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SOUTHERN CALIFORNIA GAS CO. FRANCHISES
d g Southern &jjomia Gas N 1201.06 -_–._-- .. -.__ _ ' — Franchises— UtilltfeslPublic Services I December 19,2r To: STATE, COG,. IY AND CITY OFFICIALS NOTIFICATION OF PACIFIC GAS AND ELECTRIC COMPANY FILING OF TESTIMONY TO RECOVER THE COST OF SEISMIC STUDIES RECOMMENDED BY THE CALIFORNIA ENERGY COMMISSION (A.10-01-014) On November 30, 2011, at a hearing at the Cardomia Public Utilities Commission (CPUC), the administrative law judge granted a motion by Pacific Gas and Eleddc Company (PG&E) to reopen application No. 10-01-014 regarding Funding for Diablo Canyon Seismic Studies. Key parties, Including the Division of Ratepayer Advocates and The Utility Reform Network were in attendance. At the conclusion of the hearing, the administrative law judge instructed PG&E to file updated Testimony to support a request. for additional funding for the seismic studies, and to notify customers about how this request will Impact rates. On December 9, 2011, PG&E filed updated Testimony with the CPUC requesting to recover additional finding, through rates, for costs associated with enhanced seismic studies at, and in the vicinity of, Diablo Canyon Power Plant (DCPP). The study was recommended by the California Energy Commission in its report, 'An Assessment of Caldomla's Nuclear Power Planta AS 1632 Repoli' The California Energy Commission proposes updating the seismic studies at, and in the vidnity of, DCPP using 3-D geophysical seismic reflection mapping and other advanced techniques. PG&E is asking the CPUC through this Testimony for CPUC appnrval to, recover costs of up to $64.25 million for enhanced seism c studies at. DCPP, an Increase of approximately $47.5 million from the original request This increase Is primarily due to the expanded scope.of eelsmic studies. The offshore and onshore areas that win be studied using 3-D and 2-0 techniques have more than doubled. This expansion is consistent with the safe operation of DCPP, and with PG&E's commitment to supporting the activities necessary to ensure seismic safety. It. is also responsive to comments and feedback from the Independent Peer Review Panel established by the CPUC in Decision 10.08.003 and to Information from other stakeholders, Including the United States Geological Survey.' Will rates Increase as a result of this application? Yes, approval of this application will increase electric rates for bundled service customers (those who receive electric generation as well as transmission and distribution service from PG&E) by less than one percent Using the 2012 revenue requirement of $37.4 million (highest single year), the bundled system average rate will.inerease 0.3 percent in 2012, relative to current rates, and would not have a significant Impact on individual customer rates. FOR FURTHER INFORMATION To request a copy of the application and exhibits or for more detags, can PG&E at 1-800-743.5000 For TDDn7Y (speech -hearing impaired), call 1-000-652-4712 Para m3s detalles game al 1.800.660-9789 You may request a copy of the application and exhibits by writing to: Pacific Gas and Electric Company Diablo Canyon Seismic Studies Testimony P.O. Box 7442, San Francisco, CA 94120 THE CPUC PROCESS The CPUCs Division of Ratepayer Advocates (DRA) will review the Testimony. The DRA is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state and obtain the lowest possible rate for service consistent with reliable and safe service levels. The DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. The'DRA's views do not necessarily reflect those of the CPUC. Other parties of record may also participate. The CPUC may hold evidentiary hearings where parties of record present their proposals in testimony and are subject to cross-examination before en Administrative taw Judge (AW). These hearings are opeh to the public, but only those who are parties of record may present evidence or cross-examine witnesses during evidengary hearings. Members of the public may attend, but not participate in, these hearings. After considering an proposals and evidence presented during the hearing process, the AW will Issue a draft decision. When the CPUC ads an this application, it may adopt all or part of PG&E's request, amend or modify it, or deny the application. The CPUC's final decision may be different from PG&E's application. iF you would like to learn how you can participate in this proceeding or If you have comments or questions, you may contact the CPUCs Public Advisor as follows: If you are writing a letter to the Public Advisor's Office, please include the number of the application (10-01-014) to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff. A copy of PG&E's Seismic Studies Testimony and Application is also available for review at the California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.-moon and on the CPUCs website at www.cpuc ea.uov1Puc. - RECEIVE® DEC 2 2011 SLO CITY CLERK RECEIVED NOV 9 2011 SLO CITY CLERK aouthern California Gas Company NOTICE OF PROPOSED RATE INCREASES Triennial Cost Allocation Proceeding (TCAP) APPLICATION NO. A.11-11-002 CC! �Bu rtBeq..A h'lA-117 A)GLy l>J c�r�2 On November 1, 2011, Southern California Gas Company (SoCalGas(D) filed its TCAP Application No. A.11-11-002 ("Application") with the California Public Utilities Commission ("Commission") to revise its rates for natural gas transportation service, effective January 1, 2013. In this Application, SoCalGas proposes to establish and revise gas rates to reflect the updated allocation of the Utility's costs of providing service among its customer classes. These are costs that have been previously authorized by the Commission for recovery in rates, except where noted. This Application also includes updating SoCalGas' forecasts of natural gas demand, balancing accounts, and gas prices for the three-year TCAP period (2013-2015) and includes a Transition Adjustment which will reduce the initial impact of moving towards fully cost based rates. The adjustments will then be phased out over time, at which time rates will be fully cost based. Finally, the Application also proposes to continue balancing account treatment for noncore transportation revenues and to continue storage allocations adopted in the prior cost allocation proceeding through this proposed TCAP period. The Commission will consider whether these proposals are just and reasonable and should be adopted when it establishes new rates for SoCalGas. EFFECT ON GAS RATES AND BILLS In this Application, SoCalGas proposes an increase in overall transportation revenues of $59 million, or 3.1 % for 2013. This overall increase would only apply to the transportation component of a total gas bill and is primarily due to updated balancing accounts. A phasing -out of the Transition Adjustments over the TCAP period will additionally affect some rates in 2014 and 2015. A summary of the proposed rates for the various customer classes for 2013-2015 are shown below: SOUTHERN CALIFORNIA GAS COMPANY Illustrative Change in Class Average Rates Due to Proposed TCAP Effective January 1, 2013 SOUTHERN CALIFORNIA GAS COMPANY Illustrative Change in Class Average Rates Due to Proposed TCAP Effective January 1, 2014 Present Rates Proposed0/therm Rates for 2013 Change % Change Rates Customer Class /therm /therm /therm 55.9 Residential (Core)* 52.5 55.9 3.4 6.5 Average Residential Bill $/month $38.96 $39.92 $0.96 2.5 Commercial/Industrial (Core)* 30.5 25.6 -4.9 -16.3 (Noncore Distribution Level Service)- Commercial/Industrial 6.5 5.1 -1.4 -21.3 Electric Generation 3.0 3.1 0.1 5.6 Transmission Level Service " 1.6 1.4 0.2 -12.2 Backbone Transmission Service' 11.0 15.4 4.4 40.4 SOUTHERN CALIFORNIA GAS COMPANY Illustrative Change in Class Average Rates Due to Proposed TCAP Effective January 1, 2014 Proposed Rates for 2013 Proposed Otherm Rates for Change 2014 % Change Rates Customer Class /therm(9/therm) (g/therm) Residential (Core)* 55.9 55.9 0.0 0.0 Average Residential Bill $/month $39.92 $39.92 0.0 0.0 Commercial/Industrial (Core)* 25.6 25.5 -0.1 -0.4 (Noncore Distribution Level Service)" Commercial/Industrial 5.1 5.1 0.0 0.0 Electric Generation 3.1 3.4 0.3 8.9 Transmission Level Service "" 1.4 1.4 -0A -2.6 Backbone Transmission Service'"" 1 15.4 1 15.4 0.0 0.0 SOUTHERN CALIFORNIA GAS COME. .4Y Illustrative Change in Class Average Rates Due to Proposed TCAP Effective January 1, 2015 * Core customers generally use smaller quantities of gas and the Utility purchases their gas. ** Noncore customers are generally large gas users who purchase their own natural gas supplies for SoCalGas to transport. *** Transmission Level Service is for noncore service on the Local Transmission System from the SoCalGas Citygate. **** Backbone Transmission Service are rights that customers may purchase to transport gas over the SoCalGas backbone system to the SoCalGas Citygate. Core customers who purchase gas supplies from SoCalGas will have this charge included in the gas commodity rate. Customers that do not purchase gas supplies from SoCalGas may purchase these rights directly from SoCalGas. A typical monthly bill for a residential customer using 38 therms per.month will increase 2% from $38.96 at present rates to $39.92 in 2013, and remain at that level for 2014 and 2015.(1) (1) These monthly bill estimates include charges for transportation, Public Purpose Program Surcharges and natural gas commodity and Backbone Transmission Service. The impact on each customer and each customer class could vary depending on individual usage and the Commission's fna/ decision. FOR FURTHER INFORMATION You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Greg Healy, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. You may also view a copy of the application at the following address: California Public Utilities Commission, 505 Van Ness Ave., San Francisco, CA 94102. The application is available electronically on the SoCalGas Website: www.socalgas.com/regulatory/cpuc.shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Website at www.socalgas.com/regulatory. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross- examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rtes for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJs proposed decision as written. The CPUC's decision may be different that SoCalGas' formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4th St., Ste. 500, Los Angeles, CA 90013, or send an e-mail to: public. advisor. la(a-cpuc.ca.gov. Any correspondence received will become part of the formal file in this application. Please reference Application A.11-11-002 in any correspondence. You may also call the Public Advisor's Office toll free at 1-866-849-8391. Proposed Rate's for 2014 Proposed0/therm Rates for 2015 Change % Change Rates Customer Class /therm(g/therm) (g/therm) Residential (Core)* 55.9 55.9 0.0 0.0 Average Residential Bill $/month $39.92 $39.92 0.0 0.0 CommerciaUlndustrial (Core)* 25.5 25.5 0.0 -0.1 (Noncore Distribution Level Service)'* CommerciaVlndustrial 5.1 5.1 0.0 0.0 Electric Generation 3.4 3.7 0.3 8.7 Transmission Level Service *'* 1.4 1.3 0.0 -2.8 Backbone Transmission Service'*** 15.4 1 15.4 0.0 0.0 * Core customers generally use smaller quantities of gas and the Utility purchases their gas. ** Noncore customers are generally large gas users who purchase their own natural gas supplies for SoCalGas to transport. *** Transmission Level Service is for noncore service on the Local Transmission System from the SoCalGas Citygate. **** Backbone Transmission Service are rights that customers may purchase to transport gas over the SoCalGas backbone system to the SoCalGas Citygate. Core customers who purchase gas supplies from SoCalGas will have this charge included in the gas commodity rate. Customers that do not purchase gas supplies from SoCalGas may purchase these rights directly from SoCalGas. A typical monthly bill for a residential customer using 38 therms per.month will increase 2% from $38.96 at present rates to $39.92 in 2013, and remain at that level for 2014 and 2015.(1) (1) These monthly bill estimates include charges for transportation, Public Purpose Program Surcharges and natural gas commodity and Backbone Transmission Service. The impact on each customer and each customer class could vary depending on individual usage and the Commission's fna/ decision. FOR FURTHER INFORMATION You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Greg Healy, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. You may also view a copy of the application at the following address: California Public Utilities Commission, 505 Van Ness Ave., San Francisco, CA 94102. The application is available electronically on the SoCalGas Website: www.socalgas.com/regulatory/cpuc.shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Website at www.socalgas.com/regulatory. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross- examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rtes for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJs proposed decision as written. The CPUC's decision may be different that SoCalGas' formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4th St., Ste. 500, Los Angeles, CA 90013, or send an e-mail to: public. advisor. la(a-cpuc.ca.gov. Any correspondence received will become part of the formal file in this application. Please reference Application A.11-11-002 in any correspondence. You may also call the Public Advisor's Office toll free at 1-866-849-8391. SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF PROPOSED CHANGE IN GAS RATES RULEMAKING NO. R.11-02-019 4'0 ✓� Nj�nc�L7 On August 26, 2011. Southern California Gas Company (SoCalGas®)-and San Diego Gas & Electric Company (SDG&E'� jointly filed with the California Public Utilities Commission (CPUC) their Comprehensive Implementation Plan to replace or pressure test all their natural gas transmission pipelines that have not been tested or for which sufficient documentation of testing is not available. The CPUC ordered in Decision 11-06-017 dated June 9t' that all California natural gas transmission pipeline operators prepare and submit their Implementation Plans for testing or replacing all transmission pipelines as soon as practicable. At the completion of the implementation period, all California natural gas transmission pipeline segments must be (1) pressure tested, (2) have traceable, verifiable, and complete records readily available, and (3) where warranted, be capable of accommodating in-line inspection devices. The CPUC opened this Rulemaking on February 24, 2011 to adopt new safety and reliability regulations for natural gas transmission and distribution pipelines and related ratemaking mechanisms. The Rulemaking is a forward-looking effort to establish a new model of natural gas pipeline safety regulations for all pipelines in California. SoCalGas and SDG&E have over 4,000 miles of transmission lines that will be affected by the new regulations. SoCalGas and SDG&E have developed their Implementation Plans as directed by the CPUC focusing first on pipeline segments located in populated areas, with pipeline segments in other locations given lower priority for pressure testing or replacement. SOCALGAS REQUESTS A TOTAL INCREASE OF $241.1 MILLION TO CARRY OUT THE IMPLEMENTATION PLAN STARTING IN 2012 SoCalGas is requesting a total revenue increase of $241.1 million over the currently authorized revenues for gas distribution and transmission service as approved in SoCalGas' General Rate Case, with the increase effective in 2012. SoCalGas' Implementation Plan includes: the replacement of natural gaspipelines; hydrostatic testing of natural gas pipelines; interim safety enhancement measures; and consideration of retrofitting pipelines for in- line inspection tools and where appropriate. improved shut off valves. ESTIMATED IMPACT OF THIS REQUEST ON GAS RATES SoCalGas has estimated the requested $241.1 million increase in gas'revenues under the proposed rates as shown in the tables below. The actual distribution of the increase to each customer class depends on how the CPUC ultimately decides all issues in the Rulemaking. The Illustrative rates shown below are for the first four (4) years of the Implementation Plan. Rate impacts in subsequent years will be requested in the utility's General Rate Case application or another applicable proceeding. The actual distribution for the requited revenues for those future applications will be decided by the CPUC in that future proceeding. Illustrative Revenue and Proposed Rate Increase Per Customer Class: Customer Class Annual $ (million) % increase Residential $184.8 13.9% Small Commercial/Industrial $33.8 11.0% Natural Gas Vehicles $1.2 11.6% Non Core $21.0 11.8% Other $0.2 1.2.2% Total $241.1 13.2% If the CPUC approves SoCalGas' request for a gas rate increase, the bill for a typical bundled residential customer under the proposed rate allocation method using 38 therms per month would increase $2.92, or 7.5 percent, from $39.08 to $42.00 Individual customer bills may differ. Rates would become effective in 2012. FOR FURTHER INFORMATION You may request additional information by writing to: Jeffery Salazar, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. SoCalGas' Implementation Plan and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this Rulemaking will be available for viewing and printing on the SoCalGas Web site at: socalp-as.com/regulatorv/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at socal.as.com/regulatory/. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision.. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCa1Gas' formal request. If you would like additional information or would like to attend these hearings, you can contact thehPublic Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4 St., Ste. 500, Los Angeles. CA 90013 or send an e-mail to: public advisor.la!u-cpuc.ca.,lov. Any correspondence received will become part of the formal file in this rulemaking. Please reference Rulemaking No. R.11-02-019 in any correspondence. SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF FILING OF ENERGY EFFICIENCY INCENTIVE EARNINGS APPLICATION NO. A.11-06-032 On June 29, 2011, Southern California Gas Company (SoCalGas®) filed a proposed application with the California Public Utilities Commission (CPUC) requesting approval of energy efficiency incentive earnings for program year 2009 achievements. CPUC Decision 10-12-049, directed utilities to file their requests consistent with the risk/reward mechanism as modified by the decision. ' SoCalGas seeks approval of incentive earnings in the amount of $2.038 million. If the CPUC approves SoCalGas' request, SoCalGas will increase rates to reflect authorization of the incentive earnings. Gas rates will increase by $2.038 million. SoCalGas requests that the amounts approved by the CPUC be recorded to existing regulatory accounts and recovered annually in gas transportation rates commencing January 1, 2012. Gas rate impacts of SoCalGas' proposal as compared to present rates are shown in the table below. Southern California Gas Company Proposed Gas Rate Increase 2012 Customer Class 2011. 2012 Change Noncore Commercial/Industrial 7.408 7.416 0.008 0.1 The average monthly residential bill of 38 therms will change from $39.08 at present rates to $39.10 in 2012. This represents a 0.1% increase. RECEIVE® JUL 1 1 1011 SLO CITY CLERK ¢/th e/th ¢ % (a) (b) (c) (d) (e) Core Residential 53.611 53.673 0.061 0.1 Commercial/Industrial 31.532 31.568 0.037 0.1 Natural Gas Vehicle 8.894 8.902 0.008 0.1 Noncore Commercial/Industrial 7.408 7.416 0.008 0.1 The average monthly residential bill of 38 therms will change from $39.08 at present rates to $39.10 in 2012. This represents a 0.1% increase. RECEIVE® JUL 1 1 1011 SLO CITY CLERK FOR FURTHER INFORMATION You may request additional information or obtain a copy of the application and related exhibits by writing to: J. Yamadata, Southern California Gas Company, 8330 Century Park Court, CP32D, San Diego, CA 92123. This application may be inspected at the SoCalGas business office, 555 West 5`h St., Los Angeles, CA 90013. SoCalGas' application and attachments may also be inspected at the CPUC office located at 320 West Fourth St., Suite 500, Los Angeles, CA 90013. Copies of this application and of this insert are available on the SoCalGas website at www. socal2as.com/regulatory/epuc. shtml. Copies of this insert will be available for viewing and printing on the SoCalGas website at www.socalQas.com/re(-,ulatory. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has arituiti-disciplinary staff with expertisein economics, finance; accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision_ on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCalGas' formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisor's Office, 320 'Vest. Fourth St., Suite 500, Los Angeles, CA 90013 or send an email to puublic.advisor.lana�uc.ca.Qov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.11-06-032 in any correspondence. SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF FILING OF THE GAS COST INCENTIVE MECHANISM (GCIl���Z46ry APPLICATION NO. A.11-06-017 44KIAlC4 WA -1Z-jZ On June 13, 2011, Southern California Gas Company (SoCalGas") filed a proposed application (A.11-06-017) with the California Public Utilities Commission (CPUC) to collect on an approved incentive as specified by the Gas Cost Incentive Mechanism (GCIM). The GCIM is a CPUC -authorized ratemaking mechanism that SoCalGas uses to purchase natural gas on behalf of its core customers. Core customers are residential customers and qualified commercial and industrial customers (Rule 1 & 23). Under the GCIM program, the CPUC approves a "competitive benchmark" based on market price that SoCalGas strives to beat when purchasing natural gas on the open market for its customers. 'If SoCalGas purchases gas above the competitive benchmark within a certain tolerance band, then the utility is penalized. If SoCalGas purchases gas below the competitive benchmark within a certain tolerance band, the utility is rewarded. SoCalGas has been operating under this program for 17 years. During GCIM year 17, SoCalGas was able to purchase natural gas at $40.9 million below the competitive benchmark during the program year extending from April 1, 2010 to March 31, 2011. This effort helped mitigate price spikes, providing customers a net benefit of $34.7 million in lower eas costs. The June 13; 2011 proposed application filing requests that SoCalGas collect from customers $6.2 million for its shareholders as incentive for purchasing gas below the competitive benchmark price. EFFECT ON GAS RATES AND BILLS If this request is approved, the impact on a residential customer's monthly summer bill for 33 therms of gas will increase by 6 cents/month, from $37.02 to S37.08/month. Based on a 12 -month period, a residential customer's average monthly bill will increase by 7 cents. The impact on each customer and customer class will vary depending on individual usage and the final decision. If approved, the proposed change in rates for each customer class is as follows: i Customer Class I I Annual S (million) % increase I Resider,!ial $4.3 0.3% I Comai;rcial:'Industrial ! $1.7 0.6% I Other Core $0.2 1.9% Total $6.2 0.4% * excluding franchise fees and uncollectibles. RECEIVED - - JUN 21 2011 - - SLO CITY CLERK FOR FURTHER INFORMATION You may request additional information by writing to: Michael Franco, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCalGas website at: socalgas.com/re ug latory/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas website at socalgas.com/re ulg atorv. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's.decision may be different than SoCalGas' formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4`s St., Ste. 500, Los Angeles, CA 90013 or send an email to: public.advisor.lancnuc.ca.gov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.11-06-017 in any correspondence. RECEIVED SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF FILING OF LOW-INCOME PROGRAM MAY 2 3 1011 APPLICATION NO. A.11-05-018 SLO CITY CLERK On May 16, 2011, Southern California Gas Company (SoCalGass") filed with the California Public Utilities Commission (CPUC or Commission) its request for approval of proposed funding of Program Years 2012-2014 for the Energy Savings Assistance Program and administrative costs associated with the California Alternate Rates for Energy Program (CARE). These programs are directed at assisting qualified low-income customers with their energy bills and helping customers use energy more efficiently. SoCalGas seeks approval of funding in the amounts of $236.674 million, $219.761 million and $223.186 million for 2012, 2013 and 2014, respectively. If the Commission approves the 2012-2014 Energy Savings Assistance and CARE proposed program budgets, SoCalGas will adjust rates to reflect authorization of increased costs. Gas rates will increase by $23.299 million in 2012, by $6.144 million in 2013 and by $9.568 million in 2014, compared to present rates to fully.fund the 2012-2014 programs authorized by the Commission. SoCalGas requests that the proposed gas rate and revenue requirement increase become effective on January 1, 2012, or as soon thereafter as possible. The tables below show the 2012-2014 gas rate impacts compared to present rates for only the proposed Public Purpose Program (PPP) surcharge portion of the total bill. Southern California Gas Low -Income Programs - Gas PPP Surcharge Class Average Rate Changes W 2012 Customer CARE Customers Non -CARE Customers Class 2011 2012 '% Change 2011 2012 % Change 4/th 4/th % 4/th ¢/th % (a) (b) (c) (d) (e) (f) (g) Core Residential 4.611 5.484 18.9% 7.687 8.599 11.9% Commercial/Industrial 3.734 3.734 0.0% 6.809 6.849 0.6% Natural Gas Vehicle N/A N/A N/A 3.076 3.115 1.3% Noncore (f) (g) Core Commercial/ Industrial N/A N/A N/A 3.476 3.516 1.1% 2013 Customer CARE Customers Non -CARE Customers Class 2011 2013 '% Change .2011 2013 '% Change 4/th 4/th % a/th a/th (a) (b) (c) (d) (e) (f) (g) Core Residential 4.611 4.767 3.4% 7.687 7.900 2.8% Commercial/ Industrial 3.734 3.734 0.0% 6.809 6.867 0.9% Natural Gas Vehicle N/A N/A N/A 3.076 3.134 1.9% Noncore Commercial/ Industrial N/A. N/A N/A 3.476 3.534 1.7% 2014 Customer CARE Customers Non -CARE Customers Class 2011 2014 % Change 2011 2014 % Change C/th ¢/th % e/th ¢/th % (a) (b) (c) (d) (e) (f) (g) Core Residential 4.611 4.850 5.2% 7.687 8.020 4.3% Commercial/Industrial 3.734 3.734 0.0% 6.809 6.904 1.4% Natural Gas Vehicle N/A N/A N/A 3.076 3.171 3.1% Noncore Commercial/Industrial N/A N/A N/A 3.476 3.571 2.7% The average monthly residential bill of 38 therms will change from $39.01 at present rates to $39.36 in 2012, $39.09 in 2013 and $39.14 in 2014, respectively. This represents a 0.3% increase over the three-year program period. FOR FURTHER INFORMATION You may request additional information or obtain a copy of the application and related exhibits by writing to: J. Yamagata, Southem.Califomia Gas Company, 8330 Century Park Court, CP32D, San Diego, CA 92123. This application may be inspected at the SoCalGas business office, 555 West 5'h St., Los Angeles, CA 90013. SoCalGas' application and attachments may also be inspected at the CPUC office located at 320 West Fourth St., Suite 500, Los Angeles, CA 90013. Copies of this application and of this insert are available on the SoCalGas Web site at www.socalgas.com/regulato!Y/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalg-as.com/rei.zulgM/ CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross- examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties or record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SDG&E's formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisor's Office, 320 West Fourth St., Suite 500, Los Angeles, CA 90013 or send an e-mail to public.advisor.la(a.cpuc.ca.gov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.11-05-018 in any correspondence. NOTICE OF PUBLIC MEETING THE CALIFORNIA PUBLIC UTILITIES COMMISSION IS MEETING IN LOS ANGELES TO ACCEPT PUBLIC COMMENT ON PROPOSED NEW SAFETY AND RELIABILITY REGULATIONS (RULEMAKING) FOR NATURAL GAS TRANSMISSION AND DISTRIBUTION PIPELINES THE CALIFORNIA PUBLIC UTILITIES COMMISSION WOULD LIKE TO HEAR FROM YOU! All persons wishing to present their views to the Commission may attend the Los Angeles hearing scheduled below. Los Angeles Date and Time Location May 12, 2011 4:00 p.m. to 7:00 p.m. CalTrans Building First Floor, Conference Room 100 South Main Street Los Angeles, CA 90012 �p l2ow� AlAW))� y REASON FOR HEARING: As part of its response to the tragic gas transmission line rupture and fire in San Bruno on September 9, 2010, the California Public Utilities Commission (Commission) is reviewing its existing safety rules and considering proposals for new models of natural gas pipeline safety regulation applicable to all California pipelines. The Commission seeks public input on its proposed rules and rulemaking treatment for the costs of safety improvements. The Commission's decision describing its specific proposals and topics under consideration can be found on the Commission's website at www.cl2uc.ca.gov. A printed copy may also be obtained from SoCalGas at 1-213-244-5916, or from the SoCalGas web site www.socalp-as.com/rezulatory/cpuc.shtnil. i The location is wheelchair accessible. If you need interpreters for language or for the hearing impaired, please contact the Public Advisor's Office at the telephone numbers listed below at least three to five days in advance of the meeting date. CPUC PROCESS: Staff from the _CPUC's Public Advisor's Office will be present at this hearing to assist you. If you are unable to attend this important hearing and would like additional information on how to participate at this public meeting or if you would like to submit written comments about (R.11-02-019), please contact: Public Advisor California Public Utilities Commission RECEIVED 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 APR 2 5 2011 Or via e-mail to Public.advisor.la@cpuc.ca.gov SLO CITY CLERK Telephone: (415) 703-2074 or toll-free: 1-866-849-8390 Teletype (TTY): (415) 703-5282 or toll-free TTY: 1-866-836-7825 A copy of Rulemaking (R.11-02-019) is available for review at the. CPUC, 505 Van Ness Avenue, San Francisco, CA 94102, Monday—Friday, 8 a.m.—noon, and on the CPUC's website at http://www.cpuc.caov/nuc/. C0 2011 Southern California Gas Company/SoCalGas. All copyright and trademark rights reserved. BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of San ) A.00-06 - Diego Gas & Electric Company and ) Southern California Gas Company for ) Approval of a Gas tariff which Caps ) Rates for small EG Customers ) (U 902-G and U -904-G). ) APPLICATION VICKI L. THOMPSON 101 Ash Street San Diego, CA 92101 (619)699-5130 Fax(619)699-5027 vthompson@sempra.com Attorney for Sempra Energy on behalf of San Diego Gas & Electric Company and Southern California Gas Company June 19,2W* BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of San ) A.00-06 - Diego Gas & Electric Company and ) Southern California Gas Company for ) Approval of a Gas tariff which Caps ) Rates for small EG Customers ) (U 902-G and U -904-G). ) APPLICATION VICKI L. THOMPSON 101 Ash Street San Diego, CA 92101 (619)699-5130 Fax (619)699-5027 vthompson@sempra.com Attorney for Sempra Energy on behalf of San Diego Gas & Electric Company and Southern California Gas Company June 19, 2000 1 4 11_W1_ I. AUTHORITY REQUESTED......................................................... 1 II. APPLICANT'S COMPULSORY SHOWING ................................... 2 III. DESCRIPTION OF THE RATE CAP ............................................. 3 IV. ADDITIONAL INFORMATION................................................... 