its filing at the CPUC, the utility outlined its vision for a new natural gas market framework for California. To meet the future gas needs of consumers, the utility is proposing the following:
- Enhancing the pipeline system to allow delivery of new diverse supplies of natural gas into the state;
- Integrating the pipeline transmission systems of The Gas Company and San Diego Gas & Electric (SDG&E) to allow all utility customers in Southern California to have the same priority of access for natural gas delivered at any point in Southern California under a common set of rules. By integrating the transmission systems, customers of The Gas Company and SDG&E would pay a common transmission rate no matter where in Southern California the gas arrives.
- Develop a diversified portfolio of interstate pipeline capacity commitments on behalf of the residential and small-commercial and industrial customers for whom the utility purchases gas. Further diversification will increase reliability of gas supplies, increase access to lower cost gas supplies and limit volatility of delivered cost of gas for consumers;
- Provide firm access rights to the transmission system to assure both new and existing suppliers of natural gas will be permitted to compete on an equal basis for deliveries into the utility system.
The Gas Company is the nation's largest natural gas distribution utility, providing safe and reliable energy to 19 million consumers through 5.4 million meters. The company's service territory encompasses 23,000 square miles in most of central and Southern California. The Gas Company strives to provide exceptional customer service to enhance the quality of life in the community. The Gas Company is part of Sempra Energy Utilities -- Sempra Energy's regulated California utilities. Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company.
Media Contact:
Denise King
(877) 866-2066
www.socalgas.com
