Southern California Gas Co.

Sound bites from state and federal regulators.

Gas Competition. Indiana finds that competition in the gas industry has "not directly benefitted" residential and small commercial customers, in first annual report to legislature on energy policy. July 1, 1996 (Ind.U.R.C.).

Gas DSM. Idaho cites declining need for demand-side management in light of new appliance efficiency standards. Tells Intermountain Gas Co. to end water heater rebates. Case No. INT-G-96-4, Order No. 26546, Aug. 1, 1996 (Idaho P.U.C.).

Gas Price Forecasts.

Light-handed or Light-headed?Customers didn't buy power on lay-away. So why should the CPUC exact interest?

In a recent dream, the Governor of California called to ask if I would accept an appointment to serve on the California Public Utilities Commission (CPUC). Of course I thanked him and said I was extremely flattered by the offer. However, I inquired, didn't he have an opening on the parole board or air resources board? You see, I know entirely too much about the thankless work of the CPUC.

Southern California Gas Co. (SoCalGas) has taken issue with the coal industry's opinion that lower electric rates from restructuring would increase electricity use, and that strict environmental regulations would require meeting the increased demand with out-of-state generation.

"These coal industry groups suggest that electricity demand will rise because cheap coal-fired electric power (em generated in Arizona and elsewhere (em will now be available," said Lee Stewart, a SoCalGas senior vice president.

On January 1, 1998, California will "deregulate" the state's electric utilities. The Western Power Exchange (WEPEX) and the independent system operator (ISO) will start up, creating an open market for wholesale power.

Elizabeth A.

El Paso Natural Gas Co. (EPNG) has filed a settlement at the Federal Energy Regulatory Commission (FERC) that resolves its general rate case with natural gas pipeline customers such as Southern California Gas Co. (SCG) as well as the question of who pays for unsubscribed capacity.

Months of confidential negotiations resulted in agreements with 95 percent of EPNG's customers, and with the California, Nevada, and Arizona commissions.

Sound bites from state and federal regulators.

Electric Restructuring. North Dakota opens investigation on electric utility restructuring, asking how direct access might affect state utility customers, given the relatively small number of large commercial users. Case No. PU-439-96-54, Feb. 20, 1996 (N.D.P.S.C.).

Gas Storage Costs.

California's retreat from its zero-emission targets eases the pressure on utilities, making time for a fresh look at public and private efforts.

Electric vehicles (EVs) hold interest for utility companies around the world.

The California Public Utilities Commission (CPUC) has directed Southern California Gas Co. (SoCalGas) to set up a special account to track savings from reduced reservation charges for interstate gas pipeline capacity. The cost savings will track efforts by SoCalGas to reduce capacity reservations on the El Paso and Transwestern pipeline systems.

The CPUC also set up a process to review allocation of savings between core and noncore customers.

Competition from Order 636 has gas customers rethinking their firm capacity options.

Just when everyone thought we had put Order 636 behind us, up pops perhaps our greatest challenge yet: the turnback (or "decontracting") of firm capacity on interstate natural gas pipelines. This phenomenon, now emerging on a few major pipelines, such as Transwestern, El Paso, and Natural Gas Pipeline Co. of America, inspires different reactions.