6 V. CONCLUSION.........................................................................10 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of San ) A.00-06 - Diego Gas & Electric Company and ) Southern California Gas Company for ) Approval of a Gas tariff which Caps ) Rates for small EG Customers ) (U 902-G and U -904-G). APPLICATION San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), jointly referred to as "Applicants", hereby comply with Ordering Paragraph 7 of D. 00-04-060, the Commission's decision in the SoCalGas/SDG&E 1999 Biennial Cost Allocation Proceeding (BCAP).' I. AUTHORITY REQUESTED Applicants request that the Commission reject the rate cap proposed herein and let stand the rates recently adopted in D.00-04-060. In Applicants' view, a rate cap for small EG customers (using less than 3 million therms pre year) is unnecessary and unwise. Such a cap is unnecessary because (as the proposal described below demonstrates) the rate for this group of customers is substantially the same with or without the cap. A rate cap for small EG customers is also contrary to the Commission's long- standing support for cost -based rates. The resulting reallocation of revenues caused by a such a rate cap would (without economic justification) shift costs to customers that impose relatively fewer costs to Applicants' systems (large EG customers) and away from a group of customers that are more expensive to serve. ' Ordering paragraph 7 in Decision No. (D.) 00-04-060 states," SoCalGas and SDG&E shall jointly file an application, within 60 days after the effective date of this order, proposing a Sempra-wide tariff for EG customers using 3,000,000 therms per year or less, as a class, which caps their rate at the level which prevailed at the EG rate in effect prior to the effective date of this order. Any shortfall in revenue shall be allocated to the >3,000,000 therm class." This rate cap is at best premature, and at worst completely unsupported by the record. In D.00-040-060, the Commission adopted corresponding segmented "Sempra- wide" rates for SDG&E and SoCalGas. In doing so, the Commission completely overhauled the gas rate structure for both SoCalGas and SDG&E. The resulting gas rates went into effect less than one month ago — on June 1, 2000. According to the BCAP decision, the Commission is "concerned about the impact of segmentation on customers using less than 3,000,000 therms per year" (p. 53, n.6). Presumably, the Commission's explicit goal is to ensure that the new structure does not competitively disadvantage small EG customers and thereby restrain the growth of these customers. But, it is far too soon to determine whether or not the new BCAP rates create such a problem. The Commission should permit the new BCAP rate structure to remain in place for some reasonable period of time before determining if the adopted rates have harmed a particular class of customers (by suppressing its growth). As the Commission has recognized, capping small EG rates (and the resulting reallocation of costs from one group of customers to another) is "complex" at a minimum (at p. 53, n.6). Applicants foresee strident (and justified) complaints from customers who must pick up additional costs due to this cross -class subsidy. Applicants hope that after carefully analyzing this proposal, the Commission will find a rate cap for small EG customers to be "unreasonable" and let the adopted BCAP rates stand. II. APPLICANTS' COMPULSORY SHOWING In order to cap the rate of EG customers using 3,000,000 therms per year or less (as a class) at the level in effect prior to the effective date of the BCAP, it is necessary to fust determine what the MG rate" would have been before the Commission issued D. 00- 04-060. In order to calculate this "prior rate", it is necessary to determine (1) precisely which customers are in the new Sempra wide EG class; and (2) which rates were applicable to these customers before the 1999 BCAP decision. The vast majority of SoCalGas' small EG customers are cogeneration customers. Pursuant to SoCalGas' tariff Schedule Nos. GT -F (firm) and GT -I (interruptible) in effect (at the time), gas service to these cogeneration customers was divided between GT -5 (or 2 EG) and GT -3 (or G-30), electric generation and regular noncore C&I utility transport services, respectively. The exact load served on the EG rate was determined by the Cogeneration Gas Allowance (CGA) . All other gas consumption used by cogeneration equipment was billed at the GT -F3 rate. Prior to the BCAP decision, SoCalGas served approximately 70% of this small cogeneration load on the EG rate and served the remaining 30% on the G-30 rate. Similarly, the vast majority of SDG&E's small EG customers are also cogeneration customers. The CGA loads for these customers were billed under SDG&E Schedules GTCG or GTCG-SD. The additional (non -CGA) loads were billed at the customer's otherwise applicable non -QF rate schedule(s). In addition, SDG&E serves approximately 13 customers, whose total loads were billed (pre-BCAP decision) at their otherwise applicable non -QF rates, but who are now billed under SDG&E's EG rates. III. DESCRIPION OF THE RATE CAP As illustrated in Attachment A, the joint SoCalGas and. SDG&E rate cap proposal for the small EG class (below 3 million therms per year) is equal to the consolidated class average rate for this group that prevailed prior to implementation of D.00-04060. The difference between the rate cap results and the adopted rate for the small EG class is $0.00166 per therm, or 2.5% less than the adopted rates (see Attachment A). Applicants assert that such a negligible difference fails to justify the imposition of an artificial rate cap, with one class subsidizing another. Attachment A also shows the calculations of pre-BCAP class average rates for SDG&E and SoCalGas have changed relative to the levels previously adopted for each utility in D.00-04-060. For SDG&E, the revised average rate for the entire EG class is $0.05710 per therm, a slight increase from its adopted present rate average of $0.05688 per therm (which is a volume weighted average of the present rate revenues for "Cogen" and "GTUEG' as shown in.D.00-04-060, Appendix E, Table 2). This revision is 2 The cogeneration gas allowance (CGA) which is defined as the amount of gas the customer's serving electric utility would require to generate and transmit an equivalent amount of electricity as that produced by the cogeneration unit. The CGA is calculated as the kilowatt-hours (KWH) generated by the cogeneration unit times the billing heat rate. The billing heat rate is based on the serving electric utility's average annual incremental heat rate (IHR) which includes transmission line losses. necessary for two reasons: First, Table 2 of the BCAP decision incorrectly assumes that SDG&E (prior to the BCAP decision) billed all cogeneration volumes at cogeneration rates. In fact, SDG&E actually billed the non -QF portion ( 7.4 million therms) of these volumes under SDG&E's then existing noncore C&I rates. The volumes are now considered EG volumes under SDG&E's BCAP-adopted EG rates. Second, the allocation used in the BCAP decision is based on 1996 usage data.3 As shown in Attachment B, SDG&E updates this allocation with 1999 usage levels of cogeneration volumes among service levels (i.e., transmission versus high-pressure distribution versus medium pressure distribution) and seasons (i.e., winter versus summer) used for present rate (i.e., pre-BCAP.) billing purposes. Like SDG&E, SoCalGas revises its adopted present average rate of $0.04111 per therm as shown in D.00-04-060, (Appendix D, Table 8) to reflect cogeneration billed at noncore C&I rates (i.e., G-30 rates). Cogeneration volumes billed at SoCalGas' G-30 rate include the prorated customer charge4, volumetric transmission charges, and the CARE surcharges. The revised present rate (pre-BCAP equivalent) for the small EG customer (using 3,000,000 therms or less per year) served by SoCalGas is $0.5714 per therm (See Attachment A). Another important consideration is that Ordering paragraph No. 4 of the BCAP Decision (D. 00-04-060), eliminated the CGA. This change ended the requirement to split SoCalGas' gas service (to these customers) between the EG and G-30 rate. SoCalGas now serves this entire load under the new adopted EG rate, greatly. simplifying 3 The difference in allocators used in this filing and those used in the BCAP decision do not affect EG rates as aft in the BCAP decision. Since the BCAP-adopted rate design for EG customers does not differentiate among service levels or seasons, the BCAP EG rates do not utilize the allocators used for calculating present rates. " Both the customer charge and volumetric transmission charges under pre-BCAP rates were segmented based on size (0-250,000 therms, 250,001 - 1,000,000 therms, 1,000,001— 2,000,000 therms, and over 2,000,000 therms) and level of service (medium pressure distribution, high-pressure distribution, and transmission). 5 This surcharge is pursuant to SoCalGas Tariff Schedule No. G -CFS which applies to G-30 load and exempts EG load. the present revenue calculation. The total revenue for this class (post BCAP decision) appears in Table 8 of Appendix D in D. 00-04060.6 Table 8 in Appendix D of the BCAP Decision also attempts to show the "present" and "proposed" rates for SoCalGas' EG customers. The adopted EG rate is segmented between customers who use 3 million therms or less per year and customers who use more than 3 million therms per year. Both the present and proposed rate columns in Table 8 use the same volumes for determining present and proposed EG rates. However, the rate appearing in the "present rate" column in Table 8 (of the BCAP decision) reflects only the EG rate component and incorrectly excludes the G-30 rate components, under which approximately 30% of these volumes were billed. For the reasons discussed earlier, Table 8 (from the BCAP decision) does not accurately reflect the pre-BCAP rate paid by cogeneration customers. In prior BCAP's, this problem did not exist since the qualifying EG gas volumes (pursuant to the CGA) was included with cogeneration/EG rate and the non -qualifying G-30 gas volumes were included with noncore G-30 rate. With the elimination of the CGA there are no load qualifications and all natural gas used for cogeneration is now eligible for the EG rate. In summary, the cogeneration demand now includes both the load once billed on the EG/Cogeneration rate and the load previously billed on the noncore C&I G-30 rates. For consistency, and to achieve a meaningful comparison, the rate appearing under the "present rates" column in Table 8 in the decision should have also reflected both the cogeneration component and the G-30 rate components. SoCalGas has made this revision and included a revised version of Table 8 for consideration in this application (see attached Table 8a in Attachment Q. Revised Table 8a (in Attachment C) uses the same format as Table 8 from the BCAP decision. Revised Table 8b (also found in Attachment C), provides the breakdown and detail wherein the volumetric data is separated between EG and G-30 volumes served by SoCalGas. Correctly applied, both tables produce the same overall results. The separation of volumetric data into qualifying and non -qualifying components is based on 6 As with the revised SDG&E present rate calculations, these revisions have no impacts on EG rates adopted in the BCAP decision. 1999 recorded cogeneration usage on SoCalGas' system. Attached is a billing comparison for both SDG&E and SoCalGas showing average annual EG bills (Attachment D). IV. ADDITIONAL INFORMATION A. COMPLIANCE WITH RULES In accordance with Rule 6(a)(1) of the Commission's Rules of Practice and Procedure (Rules), Applicants provide the following.information concerning "the proposed category for the proceeding, the need for hearing, the issues to be considered, and a proposed schedule." 1. Proposed Category of Proceeding The Applicants propose to categorize thisapplication as a "rate setting" proceeding within the meaning of Rule 5(d). 2. Need For Hearing Applicants do not believe a hearing is necessary in this proceeding. However, if the Commission decides.to set this application for evidentiary hearings, Applicants propose the following procedural schedule: Application filed Protests due (assuming the Commission publishes the Notice in its Daily Calendar on June 26, 2000) Prehearing Conference Hearings (if needed) ALJ Proposed Decision (if needed) Final CPUC Decision 6 DATE June 1.9, 2000 July 26, 2000 August 2, 2000 October 2-6, 2000 November 20, 2000 December 22, 2000 3. Issues To Be Considered In accordance with Rule 6(a)(1), Applicants propose that the Commission consider only two issues: (a) Whether to adopt Applicants' primary proposal that a rate cap for this group of customers is unreasonable; or, in the alternative, (b) Whether to adopt Applicants' proposed modifications to the existing Sempra- wide EG rate for customers using no more than 3,000,000 therms per year which caps their rate at the level which prevailed prior to the effective date of D. 00-04-060. B. STATUTORY AUTHORITY — RULE 15 This Application is made pursuant to Sections 451, 454, 489, and 701 of the California Public Utilities Code and prior decisions, orders and resolutions of the Commission. C. LEGAL NAME AND CORRESPONDENCE — RULES 15(A) AND 15(B) SDG&E is a public utility organized and existing under the laws of the State of California. SDG&E is engaged in the business of providing electric service in a portion of Orange County and electric and gas service in San Diego County. SDG&E's principal place of business is 8306 Century Park Court, San Diego, California. Its mailing address is Post Office Box 1831, San Diego, California 92112. SoCalGas a public utility organized and existing under the laws of the State of California. SoCalGas is engaged in the business of providing gas service in portions of central and southern California. SoCalGas' principal place of business and mailing address is 555 West Fifth St., Los Angeles, California 90013. Correspondence or communications to Applicants regarding this application should be addressed to: Rodney Winter Sempra Energy Regulatory Affairs Department Post Office Boz 1831 San Diego, California 92112-4150 (619)696-4817 rwintm'a)sempra corn 7 with a copy to: Vicki L. -Thompson Sempra Energy Law Department Post Office Box 1831 San Diego, California 92112-4150 (619) 699-5130 tthomp onon�@sem com D. ARTICLES OF INCORPORATION — RULE 16 A copy of SDG&E's Restated Articles of Incorporation amended through December 8, 1995, presently in effect and certified by the California Secretary of State, was filed with the commission on October 30, 1996 in connection with SDG&E's Application No. 96-10-038, and is incorporated herein by reference. A copy of SoCalGas' Articles of Incorporation as last amended, presently in effect and certified by the California Secretary of State, was filed with the Commission on May 13, 1997, in connection with A.97-05-026 and is incorporated herein by reference. E. RULE 23 a) Financial statement, balance sheet, and income statement The financial statement, balance sheet and income statement of SDG&E and SoCalGas (as of December 31, 1999) can be found in Attachment E. b) Statement of rates in effect The statement of currently effective rates for SDG&E and SoCalGas can be found in Attachment E. C) Statements of original cost and depreciation. reserves The statement of original cost and depreciation reserves can be found in Attachment E. e/f) Summary of earnings The summary of earnings for SDG&E and SoCalGas can be found in Attachment E. h) Statement of depreciation SoCalGas: For financial statement purposes, depreciation of utility plant has been computed on a straight-line remaining life basis at ratesbased 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. SDG&E: 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 SDG&E 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, SDG&E has computed its tax depreciation using the Accelerated Cost Recovery System. For years after 1986, SDG&E 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. i) Proxy Statement The Proxy Statements of SDG&E and SoCalGas are found in Attachment E. F. SERVICE OF NOTICE (RULE 24) In compliance with Rule 24 of the Commission's Rules of Practice and Procedure, Applicants will, within ten days after filing this Application, mail a notice to the state of California and to the cities and counties in its service territory, and to all those persons listed in Attachment E. Also within ten days, Applicants publish in newspapers of general circulation in each county in its service territory notice of this Application. Within 45 days of the filing of this Application, Applicant will provide such notice to all of their customers along with the regular bills sent to these customers. This Application is being served this day on the attached service list from A.96-03-030/031, the consolidated 1996 Biennial Cost Allocation Proceeding for SoCalGas and SDG&E. G. REQUEST FOR EX PARTE APPROVAL: Applicants request that if this Application is not protested, or if no protests are filed that raise material issues of disputed fact, that the commission approve the Application without evidentiary hearings and without the issuance of an Administrative Law Judge proposed decision pursuant to Section 31 l(d) of the Public Utilities Code. With the filing of this Application and attached materials, SDG&E and SoCalGas are ready to proceed with their showing. V. CONCLUSION Applicants respectfully request that the Commission issue an order to: (1) Reject the proposed rate cap, and maintain the EG rates currently in effect pursuant to D. 00-04-060 for small EG customers (using less than 3,000,000 terms per year); or in the alternative, 10 (2) Adopt the rate cap proposed herein for these small EG customers. Respectfully submitted, Dated: June 19, 2000 IL4a; Vicki L'Thompson 101 Ash Street San Diego, CA 92101 (619) 699-5130 Fax (619) 699-5027 vthompsori@sempra.com Attorney for Sempra Energy on behalf of: San Diego Gas & Electric Company and Southern California Gas Company CERTIFICATE OF SERVICE Executed I hereby certify that a copy of the APPLICATION has been mailed to each party of record on the service lists of A.98-10-012 and A.98-10-031 by mailing a copy thereof properly stamped and addressed on June 19, 2000 in San Diego, California. MMOFMWMCAM-1 ATTACHMENT A SDG&E AND SOCALGAS JOINT RATE CAP TABLE SOUTHERN CALIFORNIA GAS COMPANY SAN DIEGO GAS & ELECTRIC Joint Rate Cap Filing Reflects Margin & Allocated Costs as of 1/1/2000 COMMON EG RATE FOR SDG&E aW SOCALGAS L Consolidated Results Annual Usagit between O to 3 million therms nety_ear 1 Customer Charge. $ per meter per month 223 Na $50; $134 2 Volumetric Ratecents ner therm 132,171 Na ..:4f:367 $8,415 3 Group Average 132.171 .:::.: :;8:486.: $8.549 SAW $8,549 $0 target ate Annual Unnno greater than 3 million therms ear year 4 Customer Charge. $ per meter per moral Na 5 V-h•metrie Rate mom nor them+ 3,710,012 6 Group Average 3,710,012 7 Total Electric Generation 3.842,183 ll. SIDG&JEEGCustorneins gt SoCaiGa. EG Customers From 1/112000 Rates Proposed Ca Ing From 111/00 rates SCAP Dated 6/19180 Throughput Rate Revenues Rabe Revenues I Change I %Change I I %Chan e mmerms cltherrn 51000 c1therm $1000 $1000 18 Lim (A) (B) (C) (D) (E) (F) (G) (H) UM L Consolidated Results Annual Usagit between O to 3 million therms nety_ear 1 Customer Charge. $ per meter per month 223 Na $50; $134 2 Volumetric Ratecents ner therm 132,171 Na ..:4f:367 $8,415 3 Group Average 132.171 .:::.: :;8:486.: $8.549 SAW $8,549 $0 target ate Annual Unnno greater than 3 million therms ear year 4 Customer Charge. $ per meter per moral Na 5 V-h•metrie Rate mom nor them+ 3,710,012 6 Group Average 3,710,012 7 Total Electric Generation 3.842,183 ll. SIDG&JEEGCustorneins gt SoCaiGa. EG Customers Annual Usaam between O to 3 million therms 8 Customer Charge, $ per ureter per month pt ry= 51 9 Volumetricagil cent% err therm 83,765 10 Group Average 83,765 Annual Usage oraater than 3 million therms 11 Customer Charge, $ per meter per month j eryear Na 12 Volumetric Rata Amts net therm 814,161 13 Group Average 814,161 14 Total Electric Generation 897.926 Na ..Na..< n1a 3.338 $123,874 4.464 $165,616 3.339 $123,874 ($41,741) 4.533 $174,164 r�S.g4TT $132,423 ($41,741) Na$50 S31 Na ':8.387 $5.333 6.904 $5,783 6.403 $5.364 ($419) Na Wa N . ,8.339a $27.184 5.588 $45,493 3.339 $27,184 ($18,308) 5.710 $51,275 3.625 $32,548 ($18,728) $so 1 8.523 2 0.0% -2.5% 3 (0.188) 4 3.333 5 -25.2% 02% 6 -24.0% OAV. 7 $50 8 6533 9 -72% 451/6 10 11 3333 12 402% 02% 13 -365% -03% 14 gt SoCaiGa. EG Customers 15 Annual Usaoa hetwean O to 3 million thermts ser ve-r Customer Charge. $ per meter per month 172 Na $50" $103 ••6.580 $50 15 16 Volumetric Rat^ n eft per them 48.406 Na 8.367. $3,082 6.533 1 16 17 Group Average 48,406 5.714 $2.766 $3,185 $419 152% -25% 17 18 For Annual Usage -mater than 3 million than er v Customer Charge, $ per meter per month Na Na :. ... 19 vd •merit• Rate cents oar them 2.895,851 Na..3:339 $96,690 18 3.733 19 20 Group Average 2,895,851 4.148 $120,123 3.339 $96,690 ($23,433) -19.5% 02% 20 21 Total Electric Generation 2,944,257 4.174 $122,889 3.392 $99,875 ($23.014) -18.7% 0.1% 21 Notes: Present Rates for SDG&E EG customers are currently differentiated by service level (i.e., transmission or distribution). Group Average Rates applicable to SDG&E EG customers with usage below 3 million therms per year represent distribution -level service customers. Group Average Rales applicable to SDG&E EG customers with usage above 3 million therms per year represent transmission4evel service customers. Present Rates for SoCalGas EG customers are currently all vOlumetrto rates with no distinction between service or usage level. ATTACHMENT B SDG&E PRESENT EG RATES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 San Diego Gas & Electric - Present Rate Calculations Applicable to Adopted EG Volumes Totals None None 1 2 Norm None 3 4 None None 5 8 Jan -00 15 Proposed 8 Rate SDFFD 9 Present $1,705 10 Rates Determinants Revenues Factor +SDFFD Revenues $647 19 me" metra 14 $1000 $1000 "$1000 Adopted EC Volumes Billed AL 117M Pre-SCAP GTh Rates 23 100% MPS Winter at 13.652 39% 576 mtherms W/e Sh,mea $79 Ceavo. 0.739% 51 $79 20% Summer 10.978 886 mthemts $97 0.739% $1 $98 NPS Witter 9.187 33% 1,981 mtherms $182 0.739% $1 $183 00% Summer 7.196 3,957 mtherms $284 0.739% $2 $286 Transm Winter 6.373 mtherms SO" 0.739% .$0 $0 Sumner 5.040 mtherms $0 0.739% $0 $0 Customer 0 to 3k $16 5 Custtnths $0 0.739% $0 $0 Charges 3k to 7k $84 2 COstmths $0 0.739% $0 $0 (therms) 7k to 23k $153 1 Cuslmths $0 0.739% $0 $0 23k to 126k $308 3 CusMnUts $0 0.739% $0 $0 126k to 1000k $618 2 Cusl-mths $0 0.739% $0 $0 over1000k $1,310 7731 0 Cust-mths $0 0.739% $0 $0 TOTAL GTNC 7,400 mtterms $642 $5 $847 8.744 AdoOted EG VOlurrias Wiled Transm Winter 12% Summer at Pre$ 6715,258 5.040 AP QTCQ 10.075 Rates 13,758 mthems mttemte wa Srwaae,. Cea,ee- $335 $693 0.494% 0.494% $2 $3 $337 $697 Otter Winter 7.103 33 47,939 mtherms E3,362 0.494% E17 $3,979 Summer 5.623 M2.511 95,172 mtherms $5,352 0.494% $26 $5,378 Customer 0 to 3k $23 11 Cust-mths $3 0.494% EO $3 Charges 3k tO 7k $125 2 Custmms $3 0.494% $D $3 (mems) 7k to 23k $229 1 Cust-mths E2 0.494% $0 $2 23k to 126k $457 13 Custmths $59 0.494% $0 $60 126k to 1000k $914 3 CusFmths $27 0.494% $0 $28 over t000k 51.941 F 35 5 Custmths $97 0.494% $0 $98 TOTAL COGEN 161,529 mtherms $9,934 $49 $9,983 6.180 ROSARRO Cust.Charges $1,941 12 Custmtts $23 0.000% $0 $23 Witter 6.373 20% 50,334 mtherms $3209 0.000% $0 $3,209 Sumpter 5.040 198,666 mtherms $10,013 0.000% $0 $10,013 $13,244 249,000 $13244 EO' 11 5.319 Totals None None 1 2 Norm None 3 4 None None 5 8 100% 7 15 100% 8 $697 13,758 16 9 $1,705 10 11 18 12 $647 19 13 14 100% 5337 5,258 15 100% $697 13,758 16 41!014 $1,705 17 $2,714 18 19 20 21 22 23 100% $98 24 $9,983 25 26 27 28 29 $13244 513244 249,000 30 31 SDGE Y2000 Rate Cap Filing2xis, Present Rates. p.1 SRL 6114100 SE Reg.Polity+Analysis San Diego Gas & Electric - Present Rate Calculations Applicable to Adopted EG Volumes Jan -00 Rates $hhenn AL 1mG Proposed Rate SDFFD Determinants Revenues Factor Adopted EG Volumes Billed Transmisslnn 32 Demand Charges at PrnaAP CTUFD Rotas 5300,173 Sohn Bay PP win sregsa Charges $9,716 474,237 $19,983 33 (Stpermpya) $341,0= Endna PP .. $41,074 742,252 $4,419 f4A19 71,909 34 $200 Endre GT 35 $275 FJ clean GT 36 5202 NTC GT 37 SO41 Naval Station GT 38 $1,70.5 Neamar GT 39 $310 North W" GT 40 $604,703 tow TLS Shrodn 41 Demand Charges 5655 $1000 12 Cust-mths $7,856 0.500% $39 $7,897 . 42 Volumellic Igniter 7A50 2.086 2,080 mlherms $155 0.500% $1 $156 43 185% Tier 1 1.522 77,328 77,328 mthenns $1,177 0.500% S6 $1,183 44 Tier 0.527 398,181 anthems $2.098 0.500% $10 $2,109 45 Global Prepayrn Credit -0.325 477589 mlherms $1,562) 0.50096 $8) $1,560 46 477.589 - $9,784 999 47 D/srrr 48 Demand Charges $25 $1000 12 Cust-mors $295 0.500% $1 $296 49 Volumetric Igniter 7.450 6 mthelms $0 0.500% $0 $0 50 18.5% Tier 1 22.171 226 228 mtherm.S $50 0.500% $0 550 51 Tier 9552 2,179 mthemts $208 0500% $1 $209 52 Global forepawn Credit -0.325 2.411 mthemts ($8) 0S00% (SO) SB 53 2.411 $546 54 SocalGas GT.SD 55 Customer Charge S150 $1 12 Cust-mths $2 0.500% $0 $2 56 Transmission 2.018 480,000 mlhenns $9,686 0.500% $48 $9,735 57 ITCS 1.520 480,000 mtherms $72% 0.500% $36 $7,332 58 480,000 999 '$17,069 59 TOTAL Former UEG 480,000 mtherms $27,266 $136 $27,402 60 ELEC GENERATION TOTALS 897,928 anthems . $51,085 61 62 63 64 $190 1 $51,275 1 $t0a0 Totals Large EG Calculations si990 m1hemts $1000 $9,716 474,237 $19,983 S27A02 $51278 $41,074 742,252 $4,419 f4A19 71,909 :. wef..n �:-raHy1. oin,ioi mthMMS-- 897 8 814,161 Adopted L; EG vol Hdierrn= 5.770 5.045 SDGE Y2000 Rate Cap FIMg2ads, Present Rates, p2 SRL 6/14100 SE Rag.Po6cy*Analysis 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 5o 51 52' 53 54 55 56 57 $8 59 60 61 62 63 64 ATTACHMENT C SOCALGAS BILL CALCULATIONS TABLE 8a COMMON SEMPRA-WIDE ELECTRIC GENERATION TRANSPORTATION RATES SOUTHERN CALIFORNIA GAS COMPANY 2000 Biennial Cost Allocation Proceeding - 1/01/2000 Rates ' Throughput Rate Revenue (Mth) ($/th) (M$) Annual Consumption 0-3000 Mth 247 Customer Charge ($/Month) $ 172.21 Volumetric Rate 48,406 ITCS 48,406 Total Volumetric Rate 48,406 Class Average Rate 48,406 Annual Consumption > 3000 Mth Customer Charge ($/Month) 66 Volumetric Rate 2,895,851 ITCS 2,895,851 Total Volumetric Rate 2,895,851 Class Average Rate 2,895,851 Total Electric Generation 279449257 $ - 247 0.04187 1,779.80 0.01527. 739 0.05204 2,519.07 0.05714 2,766 $ - 147 0.02598 75,749.25 0.01527 44,226 0.04143 119,975 0.04148 120,123 0.04174 122,889 Estimated BCAP Authorized Rates Rate Revenue ($/th) (M$) $ 50.00 103 0.05740 2,779 0.00793 384 0.06533 3,162 0.06747 3,266 0.02540 73,557 0.00793 22,962 0.03333 96,519 0.03333 96,519 0.03389 99,785 rhe Present rates include revenues from Cogeneration Gas Alloewance (CGA) portion billed at common EG Rate and the cogeneration load greater than CGA bred at noncore commercial & industrial rate. BillinglAs 06/1920001:33 PM TABLE 8b COMMON SEMPRA-WIDE ELECTRIC GENERATION TRANSPORTATION RATES SOUTHERN CALIFORNIA GAS COMPANY 2000 Biemtial Cost Allocation Proceeding 1/0113000 Estimated BCAP Rates 1. Authorised Rates Throughput Rate Revenue Rafe Revenue (S/th or (S/th or (Mth) S/Cuss)MSS $/Cost) (MS) Arutual ConstuntMon 03000 Mth PRESENT RATES Coeeneration Non-QuaOfymg Custoner Charge 247 Volumetric Rate 13,379 S 0.05817 778 CARE Surcharge 13,379 S 0.00721 97 Qualifying Valuaw rlcRate 30,343 S 0.02584 784 ITCS 43,722 S 0.01527 668 Total Cogen Val. Rate 43,722 S 0.05321 2,326 Total Cogen Rate 43,722 S 0.05886 2,573 Non -Cogen EG 4,684 S 0.02584 121 ITCS 4,684 S 0.01527 72 Total Non -Cogen Rates 4,684 S 0.04111 193 PROPOSED RATES Customer Charge (VMonth) 172 S 50.00 103 Volumetric Rate 48,406 S 0.05740 2,779 ITCS 48.406 S 0.00793 384 Total Voluzoetric Rate 48,406 S 0.05204 2,519. S 0.06533 3,162 Class Average Rate 48,406 S 0.05714 2,766 S 0.06747 3,266 Arnutal Corsu nution > 3000 Mth PRESENT RATES Coveneration Nam -Qualifying Customer Charge 147 . Volumetric Rate 91,684 S 0.02867 2,628 CARE Surcharge 91,684 S 0.00721 661 Qualifying Volumetric Rate 691,941 S 0.02584 17,880 ITCS 783,625 S 0.01527 11,968 Total Cogen Vol. Rate 783,625 S 0.04229 . 33,137 Total Cogen Rate 783,625 S 0.04247 33,284 Non -Cogen EG 2,112,226 S 0.02584 54,580 ITCS 2112,226 S 0.01527 32,258 Total Non -Cogen Rates 2,112,226 S 0.04111 86,838 PROPOSED RATES Customer Charge (S/Manth) 66 S _ _ Volumetric Rate 2,895,851 S 0.02540 73,557 ITCS 2,895,851 S 0.00793 22,962 Total Volumetric Rate 2,895,851 $0.04143 119,975' S 0.03333 96,519 Class Average Rate 2,895,851 S 0.04148 120,123 S 0.03333 96,519 Total Electric Generation 2,944,257 $ 0.04174 122,889 S 0.03389 99,785 The Present rates include revenues from Cogeneration Gas Allocamnce (CGA) portion billed at common EG Rate mid dw w8meiuinmlead PC= then COA billed at noncom c=macW h iadmaitma, ATTACHMENT D SDG&E AND SOCALGAS BILL TABLES ATTACHMENT D SOUTHERN CALIFORNIA GAS COMPANY Rate Cap Filing Electric Generation Bills Based on Recorded 1999 Usage Data Notes 1/ Average Annual Bills %Change from Dated &19100 General Data for EG Usage Only Pre-BCAP BCAP Annual Pre-BCAP BCAP Proposed Proposed Proposed Usage Average Rates Rates Rate Cap BCAP ate Cap Rate Cap Category Customers. Usage 1/1/00 6/1/00 Rates Rates Rates Rates A C D E F G H I J therms mtherms $1000 $1000 $1000 1 0 to 36k 31 20 $2.2 $1.9 $1.9 -14% -15% -1.7% 1 2 36k to 250k 95 85 $6.6 $6.2 $6.0 -6% -8% -2.3% 2 3 250k to 1000k 23 600 $36.5 $39.8 $38.8 9% 6% -2.5% 3 4 1 to 3 million 15 1,414 $79.6 $93.0 $90.6 17% 14% -2.5% 4 5Sma11'EG :::<. 164 $17.6 6% 5 2,119 $16.6 $18.0. 8% =25°/n: 6 3 to 12 million 25 6,052 $275 $202 $202 -27% -27% 0.2% 6 7 12 to 30 million 12 25,679 $1,061 $856 $857 -19% -19% 0.2% 7 8 30 to 120 million 13 38,860 $1,624 $1,295 $1,298 -20% -20% 0.2% 8 9 Over 10 187,784 $7,760 $6,259 $6,270 -190/0 -19% 0.2% 9 10 ':':::lar+ge£G;''' 66 $1,582 -26% 10 47,374 $1,972 $1,579 -20% ......:.:....:...... 02% 11 EG Totals 224 12,885 $540 $436 $437 -19% -19% 0.1% 11 Notes 1/ SAN DIEGO GAS & ELECTRIC Rate Cap Filing Electric Generation Bills Based on Recorded 1=1a a Data, exce f Rosarito Average Annual Bills %Change from Dated &19= General Data for EG Usage Only Pre-BCAP BCAP Annual Pre-BCAP BCAP Proposed ProposeR Proposed Usage Average Rates Rates Rate Cap BCAP ate Cap Rate Cap Category Customers Usage 1/1/00 6/1/00 Rates Rates Rates Rates therms mtherms $1000 $1000 $1000 1 0 to 36k 16 14 $1.6 $1.5 $1.4 -3% -12% -10% 1 2 36k to 250k 7 120 $10.5 $8.5 $7.2 -19% -31% -15% 2 3 250k to 1000k 17 542 $41.0 $36.2 $30.6 -12% -26% -16% 3 4 1 to 3 million .7 1,899 $123.3 $125.3 $105.6 2% -14% AM 4 5 47 501 $35.3 $33.5 $28.3 -50/6 -20% 4-V/O: 5 6 3 to 12 million 2 3,964 $558 $193 $175 -65% -69% -10% 6 7 12 to 30 million 3 21,978 $1,331 $736 $744 -45% -44% 1°/u 7 8 30 to 120 million 2 35,284 $2,196 $1,182 $1,195 -46% -46% 1% 8 9 Over 3 252,655 $11,400 $8,442. $8,536 -27% -26% 1% 9 10 10 90,240 $4,397 $3,029 $3,058 -31% -30% 10 11 EG Totals 57 16,245 $801 $559 $560 -30% -30% 0% 11 MMM 1/ Assumes Rosarito loads for each rate scenario is at the adopted BCAP volumes (i.e., 249 mtherms per year). 2/ The pre-BCAP billing rates for Rosarito and all cogeneration loads are found in SDG&E Schedule GTCG. The GTCG rates comprise of 6 tiers of customer charges and seasonally differentiated volumetric: rates. 31 The pre-BCAP billing rates for the power plants are found in SDG&E Schedule GTUEG-SD + SCGas Schedule GT -SD. The GTUECSD rates comprise of a large demand charge and 3 bars of declining block rates. 41 Both the GTCG and GTUEG-SD rates are differentiated between transmission and distribution service levels, with transmission level service rates lower than distribution level service rates. ATTACHMENT E RULE 23 MATERIALS FINANCIAL STATEMENTS SAN DIEGO GAS & ELECTRIC COMPANY FINANCIAL STATEMENT DECEMBER 31, 1999 (a) Amounts and Kinds of Stock Authorized: Authonzed 129,820,000 Issue Preferred Stock 1,375,000 shares Par Value $27,500,000 Preferred Stock 10,000,000 shares Without Par Value Common Stock. 255,000,000 shares Without Par Value Amounts and Kinds of Stock Outstanding• 27,647,000 09-01-92 118,615,000 PREFERRED STOCK 12-01-92 250,000,000. 225,000,000 5.0% 375,000 shares $7,500,000 4.50% 300,000 shares 6,000,000 4.40% 325,000 shares 6,500,000 4.60% 373,770 shares 7,475,400 $1.7625 1,000,000 shares 25,000,000 $1.70 1,400,000 shares 35,000,000 $1.82 640,000 shares 16,000,000 COMMON STOCK 116,583,358 shares 291,458,395 (b) Terms of Preferred Stock- Full todcFull information as to this item is given in connection with Application No. 53104, to which reference is hereby made. (c) Brief Description of Mortgage - Full information as to this item is given in Application No. 23638, to which reference is hereby made. (d) Number and Amount of Bonds Authorized and Issued• Nominal Par Value Date of First Mortgage Bonds: 9.625% Series JJ, due 2020 6.8% Series KK, due 2015 8.5% Series LL, due 2022 7.625% Series MM, due 2002 Var% Series NN, due 2018 & 2019 Var%o Series 00, due 2027 5.9% Series PP, due 2018 Var% Series 00, due 2018 5.85% Series RR, due 2021 5.9% Series SS, due 2018 Var% Series TT, due 2020 Var% Series UU, due 2020 Bon 5.9% CPCFA96A, due 2014 Var% CV96A, due 2021 Var% CV9613, due 2021 Var% CV97A, due 2023 06-01-96 Authonzed 129,820,000 Issue and Issued Outstanding 04-15-90 100,000,000 9,651,000 12-01-91 14,400,000 14,400,000 04-01-92 60,000,000 10,073,000 06-15-92 80,000,000 27,647,000 09-01-92 118,615,000 118,615,000 12-01-92 250,000,000. 225,000,000 04-29-93 70,795,000 68,295,000 04-29-93 14,915,000 - 06-29-93 60,000,000 60,000,000 07-29-93 92,945,000 92,945,000 06-06-95 57,650,000 57,650,000 06-06-95 16,700,000 - 06-01-96 129,820,000 129,820,000 08-02-96 38,900,000 38,900,000 11-21-96 60,000,000 60,000,000 10-31-97 25,000,000 25,000,000 Interest Paid in 1998 3,358,601 979,200 2,610,909 3,729,717 7,366,360 11,232,512 4,176,905 26,205 3,510,000 5,483,755 1,944,088 129,981 7,659,380 1,192,099 1,930,274 788,014 Other Indebtedness: Commercial Paper & ST Bank Loans Long-term Bank Loans Wells Fargo Bank Mellon Bank Union Bank CIBC, Inc. Sundesert Properties: FLBA of Riverside FLBA of Blythe Capitalized Leases SAN DIEGO GAS & ELECTRIC COMPANY FINANCIAL STATEMENT DECEMBER 31,1999 Date of Date of Interest Interest Paid Lmm Maturity $site Outstanding in 1998 Various Various Various - $143,075 01-03-95 01-03-00 Various - 90,000 01-03-95 06-15-00 Various - 87,581 06-15-95 06-15-00 Various - 22,612 06-15-95 06-15-00 Various - 45,000 1976 [1] 12-01=03 Variable 9,864 1,506 1976 [1] 12-01-03 Variable 379,953 41,925 - - - 20,905,447 - Amounts and Rates of Dividends Declared - The amounts and rates of dividends during the past five fiscal years are as follows: Shares Dividends Declared Preferred Outstanding Stock @ 12-31-99 1994 1995 1996 1997 1998 5.0% $375,000 375,000 $375,00.0 $375,000 4.50% 286,000 300,000 270,000 270,000 4.40% 343,868 325,000 286,000 286,000 4.60% [2] 373,770 344,678 344,273 $ 7.80 [3] - - _ $ 7.20 [4] - 1,080,000 1,080,000 $ 7.05 [5] - - - $ 1.7625 1,000,000 1,762,500 1,762,500 $ 1.70. [6] 1,400,000 2,380,000 2,380,000 $ 1.82 [71 640,000 1,164,800 1,164,800 $375,000 $375,000 $375,000 270,000 270,000 270,000 286,000 286,000 286,000 343,868 343,868 343,868 1,762,500 1,762,500 1,762,500 2,380,000 2,380,000 2,380,000 1,164,800 1,164,800 1,164,800 6,582,168 $6,582,168 $6,582,168 Common Stock Amount $177,066,579 $181,808,114 $181,866,227 $248,423,191 $447,700,118 A balance sheet and a statement of income and retained earnings of Applicant for the twelve months ended December 31, 1999, are attached hereto. [1] Year assumed from subsidiary. [2] 880 shares were retired in 1995. [3] 200,000 shares were retired in 1993. [41 150,000 shares were retired in 1996. [5] 433,700 shares were retinal in 1993. [6) 1,400,000 shares were issued in August 1993. [7] 640,000 shares were issued in November 1993. SAN DIEGO GAS & ELECTRIC COMPANY BALANCE SHEET ASSETS.AND OTHER DEBITS DECEMBER 31, 1999 1. UTILITY PLANT 1999 101 UTILITY PLANT IN SERVICE $5,505,401,010 102 UTILITY PLANT PURCHASED OR SOLD 247,504 105 PLANT HELD FOR FUTURE USE 206,639 106 COMPLETED CONSTRUCTION NOT CLASSIFIED _ 107 CONSTRUCTION WORK IN PROGRESS 66,004,463 108 ACCUMULATED PROVISION FOR DEPRECIATION OF UTILITY PLANT (3,323,901,025) 111 ACCUMULATED PROVISION FOR AMORTIZATION OF UTILITY PLANT (61,651,824) 118 OTHER UTILITY PLANT 1,099,088 119 ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF OTHER UTILITY PLANT (53,177,679) 120 NUCLEAR FUEL UNDER CAPITAL LEASES - NET 22,600,507 TOTAL NET UTILITY PLANT 2,156,828,683 2. OTHER PROPERTY AND INVESTMENTS 121 NONUTILITY PROPERTY 2,197,421 122 ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF NONUTILITY PROPERTY (308,211) 123 INVESTMENTS IN SUBSIDIARY COMPANIES 3,290,000 124 OTHER INVESTMENTS 2,516,,380 125 SINKING FUNDS 128 OTHER SPECIAL FUNDS 550,825,783 TOTAL OTHER PROPERTY AND INVESTMENTS 558,521,373 131 132 134 135 136 141 142 143 144 145 146 151 152 154 156 163 164 165 171 173 174 181 182 183 184 185 186 188 189 190 SAN DIEGO GAS & ELECTRIC COMPANY BALANCE SHEET ASSETS AND OTHER DEBITS DECEMBER 31, 1999 3. CURRENT AND ACCRUED ASSETS CASH INTEREST SPECIAL DEPOSITS OTHER SPECIAL DEPOSITS WORKING FUNDS TEMPORARY CASH INVESTMENTS NOTES RECEIVABLE CUSTOMER ACCOUNTS RECEIVABLE OTHER ACCOUNTS RECEIVABLE ACCUMULATED PROVISION FOR UNCOLLECTIBLE ACCOUNTS NOTES RECEIVABLE FROM ASSOCIATED COMPANIES ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES FUEL STOCK FUEL STOCK EXPENSE UNDISTRIBUTED 9,069 PLANT MATERIALS AND OPERATING SUPPLIES 49,379,794 OTHER MATERIALS AND SUPPLIES 44,588 STORES EXPENSE UNDISTRIBUTED 1,087,830 GAS STORED 10,628,148 PREPAYMENTS 4,977,554 INTEREST AND DIVIDENDS RECEIVABLE 2,188,804 ACCRUED UTILITY REVENUES 52,359,000 MISCELLANEOUS. CURRENT AND ACCRUED ASSETS 45,779,379 EYACI.. I 187,392 89,840 329,288,847 126,186, 839 12,786,310 (1,916,581) 612,231,941 9,318,291 TOTAL CURRENT AND ACCRUED ASSETS 4. DEFERRED DEBITS UNAMORTIZED DEBT EXPENSE UNRECOVERED PLANT AND OTHER REGULATORY ASSETS PRELIMINARY SURVEY & INVESTIGATION CHARGES CLEARING ACCOUNTS TEMPORARY FACILITIES MISCELLANEOUS DEFERRED DEBITS RESEARCH AND DEVELOPMENT UNAMORTIZED LOSS ON REACQUIRED DEBT ACCUMULATED DEFERRED INCOME TAXES TOTAL DEFERRED DEBITS TOTAL ASSETS AND OTHER DEBITS 1,261,993,655 11,391,861 251,711,586 4,428,205 (34,757) 11,597 582,396,511 (4,719) 60,763,240 151,699,504 1,062,363,028 $5,039,706,739 SAN DIEGO GAS & ELECTRIC COMPANY BALANCE SHEET LIABILITIES AND OTHER CREDITS DECEMBER 31,1999 TOTAL PROPRIETARY CAPITAL 1,417,191,255 6.. LONG-TERM DEBT 221 BONDS 684,276,000 224 OTHER LONG-TERM DEBT 254,109,817 225 UNAMORTIZED PREMIUM ON LONG-TERM DEBT 483,065 226 UNAMORTIZED DISCOUNT ON LONG-TERM DEBT (1,725,317) TOTAL LONG-TERM DEBT 937,143,565 7. OTHER NONCURRENT LIABILITIES 227 OBLIGATIONS UNDER CAPITAL LEASES - NONCURRENT S. PROPRIETARY CAPITAL 228.2 ACCUMULATED PROVISION FOR INJURIES AND DAMAGES 21,307,935 228.3 ACCUMULATED PROVISION FOR PENSIONS AND BENEFITS 1999 201 COMMON STOCK ISSUED $291,458,395 204 PREFERRED STOCK ISSUED 103,475,400 207 PREMIUM ON CAPITAL STOCK 592,222,753 210 GAIN ON RETIRED CAPITAL STOCK _ 211 MISCELLANEOUS PAID -IN CAPITAL (3,280,877) 214 CAPITAL STOCK EXPENSE (25,990,045) 216 UNAPPROPRIATED RETAINED EARNINGS 459,305,629 TOTAL PROPRIETARY CAPITAL 1,417,191,255 6.. LONG-TERM DEBT 221 BONDS 684,276,000 224 OTHER LONG-TERM DEBT 254,109,817 225 UNAMORTIZED PREMIUM ON LONG-TERM DEBT 483,065 226 UNAMORTIZED DISCOUNT ON LONG-TERM DEBT (1,725,317) TOTAL LONG-TERM DEBT 937,143,565 7. OTHER NONCURRENT LIABILITIES 227 OBLIGATIONS UNDER CAPITAL LEASES - NONCURRENT 8,785,272 228.2 ACCUMULATED PROVISION FOR INJURIES AND DAMAGES 21,307,935 228.3 ACCUMULATED PROVISION FOR PENSIONS AND BENEFITS 4,569,101 228.4 ACCUMULATED MISCELLANEOUS OPERATING PROVISIONS 222,989,955 TOTAL OTHER NONCURRENT LIABILITIES 257,652,263 SAN DIEGO GAS & ELECTRIC COMPANY BALANCE SHEET LIABILITIES AND OTHER CREDITS DECEMBER 31, 1999 TOTAL CURRENT AND ACCRUED LIABILITIES 1,040,548,205 9. DEFERRED CREDITS 252 8. CURRENT AND ACCRUED LIABILITES 28,844,209 253 OTHER DEFERRED CREDITS 1999 231 NOTES PAYABLE _ 232 ACCOUNTS PAYABLE 165,762,657 233 NOTES PAYABLE TO ASSOCIATED COMPANIES 519,404,288 234 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 43,795,010 235 CUSTOMER DEPOSITS 23,991,689 236 TAXES ACCRUED (85,064,280) 237 INTEREST ACCRUED 8,901,978 238 DIVIDENDS DECLARED 1,645,542 241 TAX COLLECTIONS PAYABLE 1,487,676 242 MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES 348,503,470 243 OBLIGATIONS UNDER CAPITAL LEASES - CURRENT 12,120,175 TOTAL CURRENT AND ACCRUED LIABILITIES 1,040,548,205 9. DEFERRED CREDITS 252 CUSTOMER ADVANCES FOR CONSTRUCTION 28,844,209 253 OTHER DEFERRED CREDITS 625,346,834 254 OTHER REGULATORY LIABILITIES 96,914,000 255 ACCUMULATED DEFERRED INVESTMENT TAX CREDITS 50,882,509 257 UNAMORTIZED GAIN ON REACQUIRED DEBT _ 281 ACCUMULATED DEFERRED INCOME TAXES - ACCELERATED 4,277,000 282 ACCUMULATED DEFERRED INCOME TAXES - PROPERTY 192,197,194 283 ACCUMULATED DEFERRED INCOME TAXES - OTHER 388,709,705 TOTAL DEFERRED CREDITS 1,387,171,451 TOTAL LIABILITIES AND OTHER CREDITS $5,039,706,739 SAN DIEGO GAS & ELECTRIC COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1999 1. UTILITY OPERATING INCOME 400 OPERATING REVENUES $1,889,424,940 401 OPERATING EXPENSES $1,121,956,163 402 MAINTENANCE EXPENSES 100,010,282 403-7 DEPRECIATION AND AMORTIZATION EXPENSES 561,328,543 408.1 TAXES OTHER THAN INCOME TAXES 41,337,764 409.1 INCOME TAXES 193,179,855 410.1 PROVISION FOR DEFERRED INCOME TAXES 124,077,000 411.1 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (212,225,855) 411.4 INVESTMENT TAX CREDIT ADJUSTMENTS (2,856,000) 411.6 GAIN FROM DISPOSITION OF UTILITY PLANT (326,965,023) 411.7 LOSSES FROM DISPOSITION OF UTILITY PLANT 8,675,243 409.2 TOTAL OPERATING REVENUE DEDUCTIONS 1,608,517,972 410.2 NET OPERATING INCOME 280,906,968 2. OTHER INCOME AND DEDUCTIONS 415 REVENUE FROM MERCHANDISING, JOBBING AND CONTRACT WORK 417.1 EXPENSES OF NONUTILITY OPERATIONS (162,363) 418 NONOPERATING RENTAL INCOME 1,315,051 418.1 EQUITY IN EARNINGS OF SUBSIDIARIES - 419 INTEREST AND DIVIDEND INCOME 43,263,510 419.1 ALLOWANCE FOR OTHER FUNDS USED DURING CONSTRUCTION 5,260,657 421 MISCELLANEOUS NONOPERATING INCOME 23,115,977 TOTAL OTHER INCOME 72,792,832 421.2 LOSS ON DISPOSITION OF PROPERTY 214,461 426 MISCELLANEOUS OTHER INCOME DEDUCTIONS 1,624,569 TOTAL MISCELLANEOUS INCOME DEDUCTIONS 1,839,030 408.2 TAXES OTHER THAN INCOME TAXES 280,236 409.2 INCOME TAXES 20,001,000 410.2 PROVISION FOR DEFERRED INCOME TAXES 10,972,000 411.2 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (7,402,000) TOTAL TAXES ON OTHER INCOME AND DEDUCTIONS 23,851,236 TOTAL OTHER INCOME AND DEDUCTIONS 47,102,566 INCOME BEFORE INTEREST CHARGES 328,009,534 NET INTEREST CHARGES' 128,71-4,772 NET INCOME $199,294,762 'NET OF ALLOWANCE FOR BORROWED FUNDS USED DURING CONSTRUCTION. ($1,859,168). 06/15/2000 2:02 PM SAN DIEGO GAS & ELECTRIC COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31,1999 3. RETAINED EARNINGS RETAINED EARNINGS AT BEGINNING OF PERIOD, AS PREVIOUSLY REPORTED NET INCOME (FROM PRECEDING PAGE) DIVIDEND TO PARENT COMPANY DIVIDENDS DECLARED - PREFERRED STOCK RETAINED EARNINGS AT END OF PERIOD $266,593,035 199,294,762 (6,582,168) $459,305,629 SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED INCOME Dollars in millions For the years ended December 31 1999 1998 1997 Operating Revenues S2,569 $2,427 $2,641 Expenses ------ Cost of natural gas distributed 1,032 913 1,088 Operation and maintenance 738 798 712 Depreciation 260 254 251 Income taxes 179 126 174 Other taxes and franchise payments 92 98 98 Total ------ 2,301 ------ 2,189 ------ 2,323 Operating Income 268 ------ 238 ------ 318 ------ Other Income and (Deductions) Interest income 16 4 1 Regulatory interest (14) -- 15 Allowance for equity funds used during construction Taxes on nonoperating income -- (3) 3 (2) 2 (4) Other - net (6) (4) (7) Total "-- (7) ------ -----7 Income Before Interest Charges ------ 261 ------ 239 ------- 325 Interest Charges ------ -----' ------ Long-term debt 74 75 82 Other.interest (12) 6 6 Allowance for borrowed funds used during construction. (2) (1) (1) Total ----60 ---80 -- - 87 Net income Preferred Dividend Requirements 201 159 238 1 1 7 Earnings Applicable to Common Shares ------ $ 200 ------ $ ------ 158 $ 231 See notes to Consolidated Financial Statements. .,, SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Dollars in millions ASSETS Utility plant - at original cost Accumulated depreciation Utility plant - net December 31, 1999 1998 ---------- ---------- $6,177 $6,063 (3,342) (3,111) 2,835 2,952 Current assets ' Cash and cash equivalents Accounts receivable - trade (less allowance for doubtful receivables of $16 in 1999 and $17 in 1998) 285 Accounts and notes receivable - other 14 Due from affiliates 73 Deferred income taxes 25 Natural gas in storage 67 Materials and supplies 12 Prepaid expenses 15 11 Total current assets Regulatory assets Investments and other assets Total See notes to Consolidated Finan ial Statements. 502 155 40 $3,532 11 440 13 157 49 14 14 --698 173 11 $3,834 vvev.a SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SH=s Dollars in millions CAPITALIZATION AND LIABILITIES Capitalization Common stock Retained earnings Accumulated other comprehensive income Total common equity Preferred stock Long-term debt Total capitalization Current liabilities Accounts payable - trade Accounts payable - other Accounts payable - affiliates Regulatory balancing accounts overcollected - net Other taxes payable Accrued income taxes Interest accrued Current portion of long-term debt other Total current liabilities Customer advances for construction Deferred income taxes - net Deferred investment tax credits Deferred credits and other liabilities Total deferred credits Contingencies and commitments (Note 10) Total See notes to Consolidated Financial Statements. December 31, 1999 1998 ----------- ----------- $ 835 $ 835 441 525 6 1,288 1,360 22 22 939 967 2,249 2,349 159 153 227 221 165 129 28 31 4 3o 29 46 30 75 84 75 726 871 27 31 319 323 56 58 155 202 557 614 $3,532 $3,834 SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS Dollars in millions For the years ended December 31 1999 ------ 1998 ------ 1997 ------ Cash Flows From Operating Activities Net income $ 201 $ 159 $ 238 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 260 254 251 Deferred income taxes (13) (50) (15) Deferred investment tax credits (2) (3) (3) Allowance for funds used during construction __ (4) (4) Other (46) 1 (21) Changes in working capital components Accounts receivable 154 46 (86) Regulatory balancing accounts 36 484 36 Gas in storage (18) (24) 3 Other current assets 1 (1) (1) Accounts payable (18) (13) (87) Accrued income taxes (26) (9) 50 Other taxes payable (3) 1 2 Deferred income taxes 132 (146) 21 Due to (from) affiliates (184) 81 (14) Other current liabilities 9 6 26 Net cash provided by operating activities ------ 483 ------ 782 ------ 396 Cash Flows from Investing Activities Capital expenditures (146) (128) (159) Other - net 17 22 40 Net cash used is investing activities (129) (106) (119) Cash Flows from Financing Activities ------ ------ ------ Dividends paid (279) (166) (258) Redemption of preferred stock (75) _ Issuance Of long-term debt -- 75 120 Payment of long-term debt (75) (148) (242) Increase (decrease) in short-term debt -- (351) 89 Net cash used in financing activities (354) (665) (291) Net increase (decrease) ---- -- 11 ------ 11 ------ (14) Cash and Cash Equivalents, January 1 -- 14 Cash and Cash Equivalents, December 31 ----- $ it ------ $ li ------ $ -- Supplemental Disclosure of Cash Flow Information: 33 06 _ Income tax payments, net of refunds $ 100 $ 302 $ 132 Interest payments, net of amount capitalized $ 77 S49'86 $v 75 See notes to Consolidated Financial Statements. ---=== ====== ====== SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CHANGES IN SHAREHOLDERS' EQUITY For the years ended December 31, 1999, 1998, 1997 (Dollars in millions) See notes to Consolidated Financial Statements. Accumulated Comprehensive[ Preferred Common Other Comprehensive Retained Total Shareholders' Income I ------------------------------------------------------------- Stock Stock Income Earnings Equity Balance at December 32, 1996 1$ 97 $ 835 $ 555 Net income/comprehensive income $ 238 $1,487 Preferred stack dividends declared 238 238 Common stock dividends declared (7) (7) ------ ------ ---------- --------- -------'------------- (251) (251) Balance at December 31, 1997 1 ----------------------------------- 97 835 _____ _ Net income/comprehensive income 159 535 1,467 Preferred stock dividends declared 159 159 Common stock dividends declared ) (1(1) (1 Redemption of preferred stock(75) (1 (1(1) ) ---201-----------------'----- (75)------------'-------------------- Balance at December 31, 1995 � � --------------------'----_---------- 22 835 Net =come 525 1,362 Other comprehensive income 201 202 Available -for -sale securities 12 Pension (6) I $.12 12 (6) (6) Comprehensive income $ 207 �. Preferred stock dividends declared Common stock dividends declared (1(1) ) (1 ) ------------------------------ (2 (2(1) Balance at December 31, 1999 $ 22 $ 835 ------------------- $ 6 $ 447 cc___--aaaaa=ccaacaaaaaaaa---aaaaa----aaaa-_caaaaaaaaaasaaaaaaaaaaaacaaavcvaaccaa--_aaav_-_51-=a0 a See notes to Consolidated Financial Statements. STATEMENT OF RATES IN EFFECT SAN DIEGO GAS & ELECTRIC COMPANY GAS DEPARTMENT STATEMENT OF PRESENTLY EFFECTIVE RATES In compliance with Rule 23(b), the following is a list of presently effective tariff schedules and special contracts affected by this application. The tariff sheets and special contracts mentioned are hereby incorporated by reference. Cal. P.U.C. Sheet No. TITLEPAGE.............................................................................. 1051-G TABLE OF CONTENTS............................................................ PRELIMINARY STATEMENT I. General Information...................................................... II. Statement of Rates ........................................................ III. Biennial Cost Allocation Proceeding ......................... (BCAP)......................................................................... IV. Balancing Accounts........................................................ V. Memorandum Accounts ..................................::............... VI. Electric Distribution and Gas Performance Based Ratemaking (PBR) Mechanism ..................... VII. Gas Procurement Performance -Based Ratemaking Mechanism Procedure ............................. 11240,11238,11239,11213,10152-G 11209,11047-G 7270,7271-G 11118, 11215, 1'1216,11217,11122-G 11123,11124-G 7587, 7277, 7278, 10037, 7280, 7281-G 7489,7714,10624,11024,7493,7494-G 11 125,11126,11127,11128,11129-G 11 130,11131,11132,11133,11134-G 11135,11136,11137,11138,11139-G 11 140,11141,11142,11143,11144-G 11145,11146,11147-G 10915, 7314, 7315, 7316, 8883, 8884-G 8885, 8886, 8887, 8888, 8889, 8890-G 8891, 10571, 11019, 10609,10916-G 10917, 10918, 10919, 10920, 10921-G 10922-G 10331, 10332,10333,10334,10335-G 10336, 10337, 110Z8,10929. 10930-G 10931,10932,10933,10934,16935-G 10936-G 9832,9833,9834,9835,9836,9837-G 9838,9839,9840,9841,9842,9843-G 9844, 9845, 9846, 9847, 9848, 9849-G 9850,9851,9852,9853-G VIII. Miscellaneous.........................................................7397,7308,7399,10708,7401,7402-G 7391, 9023, 9762, 7394, 7395, 7396-G ......... 7397, 7398, 7399, 10708, 7401, 7402-G 7403, 7404, 10649, 7406, 7407, 7408-G 7409-G INDEXOF RATE AREA MAPS.......................................................................................................... 2960-G Map1 - Territory Served................................................................................................................. 2567-G Map2 - Borrego Rate Area............................................................................................................. 3462-G SCHEDULE OF RATES Schedule Number Core Services Cal. P.U.C. Sheet No. GR Domestic Natural Gas Service ......................................... 11218, 11029-G GR -LI Low -Income Domestic Natural Gas Service .................... 11219,11200,8188,7774-G G4J Service to Qualified Living Facilities.......:..... ................... 8212,11201, 8214, 8215, 8216-G GM Mufti -Family Natural Gas Service ..................................... 11220,8189,8190-G GS Submetered Multi -Family Natural Gas Service................................................................... 11221.8427,8191,11202,7729-G GT Submetered Multi -Family Natural Gas Service Mobilehome Park ............................................ 11222,8429,8192,11203,7732-G GN -3 Natural Gas Service for Core Commercial Customers ........................................ 11223,11154-G GTC Commercial/Industrial Natural Gas Service ..................... Natural Gas Transportation Service for 11224,11225,11031-G GTCSDCore Customers .......................:.....%............................. Natural Gas Transportation Service for 11226, 11227, 11032-G GTCA Core Customers - San Diego County ........................... Natural Gas Transportation Service 11228,11229,11035-G G -NGV for Core Aggregation Customers ................................... 11230, 8907-G GT -NGV Sale of Natural Gas for Motor -Vehicle Fuel ..................... Transportation of Customer -owned Gas 11231,8237-G GPC for Motor -Vehicle Service ..............................:............... 11232,8970-G Noncore Services GCORE Core Subscription Natural Gas Service 11233,11164,11165,11166-G for Noncore Customers ................................................. 11167-G GPNCS Natural Gas Procurement Service for Noncore Customers- Storage ...................................... 11234,8919,8920-G GTNC Natural Gas Transmission Service for Noncore Customers .................................................. 11169,11170,8923,8924-G GTNCSD Natural Gas Intrastate Transportation Service for Noncore Customers .................................... 11171,11172,9416,9417-G EG Natural Gas Interstate Transportation Service for Electric Generation Customers .................................. 11173,11174,111175-G EG -SD Natural Gas Interstate Transportation Service for Electric Generation Customers- 11176,11177,11178-G San Diego County .............................................. SCHEDULE OF RATES Schedule Number Other Services G-90 Service to Utility Employees ............................................ G-91 Service Establishment Charge ........................................ GLA Service from Liquefied Natural Gas Facilities (Borrego Territory)...................................................:..... G -PUC Surcharge to Fund PUC Reimbursement Fee ................ G-MHPS Surcharge to Fund PUC Master -Metered Mobilehome Park Gas Safety Inspection and Enforcement Program ............................................... GP -SUR Customer -procured Gas Franchise Fee Surcharge........ G-IMB Transportation Imbalance Service ................................... LIST OF CONTRACTS AND DEVIATIONS............................................:.................. Cal. P.U.C. Sheet No. 3386-G 7848,9930-G 10837,3464-G 4526-G 9763-G 11235,6859-G 11037,11236,9496,11237-G 10768, 9499-G 4092,3812,3813,4562-G 4562, 5717, 8780, 11021-G SAN DIEGO GAS & ELECTRIC COMPANY ELECTRIC DEPARTMENT STATEMENT OF PRESENTLY EFFECTIVE RATES In compliance with Rule 23(b), the following is a list of presently effective tariff schedules and special contracts affected by this application. The tariff sheets and special contracts mentioned are hereby incorporated by reference. Cal. P.U.C. Sheet No TITLEPAGE..................................................................... 4812-E TABLE OF CONTENTS .................................................... 13268,13261,13267,13200,13217,11459-E PRELIMINARY STATEMENT: 12841, 11892, 12849, 13263-E I. General Information................................................... 8274, 11202, 11441-E Il. Balancing Accounts .................................................. 13121, 11666, 11667, 11344, 11345, 11670-E 11347, 13252, 13253, 12403, 13122, 13123-E 13124,13125,13126,13127,1241'0, 12411-E 12412,12413,12414,13254,12731,12417-E 13128, 13129-E Ill. Memorandum Accounts .............:............................. IV. Electric Distribution and Gas Performance Based Ratemaking (PBR) Mechanism ............... V. SONGS 20 Ratemaking Procedure ............ :.......... VII. Miscellaneous........................................................ 13044,12422,12423,12424,12425,12426-E 12427,12428,12429,12430,1'2431,12432-E 12433, 12434, 12435, 12436, 12437, 12431 E 12439, 12440, 12441, 12442, 12443, 12444E 12445, 12446, 12447, 12448, 12449, 12450-E 12451,12452,12453,13255,12455,12456-E 12457,12458,12459,12825,12969,13045-E 12126,12126,12127,12128,12129,12130-E 12131,13256,12133,12134,12135,12136-E 12137, 12138, 12139-E 12461,12462,12463,12464,12465,12466-E 12467,12468,12469,12470,12471-E 12472,12473,12474,12475,12476.12909-E 12478,12479,12480,12481,13257,12483-E u485,12486,12487,12488 -.E INDEX OF RATE AREA MAPS.................................................... .......................................... Map 1 - Territory Served................................................................... ..................................... Map 1-A - Territory Served ................................................... . Map 1-B - Territory Served...................................................................:................................ Map1-C - Territory Served................................................................................................. Map 1-D - Territory Served .............................................. Map 2 - Territory Served.............:................................... ....................................................... 9134-E 5120-E 4916-E 7295-E 9135-E 9136-E 8048-E SCHEDULE OF RATES SCHEDULE NUMBER SERVICE CAL. P.U.C. SHEET NO Residential Rates DR Domestic Service ..................................................... 13133,12523,11604,11605.12784-E DR -LI Domestic Service - CARE Program ........................... 13134, 12525, 11609, 11610, 11611-E E -LI Service to Qualified Living Facilities ......................... 12785-E 13258,11415,8872,8873,8874-E DM Multi -Family Service ................................................ 13135,12527,12528,11616,12786-E DS Submetered Multi -Family Service ............................. 13136.12530,11620,11621,11622-E DT ............. Submetered Multi -Family Service - ............:13137,12532,11627,11628,11629-E 11623, 12787-E 13137, 12532, 11627, 11628, 11629-E A6-TOU Mobilehome Park ................................................... 11630,12768-E DT -RV Submetered Service - Recreational..:.. ... ***"*'* ..... **- 13138,12534,11634,11635,11636-t A -V2 Vehicle Parks and Residential Marinas ................. 11637,12789-E D -SMF Cogeneration or Small Power .................................. 13139,12536,10764.10765-E Production Assist .................................................. 11757,11419,12790-E EV-TOU Domestic Time -of -Use for Electric ............................. Vehicle Charging .................................................. 13140,12538,12791-E EV-TOU-2 Domestic Time -of --Use for Households ..................... with Electric Vehicles ............................................ 13141,12703,12704,12792-E EV-TOU-3 Domestic Time -of -Use for Electric Vehicle .............:. Charging with a Dual Meter Adapter ..................... 13142,12544,12545,12793-E DE Domestic Service to Utility Employee ........::............. 10777.1-E Commercial/Industrial Rates A General Service........................................................ 13143,12548,11641,12794-E A -TC Traffic Control Service ............................................ 13144,12550,12795-E AD General Service - Demand Metered ....................... 13145,12553,12796-E AL-TOU General Service - large -Time Metered .................... 13000, 13146, 13147,12492,12493-E AY-TOU General Service - Large -Time Metered - Optional- 12797-E 13187, 13148, 12569,11276,12798-E AO-TOU General Service - Large -Time Metered- 13188,13149,13150.12573,12574-E A6-TOU Optional................................................................... General Service - Very Large -Time ....................... 12799-E 13151, 13152, 12578, 12579, 12580-E A -V1 Metered.:............................................................... General Service - Variable Time -of -Use 1 ................ 12800-E 13110, 13153, 12584,12585,12686-E A -V2 General Service - Variable Time -of -Use 2 .... :........... 12801-E 13012, 13154, 12590,12591,12592-E A -V3 General Service - Variable Time -of -Use 3 ................ 12802-E 13014, 13155, 12696,12597,12598-E 12803-E SCHEDULE OF RATES SCHEDULE NUMBER SERVICE CAL. P.U.C. SHEET NO. Commercial/industrial Rates NJ New Job Incentive Rate ............................................ 13156,13157,12609,12610,12611-E 12612,12804-E 1-3 General Service - Interruptible .................................. 13158,13159,13160,12618-E 12619,13211,12621,12805-E Liohtino Rates LS -1 Lighting - Street and Highway ................................. 13161,13162,13163,12626,12627-E Utility -Owned Installations ...................................... 12628,12806-E LS -2 Lighting - Street and Highway ................................. 13164,13165,13166.12633,12634-E Customer -Owned Installations ............................... 12807-E LS -3 Lighting - Street and Highway - Customer -Owned Installations ............................... 13167, 12637, 12808-E OL -1 Outdoor Area Lighting Service ................................. 13168,12640,12809-E DWL Residential Walkway Lighting ................................... 13169,12643,12810-E Miscellaneous PA Power - Agricultural ................................................ 13170,12811-E FTA Fixed Transmission Amount .................................... 13111, 13112-E TTA Credit Trust Transfer Amount Credit ................................... 13113-E PG -QF Parallel Generation - Cogeneration or Power Production .............................................. 6314,6315,6080-E S Standby Service ....................................................... 13171,10914,12812-E S-1 Standby Service - Interruptible_.. .............................. 6084,6085,6317-E SE Service Establishment Charge ................................. 5598,11594-E DA Transportation of Electric Power for ......................... 10470,10995,10472,12019-E Direct Access Customers ....................................... 10474,10475,11210-E NDA UDC Meter Services for Non -Direct Access 11849,11850,11851,11852-E Customers.................................................... 11853-E PX Power Exchange Energy Cost ................................. 13241,13242,13243,13265-E E -Depart Departing Load Nonbypassable 13266,13246,13247-E ND & PPP Charges ....................................... 12835-E RCM Rate Cap Mechanism ............................................... 9615,9440-E E -PUC Surcharge to Fund Public Utilities Commission Reimbursement Fee ............................................. 5214-E SCHEDULE OF RATES SCHEDULE NUMBER SERVICE Experimental Rates DR-TOU Experimental Domestic Time -of -Use Service ................................................... DR-TOU-2 Experimental Domestic Time -of -Use Service ................................................... A-TOU Experimental General Service Small - Time Metered ........................................:........ PG Experimental Parallel Generation ................................. PA-TOU Experimental Power - Agricultural - Optional Time -of -Use ................................................. PA -T-1 Experimental Power - Agricultural - .............................. Optional Time -of -Use .................................................. RTP -2 Experimental General Service- ..................................... Day Ahead Price Signals ..............................................: CAL. P.U.C. SHEET NO. 13172.12707,12708,12709-E 12813-E 13173, 12712, 12713, 12814-E 13174,12654,12655,12815-E 6356, 8677, 8678-E 13175,10955,12816-E 13176,13177,12660,12661-E 12662,12817-E 13178,13179,12672,12673-E 12971,12818-E LIST OF CONTRACTS AND DEVIATIONS ........................................... 5487,5488,5489,6205,6206-E .5492, 6207, 6439, 5495, 6208-E 6209, 8845, 6109, 5902, 5760-E 8808, 8809, 6011, 8001, 8891-E 13199-E SOUTHERN CALIFORNIA GAS COMPANY SUMMARY OF PRESENT RATES Current Rates Effective Class of Service 1/01/()D (a) CORE Residential Average Residential Custamercharge $/month 5,00 Baseline r/th 47.022 Non -Baseline a/th 63.480 Average Residential Rate r/th 62A79 Non -Residential Small Commercial & Industrial Customer Charge S/month 15.00 Tier I (0-100 S, 250 W) a/th 68737 Tier 11 (Tier 13167) a/ th 44.110 Tier III (>4167) a/th 28,705 Large Commercial & Industrial Customer Charge $/month 350.00 Tint (023167) a/th 39.088 Tieril (>4167) c/th 78705 Gas Air Conditioning Customer Charge S/month 150.00 Volumetric Rate a/th 29722 Gas Engine Customer Charge S/month 50.00 Volumetric Rate a/th 31558 NONCORE - Average Transmission Rate Retail Iodusbial c/th 6.966 Cogeneration r/th 4.111 UEG a/th 4.111 Wholesale Lang Beach r/th 4556 SDG&E a/th 3538 UNBUNDLED STORAGE Annual Reservation Injection S/Dthd 22423 Withdrawal ..... ......... S/fid..-.... - ....._....13.735 .. Inventory S/Dth 0.193 Variable Charges Injection S/Dth 0.03135 Withdrawal S/Dth 0.02434 BROKERAGE FEES Care a/th 020100 Noncore ¢/th 0.26600 STATEMENT OF ORIGINAL COST AND DEPRECIATION RESERVES SAN DIEGO GAS & ELECTRIC COMPANY COST OF PROPERTY AND DEPRECIATION RESERVE. APPLICABLE THERETO AS OF DECEMBER 31, 1999 TOTAL NUCLEAR PRODUCTION 340.1 Land 340.2 Land Rights 341 Structures and Improvements 342 Reserve for 343 Prime Movers 344 Depreciation 345 Accessory Electric Equipment Original and No. Account Cost Amortization ELECTRIC DEPARTMENT 302 Franchises and Consents $ 222,841 S 202,900 303 Misc. Intangible Plant 1,284,089 262,463 TOTAL INTANGIBLE PLANT 1,506,930 465,363 310.1 Land 4,668,603 46,518 310.2 Land Rights 0 0 311 Structures and Improvements 8,125,342 8,125,342 312 Boiler Plant Equipment 10,633,963 20,043,021 314 Turbogenerator Units 7,484,308 7,484,308 315 Accessory Electric Equipment 2,172,934 2,172,934 316 Miscellaneous Power Plant Equipment 658,220 491,986 Steam Production Decommissioning 0 0 TOTAL STEAM PRODUCTION 33,743,369 38,364,109 320.1 Land 0 0 320.2 Land Rights 283,677 283,677 321 Structures and Improvements 263,013,620 264,229,257 322 Boiler Plant Equipment 393,152,116 396,509,423 323 Turbogenerator Units 145,257,995 134,783,940 324 Accessory Electric Equipment 166,396,399 167,558,872 325 Miscellaneous Power Plant Equipment 157,271,878 148,374,796 TOTAL NUCLEAR PRODUCTION 340.1 Land 340.2 Land Rights 341 Structures and Improvements 342 Fuel Holders, Producers & Accessories 343 Prime Movers 344 Generators 345 Accessory Electric Equipment Other Production Decommissioning TOTAL OTHER PRODUCTION TOTAL ELECTRIC PRODUCTION Page 1 1,125,375,685 143,476 2,428 0 0 0 0 2,530 0 148,434 1,159,267,489 1,111, 739,966 0 2,428 0 0 0 0 829 0 3,257 1,150,107,332 350.1 Land 350.2 Land Rights 352 Structures and Improvements 353 Station Equipment 354 Towers and Fixtures 355 Poles and Fixtures 356 Overhead Conductors and Devices 357 Underground Conduit 358 Underground Conductors and Devices 359 Roads and Trails 369.1 TOTAL TRANSMISSION 360.1 Land 360.2 Land Rights 361 Structures and Improvements 362 Station Equipment 364 Poles, Towers and Fixtures 365 Overhead Conductors and Devices 366 Underground Conduit 367 Underground Conductors and Devices 368.1 Line Transformers 368.2 Protective Devices and Capacitors 369.1 Services Overhead 369.2 Services Underground 370.1 Meters 370.2 Meter Installations 371 Installations on Customers' Premises 373.1 St. Lighting & Signal Sys. -Transformers 373.2 Street Lighting & Signal Systems TOTAL DISTRIBUTION PLANT 389.1 Land 389.2 Land Rights 390 Structures and Improvements 392.1 Transportation Equipment - Autos 392.2 Transportation Equipment - Trailers 393 Stores Equipment 394.1 Portable Tools 394.2 Shop Equipment 395 Laboratory Equipment 396 Power Operated Equipment 397 Communication Equipment 398 Miscellaneous Equipment TOTAL GENERAL PLANT 101 TOTAL ELECTRIC PLANT Page 2 Original Cost $ 17,500,449 40,812,626 52,220,768 254,852,148 90,640,287 67,379,004 134534,833 16,974,637 20,906,681 10,768,718 Reserve for Depreciation and Amortization S 0 6,002,647 16,122,839 86,932,746 52,432,568 35,736,169 95,597,453 3,566,753 6,665,042 3,000,847 706,590,151 306,057,063 7,499,882 52,655,552 1,659,798 160,220,357 242,704,528 200,750,992 506,502,812 587,555,789 243,077,929 24,834,811 69,962,839 175,827,547 66,150,925 30,699,413 5,415,333 0 20,514,643 2,396,033,151 416,599 0 15,201,334 0 168,015 83,535 6,078,049 649,589 781,526 92,163 72,138,198 56,274 95,665,281 4,359,063,002 0 16,159,098 1,756,736 47,887,489 129,630,305 56,426,983 186,166,726 274, 597,179 65, 926, 502 5,171,709 91,126,114 81,753,504 22,994,956 9,158,935 5,649,113 0 16,996,408 1,011,401,755 0 0 3,988,510 49,884 85,391 48,291 1,938,325 233,405 384,850 149,134 31,719,256 (136, 542) 38,460,505 2,506,492,019 GAS PLANT 302 Franchises and Consents 303 Miscellaneous Intangible Plant TOTAL INTANGIBLE PLANT Original Cost S 86,104 703,821 789,926 S Reserve for Depreciation and Amortization 86,104 565,021 651,125 360.1 Land 10,205 0 361 Structures and Improvements 412,998 430,813 362.1 Gas Holders 989,283 1,012,573 362.2 Liquefied Natural Gas Holders 0 0 363 Purification Equipment 0 0 363.1 Liquefaction Equipment 0 0 363.2 Vaporizing Equipment 0 0 363.3 Compressor Equipment 558,651 562,716 363.4 Measuring and Regulating Equipment 0 0 363.5 Other Equipment 0 0 363.6 LNG Distribution Storage Equipment 407,546 218,357 TOTAL STORAGE PLANT 2,378,682 2,224,460 365.1 Land 1,787,108 0 365.2 Land Rights 2,226,044 672,508 366 Structures and. Improvements 10,300,222 4,258,170 367 Mains 116,013,861 22,840,316 368 Compressor Station Equipment 46,757,949 20,356,641 369 Measuring and Regulating Equipment 12,237,445 4,637,000 371 Other Equipment 0 0 TOTAL TRANSMISSION PLANT 189,322,628 52,764,634 374.1 Land 102,187 0 374.2 Land Rights 7,445,296 3,151,617 375 Structures and Improvements 62,259 88,012 376 Mains 374,308,480 182,408,349 378 Measuring & Regulating Station Equipment 6,234,726 3,851,489 380 Distribution Services 199,187,836 164,618,307 381 Meters and Regulators 55,631,001 24,101,330 382 Meter and Regulator Installations or 46,327,354 17,409,904 385 Ind. Measuring & Station Equipment 435,684 526,962 386 Other Property On Customers' Premises 0 0 387 Other Equipment 11,824,133 8,184,862 TOTAL DISTRIBUTION PLANT 701,558,956 404,340,831 Page 3 101 TOTAL GAS PLANT COMMON PLANT 902,673,915 461,301,172 303 Miscellaneous Intangible Plant 72,618,399 Reserve for 350.1 Land 0 Depreciation No. Account Original Cost and Amortization 392.1 Transportation Equipment - Autos S 0 $ 25,503 392.2 Transportation Equipment - Trailers 76,210 76,445 394.1 Portable Tools 4,215,745 659,552 394.2 Shop Equipment 76,662 (11,629) 395 Laboratory Equipment 695,734 . (66,391) 396 Power Operated Equipment 246,939 (25,808) 397 Communication Equipment 2,998,637 579,256 398 Miscellaneous Equipment 313,795 83,195 394.2 TOTAL GENERAL PLANT 8,623,723 1,320,122 101 TOTAL GAS PLANT COMMON PLANT 902,673,915 461,301,172 303 Miscellaneous Intangible Plant 72,618,399 33,212,766 . 350.1 Land 0 0 360.1 Land 0 0 389.1 Land 4,302,532 0 389.2 Land Rights 2,058,527 25,339 390 Structures and Improvements 54,599,721 .20,378,601 391 Office Furniture and Equipment 37,320,832 7,388,665 392.1 Transportation Equipment - Autos 33,942 (339,040) 392.2 Transportation Equipment - Trailers 41,567 (151,280) 393 Stores Equipment 285,775 (191,931) 394.1 Portable Tools 411,368 336,539 394.2 Shop Equipment 453,733 219,267 394.3 Garage Equipment 2,754,881 75,077 395 Laboratory Equipment 1,333,485 557,918 396 Power Operated Equipment 0 (192,979) 397 Communication Equipment 66,155,477 25,335,292 398 Miscellaneous Equipment 1,29.3,856 (238,448) 118.1 TOTAL COMMON PLANT 243,664,094 86,415,783 TOTAL ELECTRIC PLANT 4,359,063,002 2,506,492,019 TOTAL GAS PLANT 902,673,915 461,301,172 TOTAL COMMON PLANT 243,664,094 86,415,783 101 & 118.1 TOTAL 5,505,401,010 3,054,208,974 Page 4 No. . Account 102 Plant Purchased or Sold Electric Gas TOTAL PLANT PURCHASED OR SOLD 105 Plant Held for Future Use Electric Gas TOTAL PLANT HELD FOR FUTURE USE 107 Construction Work in Progress UTILITY PLANT TOTAL Original Cost $ 247,504 0 247,504 206,638 0 206,638 Reserve for Depreciation and Amortization $ 0 0 0 E I 68,924,796 0 68,924,796 0 0 383,542,639 0. 383,542,639 O 0 0 0 1,099,089 978,914 1,099,089 978,914 0 0 44,120,401 24,440,227 44,120,401 24,440,227 $ 5,619,999,438 $ 3,463,170,755 Book cost is calculated by taking Original Cost less Reserve for Depreciation and Amortization. Page 5 TOTAL CONSTRUCTION WORK IN PROGRESS 108.5 Accumulated Nuclear Decommissioning Electric TOTAL ACCUMULATED NUCLEAR DECOMMISSIONING 111.3 Capitalized Leases Electric Gas Common TOTAL CAPITALIZED LEASES 114 ELECTRIC PLANT ACQUISITION ADJUSTMENT 120 NUCLEAR FUEL FABRICATION UTILITY PLANT TOTAL Original Cost $ 247,504 0 247,504 206,638 0 206,638 Reserve for Depreciation and Amortization $ 0 0 0 E I 68,924,796 0 68,924,796 0 0 383,542,639 0. 383,542,639 O 0 0 0 1,099,089 978,914 1,099,089 978,914 0 0 44,120,401 24,440,227 44,120,401 24,440,227 $ 5,619,999,438 $ 3,463,170,755 Book cost is calculated by taking Original Cost less Reserve for Depreciation and Amortization. Page 5 Southern California Gas Company Plant Investment and Accumulated Depreciation As of December 31, 1999 Account Intangible Plant 301 Organization 302 Franchises and Consents 303 Miscellaneous Intangible Plant TOTAL Intangible Plant Underground Storage Plant Original Accumulated Cost Reserve $ 76,457 $ 475,805 552,262 _ 350 Land 6,916,537 350 Storage Leaseholds and Rights 24,502,543 350 Rights -of -Way 32,483 351 Structures and Improvements 24,722,938 352 Wells 181,022,129 352.2 Reservoirs 352.3 Non-recoverable Natural Gas _ 353 Lines 84,652,246 354 Compressor Station Equipment 93,048,598 355 Measuring and Reg. Equipment 1,736,431 356 Purification Equipment 62,436,596 357 Other Equipment .4,298,491 TOTAL Underground Storage Plant 483,368,993 TRANSMISSION PLANT 365.1 Land and Land Rights 365.2 Rights -of -Way 366 Structures and Improvements 367 Mains 368 Compressor Station Equipment 369 Measuring and Reg. Sta. Equipment 370 Communication Equipment 371 Other Equipment TOTAL Transmission Plant 1,945,127 18,987,224 24,446,498 593,516,522 112,955,915 35,650,541 (19,726,281) (2,259) (15,537,583) (113,649,119) (77,259,817) (68,445,251) (1,624,540) (40,856,892) (1,544,633) (338,646,374) (23) (8,823,945) (17,353,681) (367,752,785) (65,358,812) (21,916,721) 4,348,428 (2,421,564) 791,850,254 (483,627, 532) DISTRIBUTION PLANT 374 375 376 377 378 379 380 381 382 383 384 385 386 387 Land and Land Rights Structures and Improvements Mains Compressor Station Equipment Meas. and Reg. Sta. Equip. -General Meas. and Reg. Sta. Equip. -City Gate Services Meters Meter Installations House Regulators House Reg. Installations Industrial Meas. and Reg. Sta. Equipment Other Prop. on Customers' Premises Other Equipment TOTAL Distribution Plant GENERAL PLANT 27,449,800 119,042,531 2;006,640,442 38,088,474 1,490,290,894 297,757,815 198,825,107 87,247,889 20,533,867 (12,264) (20,643,421) (974,701,209) (20,147,749) (1,047,199,886) (114,940,815) (142,683,874) (26,381,222) (12,933,970) 4,285,876,819 (2,359,644,410) 389 Land and Land Rights 1,497,297 (2,351) 390 Structures and Improvements 83,222,724 (42,276,246) 391 Office Furniture and Equipment 213,155,388 (63,420,737) 392 Transportation Equipment 1,536,687 (661,910) 393 Stores Equipment 1,189,418 (891,406) 394 Tools, Shop, and Garage Equipment 34,322,494 (11,027,554) 395 Laboratory Equipment 6,363,566 (2,339,207) 396 Power Operated Equipment 90,507 23,699 397 Communication Equipment 163,400,342 (30,360,880) 398 Miscellaneous Equipment 8,035,940 (2,018,785) TOTAL General Plant 452,814,362 (152,975,377) TOTAL Gas Plant in Service $ 6,014,462,690 $ (3,334,893,693) SUMMARY OF EARNINGS San Diego Gas & Electric Company Summary of Earnings -- 2000 Estimate (Millions of dollars) Line no. Item 1 Operating revenues' 2 Operating expenses 3 Net operating revenues 4 Depreciated rate base 5 Rate of retum3 Electric Gas deR=ent doartinent . Combined 1,525 350 1,875 1,300 300 1,600 225 50 275 19770' 451 2,221 8.75% 8.75% 8.75% Assumes no PBR rewards or penalties in 2000. 'Authorized rate base. 3Authorized cost of capital. Southern California Gas Company Summary of Earnings -1999 Actual (Millions of dollars) Line No. Item 1. Operating revenue $ 2,569 2. Operating expenses 2,301 3. Net Operating revenues $ 268 4. Weighted average rate base $ 2,466 5. Rate of return' 9.49% ' Authorized cost of. capital PROXY STATEMENTS - Nil J` 1: o NOTICE OF ANNUAL MEETING OF SHAREHOLDERS The Annual Meeting of Shareholders of San Diego Gas & Electric Company will be held on May 11, 2000 at 10:15 am. at the offices of Sempra Energy, 101 Ash Street, San Diego, California, for the following purposes: (1) To elect directors for the ensuing year. (2) To transact any other business that may properly come before the meeting. Shareholders of record at the close of business on March 22, 2000 are entitled to notice of and to vote at the Annual Meeting. The Annual Meeting. is a business -only meeting. It will not include any presentations by management. Only shareholders of SDG&E are entitled to attend the Annual Meeting. Shareholders who own shares registered in their names will be admitted to the meeting upon verification of record share ownership. Shareholders who own shares through banks, brokerage. firms, nominees or other account custodians must present proof of beneficial share ownership (such as a brokerage account statement) to be admitted. By Order of the' Board of Directors San Diego, California March 22, 2000 SAN IDIEGO GAS .& ELECTRIC COMPANY INFORMATION STATEMENT FOR ANNUAL MEETING OF SHAREHOLDERS . WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY. .San Diego Gas & Electric .Company. ("SDG&E" or the "Company") is providing this Information Statement in connection with its Annual Meeting of Shareholders to be held on May 11, 2000. It is being mailed to shareholders commencing April 5, 2000. SAN DIEGO GAS & ELECTRIC COMPANY SDG&E is a direct subsidiary of Enova Corporation and an indirect subsidiary of Sempra Energy. It is a public utility supplying electricity and natural gas in San Diego and southern Orange counties in California. SDG&E became an indirect subsidiary of Sempra Energy upon the June 26, 1998 completion of a business combination of Enova Corpomtion:(the direct parent corpotation of SDG&E) and Pacific Enterprises (the direct parent corporation of Southern California Cas Company). In, the combination, Enova Corporation and Pacific Enterprises became separate subsidiaries of Sempra, Ene;gy, a newly formed holding company, and Enova Corporation Common Stock and Pacific Enterprises Common Stock were converted into Sempra Energy Common Stock. Shares of SDG&E and Southern Ca1if6mia. Gas Company were unaffected by the business combination and remain outstanding. SDG&E's principal executive offices are located at 8330 Century Park Court, San Diego, California. Its telephone number is (858) 654-6429. OUTSTANDING SHARES AND VOTING RIGHTS The Board of Directors: has fixed March 22, 2000 as the record date for the determination of shareholders entitled to notice of and to vote at the Annual Meeting. At that date, the outstanding shares consisted of 116,583,358 shares of Common Stock (all of which is owned by Enova Corporation), 1,373,770 shares of Cumulative Preferred Stock and 3,040,000 shares of Preference Stock: In electing directors, each share of Cumulative Preferred Stock is entitled to two votes and each share of Common Stock is entitled to one vote for each of the thirteen director positions but cumulative voting is not permitted. Shares of Preference Stock do not vote in the electionof directors. The shares owned by Enova Corporation represent over 98% of the votes entitled to be cast in electing directors. GOVERNANCE OF THE COMPANY Board of Directors The business and affairs of SDG&E are managed under the direction of the Board of Directors in accordance with the California General Corporation Law as implemented by the Company's Articles of Incorporation and By-laws. Members of the board are kept informed through various reports routinely sent to them as well as by operating and financial presentations made at board and committee meetings by officers and others. Shareholders who wish to suggest qualified candidates for consideration by the Corporate Governance Committee as directors of the Company should write to: Corporate Secretary, San Diego Gas & Electric Company, 8330 Century Park Court, San Diego, California, 92123, stating in detail the qualifications of the suggested candidates. During 1999, the Board of Directors held ten.meetings. The standing committees listed below assisted the board in carrying out its duties. Committees Of the Board Audit Richard A. Collate, Chair Ann L Burr Wdford D. Godbold, Jr. Robert H. Goldsmith William G. Ouchi Diana L Walker Corporate Compensation Governance Richard J. Stegemcier,. Hyla'H. Bertea, Chair Chair Hyla H. Batea Ignacio E. Lozano, Jr. Ralph R. Ocampo Thomas C. Stickel Ann L. Burr Daniel W. Derbes Robert H. Goldsmith . Richard J. Stegenuser Executive. Finance Public Policy Warren [..Mitchell, Daniel W. Derbes, Herbert L. Carta, Chair Chair Chair . . Herbert L Carter Richard A. Collato William D. Jones Ignacio E. Lozano, Jr. Wilford D. Godbold Jr. Ralph R. Ocampo Thomas C. Stickel William D. Jones William G. Ouchi Diana L Walker Audit Committee The Audit Committee met five times in 1999. Its duties and responsibilities include: Providing oversight of the financial reporting process and mandgement's responsibility for the integrity, accuracy and objectivity of financial reports "and accounting and financial reporting practices. Recommending to the board the selection of independent auditors.: Compensation Committee The Compensation Committee met five times in 1999. Its duties and responsibilities include: • Establishing overall strategy with respect to compensation for directors and senior officers. • Evaluating the performance of the Chairman and the President for compensation purposes. • Reviewing and approving individual salary adjustments and awards under incentive plans for senior officers. • Overseeing the executive succession plans. Corporate Governance Committee The Corporate Governance Committee met three times in 1999. Its duties and responsibilities include: • Reviewing and recommending nominees for election as directors. • Assessing the performance of the Board of Directors. • Developing guidelines for board composition. • Reviewing and considering issues relating to corporate governance. Executive Committee The Executive Committee did not meet in 1999. The committee meets .on call during the intervals between board meetings and subject to the limitations imposed by law, has all the authority of the board. 2 Finance Committee The Finance Committee met two times in 1999. Its duties and responsibilities include: • Reviewing long term and short term financial requirements and financing plans. Reviewing trading operations, financial guarantees and derivatives positions and exposure. Reviewing pension plan investment results and insurance coverages. Public Policy Committee The Public Policy Committee met three times in 1999. Its duties and responsibilities include: • Reviewing public policy issues affecting SDG&E, including ethnic, social and political trends. Reviewing employment and contracting policies, consumer issues and community relations. • Reviewing charitable and political contributions and programs. Directors' Compensation All of the directors. of SDG&E are also directors or officers of Sempra Energy. They are not separately compensated for services as directors of the Company. Directors of Sempra Energy who are not also employees receive the following retainer and fees for services as directors of Sempra Energy and its subsidiaries: Annual retainer .................................................. $26,000 Attendance fee for each Board meeting ................................. $ .1,000 Attendance fee for each Committee meeting ............................. $ 1,000 Additional meeting fee for each Committee meeting chaired ................. $ 11000 Directors may elect to receive their annual fees in Sempra Energy Common Stock instead of cash or to defer their annual fees into an interest-bearing account, a phantom investment fund or a phantom share account in which the fees are deemed invested in Sempra Energy Common Stock. Each non-employee. director of Sempra Energy is granted upon becoming a director a ten-year option to purchase 15,000 shares of Sempra Energy Common. Each non-employee director is also granted an additional ten-year option to purchase 5,000 shares, at each annual meeting of Sempra Energy (other than the annual meeting that coincides with or first follows the director's election to the board) following which the director continues to serve as a non-employee director. Each option is granted at an' option exercise price equal to the fair market value of the option shares at the date the option is granted and becomes fully exercisable commencing with the first annual meeting of Sempra Energy following the date of the grant or the director's earlier death, disability, retirement or involuntary termination of board service other than for cause. Non-employee directors of Sempra Energy who were directors of Enova Corporation and Pacific Enterprises at the time of the business combination of the two companies (currently all of the non-employee directors) continue to accrue retirement benefits (subject to certain maximum years of service credit) for service as non- employee directors of Sempra Energy. Benefits commence upon the later of retirement as a director or attaining age 65 and continue for a maximum period equal to the director's combined years of service as a director of Sempra Energy and Enova Corporation or Pacific Enterprises. The annual benefit is the sum of Sempra Energy's then current annual retainer and ten times the then current board meeting fee. 3 SHARE OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS All of the outstanding SDG&E Common Stock is owned by Enova Corporation and none of the Company's directors or officers owns any SDG&E Cumulative Preferred or Preference Stock The following table sets forth the number of shares of Sempra Energy Common Stock beneficially owned by each director, by each of the five most highly compensated executive officers of SDG&E and by all directors and executive officers of the Company as a group,. as of February 15, 2000. These shares, in the aggregate, represent less than one percent of Sempra Energy's outstanding shares. Sempra Energy Common Stock (A) Shares which may be acquired through the exercise of stock options that are exercisable on or before May 15, 2000. (B) Represents deferred compensation deemed invested in shares of Sempra Energy Common Stock. These phantom shares cannot be voted or transferred but track the performance of Sempra Energy Common Stock. (C) Messrs. Goldsmith and Lozano will retire as directors before the Annual Meeting and the authorized number of directors will be reduced to reflect their retirements. Share ownership guidelines have been established for directors and officers to further strengthen the link between performance and compensation. For non-employee directors the guideline is ownership of a number of shares having a market value equal to four times the annual retainer. For officers, the guidelines are: SDG&E Executive Level Chairman .......................................... President ........................................... Vice Presidents ..... ............................... . 4 Sempra Energy Share Ownership Guidelines 3 x Base Salary 2 x Base Salary 1 x Base Salary Sham Subject To Beneficial Exercisable Phantom Holdings Options(A) Shares(B) Total Hyla H. Bertea........................................ 9,630 20,000 -0- 29,630 Ann L Burr ......................................... 2,200 20,000 -4D- 22,200 Herbert L. Carter ..................................... 1,551 20,000 4)-. 21,551 Richard A. CoIlato.................................... 4,222 20,000 -0- 24,222 Gary D. Cotton ...................................... 35,134 11,040. 9,793 .55,967 Steven D. Davis ...................................... 4,442 8,252 7,798 20,492 Daniel W. Derbes ............... ; ..................... 5,828 20,000 -0- 25,828 Pamela J. Fair ....................................... . 9,747 64,601 544 74,892 Wilford D. Godbold, Jr . ................................ 3,006 20,000 -0- 23,006 Robert H. Goldsmith (C) ................................ 2,659 20,000 -0-: 22,659 Edwin A. Guiles ...................................... 22,942 21,730 18,804 63,476 William D. Jones ..................................... 2,174 20,000 -0- 22,174 Ignacio E. Lozano, Jr(C)................................ 2,352 20,000 -0- 22,352 Warren I. Mitchell .................................... 22,565 145,446 36,991 205,002 Ralph R. Ocampo..................................... 14,621 20,000 --�O- 34,621 William G.Ouchi..................................... 10,000 20,000 -0- 30,000 Richard J. Stegemeier.................................. 1,503 20,000 -0- 21,503 Thomas C. Stickel .................................... 2,037 20,000 -0-' 22,037 Diana L. Walker ...................................... 936 20,000 -0- 20,936 Directors and Executive Officers as a group (19 persons) ........ 157,549 .531,069 73,930 762548 (A) Shares which may be acquired through the exercise of stock options that are exercisable on or before May 15, 2000. (B) Represents deferred compensation deemed invested in shares of Sempra Energy Common Stock. These phantom shares cannot be voted or transferred but track the performance of Sempra Energy Common Stock. (C) Messrs. Goldsmith and Lozano will retire as directors before the Annual Meeting and the authorized number of directors will be reduced to reflect their retirements. Share ownership guidelines have been established for directors and officers to further strengthen the link between performance and compensation. For non-employee directors the guideline is ownership of a number of shares having a market value equal to four times the annual retainer. For officers, the guidelines are: SDG&E Executive Level Chairman .......................................... President ........................................... Vice Presidents ..... ............................... . 4 Sempra Energy Share Ownership Guidelines 3 x Base Salary 2 x Base Salary 1 x Base Salary In setting the guidelines the board considered then current share ownership levels and the desirability of encouraging further share ownership. The officer guidelines were established in 1998 and the director guidelines in 2000. They are expected to be met or exceeded within five years from adoption. For purposes of the guidelines, shares owned include phantom shares into which compensation is deferred and the vested portion of certain in -the -money stock options as well as shares owned directly -or through benefit plans. 5 ELECTION OF DIRECTORS SDG&.E's Board of Directors will consist of thirteen directors upon giving- effect to the retirement'of two directors who will retire prior to the Annual Meeting of Shareholders and a corresponding reduction it the authorized number of directors. At the Annual Meeting, thirteen directors (comprising the entire authorized number of directors) will be elected to hold office until the next Annual Meeting and until their successors have been elected and qualified. The thirteen director candidates receiving the greatest number of votes will be elected as directors. Warren I. Mitchell has announced that he will retire on July 1, 2000. The board anticipates that it will at that time reduce the authorized number of directors to twelve. The names of the Board of Directors' thirteen nominees for election as directors and biographical information regarding each nominee are set forth below. Each nominee is currently a director of SDG&E and also of. Southern California Gas Company. Each nominee (other than Mr. Mitchell) is also a director of Enova Corporation and Sempra Energy. Unless otherwise noted, each nominee has held the position set forth beneath his or her name or various positions with the same or predecessor organizations for at least the last five years. Hyla H. Bertea, 59, has been a director since 1998. She is a realtor with Prudential California, a real estate sales company. She is a trustee of Lewis & Clark College, a director of Orange County Community Foundation, and a former commissioner bf the California Horse Racing Board. For a number of years she has been involved in leadership positions with various other cultural, educational and health organizations in the Orange County and Los Angeles areas. Mrs. Bertea was a co -commissioner of gyrrmastics and a member of the executive staff. for the 1984 Olympics. Ann L. Burr, 53, has been a director since 1993. She is an Executive Vice President of Tune Warner Cable. She is the former President of Time Wanes Communications in Rochester, New York and Time Warner Cable in San Diego. Ms. Burr is a trustee of the Rochester Institute of Technology. She served as Chair of the Board of Directors of the California Cable Television Association and chaired its Telecommunications Policy Committee. She is a former Chair of the Greater San Diego Chamber of Commerce Board of Directors and the founder and former Chair of the Chamber's Business Roundtable for Education and the San Diego Communications Council. Herbert L. Carter, DPA, 66, has been a director since 1998. He has served as President of California State University, Dominguez Hills, and Executive Vice Chancellor Emeritus and Trustee Professor of Public Administration of the California State University System. He was President and Chief Executive Officer of United Way of Greater Los Angeles from 1992 until 1995, and Executive Vice Chancellor of the California State University System from 1987 until 1992. Dr. Carter is a director of Golden State Mutual Insurance Company; and has served as a member of the Board of Councilors of the School of Public Administration, University of Southern California and the Board of Regents of Loyola Marymount University. Richard A. Collato, 56, has been a director since 1993. He is President and Chief Executive Officer of the YMCA of San Diego County. He is a former director of Y -Mutual Ltd., a reinsurance company, and The Bank of San Diego. Mr. Collato is a former trustee of Springfield College, and currently is a trustee of the YMCA Retirement Fund and Bauce Foundation, and a director of Project Design Consultants. :1 Daniel W. Derbes, 69, has been a director since 1983: He is President of Signal Ventures. From 1985 until 1988, he was President of Allied-Signal International Inc. and Executive Vice President of Allied-Signal Inc., a multi -national advanced technologies company. Mr. Derbes is a.director of WD -40 Company and a trustee of the University of San Diego. Wilford D. Godbold, Jr., 61, has been a director since 1998. He is the retired President. and Chief Executive Officer of ZERO Corporation, an international, manufacturer primarily of enclosures and thermal management equipment for the electronics market. He is .a .director of K2, Inc. Mr. Godbold is a trustee of the Wellness Community, a member of the .Council on California .Competitiveness, a past President of the Board of Trustees of Marlborough School and a past Chairman of the Board of the California Chamber of Commerce and The Employer Group. William D. Jones, 44, has been a director since 1994. He is the President and Chief Executive Officer and a director of CityLink Investment Corporation. From 1989 to 1993, he served as General Manager/Senior Asset Manager and Investment Manager with certain real estate subsidiaries of The Prudential. Prior to joining The Prudential, he served as a San Diego Council member from 1982 to 1987- Mr. Jones is a director of the Federal Reserve Bank of San Francisco, Los Angeles Branch, and a trustee of the University of San Diego. He is a former director of The Price Real Estate Investment Trust. Warren L Mitchell, 62, has been a director since 1998. He is Chairman of SDG&E, Chairman of the Board and President of Southern California Gas Company and Group President— Regulated Business Operations of Sempra Energy. He is a director of the United Way of Greater Los Angeles, Gas Research Institute and Chairman, director and trustee of the Institute of Gas Technology. Ralph R. Ocampo, M.D., F.A.C.S., 68, has been a director since 1983. He is a practicing surgeon, Governor of the American College of Surgeons, past President of the California Medical Association and a Clinical Professor of Surgery at the University of California, San Diego. William G. Ouchi, Ph.D., 56, has been a director since 1998. He is a Vice Dean and Faculty Director of Executive Education Programs and Sanford and Betty Sigoloff Professor in Corporate Renewal in the Anderson Graduate School of Management at UCLA. Dr. Ouchi is a director of Allegheny Technologies, FirstFed Financial Corp., and Water -Pik Technologies. He is a trustee of Williams College and a director of KCET Public Service Television. Richard J. Stegemeier, 71, has been a director since 1998. He is Chairman Emeritus of the Board of Unocal Corporation. He is a director of Foundation Health Systems, Inc., Halliburton Company, Montgomery Watson, Inc., and Northrop Grumman Corporation. 7 Thomas C. Stickel, 50, has been a director since 1994. He is the Chairman, Chief Executive Officer and founder of University Ventures Network. He is the founder of Americana Palmers Capital Group, Inc. He previously was the Chairman, .Chief Executive Officer and President of TCS Enterprises, Inc. and the Bank of Southern California, both of which he founded. Mr. Stickel is Chairman of the Board of Onyx Acceptance Corporation, a director of Blue Shield of California and Del Mar Thoroughbred Club and Vice Chairman of the California Chamber of Commerce. Diana L. Walker, 58, has been a director since 1998. Mrs. Walker is a partner and General Counsel of the law firm of O'Melyeny & Myers LLP. She is a former diFector of United Way of Greater Los Angeles, and Emeritus Governor and former Chair of the Board of Governors of the Institute for Corporate Counsel, a former trustee of Marlborough School anti-a member of various professional organizations. O'Melveny & Myers L.LP provides legal Services to Sempra Energy and its subsidiaries. 8 COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION SDG&E became an indirect subsidiary of Sempra Energy in connection with a business combination of Enova Corporation (the direct parent of SDG&E) and Pacific Enterprises (the direct parent of Southern California Gas Company) that was completed on June 26, 1998. The Boards of Directors of SDG&E, the Gas Company and Sempra Energy each maintain a Compensation Committee comprised of independent directors. The directors comprising the three committees are identical and the committees typically meet in joint session. The Compensation Committees have the ,responsibility for establishing compensation principles and strategies, as well as designing a compensation.program for executive officers. Their responsibilities also include administering a base salary program, executive annual and long term -incentive plans, and executive benefit and perquisite programs. During 1999, the Compensation Committees conducted a review of the executive compensation programs and policies of Sempra Energy and its subsidiaries that were originally developed in 1998 in connection with the business combination of Enova Corporation and Pacific Enterprises. • The committees sought the assistance of nationally recognized compensation and benefit consultants to assist with the review of executive compensation principles and practices designed to assist the companies, in realizing the key objective of creating superior shareholder value in a rapidly changing and increasingly competitive business environment. Also, the committees, with the assistance of a nationally recognized compensation consulting firm, reviewed board compensation during 1999. Compensation Principles and Strategies In developing compensation principles and strategies, the Compensation Committees considered the current and prospective business environment for Sempra Energy and its subsidiaries and took into account numerous factors, including: • The rapidly changing and increasingly competitive environment in which Sempra Energy and its subsidiaries operate. • The need to retain experienced executives' of outstanding ability and to motivate them to achieve superior performance. • The need to attract executive talent from broader markets as the utility and energy industries continue to rapidly evolve. • The need to strongly link executive compensation to both annual and long term corporate, business unit and individual performance. • The need to strongly align the interests of executives with those of shareholders. As a result of this review, the Compensation Committees approved the continuation of the compensation program developed in 1998 and designed to meet these objectives and encourage executives to achieve superior shareholder returns. The program includes the following elements. • An emphasis on "pay -for -performance" with a substantial portion of total compensation reflecting corporate, business unit and individual performance. • An emphasis on stock incentives closely aligning the interests of executives with those of shareholders. W An emphasis on total compensation with base salaries generally targeted at or near median general industry levels for comparable sized companies and with the annual cash and long term equity incentives providing opportunities to earn total compensation at significantly higher levels for superior corporate, business unit and individual performance. • An appropriate balance of short tens and long term compensation to retain talented executives, reward effective long term strategic results and encourage share ownership. • An emphasis on placing at risk, through equity and other performance-based incentives, a greater portion of an executive's total compensation as levels of responsibility increase. The Compensation Committees also considered provisions of the Internal Revenue Code limiting to $1 million the annual amount of compensation that does not qualify as "qualified performance-based compensation" that publicly held coiporations may deduct for federal income tax purposes as compensation expense for each of certain executive officers. The committees consider tax deductibility to be an important factor but only one factor to be considered in evaluating any executive officer compensation program. Accordingly, the committees intend to design programs that will maximize federal income tax deductions for compensation expense to the extent that doing so is consistent with the compensation principles and strategies of Sempra Energy and its subsidiaries. The committees believe, however, that there are circumstances in which the interests of its shareholders may be best served by providing compensation that is not fully tax deductible, and may exercise discretion to provide compensation (including incentive awards under the Sempra Energy Long'Term Incentive Plan) that will not qualify as a tax deductible compensation expense. Compensation Program The primary components of the compensation program of Sempra Energy and its subsidiaries are base salaries, annual cash incentive opportunities and long term equity and equity -based incentive opportunities.' Base Salaries Base salaries for executives are reviewed annually and, in general, are targeted at the median of salaries for general industry companies of similar size to Sempra Energy. This strategy, along with annual and long term incentive opportunities at general industry levels, is intended to allow Sempra Energy and its subsidiaries to retain and attract top quality executive talent However, the committees will continue to monitor this strategy as the markets for executive talent change. In determining base salary adjustments, the committees will also take into account such factors as individual performance, executive responsibilities, market characteristics and other factors. Survey data for assessing base salaries are based upon companies in the Fortune 1000 and size -adjusted based upon Sempra Energy's revenues using regression analysis. This group is broader than the peer group used for assessing performance for long-term incentive plan purposes. The Compensation Committees believe that the most direct competitors of Sempra Energy and its subsidiaries for executive talent will not be limited to companies in this peer group and the Fortune 1000 appropriately reflects a broader group with which Sempra Energy and its subsidiaries compete to retain and attract highly skilled and talented executives. Annual base salaries for executive officers of Sempra Energy and its subsidiaries have been set at the approximate mid -point of these salary data For 1999, a base salary of $475,000 was established for Mr. Mitchell and $300,000 for Edwin A. Guiles, President of SDG&E. Annual Incentives Annual cash bonus performance-based incentive opportunities are provided to executive officers through the Sempra Energy Executive Incentive Plan. This plan permits the payment of bonuses based upon the attainment of objective financial performance goals. Bonus opportunities vary with the individual officer's position and 10 prospective contribution to the attainment of these goals and no bonuses are paid unless a threshold performance level is attained for the related performance period. Bonus opportunities increase for performance above the threshold level. Performance at targeted levels is intended to compensate executive officers with bonuses at the mid -point for bonuses for comparable levels of responsibility at Fortune 1000 companies. For 1999, award levels were based on attainment of earnings per share goals with target award levels of 70% of base salary for Mr. Mitchell, 50% of base salary for Mr. Guiles and 45% of base salary for Vice Presidents, with maximum award levels ranging from 140% to 90% Performance for the year was at 150% of targeted performance and resulted in cash bonuses of $498,750 for Mr. Mitchell and $243,750 for Mr. Guiles with corresponding lesser amounts to other executive officers. Long Term Incentives Long term incentive opportunities are provided by equity and equity -based awards under Sempra Energy's 1998 Long Term Incentive Plan: The plan permits a wide variety of equity and equity -based incentive awards to respond to changes in the market conditions and compensation practices. The committees expect, however, that most awards under the plan will be in the form of non-qualified stock options and, to a lesser and declining extent, restricted stock. During 1999, Sempra Energy granted to executives and other employees of Sempra Energy and its subsidiaries non-qualified stock options to purchase Sempra Energy Common Stock. These option grants to executive officers of SDG&E are described in this Proxy Statement under the caption "Executive Compensation —Stock Options and Stock Appreciation Rights." During 1999, Sempra Energy also awarded grants of performance-based restricted shares under the 1998 Long Term Incentive Plan to executives of Sempra Energy and its subsidiaries. These awards and related total shareholder return vesting standards are discussed in this Proxy Statement under the caption: "Executive Compensation—Restricted Stock Grants." Share Ownership Guidelines The Compensation Committees believe that a commitment to increased share ownership by executives of Sempra Energy and its subsidiaries is an important element in aligning the interests of executives with those of shareholders. This belief has influenced the design of compensation plans and, in addition, stock..ownership guidelines have been established to further strengthen the link between corporate performance and compensation. These guidelines are summarized under the caption "Share Ownership of Directors and Executive Officers." COMPENSATION COMMITTEE Richard J. Stegemeier, Chairman Hyla H. Bertea Ignacio E. Lozano, Jr. Ralph R. Ocampo Thomas C. Stickel March 7, 2000 11 EXECUTIVE COMPENSATION Summary of Cash and Other Compensation The table below summarizes, for the periods indicated, the compensation paid or accrued by Sempra Energy and its predecessors and subsidiaries to each of the executive officers of SDG&E named in the table. Summary Compensation Table Lang Term Compensation Awards Payouts Annual Compensation Securities Underlying LTIP Peyauts All Other Compensation Name and Prindpal Position Year Salary Bonus Options/ SARS (/0 (A) (B) (C) Warren 1. Mitchell ............... 1999 $474,769 $498,750 128;700 $ -0- $ 61,368 Chairman . 1998 $437,409 $506,230 140,296 $ -0- $816,659 1997 $337,947 $280,000 40,602 $ . $ 27,446 Edwin A. Guiles ............... 1999 $304,731 $243,750 54,400 $46,273 $ 46,931. President 1998 $284,539 $278,525 32,520 $74,388 $438;727 1997 $225212 $152,000 -0•- $77,600 $ 34,971 Gary D. Cotton ................ 1999 $221,325 $164,764 27,300 $45,567 $ 30,452 Senior Vice President 1998 $209,754 $163,986 16,860 $75,326 $258,059 1997. .$201,7$5 $114,000 -0- $82,559 $.29,224 Pamela J. Fair (D) .............. 1999 $199,027 $149,612 22,900 $ -0- $ 27,264 Vice President 1998 $175,064 $127,559 26,374 $ -0- $150,938 Steven D. Davis (D) ............ 1999 $172,962 $130,209 20,000 $ -0- $ 27,011 Vice President 1998 $152,176 $116,218 13,008 $ -0 $188,145 (A) Long term incentive plan payouts represent the fair market value of shares of restricted stock for which forfeiture and transfer •restrictions terminated during the year based upon satisfaction of long term performance goals. Restricted stock awarded ni 1999 under the Sempra Energy Long Term Incentive Plan is reported below under the caption "Restricted Stock Grants." (B) The aggregate holdings/value of restricted stock held on December 31, 1999 by the individuals listed in the table are: 13,256 shares/$230,389 for Mr. Mitchell; 7,917 shares/$137,597 for Mr. Guiles; 5,146 shares/$89,437 for Mr. Cotton; 2;304 shares/$40,044 for Ms. Fair; and 2,124 shares/$36,9I5 for Mr. Davis. Regular quarterly dividends are paid on restricted stock held by these individuals. (C) All other compensation includes amounts paid as (i) interest on deferred compensation above 120% of the applicable federal rate, (ii) life insurance premiums, (iii) financial and estate planning services, (iv) contributions to defined benefit plans and related supplemental plans, and (v) car allowances. The respective amounts paid in 1998 were $4,523, $7,109, $13,126, $29,610 and $7,000 for Mr. Mitchell; $143, $9,914, $11,876, $17,498, and $7,500 for Mr. Guiles; $960, $13,934, $1,138, $7,420, and $7,000 for Mr. Cotton; $880, $1,211, $8,375, $9,798, and $7,000 for Ms. Fair; and $41, $798, $10,500, $8,672, and $7,000 for Mr. Davis. Amounts for 1998 also include incentive/retention bonuses under agreements entered into in 1997 in connection with the business combination of Enova Corporation and Pacific Enterprises. Under her agreement, Ms. Fair was paid an incentive/bonus of $136,300. Under the other agreements, deferral accounts were established for Messrs. Mitchell, Guiles, Cotton and Davis upon the completion of the business combination and credited with incentive/retention bonus amounts of $782,000, $405,000, $228,000 12 and $176,000, respectively, which were deemed invested in shares (together with reinvestment of dividend equivalents) of Sempra Energy Common Stock. Each of these four executives will become entitled to his incentivelretention bonus upon continued. employment with Sempra Energy or its subsidiaries through June 26, 2000 and will be paid in cash an amount equal to the then fair market value of the shares then credited to his account. (D) Ms. Fair and Mr. Davis became executive officers of SDG&E in 1998. Amounts for 1998 include compensation for Ms. Fair as an executive officer of Southern California Gas Company and Mr. Davis as a non -officer employee of SDG&E. Stock Options and Stock Appreciation Rights The following table contains information concerning the grant of stock options during 1999 to the executive officers of SDG&E named in the Summary Compensation Table. All options are to purchase Sempra Energy Common Stock, were granted at an exercise puce of 100% of the fair market value of the option shares on the date of the grant and are for a ten-year tens subject to earlier expiration following termination of employment..; Option / SAR Grants in 1999 Number of % of Total Shares . Options / SARs Underlying Granted to Options / SARs Employees Exercise Expiration Grant Date Name Granted 0) in 1999 Price ($/Sh) Date. Present value Waren I. Mitchell ............: . .... 36,700(A) 2:53% $21 ' 00 5/4/09 $265,708 92,000(B) 4.79% $ 21.00 5/4/09 $265,880 Edwin A. Guiles .................... 15,500(A) 1.07% $ 21.00 5/4/09 $112,220 38,900(B) 2.02% $ 21.00 5/4/09 $112,421 Gary D. Cotton ..................... 7,800(A) 0.54% $ 21.00 5/4/09 $ 56,472 19,500(B) 1.01% $ 21.00 5/4/09 $ 56,355 Pamela J. Fair ........................ 6500(A) 0.45% $ 21.00 5/4/09., $ .47060 16,400(B) 0.85% $ 21.00 5/4/09' $47 . 396 Steven D. Davis ..................... 5,700(A) 0:39% $ 21.00 5/4/09 $ 41,268 14,300(B) 0.74% $ 21,00 5/4/09 $ 41,327 (A) Exercisable in cumulative installments of one-fourth of the shares initially subject to the option on each of -the first four anniversaries of the grant date. Granted with performance-based dividend equivalents on unexercised shares for the four-year period ending December 31, 2003. No dividend equivalents will be paid unless Sempra Energy meets annual or four-year threshold performance. goals based on total return to shareholders ranking within a peer group of companies or the Standard & Poor's 500 and the percentage of dividends paid as dividend equivalents (to a maximum of all dividends that would have been paid on the shares for the four-year period) will depend upon the extent to which the threshold goals are exceeded. (B) Exercisable in cumulative annual installments of one-fourth of the shares initially subject to the option on each of the first four anniversaries of the grant date. Granted without dividend equivalents. Sempra Energy used a modified Black -Scholes option pricing model to develop the theoretical values set forth under the "Grant Date Present Value" column, but the executive will realize value from the stock options only to the extent that the price of Sempra Energy Common Stock on the exercise date exceeds the price of the stock on the grant date. Consequently, there is no assurance the value realized by an executive will be at or near the theoretical value, and these amounts should not be used to predict stock performance. Grant date present values were based on an option value of $2.89 and, for options granted with dividend equivalents, a dividend equivalent value of $4.35. These use the following assumptions: share volatility -17.9%; dividend yield -5.49%; risk-free rate of retum-5.66%; and outstanding term -10 years. 13 The following table contains information with respect to the executive officers of SDG&E named in the Summary Compensation Table concerning the exercise of options and stock appreciation rights during 1999 and unexercised options and stock appreciation rights held on December 31, 1999. Option I SAR Exercises and Holdings Number of Securities Underlying Uneurelsed Valu of Unexerdsed ln- Sbarea Options / SARs at the -Money Options / SARs Acquired Value Year End (#)(A) at Year End ($)(A) Name on Exercise (#) Realized Exercisable Unexercisable Exercisable Uneurdsable Warren I. Mitchell ........... 31,579 $160,349 92,970 242,944 $ -0- $4. Edwin A. Guiles ........... -0- $ -0- .. 8,130 790 $ -0- Gary D. Cotton ............ -0- $ -0- 4,215 39.945 $. -0- $ Pamela J. Fair ............. -0- $ -.07 31,595 45,048 $9,436 $-0- Steven D. Davis............ -4 $ -0- 3,252 29,756 $ -0- $4- (A) (A) The exercise price of outstanding options ranges from $12.80 to $31.00 Restricted Stock Grants The following table contains information concerning restricted shares of Sempra Energy Common Stock granted during 1999 to the executive officers of SDG&E named in the Summary Compensation Table. Restricted Stock Grants in 1999 Estimated Future Payouts under Number of Performance Period Non-Stock ased Name Restricted Shares Until Payout rimffi (A) Warren I. Mitchell .......................... 5,800 Four Annual Periods $132,472 Edwin A. Guiles 2,500 Four Annual Periods $ 57,100 Gary D. Cotton ............................ 1,200 Four Annual Periods $ 27,408 Pamela J. Fair ............................. 1,000 Four Annual Periods $ 22,840 Steven D. Davis ............................ 1,000 Four Annual Periods $ 22,840 (A) The payout amount represents the fair market value on the May 4, 1999 grant date of the restricted shares that will become vested upon the achievement of all performance goals. The actual payout (if any) will depend upon the,achievement of. performancegoals and upon the then fair market value of Sempra Energy Common Stock- Restricted tock Restricted shares are subject to forfeiture and transfer restrictions that terminate upon the satisfaction of long term objective corporate performance criteria. During the performance period, the executive receives dividends on the restricted shares and is entitled to vote them but the shares cannot be sold or otherwise transferred. If the performance criteria are not satisfied or the executive's employment is terminated during the performance period, the shares are forfeited to Sempra Energy and canceled.. The forfeiture and transfer restrictions on one-quarter of the shares initially subject to each of these awards will terminate at the end of years 2000, 2001, 2002 and 2003 if the executive is then employed by Sempra Energy or its subsidiaries and Sempra Energy has achieved a total return to shareholders for the year that places it among the top 25% of a peer group comprised of Sempra Energy and other energy and energy services companies. If these annual performance criteria are not met, the forfeiture and transfer restrictions on all or a portion of the shares remaining subject to these restrictions may be terminated based upon the satisfaction of cumulative shareholder return performance criteria for the four years ending December 31, 2003. 14 The restrictions on all remaining shares will terminate at the end of the year 2003 if .the executive is then employed by Sempra Energy or its subsidiaries and Sempra Energy has achieved a four-year cumulative .total return to shareholders that either places it among the top 50% of the peer group companies or equals or exceeds the four-year cumulative return of the companies then comprising the Standard & Poor's 500 Corporate Stock Price Index. If neither of these performance criteria is satisfied, the restrictions may be terminated as to a portion of the shares if Sempra Energy's four-year cumulative total shareholder return is among the top 70% of the peer group. Restrictions will terminate as to 80% of -the shares for performance among the top 55% of the peer group with the percentage of shares as to which the restrictions may terminate declining ratably. to 20% for performance among the top 70% of the peer group. Any restricted shares for which forfeiture and transfer restrictions are not terminated by or as of the end of year 2003 will be forfeited to Sempra Energy and canceled. Pension PIM The following table shows the estimated single life annual pension annuity benefit provided to the executive officers of SDG&E named in the Summary Compensation Table under - the Sempra Energy Supplemental Executive Retirement Plan (combined with benefits payable under the other pension plans of SDG&E and its affiliates in which the officers also participate) based on the specified compensation levels and years of credited service and retirement at age 65. Pension' Plan '!Table ($000's) Pension Plan Years of Service compensatim 5 10 20 30 40 $ 200 $ 40 1 80 $120 $125 $130 $ 400 $ 80 $160 $240 $250 $260 $ 600 $120 $240 $360 $375 $390 $ 800 $160 $320 $480 $500 $520 $1,000 $200 $400 $600 .$625 $650 Pension benefits are based on average salary for the highest two years of service and the average of the three highest annual bonuses during the last ten years of service. Years of service includes service with subsidiaries and number 41 years for Mr. Mitchell, 27 years for Mr. Guiles, 24 years for Mr. Cotton, 15 years for Ms. Fair and 19 years for Mr. Davis. Messrs. Guiles and Cotton are each entitled to pension benefits at the greater of that provided by Sempra Energy's pension plans or that to which he would have been entitled under the Enova Corporation pension plans (including a supplemental pension plan) had those plans remained in effect. Under the Enova Corporation plans and retirement after attaining age 62, each would be entitled to a monthly pension benefit of 60% of his final pay. Final pay is defined as the monthly base pay rate in effect during the month immediately preceding retirement, plus one -twelfth of the average of the highest three years' gross bonus awards. The plans provide for reduced pension benefits for retirement between the ages of 55 and 62, and surviving spouse and disability benefits equal to 50% and 100%, respectively, of pension benefits. Employment and Employment -Related Agreements Employment Agreements In connection with the business combination of Pacific Enterprises and Enova Corporation, Sempra Energy entered into an employment agreement with Warren I. Mitchell. Mr. Mitchell's agreement provides for an initial employment term of five years (subject to earlier mandatory retirement at age 65) which commenced on the June 26, 1998 completion of the business combination of Pacific Enterprises and Enova Corporation. The term of the agreement is automatically extended by one year on June 26, 2002 and on each June 26 thereafter unless he or Sempra Energy elects not to extend the term. 15 The agreement provides that Mr. Mitchell will serve as the President and principal executive officer of the businesses of Sempra Energy that are economically regulated by the. California Public Utilities Commission. For these services, he will receive an annual base salary .of not less than $440,000 and will be entitled to participate in (i) annual incentive compensation plans and long term compensation plans and awards providing him with an annual bonus opportunity at least equal (in terms of target, maximum. and minimum awards, expressed as a percentage of annual base salary) to his opportunities in effect at Pacific Enterprises prior to the completion of the business combination and (ii) all retirement and welfare benefit plans applicable to employees or senior executives of Sempra Energy.. The agreement also provides that if Sempra Energy terminates Mr. Miichell's employment (other than for cause, death or disability) or Mr. Mitchell terminates his employment for good reason, he will be entitled to receive an amount equal to (i) the sum of his annual base salary and annual incentive compensation (equal to the greater of his target bonus for the year of termination or the average of the three years' highest gross bonus awards in the five years preceding termination) multiplied by two, provided that in the event of termination following a change in control such multiplier will be three; (ii). a pro rata portion of the target amount payable under any annual incentive compensation awards for the,year or, if greater, the average of the three years' highest gross bonus awards paid to him in the five years preceding the year of. termination; and (iii) an additional retirement benefit equal to the present value of the benefits to which he would be entitled under Sempra Energy's defined benefit pension and retirement plans .if he continued working for an additional two years and had increased his age by two years as of termination (in each case three years in the event of a termination following a change of control), but not beyond mandatory retirement age of 65. The agreement also provides for immediate vesting and exercisability of all ,equity -based long term incentive compensation awards; pro rata payment of cash based long term incentive awards at target performance; continued participation in welfare benefit plans for three year;; payment of compensation previously deferred; and financial planning and outplacement services. The agreement also provides for a gross -up payment to offset the effects of any excise taxes imposed on Mr. Mitchell under Section 4999 of the Internal Revenue code. Good reason is defined ire the employment agreements to include an adverse change in Mr. Mitchell's title, authority, duties, responsibilities or reporting lines; a reduction in his base salary or aggregate annualized compensation and benefit opportunities; the relocation of his principal place of employment; and a substantial increase in his business. travel. obligations. A change in control is defined to include the, acquisition by one person or group of 20% or more of the voting power of Sempra Energy's shares; the election of a new majority of the board of Sempra Energy comprised of individuals who are not recommended for election by two-thirds of the current directors or successors to the current directors who wereso. recommended for election; certain mergers, consolidations or sales of assets that result in the shareholders of Sempra Energy owning less than 60% of the voting power.. of Sempra Energy or of the surviving entity or its parent; and shareholder approval of the liquidation or dissolution of Sempra Energy. Mr. Mitchell has announced that he will retire on July 1, 2000. Upon his retirement he will receive a cash payment of approximately $1.8 million, reflective of amounts he would be entitled to under his employment agreement In addition, the forfeiture and transfer restrictions on his shares of restricted stock will immediately terminate and his stock options will become immediately and fully exercisable. Severance Agreements Sempra Energy has entered into a severance agreement with each of SDG&E's executive officers, other than Mr. Mitchell for whom severance arrangements are contained in his employment agreement summarized above. The severance agreements provide for the payment of benefits in the event Sempra Energy and its subsidiaries terminate the executive's employment (other than for cause, death or disability) or the executive terminates his or her employment for good reason. I&I The benefits payable under the severance agreements include (i) a lump sum cash payment equal to the executive's annual base salary and average annual bonus. for the two years prior to termination. multiplied, in certain cases depending upon the officer's position, by as much as 150%; (ii) continuation of health benefits for a period of two years; and (iii) financial planning and outplacement services. In addition, if the termination occurs within two years after a change in control of Sempra Energy, (i) the lump sum cash payment multiple is increased to as much as two; (ii) all equity -based incentive awards immediately vest and become exercisable or payable and all restrictions on such awards immediately lapse; (iii) all deferred compensation is paid out in a lump sum; (iv) a lump sum cash payment is made equal to the present value of the executive's benefits under the Supplemental Executive Retirement Plan calculated as if the executive had attained age 62 (or, if the executive is older than 62, based on the executive's actual age) and applying certain early retirement factors; and (v) continued life, disability, accident and health insurance for two years. The agreements also provide for a gross up payment to offset the effects of any excise tax imposed on the executive under Section 4999 of the Internal Revenue Code. Good reason is defined in the severance agreements to include the assignment to the executive of duties materially inconsistent with those appropriate for an executive of Sempra Energy and its subsidiaries, a material reduction in the executive's overall standing and responsibilities within Sempra Energy and its subsidiaries and a material reduction in the executive's annualized compensation and benefit opportunities other than across-ihe- board reductions affecting all similarly situated executives of comparable rank. In addition, following a change in control of Sempra Energy, good reason also includes an adverse change in the executive's title, authority, duties, responsibilities or reporting lines, a 10% or greater reduction in the executive's annualized compensation and benefit opportunities, relocation of the executive's principal place of employment by more than 30 miles or a substantial increase in business travel obligations. A change in control is defined in- the same manner as in Mr. Mitchell's employment agreement summarized above. INDEPENDENT AUDITORS Representatives of Deloitte & Touche LLP, independent auditors for SDG&E, are expected to be present at the Annual Meeting. They will have the opportunity to make a statement if they desire to do so and to respond to appropriate questions from shareholders. ANNUAL REPORTS SDG&E's Annual Report to the Securities and Exchange Commission on Form 10-K is being mailed to shareholders together with this Information Statement. 17 SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF ANNUAL MEETING OF SHAREHOLDERS The Annual Meeting of Shareholders of Southern California Gas Company will be held on May 11, 2000 at 10:30 am. at the offices of Sempra Energy, 101 Ash Street, San Diego, California, for the following purposes: (1) To elect directors for the ensuing year. (2) To transact any other business that may properly come before the meeting. Shareholders of record at the close of business on March 22, 2000 are entitled to notice of and to vote at the Annual Meeting. The Annual Meeting is a business -only meeting. It will not include any presentations by management. Only shareholders of Southern California Gas Company are entitled to attend the Annual Meeting. Shareholders who own shares registered in their names will be admitted to the meeting upon verification of record share ownership. Shareholders who own shares through banks, brokerage firms, nominees or other account custodians must present proof of beneficial share ownership (such as a brokerage amount statement) to be admitted. By Order of the Board of Directors Los Angeles, California March 22, 2000 SOUTHERN CALIFORNIA GAS COMPANY INFORMATION STATEMENT FOR ANNUAL MEETING OF SHAREHOLDERS WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY. Southern California Gas Company (."SoCalGas" or the "Gas Company") is providing this Information Statement in connection with its Annual Meeting of Shareholders to be held on May 11, 2000. It is being mailed to shareholders commencing April 5, 2000. SOUTHERN CALIFORNIA GAS COMPANY SoCalGas is a direct subsidiary of Pacific Enterprises and an indirect subsidiary of Sempra Energy. It is a public utility supplying natural gas throughout most of Southern and portions of Central California. It is the nation's largest natural gas distribution utility. SoCalGas became an indirect subsidiary of Sempra Energy upon the June 26, 1998 completion of a business combination of Pacific Enterprises (the direct parent corporation.of SoCalGas) and Enova Corporation (the direct parent corporation of San Diego Gas & Electric Company). In the. combination, Pacific Enterprises and Enova Corporation became separate subsidiaries of Sempra Energy,a newly foamed holding company, and Pacific Enterprises Common Stock and Enova Corporation Common Stock were converted into Sempra Energy Common Stock. Shares of SoCalGas and San Diego Gas & Electric Company ("SDG&E") were unaffected by the business combination and remain outstanding. SoCalGas' principal executive offices are located at The Gas Company Tower, 555 West Fifth Street, Los Angeles, California. Its telephone number is (213) 244-1200. OUTSTANDING SHARES AND VOTING RIGHTS Shareholder; who are present at the Annual Meeting will be entitled -to one vote for each of the Gas Company's shares which they held of record at the close of business on March 22, 2000. At that date, the outstanding shares consisted of 91,300,000 shares of Common Stock and 862,043 shares of Preferred Stock. All of the shares of Common Stock and 50,877 shares of Preferred Stock (together representing over 99% of the outstanding shares) areowned by Pacific Enterprises. In electing directors, shareholders will be entitled to cumulate votes if any shareholder gives notice at the meeting and, prior to the voting, of an intention to cumulate votes. If that notice is given, all shareholders will be entitled to thirteen votes (the number of directors to be elected) for each of their shares and may cast all of their votes for any one director candidate whose name has been placed in nomination prior to the voting or distribute their votes. among two or more such candidates in such proportions as they may determine. In voting upon other matters properly presented to the Annual Meeting, each shareholder will be entitled to one vote for each share of SoCalGas Common or Preferred Stock. GOVERNANCE OF THE COMPANY Board of Directors The business and affairs of the Gas Company are managed under the direction of the Board of Directors in accordance with the California General Corporation Law as implemented by the Company's Articles of Incorporation and By-laws. Members of the board are kept informed through carious reports routinely sent to them as well as by operating and financial presentations made at board and committee meetings by officers and others. Shareholders who wish to suggest qualified candidates for consideration by the Corporate Governance Committee as directors of the Gas Company should write to: Corporate Secretary, Southern California Gas Company, The Gas Company Tower, 555. West Fifth Street, Los Angeles, California, 90013, stating in. detail the qualifications of the suggested candidates. During 1999, the Board of Directors held nine meetings. The standing committees listed below assisted the board in carrying out its duties. Committees Of the Board Audit Compensation Corporate Governance�� Executive Finance Public Poli cy Richard A. Collato, Chair Richard J. Stegemeier, Hyla H. Bertea, Warren 1. Mitchell, Daniel W. Derbes, Herbert L. Caner, Chair Chair Chair Chair Chair Ann L. Bun Wilford D. Godbold, Jr. Hyla H. Bertea Ignacio E. Lozano, Jr. Ann L: Burr Daniel W. Derbes Herbert L. Caner Richard A. Collato William D. Jones Robert H. Goldsmith Ralph R. Ocampo Robert H. Goldsmith Ignacio E. Lozano, Jr. Thomas C. Stickel Wilford D. Godbold Jr. William D. Jones Ralph R. Ocampo William G. Ouchi Thomas C. Stickel Richard J. Stegemeier Diana Walker William G. Ouchr Diana I- Walker L. Audit Committee The Audit Committee met five times in 1999. Its duties and responsibilities include: • Providing oversight of the financial reporting process and management's responsibility for the integrity, accuracy and objectivity of financial reports and accounting and financial reporting practices. Recommending to the board the selection of independent auditors. Compensation Committee The Compensation Committee met five times in 1999. Its duties and responsibilities include: • Establishing overall strategy with respect to compensation for directors and senior officers. Evaluating the performance of the Chairman and the President for compensation purposes. • Reviewing and approving individual salary adjustments and awards under incentive plans for senior officers. Overseeing the•executive succession plans. Corporate Governance Committee The Corporate Governance Committee met three times in 1999. Its duties and responsibilities include: • Reviewing and recommending nominees for. election as directors. i] Assessing the performance of the Board of Directors. Developing guidelines for board composition. Reviewing and considering issues relating to corporate governance. Executive Committee The Executive Committee did not meet in 1999. The committee meets on call during the intervals between board meetings and, subject to the limitations imposed by law, has all the authority of the board. Finance Committee The Finance Committee met two times in 1999. Its duties and responsibilities include: • Reviewing long term and short term financial requirements and financing plans. • Reviewing trading operations, financial guarantees and derivatives positions and exposure. Reviewing pension plan investment results and insurance coverages. Public Policy Committee The Public Policy Committee met three times in 1999. Its duties and responsibilities include: Reviewing public policy issues affecting the Gas Company, including ethnic, social and political trends. Reviewing employment and contracting policies, consumer issues and community, relations. Reviewing charitable and political contributions and programs. Directors' Compensation All of the directors of the Gas Company are also directors or officers of Sempra Energy. They are not separately compensated for services as directors of the Gas Company. Directors of Sempra Energy who are not also employees receive the following retainer and fees for services as directors of Sempra Energy and its subsidiaries: Annualretainer....................................................... $26,000 Attendance fee for each Board meeting ...................................... $ 1,000 Attendance fee for each Committee meeting .................................. $ 1,000 Additional meeting fee for each Committee meeting chaired ....................... $ 1,000 Directors may elect to receive their annual fees in Sempra Energy Common Stock instead of cash or to defer their annual fees into an interest-bearing account or a phantom share account in which the fees are deemed invested in Sempra Energy Common Stock. i Each non-employee director of Sempra Energy is granted upon becoming a director a ten-year option to purchase 15,000 shares of Sempra Energy Common. Each non-employee director is also granted an additional ten-year option to purchase 5,000 shares at each annual meeting of Sempra Energy (other than the annual meeting that coincides with or first follows the director's election to the board) following which the director continues to serve as a non-employee director. Each option is granted at an option exercise price equal to the fair market value of the option shares at the date the option is granted and becomes fully exercisable commencing with the first annual meeting of Sempra Energy following the date of the grant or the director's earlier death, disability, retirement or involuntary termination of board service other than for cause. 3 Non-employee directors of Sempra Energy who were directors of Pacific Enterprises or Enova Corporation at the time of the business combination of the two companies (currently all of the non-employee directors) continue to accrue retirement benefits (subject to certain maximum years of service credit) for service as non- employee directors of Sempra Energy. Benefits commence upon the later of retirement as a director or attaining age 65 and continue for a maximum period equal to the director's combined years of service as a director of Sempra Energy and Pacific Enterprises or Enova Corporation. The annual benefit is the sum of Sempra Energy's then current annual retainer and ten times the then current board meeting fee. SHARE OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS All of the outstanding SoCalGas Common Stock is owned by Pacific Enterprises and none of the Gas Company's directors or officers owns any SoCalGas Preferred Stock. The following table sets forth the number of shares of Sempra Energy Common Stock beneficially owned by each director, by each of the five most highly compensated executive officers of the Gas Company and by all directors and executive officers of the Gas Company as a group, as of February 15, 2000. These shares, in the aggregate, represent less than one percent of Sempra Energy's outstanding shares. Sempra Energy Common Stock Shares Current Subject To Beneficial Exercisable Phantom Holdings Options(A) Shares(B) Total Hyla H. Bertea....................................... 9,630 20,000 -0- 29,630 Ann L. Burr ......................................... 2,200 20,000 -0- 22,200 Herbert L. Carter ..................................... 1,551 20,000 -0- 21,551 Richard A. Collato.................................... . 4,222 20,000 -0- 24,222 Daniel W. Deifies ..................................... 5,828 20,000 -0- 25,828 Wilford D. Godbold, Jr . ............................... . 3.006 20,000 4)- 23,006 Robert H. Goldsmith (C) ............................... 2,659 20,000 -0- 22,659 William D. Jones ..................................... 2,174 20,000 40- 22,174 Ignacio E. Lozano, Jr. (C) ...............................2,352 20,000 -0- . 22,352 Warren I. Mitchell .................................... . 22,565 145,446 36,991 205,002 Richard M. Morrow ..................................... 13,056 36,888 372 50,316 Ralph R. Ocampo...................................... 14,621 20,000 -0- 34,621 William G. Ouchi..................................... . 10,000 20,000 -0- 30,000 Roy M. Rawlings ...................................... 6,986 55,252 905 63,143 Debra L. Reed ....................................... 11,411 103,913 1,538 116,862 Richard J. Stegemeier.................................. . 1,503 20,000 -0- 21,503 Lee M. Stewart ...................................... . 13,085 102,406 1,180 116,671 Thomas C. Stickel ..................................... 2,037 20,000 -0- 22,037 Diana L. Walker ...................................... 936 20,000 -0- 20,936 Directors and Executive Officers as a group (20 persons) ........ 134,551 792,009 42,066 968,626 (A) Shares which may be acquired through the exercise of stock options that are exercisable on or before May 15, 2000. (B) Represents deferred compensation deemed invested in shares of Sempra Energy Common Stock. These phantom shares cannot be voted or transferred but track the performance of Sempra Energy Common Stock. (C) Messrs. Goldsmith and Lozano will retire as directors before the Annual Meeting and the authorized number of directors will be reduced to reflect their retirements. 61 Share ownership guidelines have been established for directors and officers to further strengthen the link between performance and compensation. For non-employee directors the guideline is ownership of a number of shares having a market value equal to four times the annual retainer. For officers, the guidelines are: SoCatGas Executive Level Share Ownership Guidelines Chairman and President 3 x Base Salary Presidents of Divisions 2 x Base Salary Vice Presidents 1 x Base Salary In setting the guidelines the board considered then current share ownership levels and the desirability of encouraging further share ownership. The officer guidelines were established in 1998 and the director guidelines in 2000. They are expected to be met or exceeded within five years from adoption. For purposes of the guidelines, shares owned include phantom shares into which compensation is deferred and the vested portion of certain in -the -money stock options as well as shares owned directly or through benefit plans. 6 ELECTION OF DIRECTORS The Gas Company's Board of Directors will consist of thirteen directors upon giving effect to the retirement of two directors who will retire before the Annual Meeting of Shareholders and a corresponding reduction in the authorized number of directors. At the Annual Meeting, thirteen directors (comprising the entire authorized number of directors) will be elected to hold office until the next Annual Meeting and until their successors have been elected and qualified. The thirteen director candidates receiving the greatest number of votes will be elected as directors. Warren I. Mitchell has announced that he will retire on July 1, 2000. The board anticipates that it will at that time further reduce the authorized number of directors to twelve. The names of the Board of Directors' thirteen nominees for election as directors and biographical information regarding each nominee are set forth below. Each nominee is currently a director of the Gas Company and also of SDG&E. Each nominee (other than Mr. Mitchell) is also a director of Pacific Enterprises and Sempra Energy. Unless -otherwise noted, each nominee has held the position set forth beneath his or her name or various positions with the same or predecessor organizations for at least the last five years. Hyla H. Bertea, 59, has been a director since 1993. She is a realtor with. Prudential California. a real estate sales company. She is a trustee of Lewis & Clark College, a director of Orange County Community Foundation, and a former commissioner of the California Horse Racing Board. For a number of years she has been involved in leadership positions with various other cultural, educational and health organizations in the Orange County and Los Angeles areas. Mrs. Bertea was a co-cominissioner of gymnastics and a member of the executive staff for. the 1984 Olympics. Ann L. Burr, 53, has been a director since 1998. She is an Executive Vice President of Time Warner Cable. She is the former President of Time Warner Communications in Rochester, New York and Time Warner Cable in San Diego. Ms. Burr is a trustee of the Rochester Institute of Technology. She served as Chair of the Board of Directors of the California Cable Television Association and chaired its Telecommunications Policy Committee. She is a former Chair of the Greater San Diego Chamber of Commerce Board of Directors and the founder and former Chair of the Chamber's Business Roundtable for Education and the San Diego Communications Council. Herbert L. Carter, DPA, 66, has been a director since 1993. He has served as President of California State University, Dominguez Hills, and Executive Vice Chancellor Emeritus and Trustee Professor of Public Administration of the California State University System. He was President and Chief Executive Officer of United Way of Greater Los Angeles from 1992 until 1995, and Executive Vice Chancellor of the California State University System from 1987 until 1992. Dr. Carter is a director of Golden State Mutual Insurance Company, and has served as a member of the Board of Councilors of the School of Public Administration, University of Southern California and the Board of Regents of Loyola Marymount University. Richard A. Collato, 56, has been a director since 1998. He is President and Chief Executive w Officer of the YMCA of San Diego County. He is a former director of Y -Mutual Ltd., a reinsurance company, and The Bank of San Diego. Mr. Collato is a former trustee of Springfield College, and currently is a trustee of the YMCA Retirement Fund and Bauce Foundation, and a director of Project Design Consultants. 7 Daniel W. Derbes, 69, has been a director since 1998. He is President of Signal Ventures. From 1985 until 1988, he was President of Allied-Signal International Inc. and Executive Vice President of Allied-Signal Inc., a multi -national advanced technologies company. Mr. Derbes is a director of WD -40 Company and a trustee of the University of San Diego. Wilford D. Godbold, Jr., 61, has been a director since 1993. He is the retired President and Chief Executive Officer of ZERO Corporation, .an international manufacturer primarily of enclosures and thermal management equipment for the electronics market. He is a director of K2, Inc. Mr. Godbold is a trustee of the Wellness Community, a member of the Council on California Competitiveness, a past President of the Board of Trustees of Marlborough School and a past Chairman of the Board of the California Chamber of Commerce and The Employers Group. William D. Jones, 44, has been a director since 1998. He is the President and Chief Executive Officer and a director of CityLink Investment Corporation. From 1989 to. 1993, he served as General Manager/Senior Asset Manager and Investment Manager with certain real estate subsidiaries of The Prudential. Prior to joining The Prudential, he served as a San Diego Council member from 1982 to 1987. Mr. Jones is a director of the Federal Reserve Bank of San Francisco, Los Angeles Branch, and a trustee of the University of San Diego. He is a former director of The Price Real Estate Investment Trust. Warren L Mitchell, 62, has been a director since 1997. He is Chairman of the Board and President of the Gas Company, Chairman of SDG&E and Gro President -Re "up gulated Business Operations of Sempra Energy. He is a director of the United Way of Greater Los Angeles, Gas Research Institute and Chairman, director and trustee of the Institute of Gas Technology. Ralph R. Ocampo, M.D., F.A.C.S., 68, has been a director since 1998. He is a:ptacticing k✓ surgeon, Governor of the American College of � g Surgeons, past President of the California Medical Association and a Clinical Professor of Surgery at the. University of California, San Diego. William G. Oudd, Ph.D., 56, has been a director since 1998. He is a Vice Dean and Faculty Director of Executive Education Programs and Sanford and Betty Sigoloff Professor in Corporate Renewal in the Anderson Graduate School of Management at UCLA. Dr. Ouchi is a director of Allegheny Technologies, FirstFed Financial Corp., and Water -Pik Technologies. He is a trustee of Williams College and a director of KCET Public Service Television. Richard J. Stegemeier, 71, has been a director since 1995. He is Chairman Emeritus of the Board of Unocal Corporation. He is a director of Foundation Health Systems, Inc., Halliburton Company, Montgomery Watson, Inc., and Northrop Grumman Corporation. 3 Thomas C. Stickel, 50, has been a director since 1998. He is the Chairman, Chief Executive Officer and founder of University Ventures Network. He is the founder of Americana. Partners Capital Group, Inc. He previously was the Chairman, Chief Executive Officer and President of TCS Enterprises, Inc. and the Bank of Southern California, both of which he founded. Mr. Stickel is Chairman of the Board of Onyx Acceptance Corporation, a director of Blue Shield of California and Del Mar Thoroughbred Club and Vice Chairman of the California Chamber of Commerce. Diana L. Walker, 58, has been a director since 1993. Mrs. Walker is a partner and General Counsel of the law firm of O'Melveny & Myers LLP. She is a former director of United Way of Greater Los Angeles, and Emeritus Governor and former Chair of the Board of Governors of the Institute for Corporate Counsel, a former trustee of Marlborough School and a member of various professional organizations. O'Melveny & Myers LLP provides legal services to Sempra Energy and its subsidiaries. 9 COMPENSATION COMMnTEE REPORT ON EXECUTIVE COMPENSATION The Gas Company became an indirect subsidiary of Sempra Energy in connection with a business combination of Pacific Enterprises (the direct parent of the Gas Company) and Enova Corporation (the direct parent of San Diego Gas & Electric Company) that was completed on June 26, 1998. The Boards of Directors of the Gas Company, SDG&E and Sempra Energy each maintain a Compensation Committee comprised of independent directors. The directors comprising the three committees are identical and the committees typically meet in joint session. The Compensation Committees have the responsibility for establishing compensation principles and strategies, as well as designing a compensation program for executive officers. Their responsibilities also include administering a base salary program, executive annual and long term incentive plans, and executive benefit and perquisite programs. During 1999, the Compensation Committees conducted a review of the executive compensation programs and policies of Sempra Energy and its subsidiaries that were originally developed in 1998 in connection with the business combination of Pacific Enterprises and Enova Corporation. The committees sought the assistance of nationally recognized compensation and benefit consultants to assist with the review of executive compensation principles and practices designed to assist the companies in realizing the key objective of creating superior shareholder value in a rapidly changing and increasingly competitive business environment. The committees, with the assistance of a nationally recognized compensation firm, also reviewed board compensation during 1999. Compensation Principles and Strategies In developing compensation principles and strategies, the Compensation Committees considered the current and prospective business environment for Sempra Energy and its subsidiaries and took into account numerous factors, including: • The rapidly changing and increasingly competitive environment in which Sempra Energy and its subsidiaries operate. • The need to retain experienced executives.of outstanding ability and to motivate them to achieve superior performance. • The need to attract executive talent from broader markets as the utility and energy industries continue to rapidly evolve. • The need to strongly link executive compensation to both annual. and long term corporate, business unit and individual performance. • The need to strongly align the interests of executives with those of shareholders. As a result of this review, the Compensation Committees approved the continuation of the compensation program developed in 1998 and designed to meet these objectives and encourage executives to achieve superior shareholder returns. The program includes the following elements. • An emphasis on "pay -for -performance" with a substantial portion of total compensation reflecting corporate, business unit and individual performance. • An emphasis on stock incentives closely aligning the interests of executives with those of shareholders. • An emphasis on total compensation with base salaries generally targeted at or near median general industry levels for comparable sized companies and with the annual cash and long term equity incentives providing opportunities to earn total compensation at significantly higher levels for superior corporate, business unit and individual performance. 10 An appropriate balance of short term and long term compensation to retain talented executives, reward effective long term strategic results and encourage share ownership. An emphasis on placing at risk, through equity and other performance-based incentives, a greater portion of an executive's total compensation as.levels of responsibility increase. . The Compensation Committees also considered provisions of the Internal Revenue Code limiting to $1 million the annual amount of compensation that does not qualify as "qualified performance-based compensation" that publicly held corporations may deduct for federal income tax purposes as compensation expense for each of certain executive officers. The committees consider tax deductibility to be an, important factor but only one factor to be considered in evaluating any executive officer compensation program. Accordingly, the committees intend to design programs that will maximize federal income tax deductions for compensation expense to the extent that doing so is consistent with the compensation principles and strategies of Sempra Energy and its subsidiaries. The committees believe, however, that there are circumstances in which the interests of its shareholders may be best served by providing compensation that is not fully tax deductible, and may exercise discretion to provide compensation (including incentive awards under the Sempra Energy Long Term Incentive Plan) that will not qualify as a tax. deductible compensation expense. Compensation Program The: primary components of the compensation program of. Sempra Energy and its subsidiaries are base salaries, annual cash incentive opportunities and long term equity and equity -based incentive opportunities. . Base Salaries Base salaries for executives are reviewed annually and, in general, are targeted at the median of salaries for general industry companies of similar size to Sempra Energy. This strategy, along with annual and long term incentive opportunities at general industry levels, is intended to allow Sempra Energy and its subsidiaries to retain and attract top quality executive talent. However, the committees will continue to monitor this strategy as the markets for executive talent change. In determining base salary adjustments, the.committees will also take into account individual performance, executive responsibilities, market characteristics and other factors. Survey data for assessing base salaries are based upon companies in the Fortune 1000 and size -adjusted based upon Sempra Energy's revenues using regression analysis. This group is broader than the peer group used for assessing performance for long -tern incentive plan purposes. The Compensation Committees believe that the most direct competitors of Sempra Energy and its subsidiaries for executive talent will not be limited to companies in this peer group and the Fortune 1000 appropriately reflects a broader group with which Sempra Energy and its subsidiaries compete to retain and attract highly skilled and talented executives. Annual base salaries for executive officers of Sempra Energy and its subsidiaries have been set at the approximate mid -point of these salary data. For 1999, an annual base salary of $475,000 was established for Mr. Mitchell, and $300,000 for Debra R. Reed and $289,900 for Lee M. Stewart, the Gas Company's Presidents of Energy Distribution Services and Energy Transportation Services, respectively Annual Incentives Annual cash bonus performance-based incentive opportunities are provided to executive officers through the Sempra Energy Executive Incentive Plan. This plan permits the payment of bonuses based upon the attainment of objective financial performance goals. Bonus opportunities vary with the individual officer's position and prospective contribution to the attainment of these goals and no bonuses are paid unless a threshold performance level is attained for the related performance period. Bonus opportunities increase for performance above the threshold level. Performance at targeted levels is intended to compensate executive officers with bonuses at the mid -point for bonuses for comparable levels of responsibility at Fortune 1000 companies. II For 1999, Executive Incentive Plan award levels were based on attainment of earnings per share goals with target award levels of 70% of base salary for Mr. Mitchell, 50% base salary for Ms. Reed and Mr. Stewart, and 45% of base salary for Vice Presidents, with maximum award levels ranging from 140%n to 90% of base salary. Performance for the year was at 150% of targeted performance and resulted in cash bonuses of $498,750 for Mr. Mitchell, and $243,750 for Ms. Reed and $235,544 for Mr. Stewart with corresponding lesser amounts to other executive officers. Long Term Incentives . Long term incentive opportunities are provided by equity and equity -based awards under Sempra Energy's 1998 Long Tern Incentive Plan. The plan permits a wide variety of equity and equity -based incentive awards to respond to changes in the market conditions and compensation practices. The committees expect, however, that most awards under the plan will be in the form of non-qualified stock options and, to a lesser ind declining extent, restricted stock. During 1999, Sempra Energy granted to executives and other employees of Sempra Energy and its subsidiaries non-qualified stock options to purchase Sempra Energy Common Stock under the Long Term Incentive Plan. These option grants to executive officers of the Gas Company are described in this Proxy Statement under the caption "Executive Compensation—Stock Options and Stock Appreciation Rights." During 1999, Sempra Energy also awarded grants of performance-based restricted shares under the Long Term Incentive Plan to executives of Sempra Energy and its subsidiaries. These awards and related total shareholder return vesting standards are discussed in this Proxy Statement under the caption "Executive Compensation—Restricted Stock Grants." Share Ownership Guidelines The Compensation Committees believe that a commitment to increased share ownership by executives of Sempra Energy and its subsidiaries is an important element in aligning the interests of executives with those of shareholders. This belief has influenced the design of compensation plans and, in addition, stock ownership guidelines have been established to further strengthen the link between corporate performance and compensation. These guidelines are summarized under the caption "Share Ownership of Directors and Executive Officers." COMPENSATION COMMITTEE Richard J. Stegemeier, Chairman Hyla H. Bertea Ignacio E. Lozano, Jr. Ralph R. Ocampo Thomas C. Stickel March 7, 2000 12 EXECUTIVE COMPENSATION Summary of Cash and Other Compensation The table below summarizes, for the last three years, the compensation paid or accrued by Sempra Energy and its predecessors and subsidiaries to each of the executive officers of the Gas Company named in the table. Summary Compensation Table Vice President 1998 $204,099 $166,635 1997 $186,067 $ 93,900 Long Term Compenmt an Annual Compensation Name and Principal Position Yeir Salary Bonus Warren I. Mitchell ........1999 Underlying $474,769 $498,750 Chairman and President 1998 $437,409 $506,230 $-0- 1997 $337,947 $280,000 Debra L. Reed ............... 1999 $298,732 $243,750 President of Energy 1998 $282,646 $237,526 Distribution Services 1997 '$250,526 $182,000 Lee M. Stewart. 1999 $288,659 $235,544 President of Energy 1998 $264,813 $222,951 Transportation Services 1997 $237,024 $171,500 Roy M. Rawlings ............. 1999 $216,895 $177,795 Vice President 1998 $204,099 $166,635 1997 $186,067 $ 93,900 Long Term Compenmt an Awards Payouts Securities LTIP Underlying Payouts AB other Options / SARS (#) (A) (B) Compensation (C) 128,700 $-0- $ 61,368 140,296 $-0- $816,659 40,602 $-0- $ 27,446 52,300 $-0- $ 38,432 66,355 $--0- $326,134 31,579 $-0- $ 19,153 50,500 $4- $ 40,855 65,135 $--0- $316,488 31,579 $-0-- $ 18,637 25,500 $-0- $ 33,417 28,138 $-0- $177,295 9,925 $-0- $ 22,175 Richard M. Morrow ........... 1999 $195,415 $160,380 23,000 $-0- $ 26,920 Vice President 1998 $181,664 $143,474 26,354 $--0-- $ 89,225 1997 $159,923 $ 77,235 9,925 $-0- $ 11,162 (A) Restricted stock awarded in 1998 under the Sempra Energy Long Term Incentive Plan is reported below under the caption "Restricted Stock Grants." (B) The aggregate holdings/value of restricted stock held on December 31, 1999 by the individuals listed in the table are: 13,256 shares/$230,389 for Mr. Mitchell; 5,212' Shates/$90,585 for Ms. Reed; 4,908 Shares/$85,301 for Mr. Stewart; 2,656 Shares/$46,161for Mr. Rawlings; And 2,304 Shares/$40,044 for Mr. Morrow. Regular quarterly dividends are paid on restricted stock held by these individuals. (C) All other compensation includes amounts paid as (i) interest on deferred compensation above 120`Yo of the applicable federal rate, (ii) life insurance premiums, (iii) financial and estate planning services, (iv) contributions to defined benefit plans and related supplemental plans, and (v) car allowances. The respective amounts paid in 1999 were $4,523, $7,109, $13,126, $29,610 and $7,000 for Mr. Mitchell; $527, $574, $14,063, $16,268 and $7,000 for Ms. Reed; $1,457, $1,870, $15,000, $15,528, and $7,000 for Mr. Stewart; $2,693, $1,538, $10,500, $1106, and $7,000 for Mr. Rawlings; and $0, $2,077, $7,500, $10,343, and $7,000 for Mr. Morrow. Amounts for 1998 for Mr. Mitchell also include an incentive/retention bonus accrual under an agreement with Pacific Enterprises entered into in 1997 in connection. with the business combination of Pacific Enterprises and Enova Corporation. Under the agreement, a deferral account was established for Mr. Mitchell upon the completion of the business combination and credited with an incentivetretention bonus amount of $782,000 which was deemed invested in shares (together with reinvestment of dividend equivalents) of Sempra Energy Common Stock. Mr. Mitchell will become entitled to his incentivetretention 13 bonus upon continued employment with Sempra Energy or its subsidiaries through June 16, 2000 and will be paid in cash an amount equal to the then fair market value of number of shares of Sempra Energy Common Stock equal to the number of phantom shares then credited to his deferral account. Amounts for 1998 for Ms. Reed and Messrs. Stewart, Rawlings and Morrow also include $303,750, $292,500, $152,250 and $72,065, respectively, paid by Pacific Enterprises as incentive/retention bonuses upon the completion of six to twelve months of service following the completion of the business combination of Pacific Enterprises and Enova Corporation. Stock Options and Stock Appreciation Rights The following table contains information concerning the grant of stock options during 1999 to the executive officers of the Gas Company named in the Summary Compensation Table. All options are to purchase Sempra Energy Common Stock, were granted at an exercise price of 100% of the fair market value of the. option shares on the date of the grant and are for a ten-year term subject to earlier expiration following termination of employment. Option / SAR Grants in 1999 Number of Bio of Total Shares Options / SARs Underlying Granted to Options /SARs Employees Exercise Expiration Grant Date Name Granted ( in 1999 Price ($/Sh) Dace Present Value Warren I. Mitchell ................... 36,700(A) 2.53% $21.00 5/4/09 $265,7.08 92,000(B) 4.79% $21.00 5/4/09 $265,880 Debra L. Reed ..................... 14,900(A) 1.03% $21.00 5/4/09 $107,876 37,400(B) 1.95% $21.00 5/4/09 $108,086 Lee M. Stewart ..................... 14,400(A) 0.99% $21.00 5/4/09 $104,256 36,100(B) 1.88% $21.00 5/4/09 $104,329 Roy A. Rawlings ................... 7,300(A) 0.50% $21.00 5/4/09 $ 52,852 18,200(B) 0.95% $21.00 5/4/09 $ 52,598 Richard M. Morrow ................. .6,600(A) 0.45% $21.00 5/4/09 $ 47,784 16,400(B) 0.85% $21.00 5/4/09 $ 47,396 (A) Exercisable in cumulative installments of one-fourth of the shares initially subject to the option on each of the first four anniversaries of the grant date. Granted with performance-based dividend equivalents on unexercised shares for the four-year period ending.December 31, 2003. No dividend equivalents will be paid unless Sempra Energy meets annual or four-year threshold performance goals based on total return to shareholders ranking within a peer group of companies or the Standard & Poor's 500 and the percentage of dividends paid as dividend equivalents (to a maximum of all dividends that would have been paid on the shares for the four-year period) will depend upon the extent to which the threshold goals are exceeded. (B) Exercisable in cumulative annual installments of one-fourth of the shares initially subject to the option on each of the first four anniversaries of the grant date. Granted without dividend equivalents. Sempra Energy used a modified Black -Scholes option pricing model to develop the theoretical values set forth under the "Grant Date Present Value" column, but the executive will realize value from the stock options only to the extent that the price of Sempra Energy Common Stock on the exercise date exceeds the price of the stock on the grant date. Consequently, there is no assurance the value realized by an executive will be at or near the theoretical value, and these amounts should not be used to predict stock performance. Grant date present values were based on an option value of $2.89 and, for options granted with dividend equivalents, a dividend equivalent value of $4.35. These are based on the following assumptions: share volae lity-17.9%; dividend yield -5.49%; risk-free rate of return -5.66%; and outstanding term -10 years. 14 The following table contains information with respect to the executive officers of the Gas Company named in the Summary Compensation Table concerning the exercise of options and stock appreciation rights during 1999 and unexercised options and stock appreciation rights held on December 31, 1999. Option / SAR Exercises and Holdings (A) The exercise price of outstanding options ranges from $12.80 to $31.00. Restricted Stock Grants The following table contains information concerning restricted shares of Sempra Energy Common Stock granted during 1998 to the executive officers of the Gas Company named in the Summary Compensation Table. Restricted Stock Grants in 1999 Estimated Future Payouts Under Number of Non -Stock Restricted Performance Period Price-Based shamUntil Payout Pians (A) Warren I. Mitchell .............................. 5,800 Four Annual Periods $132,472 Debra L. Reed ................................. 2,400 Four Annual Periods $ 54,816. Lee M. Stewart ................................ 2,200 Four Annual Periods $ 50,248 Roy A. Rawlings ............................... 1,200 Four Annual Periods $ 27,408 Richard M. Morrow ............................. 1,000 Four Annual Periods $ 22,840 (A) The payout amount represents the fair market value on the May 4, 1999 grant date of the restricted shares that will become vested upon the achievement of all performance goals. The actual payout (if any) will depend upon the achievement of performance goals and upon the then fair market value of Sempra Energy Common Stock. Restricted shares are subject to forfeiture and transfer restrictions that terminate upon the satisfaction of long term objective corporate performance criteria. During the performance period, the executive receives dividends on the restricted shares and is entitled to vote them but the shares cannot be sold or otherwise transferred. If the performance criteria are not satisfied or the executive's.employment is terminated during the performance period, the shares are forfeited to Sempra Energy and canceled. The forfeiture and transfer restrictions on one-quarter of the shares initially subject to each of the awards shown in the table will terminate at the end of years 2000, 2001, 2002 and 2003 if the executive is then employed by Sempra Energy or its subsidiaries and Sempra Energy has achieved a total return to shareholders for the year that places it among the top 25% of a peer group comprised of Sempra Energy and other energy and energy services companies. If these annual performance criteria are not met, the forfeiture and transfer restrictions on all or a portion of the shares remaining subject to these restrictions may be terminated based upon the satisfaction of cumulative shareholder return performance criteria for the four years ending December 31, 2003. 15 Number of Securities Underlying UnezercirnA Value of Unomrdsed In - Shares Opt;ons / SARs at the -Money Options / SARs A Value Year End (#)(A) at Year End ($HA) Name on Eherclse Realized Exercisable Unexercisable Exercisable Unexercisable Warren I. Mitchell........... 31,579 $160,349 92,970 242,944 $ -0- S -0 - Debra L. Reed . ............ -0- $ -0- 69,034 109,772 $ -.0- $__0_ Lee M. Stewart ............. -0- $ -0- 67,977 107,057 $14,154 $_0_ Roy A. Rawlings. .......... -0- $ -0- 41,810 48,971 $ -0- $-a Richard M. Morrow. ........ --0- $ -0- 24,071 45,133 $ -0•- $-0- (A) The exercise price of outstanding options ranges from $12.80 to $31.00. Restricted Stock Grants The following table contains information concerning restricted shares of Sempra Energy Common Stock granted during 1998 to the executive officers of the Gas Company named in the Summary Compensation Table. Restricted Stock Grants in 1999 Estimated Future Payouts Under Number of Non -Stock Restricted Performance Period Price-Based shamUntil Payout Pians (A) Warren I. Mitchell .............................. 5,800 Four Annual Periods $132,472 Debra L. Reed ................................. 2,400 Four Annual Periods $ 54,816. Lee M. Stewart ................................ 2,200 Four Annual Periods $ 50,248 Roy A. Rawlings ............................... 1,200 Four Annual Periods $ 27,408 Richard M. Morrow ............................. 1,000 Four Annual Periods $ 22,840 (A) The payout amount represents the fair market value on the May 4, 1999 grant date of the restricted shares that will become vested upon the achievement of all performance goals. The actual payout (if any) will depend upon the achievement of performance goals and upon the then fair market value of Sempra Energy Common Stock. Restricted shares are subject to forfeiture and transfer restrictions that terminate upon the satisfaction of long term objective corporate performance criteria. During the performance period, the executive receives dividends on the restricted shares and is entitled to vote them but the shares cannot be sold or otherwise transferred. If the performance criteria are not satisfied or the executive's.employment is terminated during the performance period, the shares are forfeited to Sempra Energy and canceled. The forfeiture and transfer restrictions on one-quarter of the shares initially subject to each of the awards shown in the table will terminate at the end of years 2000, 2001, 2002 and 2003 if the executive is then employed by Sempra Energy or its subsidiaries and Sempra Energy has achieved a total return to shareholders for the year that places it among the top 25% of a peer group comprised of Sempra Energy and other energy and energy services companies. If these annual performance criteria are not met, the forfeiture and transfer restrictions on all or a portion of the shares remaining subject to these restrictions may be terminated based upon the satisfaction of cumulative shareholder return performance criteria for the four years ending December 31, 2003. 15 The. restrictions on all remaining shares will terminate at the end of the year 2003 if the executive is then employed by Sempra Energy or its subsidiaries and Sempra Energy has achieved a four-year cumulative total return to shareholder; that either places it among the top 50% of the peer. group companies or equals or exceeds the four-year cumulative return of the companies then comprising the Standard & Poor's 500 Corporate Stock Price Index. If neither of these performance criteria is satisfied, the restrictions may be terminated as to a portion of the shares if Sempra Energy's four-year cumulative total shareholder return is among the top 70% of the peer group. Restrictions will terminate as to 80% of the shares for performance among the top 55% of the peer group with the percentage of. shares as to which the restrictions may terminate declining ratably to 20% for performance among the top 70% of the peer group: Any restricted shares for which.forfeiture and transfer restrictions are not terminated by or as of the end of year 2003 will be forfeited to Sempra Energy and canceled. Pension Plans The following table shows the estimated single life annual pension annuity benefit provided to the executive officers. of the Gas Company . named in the Summary Compensation Table under the Sempra Energy Supplemental Executive Retirement Plan (combined with benefits payable under the other pension plans of the Gas Company and its affiliates in which the officers also participate) based on the specified compensation levels and years of credited service and retirement at age 65. Pension benefits are based on average salary for the highest two years of service and the average of the three highest annual bonuses during the last ten years of service. Years of service includes service with subsidiaries and number 41 years for Mr. Mitchell, 21 years for Ms. Reed, 32 years for Mr. Stewart, 26 years..for Mr. Rawlings and 25 years for Mr. Morrow. Employment and Employment -Related Agreements Employment Agreements In connection with the business combination of Pacific Enterprises and Enova Corporation, Sempra Energy entered into an employment agreement with Warren 1. Mitchell. Mr. Mitchell's agreement provides for an initial employment term of five years (subject to earlier mandatory retirement at age 65) which commenced on the June 26, 1998 completion of the business combination. The term of the agreement is automatically extended by one year on June 26, 2002 and on each June 26 thereafter unless he or Sempra Energy elects not to extend the term. The agreement provides that Mr. Mitchell will serve as the President and principal executive officer of the businesses of Sempra Energy that are economically regulated by the California Public Utilities Commission. For these services, he will receive an annual base salary of not less than $440,000 and will be entitled to participate in (i) annual incentive compensation plans and long term compensation plans and awards providing him with an annual bonus opportunity at least equal (in terms of target, maximum and minimum awards, expressed. as a percentage of annual basesalary) to his opportunities in effect at Pacific Enterprises prior to the completion of the business combination and (ii) all retirement and welfare benefit plans applicable to employees or senior executives of Sempra Energy. 16 Pension Plan Table ($000's) Pension Plan Years of Service Compensation S. 10 20 30 40 $ 200 $'40 $ 80 $120 $125 $130 $ 400 $ 80 $160 $240 $250 $260 $ 600 $120 $240 $360 $375. $390 $- 800 $160 $320 $480 $500 $520 $1,000 $200 $400 $600 $625 $650 Pension benefits are based on average salary for the highest two years of service and the average of the three highest annual bonuses during the last ten years of service. Years of service includes service with subsidiaries and number 41 years for Mr. Mitchell, 21 years for Ms. Reed, 32 years for Mr. Stewart, 26 years..for Mr. Rawlings and 25 years for Mr. Morrow. Employment and Employment -Related Agreements Employment Agreements In connection with the business combination of Pacific Enterprises and Enova Corporation, Sempra Energy entered into an employment agreement with Warren 1. Mitchell. Mr. Mitchell's agreement provides for an initial employment term of five years (subject to earlier mandatory retirement at age 65) which commenced on the June 26, 1998 completion of the business combination. The term of the agreement is automatically extended by one year on June 26, 2002 and on each June 26 thereafter unless he or Sempra Energy elects not to extend the term. The agreement provides that Mr. Mitchell will serve as the President and principal executive officer of the businesses of Sempra Energy that are economically regulated by the California Public Utilities Commission. For these services, he will receive an annual base salary of not less than $440,000 and will be entitled to participate in (i) annual incentive compensation plans and long term compensation plans and awards providing him with an annual bonus opportunity at least equal (in terms of target, maximum and minimum awards, expressed. as a percentage of annual basesalary) to his opportunities in effect at Pacific Enterprises prior to the completion of the business combination and (ii) all retirement and welfare benefit plans applicable to employees or senior executives of Sempra Energy. 16 The agreement also provides that if Sempra Energy terminates Mr. Mitchell's employment (other than for cause, death or disability) or Mr. Mitchell terminates his employment for good reason, he will be entitled to receive an amount equal to (i) the sum of his annual base salary and annual incentive compensation (equal to the greater of his target bonus for the year of termination or the average of the three years' highest gross bonus awards in the five years preceding termination) multiplied by two, provided that in the event of termination following a change in control such multiplier will be three; (ii) a pro rata portion of the target amount payable under any annual incentive compensation awards for the year or, if greater, the average of the three years' highest gross bonus awards paid to him in the five years preceding the year of termination; and (iii) an additional retirement benefit equal to the present value of the benefits to which he would be entitled under Sempra Energy's defined benefit pension and retirement plans if he continued working for an additional two years and had increased his age by two years as of termination (in each case three years in the event of a termination following a change of control), but not beyond mandatory retirement age of 65. The agreement also provides -for immediate vesting and exercisability of all equity -based longterm incentive compensation awards; pro rata payment of cash - based long term incentive awards at target performance, continued participation in welfare benefit plans for three years; payment of compensation previously deferred; and financial planning and outplacement services. The agreement also provides for a gross -up payment to offset the effects of any excise taxes imposed on Mr. Mitchell under Section 4999 of the Internal Revenue code. Good reason is defined in the employment agreements to include an adverse change in Mr. Mitchell's title, authority, duties, responsibilities or reporting lines; a reduction 'in his base salary or aggregate annualized compensation and benefit opportunities; the relocation of his principal place of employment; and a substantial increase in his business travel obligations. A change in control is defined to include the acquisition by one person or group of 20% or more of the voting power of Sempra Energy's shares; the election of a new majority of the board of Sempra Energy comprised of individuals who are not recommended for election by two-thirds of the current directors or successors to the current director; who were so recommended for election; certain mergers, consolidations or sales of assets that result in the shareholders of Sempra Energy owning less than 60% of the voting power of Sempra Energy or of the surviving entity or its parent; and shareholder approval of the liquidation or dissolution of Sempra Energy. Mr. Mitchell has announced that he will retire on July 1, 200.0. Upon his retirement he will receive a cash payment of approximately $1.8 million, reflective of amounts he would be entitled to under his employment agreement In.addition, the forfeiture and transfer restrictions on his shares of restricted stock will immediately terminate and his stock options will become immediately and fully exercisable. Severance Agreements Sempra Energy has entered into a severance agreement with each of the Gas Company's executive officers, other than Mr. Mitchell for whom severance arrangements are contained in his employment agreement summarized above. The severance agreements provide for the payment of benefits in the event Sempra Energy and its subsidiaries terminate the executive's employment (other than for cause, death or disability) or the executive terminates his or her employment for good reason. The benefits payable under the severance agreements include (i) a lump sum cash payment equal to the executive's annual base salary and average annual bonus for the two years prior to termination multiplied, in certain cases depending upon the officer's position, by as much as 150%; (ii) continuation of health benefits for a period of two years, and (iii) financial planning and outplacement services. In addition, if the termination occurs within two years after a change in control of Sempra Energy, (i) the lump sum cash payment multiple is increased to as much as two; (ii) all equity -based incentive awards immediately vest and become exercisable or payable and all restrictions on such awards immediately lapse; (iii) all deferred compensation is paid out in a lump sum; (iv) a lump sum cash payment is made equal to the present value of the executive's benefits under the Supplemental Executive Retirement Plan calculated as if the executive had attained age 62 (or, if the executive is older than 62, based on the executive's actual age) and applying certain early retirement factors; and 17 (v) continued life, disability, accident and health insurance for two years. The agreements also provide for a gross up payment to offset the effects of any excise tax imposed on the executive under Section 4999 of the Internal Revenue Code. Good reason is defined .in the severance agreements to include the assignment to the executive of duties materially inconsistent with those appropriate for. an executive of Sempra Energy and its subsidiaries, a material reduction in the executive's overall standing and.responsibilities within Sempra Energy and its subsidiaries and. a material reduction in the executive's annualized compensation and benefit opportunities other than across-the- board reductions affecting all similarly situated executives of comparable rank. In addition, following a change in control of Sempra Energy, good reason also includes an adverse change in the executive's title, authority, duties, responsibilities or reporting lines, a 10% or greater reduction in the executive's annualized compensation and benefit opportunities, relocation of the executive's principal place of employment by more than .30 miles, and a substantial increase in business travel obligations. A change in control is defined in the, same manner as in Mr. Mitchell's employment agreement summarized above. SHAREHOLDER PROPOSALS Shareholders intending to bring any business before an Annual Meeting of Shareholders of the Gas Company, including nominations of persons for election as directors, must give written notice to the Secretary of SoCalGas of the business to be presented. The notice must be received at the Gas Company's offices within the periods and must be accompanied by the information required by the By-laws. A copy of these By-law requirements will be provided upon request in writing to the Secretary of the Gas Company. The period for notice of business to be brought by shareholders before the 2000 Annual Meeting of Shareholders has expired. The period for the receipt by SoCalGas of notice of business to be brought by shareholders before the 2001 Annual Meeting of Shareholders will commence on January 11, 2001 and end on March 12, 2001. INDEPENDENT AUDITORS Representatives of Deloitte & Touche LLP, independent auditors for the Gas Company, are expected to be present at the Annual Meeting. They will have the opportunity to make a statement if they desire to do so and to respond to appropriate questions from shareholders. ANNUAL REPORTS The Gas Company's Annual Report to the Securities and Exchange Commission on Form 10-K is being mailed to shareholders together with this Information Statement. 18 LIST OF GOVERNMENTAL AGENCIES STATE OF CALIFORNIA STATE OF CALIFORNIA ATTORNEY GENERAL CALIFORNIA PUBLIC UTILITIES 1515 K ST STE 511 107 S BROADWAY SACRAMENTO CA 94244 LOS ANGELES CA 90012 STATE OF CALIFORNIA - ATTN DIRECTOR DEPT OF GENERAL CITY OF CARLSBAD SERVICES ATTN CITY CLERK 915 CAPITOL MALL 1200 ELM AVE OFFICE BLDG CARLSBAD CA 92008 SACRAMENTO CA 95814 CITY OF CARLSBAD CITY OF CHULA VISTA ATTN CITY ATTORNEY ATTN CITY ATTORNEY 1200 ELM AVE PO BOX 1087 CARLSBAD CA 92008 CHULA VISTA CA 92102 CITY OF CHULA VISTA CITY OF CORONADO ATTN CITY CLERK ATTN CITY ATTORNEY PO BOX 1087 1825 STRAND WAY CHULA VISTA CA 92102 CORONADO CA 92118 CITY OF CORONADO CITY OF DANA POINT ATTN CIN CLERK ATTN CITY ATTORNEY 1825 STRAND WAY 33282 GOLDEN LANTERN CORONADO CA 92118 DANA POINT CA 92629 CITY OF DANA POINT CITY OF DEL MAR ATTN CITY CLERK ATTN CITY ATTORNEY 33282 GOLDEN LANTERN 1050 CAMINO DEL MAR DANA POINT CA 92629 DEL MAR CA 92014 CITY OF DEL MAR CITY OF EL CAJON ATTN CITY CLERK ATTN CITY ATTORNEY 1050 CAMINO DEL MAR 200 E MAIN ST DEL MAR CA 92104 EL CAJON CA 92020 CITY OF EL CAJON CITY OF ENCINITAS ATTN CITY CLERK ATTN CITY ATTORNEY 200 E MAIN ST 505 S VULCAN AVE EL CAJON CA 92020 ENCINITAS CA 92024 CITY OF ENCINITAS CITY OF ESCONDIDO ATTN CITY CLERK ATTN CITY ATTORNEY 505 S VULCAN AVE 201 N BROADWAY ENCINITAS CA 92024 ESCONDIDO CA 92025 CITY OF ESCONDIDO LISA J. HUBBARD ATTN CITY CLERK SAN DIEGO GAS & ELECTRIC CO. 201 N BROADWAY 601 VAN NESS AVE STE 2060 ESCONDIDO CA 92025 SAN FRANCISCO CA 94102 CITY OF IMPERIAL BEACH CITY OF IMPERIAL BEACH ATTN CITY CLERK ATTN CITY ATTORNEY 825 IMPERIOD BEACH BLVD 825 IMPERIAL BEACH BLVD IMPERIAL BEACH CA 92032 IMPERIAL BEACH CA 92032 CITY OF LA MESA CITY OF LA MESA ATTN CITY ATTORNEY ATTN CITY CLERK PO BOX 937 PO BOX 937 • LA MESA CA 92041 LA MESA CA 92041 CRY OF LAGUNA BEACH CITY OF LAGUNA BEACH ATTN CITY ATTORNEY ATTN CITY CLERK 505 FOREST AVE 505 FOREST AVE LAGUNA BEACH CA 92651 LAGUNA BEACH CA 92651 CITY OF LAGUNA NIGUEL i CITY OF LAGUNA NIGUEL ATTN CITY ATTORNEY ATTN CITY CLERK 22781 LA PAZ STE B 22781 LA PAZ STE B LAGUNA NIGUEL CA 92656 LAGUNA NIGUEL CA 92656 CITY OF LEMON GROVE CITY OF LEMON GROVE ATTN CITY ATTORNEY ATTN CITY CLERK 3232 MAIN ST 3232 MAIN ST LEMON GROVE CA 92045 LEMON GROVE CA 92045 CITY OF MISSION VIEJO CITY OF MISSION VIEJO ATTN CITY ATTORNEY ATTN CITY CLERK 25909 PALA SUITE 150 25909 PALA 'SUITE 150 MISSION VIEJO CA 92691-2778 'MISSION VIEJO CA 92691-2778 CITY OF NATIONAL CITY CITY OF NATIONAL CITY ATTN CITY ATTORNEY ATTN CITY CLERK 1243 NATIONAL CITY BLVD 1243 NATIONAL CITY BLVD NATIONAL CITY CA 92050 NATIONAL CITY CA 92050 NAVAL FACILITIES ENGINEERING -WESTERN DIVISION CITY OF OCEANSIDE ATTN UTILITIES MANAGEMENT ATTN CITY CLERK SAN BRUNO CA 94066 704 THIRD ST OCEANSIDE CA 92054 COUNTY OF ORANGE COUNTY OF ORANGE ATTN COUNTY CLERK ATTN COUNTY COUNSEL PO BOX 838 PO BOX 1379 SANTA ANA CA 92702 SANTA ANA CA 92702 CITY OF POWAY CITY OF POWAY ATTN CITY ATTORNEY ATTN CITY CLERK PO BOX 789 PO BOX 789 POWAY CA 92064 POWAY CA 92064 CITY OF SAN CLEMENTE CITY OF SAN CLEMENTE ATTN CITY ATTORNEY ATTN CITY CLERK 100 AVENIDA PRESIDIO 100 AVENIDA PRESIDIO SAN CLEMENTE CA 92672 SAN CLEMENTE CA 92672 CITY OF SAN DIEGO CITY OF SAN DIEGO ATTN CITY ATTORNEY ATTN CITY CLERK 202 C ST 202 C ST SAN DIEGO CA 92101 SAN DIEGO CA 92101 CITY OF SAN DIEGO CITY OF SAN DIEGO ATTN CITY MANAGER ATTN MAYOR 202 C ST 202 C ST SAN DIEGO CA. 92101 SAN DIEGO CA 92101 COUNTY OF SAN DIEGO COUNTY OF SAN DIEGO ATTN COUNTY CLERK ATTN COUNTY COUNSEL P.O. BOX 121750 1600 PACIFIC HWY SAN DIEGO CA 92101 SAN DIEGO CA 92101 CITY OF SAN MARCOS CITY OF SAN MARCOS ATTN CITY ATTORNEY ATTN CITY CLERK 1 CIVIC CENTER DR 1 CIVIC CENTER DR SAN MARCOS CA 92069 SAN MARCOS CA 92069 CITY OF SANTEE CITY OF SANTEE ATTN CITY ATTORNEY ATTN CITY CLERK 10601 MAGNOLIA AVENUE 10601 MAGNOLIA AVENUE SANTEE CA 92071 SANTEE CA! 92071 CITY OF SOLANA BEACH CITY OF SOLANA BEACH ATTN CITY ATTORNEY ATTN CITY CLERK 635 S HIGHWAY 101 635 S HIGHWAY 101 SOLANA BEACH CA 92075 SOLANA BEACH CA 92075 UNITED STATES GOVERNMENT CITY OF VISTA GENERAL SERVICES ADMINISTRATION ATTN CITY ATTORNEY 300 N LOS ANGELES PO BOX 1988 LOS ANGELES CA 90012 VISTA CA 92083 CITY OF VISTA ATTN CITY CLERK PO BOX 1988 VISTA CA 92083 ATTORNEY GENERAL STATE OF CALIFORNIA 130D'I' STREET SACRAMENTO, CA 95814 COUNTY COUNSEL FRESNO COUNTY 2220 TULARE ST., 5TH FLOOR FRESNO, CA 93721 RALPH B. JORDAN COUNTY COUNSEL KERN COUNTY 1415 TRUXTUN BAKERSFIELD, CA 93301 JOAN L BULLOCK COUNTY CLERK KINGS COUNTY 1400 W. LACEY BLVD. HANFORD, CA 93230 DISTRICT ATTORNEY ORANGE COUNTY 700 CMC CENTER DRIVE WEST SANTA ANA, CA 92701 COUNTY CLERK RIVERSIDE COUNTY 4080 LEMON STREET RIVERSIDE, CA 92501 COUNTY CLERK SAN LUIS OBISPO COUNTY COURT HOUSE ANNEX SAN LUIS OBISPO, CA 93408 S. M. RODEN DISTRICT ATTORNEY SANTA BARBARA COUNTY 105 E. ANAPUMA ST. SANTA BARBARA, CA 93102 DEPARTMENT OF GENERAL SERVICES COUNTY CLERK STATE OF CALIFORNIA FRESNO COUNTY 915 CAPITOL MALL 2221 KERN ST. SACRAMENTO, CA 95814 FRESNO, CA 93721 HARRY M. FREE WILLIAM JAMES COUNTY CLERK DISTRICT ATTORNEY IMPERIAL COUNTY IMPERIAL COUNTY EL CENTRO, CA 92243 940 W. MAIN ST., STE. 101 LEE A. BRANCH EL CENTRO, CA 92243 SUE PICKETT J. G. O'ROURKE CLERK OF THE BOARD DISTRICT ATTORNEY KERN COUNTY KINGS COUNTY 1115 TRUXTON 1400 W. LACEY BLVD. BAKERSFIELD, CA 93301 HANFORD. CA 93230 DISTRICT ATTORNEY COUNTY CLERK LOS ANGELES COUNTY LOS ANGELES COUNTY 111 NO. HILL STREET 12400 E. IMPERIAL HIGHWAY LOS ANGELES, CA 90012 NORWALK, CA 90650 LEE A. BRANCH DISTRICT ATTORNEY COUNTY CLERK RIVERSIDE COUNTY ORANGE COUNTY 2041 IOWA AVE. 700 CIVIC CENTER DR. RM D100 RIVERSIDE, CA 92501 SANTA ANA, CA 92701 COUNTY CLERK SAN BERNARDINO COUNTY 175 W. 5TH ST SAN BERNARDINO, CA 92415 DISTRICT ATTORNEY SAN LUIS OBISPO COUNTY COURT HOUSE ANNEX SAN LUIS OBISPO, CA 93408 JAY BAYLESS COUNTY CLERK TULARE COUNTY CIVIC CENTER VISALIA, CA 93277 MICHAEL D. BRADBURY R. L HAMM DISTRICT ATTORNEY COUNTY CLERK VENTURA COUNTY VENTURA COUNTY 800 SO. VICTORIA AVE. 800 SO. VICTORIA AVE. VENTURA, CA 93009 VENTURA, CA 93009 DISTRICT ATTORNEY SAN BERNARDINO COUNTY 175 W. 5TH ST. SAN BERNARDINO, CA 92415 H. C. MENZEL COUNTY CLERK SANTA BARBARA COUNTY 105 E. ANAPUMA ST. SANTA BARBARA, CA 93102 WILLIAM A. RICHMOND DISTRICT ATTORNEY TULARE COUNTY CIVIC CENTER VISALIA, CA 93277 CITY ATTORNEY CITY CLERK CITY ATTORNEY ADELANTO CITY HALL ADELANTO CITY HALL AGOURA HILLS CITY HALL P.O. BOX 10 P. O. 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ARTESIA, CA 90701 ARTESIA, CA 90701 ARVIN, CA 93203 CITY CLERK CITY ATTORNEY CITY CLERK ARVIN CITY HALL ATASCADERO CITY HALL ATASCADERO CITY HALL 200 CAMPUS DR. 6500 PALMA AVE. 6500 PALMA AVE. ARVIN, CA 93203 ATASCADERO, CA 93422 ATASCADERO, CA 93422 CITY ATTORNEY CITY CLERK CITY ATTORNEY AVENAL CITY HALL AVENAL CITY HALL AZUSA CITY HALL 919 SKYLINE AVE. 919 SKYLINE AVE. 213 E. FOOTHILL BLVD. AVENAL, CA 93204 AVENAL, CA 93204 AZUSA, CA 91702 CITY CLERK CITY ATTORNEY CITY CLERK AZUSA CITY HALL BAKERSFIELD CITY HALL BAKERSFIELD CITY HALL 213 E. FOOTHILL BLVD. 1501 TRUXTUN AVE. 1501 TRUXTUN AVE. AZUSA, CA 91702 BAKERSFIELD, CA 93301 BAKERSFIELD, CA 93301 CITY ATTORNEY CITY CLERK CITY ATTORNEY BALDWIN PARK CITY HALL BALDWIN PARK CITY HALL BANNING CITY HALL 14403 E. PACIFIC AVE. 14403 E. PACIFIC AVE. 99 EAST RAMSEY ST. BALDWIN PARK, CA 91706 BALDWIN PARK, CA 91706 BANNING, CA 92220 CITY CLERK CITY ATTORNEY CITY CLERK BANNING CTTY HALL BEAUMONT CITY HALL BEAUMONT CITY HALL 99 EAST RAMSEY ST. 550 6TH AVE. 550 STH AVE. BANNING, CA 92220 BEAUMONT, CA 92223 BEAUMONT, CA 92223 CITY ATTORNEY CITY CLERK CITY ATTORNEY BELL CITY HALL BELL CITY HALL BELL GARDENS CITY HALL 6330 PINE AVE. 6330 PINE AVE. 7100 SO. GARFIELD AVE. BELL, CA 90201 BELL, CA 90201 BELL GARDENS, CA 90201 CITY CLERK CITY ATTORNEY CITY CLERK BELL GARDENS CITY HALL BELLFLOWER CITY HALL BELLFLOWER CITY HALL 7100 SO. GARFIELD AVE. 18606 E. CIVIC CENTER DR. 16600 E. CIVIC CENTER DR. BELL GARDENS, CA 90201 BELLFLOWER, CA 90706 BELLFLOWER, CA 90706 CITY ATTORNEY CITY CLERK CITY ATTORNEY BEVERLY HILLS CITY HALL BEVERLY HILLS CITY HALL BIG BEAR LAKE CITY 450 NO. CRESCENT DR 450 NO. CRESCENT DR. P. 0. BOX 2800 BEVERLY HILLS, CA 90210 BEVERLY HILLS, CA 90210 BIG BEAR LAKE, CA 92315 CITY CLERK CITY CLERK CITY ATTORNEY BIG BEAR LAKE CITY BLYTHE CITY HALL BLYTHE CITY HALL P. O. BOX 2800 200 NO. SPRING ST. 200 NO. SPRING ST. BIG BEAR LAKE, CA 92315 CITY OF.BLYTHE, CA 92225 CITY OF BLYTHE, CA 92225 CITY ATTORNEY CITY CLERK CITY ATTORNEY BRADBURY CITY HALL BRADBURY CRY HALL BRAWLEY CITY HALL 600 WINSTON AVE. 600 WINSTON AVE. 400 MAIN ST. BRADBURY, CA 91010 BRADBURY, CA 91010 BRAWLEY, CA 92227 CITY CLERK CITY ATTORNEY CITY CLERK BRAWLEY CITY HALL BREA CITY HALL BREA CITY HALL 400 MAIN STREET 1 CIVIC CENTER CIRCLE 1 CMC CENTER CIRCLE BRAWLEY, CA 92227 BREA, CA 92621 BREA, CA 92621 CITY ATTORNEY CITY CLERK CITY ATTORNEY BUENA PARK CITY HALL BUENA PARK CITY HALL BURBANK CITY HALL 6650 BEACH BLVD. 6650 BEACH BLVD. 275 E. OLIVE AVE. BUENA PARK, CA 90620 BUENA PARK, CA 90620 BURBANK, CA 91502 CITY CLERK CITY ATTORNEY CITY CLERK BURBANK CITY HALL CALEXICO CITY HALL CALEXICO CITY HALL 275 E. OLIVE AVE. 408 HEBER AVE. 408 HEBER AVE. BURBANK, CA 91502 CALEXICO, CA 92231 CALEXICO, CA 92231 CITY ATTORNEY CITY CLERK CITY ATTORNEY CALIFORNIA CITY CITY HALL CALIFORNIA CITY CITY HALL CAL.IPATRIA CITY HALL 21000 HACIENDA BLVD. 21000 HACIENDA BLVD. 101 NO. LAKE AVE. CALIFORNIA CITY, CA 93505 CALIFORNIA CITY, CA 93505 CALIPATRIA, CA 92233 CITY CLERK CITY ATTORNEY CITY CLERK CALIPATRIA CITY HALL CAMARILLO CITY HALL CAMARILLO CITY HALL 101 NO. LAKE AVE. 601 CARMEN DRIVE 601 CARMEN DRIVE CALIPATRIA, CA 92233 CAMARILLO, CA 93010 CAMARILLO, CA 93010 CITY ATTORNEY CITY CLERK CITY ATTORNEY CANYON LAKE CITY CANYON LAKE CITY CARPINTERIA CITY HALL 31532 RAILROAD CANYON RD, 9101 31532 RAILROAD CANYON RD, #161 5775 CARPINTERIA AVE. CANYON LAKE, CA 92587 CANYON LAKE, CA 92587 CARPINTERIA, CA 93013 CITY CLERK CITY ATTORNEY CITY CLERK CARPINTERIA CITY HALL CARSON CITY HALL CARSON CITY HALL 5775 CARPINTERIA AVE. 701 E. CARSON ST. 701 E. CARSON ST. CARPINTERIA, CA 93013 CARSON, CA 90745 CARSON, CA 90745 CITY ATTORNEY CITY CLERK CITY ATTORNEY CATHEDRAL CITY CITY HALL CATHEDRAL CITY CITY HALL CERRITOS CITY HALL 68625 PEREZ ROAD 68625 PEREZ ROAD BLOOMFIELD AND 183RD ST. CATHEDRAL CITY, CA 92234 CATHEDRAL CITY, CA 92234 CERRITOS, CA 90701 CITY CLERK CITY ATTORNEY CITY CLERK CERRITOS CITY HALL CHINO CITY HALL CHINO CITY HALL BLOOMFIELD AND 183RD ST. 13220 CENTRAL AVE. 13220 CENTRAL AVE. CERRITOS, CA 90701 CHINO, CA 91710 CHINO, CA 91710 CITY CLERK CITY ATTORNEY CITY ATTORNEY CLAREMONT CITY HALL CLAREMONT CITY HALL 60ACHELLA 61TY HALL 207 HARVARD AVE. 207 HARVARD AVE. 1515 SIXTH ST. CLAREMONT, CA 91711 CLAREMONT, CA 91711 COACHELLA, CA 92236 CITY CLERK CITY ATTORNEY CITY CLERK COACHELLA CITY HALL COLTON CITY HALL COLTON CITY HALL 1515 SIXTH ST. 650 N. LACADENA DR. 650 N. LACADENA DR. COACHELLA, CA 92236 COLTON. CA 92324 COLTON, CA 92324 CITY ATTORNEY CITY CLERK CITY ATTORNEY COMMERCE CITY HALL COMMERCE CITY HALL COMPTON CITY HALL 5655 JILSON ST. 5655 JILSON ST. 205 SO. WILLOWBROOK AVE. COMMERCE, CA 90040 COMMERCE, CA 90040 COMPTON, CA 90220 CITY CLERK CITY ATTORNEY CITY CLERK COMPTON CITY HALL CORCORAN CITY HALL CORCORAN CITY HALL 205 SO. WILLOWBROOK AVE. 1033 CHITTENDEN AVE. 1033 CHITTENDEN AVE. COMPTON, CA 90220 CORCORAN. CA 93212 CORCORAN, CA 93212 CITY ATTORNEY CITY CLERK CITY ATTORNEY CORONA CITY HALL CORONA CRY HALL COSTA MESA CITY HALL 815 W. SIXTH ST. 815 W. SIXTH ST. 77 FAIR DRIVE CORONA, CA 91720 CORONA, CA 91720 COSTA MESA, CA 92626 CITY CLERK CITY ATTORNEY CRY CLERK COSTA MESA CITY HALL COVINA CITY HALL COVINA CITY HALL 77 FAIR DRIVE 125 E. COLLEGE ST. 125 E. COLLEGE ST. COSTA MESA, CA 92626 COVINA, CA 91723 COVINA. CA 91723 CITY ATTORNEY CITY CLERK CRY ATTORNEY CUDAHY CITY HALL CUDAHY CITY HALL CULVER CITY CITY HALL 5240 SANTA ANA ST. 5240 SANTA ANA ST. 9770 CULVER BLVD. CUDAHY, CA 90201 CUDAHY, CA 90201 CULVER CRY, CA 90230 CITY CLERK CITY ATTORNEY CRY CLERK CULVER CITY CITY HALL CYPRESS CITY HALL CYPRESS CITY HALL 9770 CULVER BLVD. 5275 ORANGE AVE. 5275 ORANGE AVE. CULVER CITY, CA 90230 CYPRESS, CA 90630 CYPRESS, CA 90630 CITY ATTORNEY CITY CLERK CITY ATTORNEY DANA POINT CITY DANA POINT CITY DELANO CRY HALL 33282 GOLDEN LANTERN ST. 33282 GOLDEN LANTERN ST. 1015 11TH AVE. DANA POINT, CA 92629 DANA POINT, CA 92629 DELANO, CA 93215 CITY CLERK CITY ATTORNEY CITY CLERK DELANO CITY HALL DESERT HOT SPRINGS CRY HALL DESERT HOT SPRINGS CITY HALL 1015 11TH AVE. 65950 PIERSON BL 65950 PIERSON BL DELANO, CA 93215 DESERT HOT SPRINGS, CA 92240 DESERT HOT SPRINGS, CA 92240 CRY ATTORNEY CITY CLERK CITY ATTORNEY DIAMOND BAR CITY DIAMOND BAR CITY DINUBA CITY HALL 21660 E. COPLEY DR. 9100 21660 E. COPLEY DR., #100 1390 E. ELIZABETH WAY DIAMOND BAR, CA 91765 DIAMOND BAR, CA 91765 DINUBA, CA 93618 CITY CLERK CITY ATTORNEY CITY CLERK DINUBA CITY HALL DOWNEY CITY HALL DOWNEY CITY HALL 1390 E. ELIZABETH WAY 8425 2ND ST. 8425 2ND ST. DINUBA, CA 93618 DOWNEY, CA 90241 DOWNEY, CA 90241 CITY CLERK CITY ATTORNEY CITY ATTORNEY DUARTE CITY HALL DUARTE CITY HALL EL CENTRO CITY HALL 1600 HUNTINGTON DR. 1600 HUNTINGTON DR. 1275 MAIN ST. DUARTE, CA 91010 DUARTE, CA 91010 EL CENTRO, CA 92243 CITY CLERK CITY ATTORNEY CITY CLERK EL CENTRO CITY HALL EL MONTE CITY HALL EL MONTE CITY HALL 1275 MAIN ST. 11333 VALLEY BLVD. 11333 VALLEY BLVD. EL CENTRO, CA 92243 EL MONTE, CA 91734 EL MONTE; CA 91734 CITY ATTORNEY CITY CLERK CITY ATTORNEY EL SEGUNDO CITY HALL EL SEGUNDO CITY HALL EXETER CITY HALL 350 MAIN ST. 350 MAIN ST. P. 0. BOX 237 EL SEGUNTO, CA 90245 EL SEGUNDO, CA 90245 EXETER, CA 93221 CITY CLERK CITY ATTORNEY CITY CLERK EXETER CITY HALL FARMERSVILLE CITY HALL FARMERSVILLE CITY HALL P. 0. BOX 237 147 E. FRONT ST. t47 E. FRONT ST. EXETER, CA 93221 FARMERSVILLE, CA 93223 FARMERSVILLE, CA 93223 CITY ATTORNEY CITY CLERK DEP. CITY CLERK FILLMORE CITY HALL FILLMORE CITY HALL FONTANA CITY 524 SESPE AVE. 524 SESPE AVE. 8353 SIERRA AVE. FILLMORE, CA 93015 FILLMORE, CA 93015 FONTANA, CA 92335 CITY ATTORNEY CITY ATTORNEY CITY CLERK FONTANA CITY HALL FOUNTAIN VALLEY CITY HALL FOUNTAIN VALLEY CITY HALL 8353 SIERRA AVE. 10200 SLATER AVE. 10200 SLATER AVE. FONTANA, CA 92335 FOUNTAIN VALLEY, CA 92708 FOUNTAIN VALLEY, CA 92708 CITY ATTORNEY CITY CLERK CITY ATTORNEY FOWLER CITY FOWLER CITY FULLERTON CITY HALL 128 SOUTH FIFTH 128 SOUTH FIFTH 303W. COMMONWEALTH FOWLER, CA 23625 FOWLER, CA 93625 FULLERTON. CA 92632 CITY CLERK CITY ATTORNEY CITY CLERK FULLERTON CITY HALL GARDEN GROVE CITY HALL GARDEN GROVE CITY HALL 303 W. COMMONWEALTH 11300 STANFORD AVE. 11300 STANFORD AVE. FULLERTON, CA 92632 GARDEN GROVE, CA 92640 GARDEN GROVE, CA 92640 CITY ATTORNEY CITY CLERK CITY ATTORNEY GARDENA CITY HALL GARDENA CITY HALL GLENDALE CITY HALL 1700 W 162ND ST. 1700 W 162ND ST. 613 E. BROADWAY GARDENA, CA 90247 GARDENA, CA 90247 GLENDALE, CA 91205 CITY CLERK CITY ATTORNEY CITY CLERK GLENDALE CITY HALL GLENDORA CITY HALL GLENDORA CITY HALL 613 E. BROADWAY 116 E. FOOTHILL BLVD. 116 E. FOOTHILL BLVD. GLENDALE, CA 91205 GLENDORA, CA 91740 GLENDORA, CA 91740 CITY ATTORNEY CITY CLERK CITY ATTORNEY GRAND TERRACE CITY HALL GRAND TERRACE CITY HALL GROVER CITY CITY HALL 22795 BARTON ROAD 22795 BARTON ROAD 154 SO. 8TH ST. GRAND TERRACE, CA 92324 GRAND TERRACE, CA 92324 GROVER CITY, CA 93433 CITY CLERK GROVER CITY CITY HALL 154 SO. 8TH ST. GROVER CITY, CA 93433 CITY ATTORNEY HANFORD CITY HALL 400 NO. DOUTY HANFORD, CA 93230 CITY CLERK HAWAIIAN GARDENS CITY HALL 21815 PIONEER BLVD. HAWAIIAN GARDENS, CA 90716 CITY ATTORNEY HEMET CITY HALL 450 E. LATHAN AVE. HEMET, CA 92343 CITY CLERK HERMOSA BEACH CITY HALL 1315 VALLEY DR. HERMOSA BEACH, CA 90254 CITY ATTORNEY HIDDEN HILLS CITY HALL 6165 SPRING VALLEY RD. HIDDEN HILLS, CA 91302 CITY CLERK HIGHLAND CITY 26965 BASE LINE HIGHLAND, CA 92346 CITY ATTORNEY GUADALUPE CITY HALL 918 OBISPO ST. GUADALUPE, CA 93434 CITY CLERK HANFORD CITY HALL 400 NO.. DOUTY HANFORD, CA 93230 CITY ATTORNEY HAWTHORNE CITY HALL 4455 W. 126TH ST. HAWTHORNE, CA 90.250 CITY CLERK HEMET CITY HALL 450 E. LATHAM AVE. HEMET, CA 92343 CITY ATTORNEY HESPERIA CITY 15776 MAIN STREET HESPERIA, CA 92345 CITY CLERK HIDDEN HILLS CITY HALL 6165 SPRING VALLEY RD. HIDDEN HILLS, CA 91302 CITY ATTORNEY HOLTVILLE CITY HALL 121 W. 5TH ST. HOLTVILLE, CA 92250 CITY CLERK GUADALUPE CITY HALL 918 OBISPO ST. GUADALUPE, CA 93434 CITY ATTORNEY HAWAIIAN GARDENS CITY HALL 21815 PIONEER BLVD. HAWAIIAN GARDENS, CA 90716 CITY CLERK HAWTHORNE CITY HALL 4455 W. 126TH ST. HAWTHORNE, CA 90250 CITY ATTORNEY HERMOSA BEACH CITY HALL 1315 VALLEY DR. HERMOSA BEACH, CA 90254 CITY CLERK HESPERIA CITY 15776 MAIN STREET HESPERIA, CA 92345 CITY ATTORNEY HIGHLAND CITY 26985 BASE LINE HIGHLAND, CA 92346 CITY CLERK HOLTVILLE CITY HALL 121 W..5TH ST. HOLTVILLE, CA 92250 CITY ATTORNEY CITY CLERK CITY ATTORNEY HUNTINGTON BEACH CITY HALL HUNTINGTON BEACH CITY HALL HUNTINGTON PARK CITY HALL 2000 MAIN ST. 2000 MAIN ST. 6550 MILES AVE. HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 HUNTINGTON PARK, CA 90255 CITY CLERK CITY ATTORNEY CITY CLERK HUNTINGTON PARK CITY HALL IMPERIAL CITY HALL IMPERIAL CITY HALL 6550 MILES AVE.. 420 SO. IMPERIAL AVE. 420 SO. IMPERIAL AVE. HUNTINGTON PARK, CA 90255 IMPERIAL, CA 92251 IMPERIAL, CA 92251 CITY ATTORNEY INDIAN WELLS CITY HALL 44950 ELDORADO DR. INDIAN WELLS, CA 92210 CITY CLERK INDIO CITY HALL 150 CMC CENTER MALL INDIO, CA 92202 CITY ATTORNEY INGLEWOOD CITY HALL 1 MANCHESTER BLVD. INGLEWOOD, CA 90301 CITY CLERK IRVINE CITY HALL P. 0. BOX 19575 IRVINE, CA 92713 CITY ATTORNEY KINGSBURG CITY HALL 1401 DRAPER ST. KINGSBURG, CA 93631 CITY CLERK LA CANADA FLINTRIDGE CITY HALL 1327 FOOTHILL BLVD. LA CANADA FLINTRIDGE, CA 91011 CITY ATTORNEY LA HABRA HEIGHTS CITY HALL 1245 NO. HACIENDA BLVD. LA HABRA HEIGHTS, CA 90631 CITY CLERK INDIAN WELLS CITY HALL 44-950 EL DORADO DR. INDIAN WELLS, CA 92210 CITY ATTORNEY INDUSTRY CITY HALL 15651 STANFORD ST. CITY OF INDUSTRY, CA CITY CLERK INGLEWOOD CITY HALL 1 MANCHESTER BLVD. INGLEWOOD, CA 90301 CITY ATTORNEY INDIO CITY HALL 150 CMC CENTER MALL INDIO, CA 92202 CITY CLERK INDUSTRY CITY HALL 15651 STANFORD ST. 91744 CITY OF INDUSTRY, CA 91744 CITY ATTORNEY IRWINDALE CITY HALL 5050 NO. IRWINDALE AVE. IRWINDALE, CA 91706 CITY CLERK KINGSBURG CITY HALL 1401 DRAPER ST. KINGSBURG, CA 93631 CITY ATTORNEY LA HABRA CITY HALL CIVIC CENTER LA HABRA, CA 90631 CITY CLERK LA HABRA HEIGHTS CITY HALL 1245 NO. HACIENDA BLVD. LA HABRA HEIGHTS, CA 90631 CITY ATTORNEY IRVINE CITY HALL P. 0. BOX 19575 IRVINE, CA 92713 CITY CLERK IRWINDALE CITY HALL 5050 NO. IRWINDALE AVE. IRWINDALE, CA 91706 CITY ATTORNEY LA CANADA FLINTRIDGE 300 SOUTH GRAND SUITE 1500 LOS ANGELES, CA 90071 CITY CLERK LA HABRA CITY HALL CIVIC CENTER LA HABRA, CA 90631 CITY ATTORNEY LA MIRADA CITY HALL 13700 SO. LA MIRADA BLVD. LA MIRADA, CA 90638 CITY CLERK CITY ATTORNEY CITY CLERK LA MIRADA CITY HALL LA PALMA CITY HALL LA PALMA CITY HALL 13700 SO. LA MIRADA BLVD. 7822 WALKER ST. 7822 WALKER ST. LA MIRADA, CA 90638 LA PALMA, CA 90623 LA PALMA, CA 90623 CITY ATTORNEY CITY CLERK CITY ATTORNEY LA PUENTE CITY HALL LA PUENTE CITY HALL LA QUINTA CITY HALL 15900 E. MAIN ST. 15900 E. MAIN ST. P. O. BOX 1504 LA PUENTE, CA 91744 LA PUENTE, CA 91744 LA QUINTA, CA 92253 CITY CLERK CITY ATTORNEY CITY CLERK LA QUINTA CITY HALL LA VERNE CITY HALL LA VERNE CITY HALL P. O. BOX 1504 3660 D STREET 3660 0 STREET LA QUINTA, CA 92253 LA VERNE, CA 91750 LA VERNE, CA 91750 CITY ATTORNEY CITY CLERK CITY ATTORNEY LAGUNA BEACH CITY HALL LAGUNA BEACH CITY HALL LAGUNA NIGUEL CITY 505 FOREST AVE. 505 FOREST AVE. 27821 LA PAZ ROAD LAGUNA BEACH, CA 92651 LAGUNA BEACH, CA 92651 LAGUNA NIGUEL, CA 92656 CITY CLERK CITY ATTORNEY CITY CLERK LAGUNA NIGUEL CITY LAKE ELSINORE CITY HALL LAKE ELSINORE CITY HALL 27821 LA PAZ ROAD 130 S. MAIN ST. 130 S. MAIN ST. LAGUNA NIGUEL, CA 92656 LAKE ELSINORE, CA 92330 LAKE ELSINORE, CA 92330 CITY ATTORNEY CITY CLERK CITY ATTORNEY LAKEWOOD CITY HALL LAKEWOOD CITY HALL LANCASTER CITY HALL 5050 CLARK AVE. 5050 CLARK AVE. 44933 N. FERN AVE. LAKEWOOD, CA 90714 LAKEWOOD, CA 90714 LANCASTER, CA 93534 CITY CLERK CITY ATTORNEY CITY CLERK LANCASTER CITY HALL LAWNDALE CITY LAWNDALE CITY HALL 44933 N. FERN AVE. 611 ANTON BL, SUITE 1400 14717 BURIN AVE. LANCASTER, CA 93534 COSTA MESA, CA 92628 LAWNDALE, CA 90260 CITY ATTORNEY CITY CLERK CITY ATTORNEY LEMOORE CITY HALL LEMOORE CITY HALL LINDSAY CITY HALL 119 FOX ST. 119 FOX ST. 251 E. HONOLULU ST. LEMOORE, CA 93245 LEMOORE, CA 9 3245 LINDSAY, CA 93247 CITY CLERK CITY ATTORNEY CITY CLERK LINDSAY CITY HALL LOMA LINDA CITY LOMA LINDA CITY HALL 251 E. HONOLULU ST. 11800 Central Ave, Suite 125 25541 BARTON RD. LINDSAY, CA 93247 CHINO, CA 91710 LOMA LINDA, CA 92354 CITY ATTORNEY CITY CLERK CITY ATTORNEY LOMITA CITY HALL LOMITA CITY HALL LOMPOC CITY HALL 24300 NARBONNE AVE. 24300 NARBONNE AVE. 100 CIVIC CENTER PLAZA LOMITA, CA 90717 LOMITA, CA 90717 LOMPOC, CA 93438 CITY CLERK CITY ATTORNEY CITY CLERK LOMPOC CITY HALL LONG BEACH CITY HALL LONG BEACH CITY HALL 100 CIVIC CENTER PLAZA 333 W. OCEAN BLVD. 333 W. OCEAN BLVD. LOMPOC, CA 93438 LONG BEACH, CA 90802 LONG BEACH, CA 90802 CITY ATTORNEY CITY CLERK CITY ATTORNEY LOS ALAMITOS CITY HALL LOS ALAMITOS CITY HALL LOS ANGELES CITY HALL 3191 KATELLA 3191 KATELLA 200 NO. SPRING ST. LOS ALAMITOS, CA 90720 LOS ALAMITOS, CA 90720 LOS ANGELES, CA 90012 CITY CLERK CITY ATTORNEY CITY CLERK LOS ANGELES CITY HALL LYNWOOD CITY HALL LYNWOOD CITY HALL 200 NO. Main St., Ste 1216. 11330 BULUS RD. 11330 BULLIS RD. LOS ANGELES, CA 90012-4125 LYNWOOD, CA 90262 LYNWOOD, CA 90262 CITY ATTORNEY CITY CLERK CITY ATTORNEY MANHATTAN BEACH CITY HALL MANHATTAN BEACH CITY HALL MARICOPA CITY HALL 1400 HIGHLAND AVE. 1400 HIGHLAND AVE. P. 0. BOX 548 MANHATTAN BEACH, CA 90266 MANHATTAN BEACH, CA 90266 MARICOPA, CA 93252 CITY CLERK CITY ATTORNEY CITY CLERK MARICOPA CITY HALL MAYWOOD CITY HALL MAYWOOD CITY HALL P. 0. BOX 546 4319 E. SLAUSON AVE. 4319 E. SLAUSON AVE. MARICOPA, CA 93252 MAYWOOD, CA 90270 MAYWOOD, CA 90270 CITY ATTORNEY CITY CLERK CITY ATTORNEY MCFARLAND CITY HALL MCFARLAND CITY HALL MISSION VIEJO CITY 401 W. KERN 401 W. KERN 25909 PALA, STE. 150 MCFARLAND, CA 93250 MCFARLAND, CA 93250 MISSION VIEJO, CA 92691 CITY CLERK CITY ATTORNEY CITY CLERK MISSION VIEJO CITY MONROVIA CITY HALL MONROVIA CITY HALL 25909 PALA, STE. 150 415 SO. IVY AVE. 415 SO. IVY AVE. MISSION VIEJO, CA 92691 MONROVIA, CA 91016 MONROVIA, CA 91016 CITY ATTORNEY CITY CLERK CITY ATTORNEY MONTCLAIR CITY HALL MONTCLAIR CITY HALL MONTEBELLO CITY HALL 5111 BENITO ST. 5111 BENITO ST. 1600 BEVERLY BLVD. MONTCLAIR, CA 91763 MONTCLAIR, CA 91763 MONTEBELLO, CA 90640 CITY CLERK CITY ATTORNEY CITY CLERK MONTEBELLO CITY HALL MONTEREY PARK CITY HALL MONTEREY PARK CITY HALL 1600 BEVERLY BLVD. 320 W. NEWMARK AVE. 320 W. NEWMARK AVE. MONTEBELLO, CA 90640 MONTEREY PARK, CA 91754 MONTEREY PARK, CA 91754 CITY ATTORNEY CITY CLERK CITY ATTORNEY MOORPARK CITY HALL MOORPARK CITY HALL MORENO VALLEY CITY HALL 799 MOORPARK AVE. 799 MOORPARK AVE. P. 0. BOX 1440 MOORPARK, CA 93021 MOORPARK, CA 93021 MORENO VALLEY, CA 92556 CITY CLERK CITY ATTORNEY CITY CLERK MORENO VALLEY CITY HALL MORRO BAY CITY HALL MORRO BAY CITY HALL P. 0. BOX 1440 DUNES ST. & SHASTA AVE. DUNES ST. & SHASTA AVE: MORENO VALLEY, CA 92556 MORRO BAY, CA 93442 MORRO BAY, CA 93442 CITY ATTORNEY MURIETA CITY HALL 26442 BECKMAN CT. MURIETA, CA 92562 CITY CLERK NEEDLES CITY 1111 BAILEY AVE. NEEDLES, CA 92363 CITY ATTORNEY NORCO CITY HALL 3954 OLD HAMNER AVE. NORCO, CA 91760 CITY CLERK NORWALK CITY HALL 12700 NORWALK BLVD. NORWALK, CA 90650 CITY ATTORNEY ONTARIO cm HALL 303 'B" ST. ONTARIO, CA 91764 CITY CLERK MURIETA CITY HALL 26442 BECKMAN'&. MURIETA, CA 92562 CITY ATTORNEY NEWPORT BEACH CITY HALL 3300 NEWPORT BLVD. NEWPORT BEACH, CA 92660 CITY CLERK NORCO CITY HALL 3954 OLD HAMNER AVE. NORCO, CA 91760 CITY ATTORNEY OJAI CITY HALL 401 SO. VENTURA ST. OJAI, CA 93023 CITY CLERK ONTARIO CITY HALL 303 "B" ST. ONTARIO, CA 91764 CITY ATTORNEY NEEDLES CITY 817 V Street NEEDLES, CA 92363 CITY CLERK NEWPORT BEACH CITY HALL 3300 NEWPORT BLVD. NEWPORT BEACH, CA 92660 CITY ATTORNEY NORWALK CITY HALL 12700 NORWALK BLVD. NORWALK, CA 90650 CITY CLERK OJAI CITY HALL 401 SO. VENTURA ST. OJAI, CA 93023 CITY ATTORNEY ORANGE CITY HALL 300 E. CHAPMAN AVE. ORANGE, CA 92666 CITY CLERK CITY ATTORNEY CITY CLERK ORANGE CITY HALL ORANGE COVE CITY HALL ORANGE COVE CITY HALL 300 E. CHAPMAN AVE. 555 SIXTH ST. 555 SIXTH ST. ORANGE, CA 92666 ORANGE COVE, CA 93646 ORANGE COVE, CA 93646 CITY ATTORNEY CITY CLERK CITY ATTORNEY OXNARD CITY HALL OXNARD CITY HALL PALM DESERT CITY HALL 305 W. THIRD ST. 305 W. THIRD ST 73510 FRED WARING DR. OXNARD, CA 93030 OXNARD, CA 93030 PALM DESERT, CA 92260 CITY CLERK CITY ATTORNEY CITY CLERK PALM DESERT CITY HALL PALM SPRINGS CITY HALL PALM SPRINGS CITY HALL 73510 FRED WARING DR. P. 0. BOX 2743 P. 0. BOX 2743 PALM DESERT, CA 92260 PALM SPRINGS, CA 92263 PALM SPRINGS. CA 92263 CITY ATTORNEY CITY CLERK CITY CLERK PALMDALE CITY HALL PALMDALE CITY HALL PALOS VERDES ESTATES 708 EAST PALMDALE BLVD. 708 EAST PALMDALE.BLVD. 340 PALOS VERDES DRIVE W. PALMDALE, CA 93550 PALMDALE. CA 93550 PALOS VERDES ESTATES, CA 90274 CITY ATTORNEY PALOS VERDES ESTATES CITY CITY ATTORNEY CITY CLERK 300 SO. GRAND AVE., STE. 1500 PARAMOUNT CITY HALL PARAMOUNT CITY HALL LOS ANGELES, CA 90071 16400 SO. COLORADO ST. 16400 SO. COLORADO ST. PARAMOUNT, CA 90274 PARAMOUNT, CA 90274 CITY ATTORNEY CITY CLERK CITY ATTORNEY PARLIER CITY HALL PARLIER CITY HALL PASADENA CITY HALL 1100 E. PARLIER AVE. 1100 E. PARLIER AVE. 100 NO. GARFIELD AVE. PARUER, CA 93648 PARLIER, CA 93648 PASADENA, CA 91109 CITY CLERK PASADENA CITY HALL CITY ATTORNEY CITY CLERK 100 NO. GARFIELD AVE. PASO ROBLES CITY HALL PASO ROBLES CITY HALL PASADENA, CA 91109 801 4TH ST. 801 4TH T. PASO ROBLES, CA 93446 P ASO ROBLES, CA 93446 CITY ATTORNEY PERRIS CITY HALL CITY CLERK CITY ATTORNEY 101 NO. 'D" ST. PERRIS CITY HALL PICO RIVERA CITY HALL PERRIS, CA 92370 101 NO. 'D" ST. 6615 PASSONS BLVD. PERRIS, CA 92370 PICO RIVERA, CA 90660 CITY CLERK PICO RIVERA CITY HALL CITY ATTORNEY CITY CITY CLERK 6615 PASSONS PISMO BEACH'CITY HALL BEACH CITY HALL PISMO BEALLO PICO RIVERA, CA 90660 1000 BELLO ST. 1000 1000 B ST. PISMO BEACH, CA 93449 BEACH, CA 93449 CITY ATTORNEY PLACENTIA CITY HALL CITY CLERK CITY ATTORNEY 401 E. CHAPMAN AVE. PLACENTIA CITY HALL POMONA CITY HALL PLACENTIA, CA 92670 401 E. CHAPMAN AVE 505 SO. GAREY PLACENTIA, CA 92670. POMONA, CA 91769 CITY CLERK CITY ATTORNEY CITY CLERK POMONA CITY HALL PORT HUENEME CITY HALL PORT HUENEME CITY HALL 505 SO. GAREY 250 NO. VENTURA RD. 250 NO. VENTURA RD. POMONA, CA 91769 PORT HUENEME, CA 93041 PORT HUENEME, CA 93041 CITY ATTORNEY PORTERVILLE CITY HALL 291 NO. MAIN ST. PORTERVILLE, CA 93257 CITY CLERK RANCHO CUCAMONGA CITY HALL P. 0. Box 807 RANCHO CUCAMONGA, CA 91729 CITY CLERK RANCHO PALOS VERDES 30940 HAWTHORNE BLVD. RANCHO PALOS VERDES, CA CITY CLERK REDLANDS CITY HALL P. 0. BOX 280 REDLANDS. CA 92373 CITY ATTORNEY REEDLEY CITY HALL 845 "G" ST. REEDLEY, CA 93654 CITY CLERK RIALTO CITY HALL 150 SO. PALM AVE. RIALTO, CA 92376 CITY ATTORNEY ROWNG HILLS CITY HALL #2 PORTUGUESE BEND RD. ROLLING HILLS, CA 90274 CITY CLERK PORTERVILLE CITY HALL 291 NO. MAIN ST. PORTERVILLE, CA 93257 CITY ATTORNEY RANCHO MIRAGE CITY RANCHO MIRAGE CITY HALL RANCHO MIRAGE, CA 92270 CITY ATTORNEY RANCHO PALOS VERDES CITY 333 SOUTH HOPE, 38TH FLOOR 90274 LOS ANGELES, CA 90071 Cm CLERK ROLLING HILLS ESTS. CITY HALL 4045 PALOS VERDES DR. ROWNG HILLS ESTS., CA 90274 CITY ATTORNEY REDONDO BEACH CITY HALL 415 DIAMOND ST. REDONDO BEACH, CA 90277 CITY CLERK REEDLEY CITY HALL 845 "G' ST. REEDLEY, CA 93654 CITY ATTORNEY RIVERSIDE CITY HALL 3900 MAIN ST. RIVERSIDE, CA 92522 CITY CLERK ROLLING HILLS CITY HALL #2 PORTUGUESE BEND RD. ROLLING HILLS, CA 90274 CITY ATTORNEY ROSEMEAD CITY HALL 8838 E. VALLEY BLVD. ROSEMEAD, CA 91770 CITY ATTORNEY RANCHO CUCAMONGA CITY HALL P. 0. Box 807 RANCHO CUCAMONGA, CA 91729 CITY CLERK RANCHO MIRAGE CITY RANCHO MIRAGE CITY HALL RANCHO MIRAGE, CA 92270 CITY ATTORNEY REDLANDS CITY HALL P. 0. BOX 280 REDLANDS, CA 92373 CITY CLERK REDONDO BEACH CITY HALL 415 DIAMOND ST. REDONDO BEACH, CA 90277 CITY ATTORNEY RIALTO CITY HALL 150 SO. PALM AVE.. RIALTO, CA 92376 CITY CLERK RIVERSIDE CITY HALL 3900 MAIN ST. RIVERSIDE; CA 92522 CITY ATTORNEY ROLLING HILLS ESTS. CITY HALL 4045 PALOS VERDES DR. ROLLING HILLS ESTS., CA 90274 CITY CLERK ROSEMEAD CITY HALL 8838 E. VALLEY BLVD. ROSEMEAD, CA 91770 CITY CLERK CITY ATTORNEY CITY ATTORNEY SAN BERNARDINO CITY HALL SAN BERNARDINO CITY HALL SAN CLEMENTE CITY HALL 300 NO. "D" STREET 300 NO. "D" STREET 100 AVENIDA PRESIDIO SAN BERNARDINO, CA 92418 SAN BERNARDINO, CA 92418 SAN CLEMENTE, CA 92672 CITY CLERK CITY ATTORNEY CITY CLERK SAN CLEMENTE CITY HALL SAN DIMAS CITY HALL SAN DIMAS CITY HALL 100 AVENIDA PRESIDIO 245 E. BONITA AVE. 245 E. BONITA AVE. SAN CLEMENTE, CA 92672 SAN DIMAS, CA 91773 SAN DIMAS, CA 91773 CITY ATTORNEY CITY CLERK CITY ATTORNEY SAN FERNANDO CITY HALL SAN FERNANDO CITY HALL SAN GABRIEL CITY HALL 117 MACNEIL ST. 117 MACNEIL ST. 532 WEST MISSION DR. SAN FERNANDO, CA 91340 SAN FERNANDO, CA 91340 SAN GABRIEL, CA 91778 CITY CLERK CITY ATTORNEY CITY CLERK SAN GABRIEL CITY HALL SAN JACINTO CITY HALL SAN JACINTO CITY HALL 532 WEST MISSION DR. 209 E. MAIN ST. 209 E. MAIN ST. SAN GABRIEL, CA 91778 SAN JACINTO; CA 92383 SAN JACINTO, CA 92383 CITY ATTORNEY CITY CLERK CITY ATTORNEY SAN JUAN CAPISTRANO CITY HALL SAN. JUAN CAPISTRANO CITY HALL SAN LUIS OBISPO CITY HALL 32400 PASEO ADELANTO 32400 PASEO ADELANTO 990 PALM STREET SAN JUAN CAPISTRANO, CA 92675 SAN JUAN CAPISTRANO, CA 92675 SAN LUIS OBISPO, CA 93401 CITY CLERK CITY ATTORNEY CITY CLERK SAN LUIS OBISPO CITY HALL SAN MARINO CITY HALL SAN MARINO CITY HALL 990 PALM ST. 2200 HUNTINGTON DR. 2200 HUNTINGTON DR. SAN LUIS OBISPO, CA 93401 SAN MARINO, CA 91108 SAN MARINO, CA 91108 CITY ATTORNEY CITY CLERK CITY ATTORNEY SANGER CITY SANGER CITY SANTA ANA CITY HALL 1700 7TH STREET 1700 7TH STREET 22 CMC CENTER PLAZA SANGER, CA 93657 SANGER, CA 93657 SANTA ANA, CA 92701 CITY CLERK CITY ATTORNEY CITY CLERK SANTA ANA CITY HALL SANTA BARBARA CITY HALL SANTA BARBARA CITY HALL 22 CIVIC CENTER PLAZA DE LA GUERRA PLAZA DE LA GUERRA PLAZA SANTA ANA, CA 92701 SANTA BARBARA, CA 93102 SANTA BARBARA, CA 93102 CITY ATTORNEY CITY CLERK CITY ATTORNEY SANTA CLARITA CITY SANTA CLARITA CITY SANTA FE SPRINGS CITY HALL 23920 VALENCIA BLVD., 9300 23920 VALENCIA BLVD., #300 11710 TELEGRAPH RD. SANTA.CLARITA, CA 91355 SANTA CLARITA, CA 91355 SANTA FE SPRINGS, CA 90670 CITY CLERK CITY ATTORNEY CITY CLERK SANTA FE SPRINGS CITY HALL SANTA MARIA CITY HALL SANTA MARIA CITY HALL 11710 TELEGRAPH RD. 110 EAST COOK ST. 110 EAST COOK ST. SANTA FE SPRINGS, CA 90670 SANTA MARIA, CA 93454 SANTA MARIA CA 93454 CITY ATTORNEY CITY CLERK CITY ATTORNEY SANTA MONICA CITY HALL SANTA MONICA CITY HALL SANTA PAULA CITY HALL 1685 MAIN ST. 1685 MAIN ST. 970 VENTURA ST. SANTA MONICA, CA 90401 SANTA MONICA, CA 90401 SANTA PAULA, CA 93060 CITY CLERK CITY ATTORNEY LERK SANTA PAULA CITY HALL SEAL BEACH CITY HALL EACH CITY HALL 970 VENTURA ST. 211 STH ST. i ST. SANTA PAULA, CA 93060 SEAL BEACH, CA 90740 EACH, CA 90740 CITY ATTORNEY CITY CLERK CITY ATTORNEY SELMA CITY HALL SELMA CITY HALL SHAFTER CITY HALL 1814 TUCKER ST. 1814 TUCKER ST. 336 PACIFIC AVE. SELMA, CA 93662 SELMA, CA 93662 SHAFTER, CA 93263 CITY CLERK CITY ATTORNEY CITY CLERK SHAFTER CITY HALL SIERRA MADRE CITY HALL SIERRA MADRE CITY HALL. 336 PACIFIC AVE. 232 W. SIERRA MADRE BLVD. 232 W. SIERRA MADRE BLVD. SHAFTER, CA 93263 SIERRA MADRE, CA 91624 SIERRA MADRE, CA 91024 CITY ATTORNEY CITY CLERK CITY ATTORNEY SIGNAL HILL CITY HALL SIGNAL HILL CITY HALL SIMI VALLEY CITY HALL 2175 CHERRY AVE. 2175 CHERRY AVE: 3200 COCHRAN ST. SIGNAL HILL, CA 90806 SIGNAL HILL, CA 90806 SIMI VALLEY, CA 93065 CITY CLERK CITY ATTORNEY CITY CLERK SIMI VALLEY CITY HALL SOLVANG CITY HALL SOLVANG CITY HALL 3200 COCHRAN ST. P. 0. BOX 167 P. 0. BOX 107 SIMI VALLEY, CA 93065 SOLVANG, CA 93464 SOLVANG, CA 93464 CITY ATTORNEY CITY CLERK CITY ATTORNEY SOUTH EL MONTE CITY HALL SOUTH EL MONTE CITY HALL SOUTH GATE CITY HALL 1415 SANTA AMTA DR. 1415 SANTA ANITA DR. 8650 CALIFORNIA AVE. SOUTH EL MONTE. CA 91733 SOUTH EL MONTE, CA 91733 SOUTH GATE, CA 90280 CITY CLERK CITY ATTORNEY CITY CLERK SOUTH GATE C17Y HALL SOUTH PASADENA CITY HALL SOUTH PASADENA CITY HALL 8650 CALIFORNIA AVE. 1414 MISSION STREET 1414 MISSION STREET SOUTH GATE, CA 90280 SOUTH PASADENA, CA 91030 SOUTH PASADENA, CA 9 1030 CITY ATTORNEY CITY CLERK CITY ATTORNEY STANTON CITY HALL STANTON CITY HALL TAFT CITY HALL 7800 KATELLA ST. 7860 KATELLA ST. 209 E. KERN ST. STANTON, CA 90680 STANTON, CA 90680 TAFT, CA 93268 CITY CLERK CITY ATTORNEY CITY CLERK TAFT CITY HALL TEHACHAPI CITY HALL TEHACHAPI CITY HALL 209 E. KERN ST. 115 SO. ROBINSON ST 115 SO. ROBINSON ST TAFT, CA 93268 TEHACHAPI, CA 98561 TEHACHAPI, CA 93561 CITY ATTORNEY CITY CLERK CITY ATTORNEY TEMECULA CITY TEMECULA CITY TEMPLE CITY CITY HALL P. O. BOX 9033 P. 0. BOX 9033 9701 LAS TUNAS TEMECULA. CA 92589-9033 TEMECULA, CA 92589.9033 TEMPLE CITY, CA 91780 CITY CLERK CITY CLERK CITY ATTORNEY THOUSAND OAKS CITY HALL TEMPLE CITY CITY HALL THOUSAND OAKS CITY HALL 2100 E. THOUSAND OAKS BLVD. 9701 LAS TUNAS 2100 E. THOUSAND OAKS BLVD. THOUSAND OAKS, CA 91362 TEMPLE CITY, CA 91780 THOUSAND OAKS, CA 91362 CITY ATTORNEY CITY ATTORNEY CITY CLERK TULARE CITY TORRANCE CITY HALL TORRANCE CITY HALL 1220 W. MAIN ST. 3031 TORRANCE BLVD. 3031 TORRANCE BLVD. VISALIA. CA 93291 TORRANCE, CA 90503 TORRANCE, CA 90503 CITY CLERK CITY CLERK CITY ATTORNEY TUSTIN CITY HALL TULARE CITY TUSTIN CITY HALL 300 CENTENNIAL WAY 411 E. KERN AVE. 300 CENTENNIAL WAY TUSTIN, CA 92680 TULARE, CA 93274 TUSTIN, CA 92680 CITY ATTORNEY CIN ATTORNEY CITY CLERK VENTURA CITY HALL UPLAND CITY HALL UPLAND CITY HALL P. 0. BOX 99 460 NO. EUCLID AVE. 460 NO. EUCLID AVE. VENTURA, CA 93002 UPLAND, CA 91786 UPLAND, CA 91786 CITY CLERK CITY CLERK CITY ATTORNEY VERNON CITY HALL VENTURA CITY HALL VERNON CITY HALL 4305 SANTA FE AVE. P. 0. BOX 99 4305 SANTA FE AVE. VERNON, CA 90058 VENTURA, CA 93002. VERNON, CA 90068 CITY ATTORNEY CITY ATTORNEY CITY CLERK VILLA PARK CITY HALL VICTORVILLE CITY HALL VICTORVILLE CIN HALL 17855 SANTIAGO BLVD. 14343 CMC DRIVE 14343 CIVIC DRIVE VILLA PARK, CA 92667 VICTORVILLE, CA 92392 VICTORVILLE, CA 92392 CIN CLERK CITY CLERK CIN ATTORNEY VISALIA CITY HALL VILLA PARK CITY HALL VISALIA CITY HALL 707 W. ACEQUTA ST. 17855 SANTIAGO BLVD. 707 W. ACEQUTA ST. VISALIA, CA 93291 VILLA PARK, CA 92667 VISALIA, CA 93291 CITY ATTORNEY CITY ATTORNEY CITY CLERK WASCO CITY HALL WALNUT CIN HALL WALNUT CITY HALL 764 "E' STREET 21201 LA PUENTE RD. 21201 LA PUENTE RD. WASCO, CA 93280 WALNUT, CA. 91789 WALNUT, CA 91789 CITY CLERK CITY CLERK CITY ATTORNEY WEST COVINA CITY HALL WASCO CITY HALL WEST COVINA CITY HALL 1444 W. GARVEY AVE. 764'F STREET 1444 W. GARVEY AVE. WEST COVINA, CA 91790 WASCO, CA 93280 WEST COVINA, CA 91790 CITY ATTORNEY CITY ATTORNEY CITY CLERK WESTLAKE VILLAGE CITY HALL WEST HOLLYWOOD CIN HALL WEST HOLLYWOOD CIN HALL 4373 PARK TERRACE DR. 8611_ STA. MONICA BLVD. 8611 STA. MONICA BLVD. THOUSAND OAKS, CA 91361 WEST HOLLYWOOD, CA 90069 WEST HOLLYWOOD, CA 90069 CITY CLERK WESTLAKE VILLAGE CITY HALL 4373 PARK TERRACE DR. THOUSAND OAKS, CA 91361 CITY ATTORNEY WESTMORLAND CITY HALL 355 SO. CENTER ST. WESTMORLAND, CA 92281 CITY CLERK WHITTIER CITY HALL 13230 PENN ST. WHITTIER, CA 96062 CITY CLERK YORBA LINDA CITY HALL 4845 CASA LOMA AVE. P. O. BOX 87014 YORBA LINDA. CA 92686 CITY CLERK YUCAIPA CITY 34272 YUCAIPA BLVD. YUCAIPA, CA 92399 CITY CLERK CITY ATTORNEY WESTMINSTER CITY HALL WESTMINSTER CITY HALL 8200 WESTMINSTER AVE. 8200 WESTMINSTER AVE. WESTMINSTER, CA 92683 WESTMINSTER, CA 92683 CITY CLERK CITY ATTORNEY WESTMORLAND CITY HALL WHITTIER CITY HALL 355 SO. CENTER ST. 13230 PENN ST. WESTMORLAND. CA 92281 WHITTIER, CA 96062 CITY ATTORNEY CITY CLERK WOODLAKE CITY HALL WOODLAKE CITY HALL 350 NO. VALENCIA BLVD. 350 NO. VALENCIA BLVD. WOODLAKE, CA 93286 WOODLAKE, CA 93286 CITY ATTORNEY CITY ATTORNEY YORBA LINDA CITY HALL YUCAIPA CITY RUTAN & TUCKER, 611 ANTON E 34272 YUCAIPA BLVD. COSTA MESA, CA 92626 YUCAIPA, CA 92399 STEVEN A. ADDUCCI MICHAEL P. ALCANTAR DORSEY & WHITNEY LLP ALCANTAR & ELSESSER 1001 PENNSYLVANIA AVE., NW 1300 S.W. 5TH AVE. SUITE 300 SOUTH SUITE 1750 WASHINGTON DC 20004 PORTLAND OR 97201 JOYCE ALFTON SHERRY L. APPEL OFFICE OF RATEPAYER ADVOCATES MANATT, PHELPS & PHILLIPS, LLP ROOM 4-A 70 WILLOW ROAD 505 VAN NESS AVE. MENLO PARK CA 94025 SAN FRANCISCO CA 94102 ATTORNEY GENERAL ALJ ROBERT A. BARNETT STATE OF CALIFORNIA CALIF PUB UTILITIES COMMISSION PO BOX 944255 ROOM 5017 SACRAMENTO CA 94244-2550 505 VAN NESS AVENUE SAN FRANCISCO CA 94102-3214 TOM BEACH JOHN BEALL CROSSBORDER ENERGY TEXACO, INC. 2560 NINTH ST., STE. 316 1111 RUSK ST BERKELEY CA 94710 PO BOX 4596 SAN FRANCISCO CA 94111 HOUSTON TX 77210 JERRY R. BLOOM GREGORY T. BLUE WHITE & CASE LLP MANAGER, STATE REG. AFFAIRS 2 EMBARCADERO CENTER, DYNEGY POWER CORP. SUITE 650 5976 W. LAS POSITAS BLVD. SAN FRANCISCO CA 94111 SUITE 200 PLEASANTON CA 94588 MATTHEW V. BRADY ANDREW B. BROWN MATTHEW V. BRADY & ASSOCIATES ELLISON & SCHNEIDER 300 CAPITOL MALL, SUITE 1100 2015 H STREET SACRAMENTO CA 95814-0885 SACRAMENTO CA 95814 KEITH BROWN JOHN BURKHOLDER SOUTHWEST GAS CORP. BETA CONSULTING 5241 SPRING MOUNTAIN ROAD 2023 TUDOR LANE LAS VEGAS NV 89102 FALLBROOK CA 92028 DAN L. CARROLL LISA A. COTTLE DOWNEY, BRAND, SEYMOUR WHITE & CASE & ROHWER TWO EMBARCADERO CENTER 555 CAPITOL MALL, 10TH FLOOR SUITE 650 SACRAMENTO CA 95814 SAN FRANCISCO CA 94111 RONALD B. COX BRIAN CRAGG IMPERIAL IRRIGATION DISTRICT GOODIN MACBRIDE SQUERI 333 EAST BARIONI BLVD. SCHLOTZ & RITCHIE IMPERIAL CA 92251 505 SANSOME, STUITE 900 SAN FRANCISCO CA 94111 SAN FRANCISCO CA 94111 MICHAEL B. DAY KENNETH J. DEDARIO GOODIN, MACBRIDE, SQUERI, CITY OF VERNON SCHLOTZ & RITCHIE 4305 SANTA FE AVENUE 505 SANSOME STREET, #900 VERNON CA 90058 SAN FRANCISCO CA 94111 RONALD DENSMORE CRAIG DERECAT MONSANTO COMPANY MANATT, PHELPS & PHILLIPS, LLP 2145 EAST BELT ST. TRIDENT CENTER, EAST TOWER SAN DIEGO CA 92113 11355 WEST OLYMPIC BLVD. LOS ANGELES CA 90064 SANDY DICKINSON CHARLES DOERING PG&E RESOURCE MANAGEMENT INTER. 77 BEALE STREET, B9A 225 W. BROADWAY, STE. 400 SAN FRANCISCO CA 94105 GLENDALE CA 91204 EVELYN K.ELSESSER DARWIN FARRAR ALCANTAR & ELSESSER LEGAL DIVISION ONE EMBARNADERO CENTER CPUC SUITE 2420 505 VAN NESS AVENUE SAN FRANCISCO CA 94111 SAN FRANCISCO CA 94102 KENT FICKETT MARK FOGELMAN SENIOR VICE PRESIDENT-STATEGIC STEEFEL, LEVITT & WEISS US GENERATING COMPANY ONE:EMBARCADERO CENTER C/O PG&E CORPORATION 30TH FLOOR SPEAR STREET TOWER, 24TH FLOOR SAN FRANCISCO CA 94111 SAN FRANCISCO CA 94105 DAVID FOLLETT PATRICK L GILEAU SOCAL GAS COMPANY CA PUBLIC UTILITIES COMMISSION 633 WEST FIFTH STREET LEGAL DEPARTMENT SUITE 5200 505 VAN NESS AVE LOS ANGELES CA 90071 SAN FRANCISCO CA 94102 ALEX A. GOLDBERG RICHARD L. HAMILTON WILLIAMS COMPANIES, INC. THE LAW OFFICE OF LEGAL DEPARTMENT RICHARD L. HAMILTON ONE WILLIAMS CENTER, MD 41-3 100 HOWE STREET, SUITE 230 N TULSA OK 74172 SACRAMENTO CA 95825 MARCEL HAWIGER SCOTT HAWLEY TURN HARBOR COGENERATION COMPANY 711 VAN NESS AVENUE SUITE 350 18101 VON KARMAN AVE. SAN FRANCISCO CA 94102 SUITE 1700 IRVINE CA 92612 RUFUS HIGHTOWER MICHAEL S. HINDUS CITY OF PASADENA CAMERON MCKENNA LLP 150 SOUTH LOS ROBLES AVENUE 2175 K STREET NW SUITE 200 WASHINGTON DC 20037 PASADENA CA 91101 LISA J. HUBBARD GLORIA M. ING SAN DIEGO GAS & ELECTRIC CO. SOUTHERN CALIFORNIA EDISON 601 VAN NESS AVE STE 2060 2244 WALNUT GROVE AVENUE SAN FRANCISCO CA 94102 ROSEMEAD CA 91770 JOHN W. JIMISON JOSEPH M. KARP, ATTORNEY AT LAW BRADY & BERLINER WHITE & CASE 1225 NINETEENTH STREET, N.W. TWO EMBARCADERO CENTER SUITE 800 SUITE 650 WASHINGTON DC 20036 SAN FRANCISCO CA 94111 DEXTER KHOURY GREGORY KLATT CA PUBLIC UTILITIES COMMISSION JONES, DAY, REAVIS & POGUE 505 VAN NESS AVE RM 4002 555 WEST FIFTH STREET SAN FRANCISCO CA 94102 SUITE 4600 LOS ANGELES CA 90013 ALJ STEVEN KOTZ PAUL LACOURCIERE CA PUBLIC UTILITIES COMMISSION WHITE & CASE LLP 505 VAN NESS AVE RM 5101 TWO EMBARCADERO CENTER SAN FRANCISCO CA 94102-3298 SUITE 650 SAN FRANCISCO CA 94111 JOHN W. LESLIE KAREN LINDH LUCE FORWARD HAMILTON &SCRIPPS LINDH & ASSOCIATES 600 WEST BROADWAY, #2600 7909 WALERGA RD. SAN DIEGO CA 92101-3391 SUITE 112/119 ANTELOPE CA 95843 CARL LOWER LAURA MANINA 717 LAW STREET CALIFORNIA PUBLIC UTILITIES SAN DIEGO CA 92109-2436 505 VAN NESS AVENUE, 4-A DECISION-MAKING SUPPORT SAN FRANCISCO CA 94102-3214 DAVID J. MARCHANT WILLIAM B. MARCUS DAVIS, WRIGHT & TREMAINE, LLP J. NAHIGIAN ONE EMBARCADERO CENTER JBS ENERGY INCORPORATED SUITE 600 311 D ST STE A SAN FRANCISCO CA 94111-3834 WEST SACRAMENTO CA 95605 CAROLYN MARSHALL RICHARD MCCANN CALIFORNIA ENERGY MARKET PARTNER 9 ROSCOE STREET M CUBED SAN FRANCISCO CA 94110-5921 2655 PORTAGE BAY AVE STE 3 DAVIS CA 95616 KEITH R. MCCREA JAMES W. MCTARNAGHAN MICHAEL MISHKIN 505 SANSOME STREET SUTHERLAND ASBILL & BRENNAN SUITE 900 1275 PENNSYLVANIA AVE NW SAN FRANCISCO CA 94111-3133 WASHINGTON DC 20004-2404 JAMES MEYN JASON MIHOS ENGAGE ENERGY US, L.P. CALIFORNIA ENERGY MARKETS 101 WEST BROADWAY, STE. 1970 9 ROSCOE STREET SAN DIEGO CA 92101-8201 SAN FRANCISCO CA 94110-5921 PETER MURITZBURKE RICHARD MYERS CAMBRIDGE ENERGY RESEARCH ENERGY DIVISION 1999 HIRRISON STREET 505 VAN NESS AVENUE SUITE 950 AREA 4-A OAKLAND CA 94612 CALIFORNIA PUBLIC UTILITIES SAN FRANCISCO CA 94102 RICK NOGER EDWARD W. UNEILL PRAXAIR, INC. JEFFER, NAGELS, BUTLER, ETAL 175 EAST PARK DRIVE ONE SANSOME STREET TONAWANDA NY 14151-0044 12TH FLOOR SAN FRANCISCO CA 94104-4430 BARBARA ORTEGA BARNARD V. PALK CALIFORNIA PUBLIC UTILTIES CITY OF GLENDALE 320 WEST 4TH STREET 141 NORTH GLENDALE AVENUE SUITE 500 4TH LEVEL LOS ANGELES CA 90013 GLENDALE.CA 91206 NORMAN PEDERSEN ROBERT L. PETTINATO JONES DAY REAVIS AND POGUE LOS ANGELES DEPARTMENT 555 W 5TH STREET STE 4600 OF WATER & POWER LOS ANGELES CA 90013-1025 111 NORTH HOPE STREET ROOM 1148 LOS ANGELES CA 90051-0100 DERK PIPPIN ROBERT MARK POCTA CALIFORNIA ENERGY MARKETS CA PUBLIC UTILITIES COMMISSION 9 ROSCOE STREET MARKET DEVELOPMENT BRANCH SAN FRANCISCO CA 94110-5921 505 VAN NESS AVE RM 4101 SAN FRANCISCO CA 94102 EDWARD G. POOLE JENNIFER POST ANDERSON DONOVAN AND POOLE PACIFIC GAS AND ELECTRIC CO: 601 CALIFORNIA ST STE 1300 77 BEALE STREET SAN FRANCISCO CA 94108 ROOM 3025-B30A SAN FRANCISCO CA 94105 PATRICK J. POWER, ATTORNEY AT LAW RICHARD E. POWERS, JR. 2101 WEBSTER ST STE 1500 DORSEY & WHITNEY LLP OAKLAND CA 94612 1001 PENNSYLVANIA AVE., NW SUITE 300 SOUTH WASHINGTON DC 200004 PAUL PREMO KEITH T. SAMPSON 310 HAZEL AVE. PG&E MILL VALLEY CA 94941-5054 77 BEALE STREET, B30A SAN FRANCISCO CA 94105 MICHAEL SHAMES ANDREW J. SKAFF UTILITY CONSUMERS' ACTION NET CROSBY, HEAFY, ROACH 1717 KETTNER BLVD., STE 101 & MAY SAN DIEGO CA 92101-2532 1999 HARRISON STREET 26TH FLOOR OAKLAND CA '94612 JAMES D. SQUERI, ATTY AT LAW RONALD V. STASSI GOODIN. MACBRIDE, SQUERI, CITY OF BURBANK SCHLOTZ & RITCHIE 164 WEST MAGNOLIA BLVD 505 SANSOME STREET BURBANK CA 91502 SUITE 900 SACRAMENTO CA 95814 SAN FRANCISCO CA 94111 DAVID R. STEVENSON PHILIP A. STOHR CHEVRON USA, INC. DOWNEY, BRAND, SEYMOUR CHEVRON TOWER, ROOM 2236 & ROHWER 1301 MCKINNEY 555 CAPITOL MALL 10TH FLR HOUSTON TX 77010 SACRAMENTO CA 95814 ANITA TAFF-RICE ROBERT B. TASK DAVIS WRIGHT TREMAINE NORAM ENERGY SERVICES ONE EMBARCADERO CENTER, P.O. BOX 4455 SUITE 600 HOUSTON TX 77002-5231 SAN FRANCISCO CA 94111 SCOTT TOMASHEFSKY CALIFORNIA ENERGY COMMISSION 1516 9TH ST MS -31 SACRAMENTO CA 95814 ROBERT B. WEISENMILLER MORSE, RICHARD, WEISENMILLER & ASSOCIATES, INC. 1999 HARRISON ST STE 1440 OAKLAND CA 94612-3517 ALEXIS WODTKE ALCANTAR & ELSESSER LLP ONE EMBARCADERO CENTER, SUITE 2420 SAN FRANCISCO CA 94111 CATHERINE E. YAP CONSULTANT BARKOVICH & YAP PO BOX 11031 OAKLAND CA 94611 JOHN C. WALLEY T. R. THOMAS SOUTHWEST GAS CORPORATION PO BOX 98510 LAS VEGAS NV. 89193-8512 ROSALINA WHITE CPUC 505 VAN NESS AVE. ROOM 5303 SAN FRANCISCO CA 94102 BILL WOOD CALIFORNIA ENERGY COMMISSION 1516 NINTH STREET, MS -23 SACRAMENTO CA 95814-5512 The Gas Company. n rt�Sempra Energy'wmpany March 30, 2012 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sir or Madam: >AHID AIM 01S Zloz £ 0 add 03AUD32i Dodd L Snel. Sr. Tax Analyst II Tax Services Saothma California Gm Gxmpmy 101 Ase street Mail Loc. HQ07 San Diego, CR 921013017 Tel: 619-696-2246 Fac 619.696-3060 dsteeleQsempra.mm Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $95,286.75 for calendar year 2011. Also enclosed is a statement showing the municipal surcharge due of $33,100.13 for calendar year 2011. The total amount due of $128,386.88 will be paid by Electronic Fund Transfer to be initiated on April 13, 2012, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me at the above number. Enclosures ..JUTHERN CALIFORNIA GAS COMPAN . STATEMENT FOR THE CALENDAR YEAR 2011 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY iORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchisecomputed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............. $ Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: . Public and Private Rights of Way .................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (46.76754% x $3,416,300,861) ................. $ Public Highways only (10.27428% x $3,416,300,861) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ...... C. 9,218,337,599 4,311,189,888 947,117,399 46.76754% 10.27428% 3,427,415,872 (11,115,011) 3,416,300,861 1,597,719,872 351,000,316 52,901.9843 mi. 42,987.0629 mi. 81.25794% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (81.25794% x $1,597,719,872) ................. $ 1,298,274,255 Public Highways only (100% x $351,000,316) ...................... 1 $ 351,000,316 Total ..................................... $ 1,649,274,571 Total Mileage in Highways as above ................ 42,987.0629 mi. Mileage in Highways of this Franchise 119.8064 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.27870% Gross Receipts applicable to this Franchise (0.27870%x'$1,649,274,571) ................... $ 4,596,528 Amount due based on 2% of the above applicable Gross Receipts ................................ $ 91,930.56 San Luis Obispo SECTION B 1 Computation of payment of one percent (I%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................:.. $ 9,543,594.74 Less: Uncollectible Bills ...:........................ $ (14,919.77) Gross Receipts ................................. $ 9,528,674.97 Amount due based on (1%) of the above Gross Receipts.. $ 95,286.75 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section B in the sum of $95,286:75. 2 .aJUTHERN CALIFORNIA GAS COMPAkJ MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2011 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. 1.1 C. M Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. $ 9,218,337,599 Investment in Distributing Agencies in Public and Private Rights of Way .................. $ 4,311,189,888 Public Highways only ........................... $ 947,117,399 Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................... 46.76754% Public Highways only ........................... 10.27428% Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue ................................ $ 1,232,473,196 Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (46.76754% x $1,232,473,196) .................. $ 576,397,395 Public Highways only (10.27428% x $1,232,473,196) .................'. $ 126,627,747 Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... 52,901.9843 mi. Mileage in Highways ............................... 42,987.0629 mi. Percent of Mileage in Highways to Total Mileage ...... 81.25794% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (81.257940X. x $576,397,395) ................... $ 468,368,649 Public Highways only (100% x $126,627,747) ....................... $ 126,627,747 Total ...................................... $ 594,996,396 Total Mileage in Highways as above ................ 42,987.0629 mi. Mileage in Highways of this Franchise 119.8064 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................. 0.27870% Imputed Revenue applicable to this Franchise (0.27870% x $594,996,396) ...................... $ 1,658,255 Amount due based on 2% of the above applicable Imputed Revenue ............................... $ 33,165.10 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............. $ 249,328 Amount due based on (1 %) of the above Imputed Revenue .. $ 2,493.28 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ 33,165.10 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were less than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ........................... $ ( 64,97) Total amount due .................................... $ Municipal Surcharge Bad Debts ........................ $ Net amount due ..................................... $ 2 33,100.13 A 33,100.13 CERTIFICATION I, the undersigned, say: I am Director, Corporate Tax for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct Executed on March 30, 2012, at San Diego, California. Terry F. Palmer Director - Corporate Tax If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Transactional Tax 101 Ash Street/ HQ07 San Diego, CA 92101-3017 MIX RECEIVED SOUTHERN CALIFORNIA GAS COMPANY AUG 11 2010 NOTICE OF PROPOSED CHANGE IN GAS RATES STATE MANDATED AB 32 ADMINISTRATIVE FEES SLO CITY CLERK APPLICATION NO. A.10-08-002 On.August 2, 2010, Southern California Gas Company (SoCalGas®), San Diego Gas and Electric Company, Pacific Gas and Electric Company and Southern California Edison Company (the Utilities) jointly filed an application (A.10-08-002) with the California Public Utilities Commission (CPUC) for authority to recover administrative fees paid to the California Air Resources Board (CARB) as a result of the passage of Assembly Bill 32 (AB 32), the Global Warming Solutions Act of 2006. SoCalGas will record these paid administrative fees in a regulatory account for cost recovery in gas rates. AB 32 legislation requires a reduction of greenhouse gas (GHG) emissions to 1990 levels by 2020. CARB is the state agency that implements the AB 32 program. Additionally, AB 32 authorizes CARE to adopt a schedule of fees to be paid by sources of GHG emissions to support the administrative costs of implementation. In September 2009, CARB adopted an administrative fee schedule. The Utilities anticipate invoicing of the Administrative Fee by CARB in the third quarter of 2010 with payment due in the fourth quarter of 2010. SoCalGas estimates its 2010 CARB fees at $4.5 million. SoCalGas is seeking recovery of the Administrative Fees paid to CARB in gas rates. EFFECT ON GAS RATES AND BILLS If this request is approved, the impact on a residential customer's monthly summer bill for 25 therms of gas will increase by 2.0 cents/month, from $29.79 to $29.81/month. Based on a 12 -month period, a residential customer's average monthly bill will increase by 3.0 cents/month. The impact on each customer and customer class will vary depending on individual usage and the final decision. If approved, the proposed change in costs for each customer class is as follows: Customer Class Annual $ (million) % increase Residential $1.9 0.2% Small Commercial/Industrial $0.7 0.3% Natural Gas Vehicles $0.1 0.9% Large. Industrial $0.9 1.1% Electric Generators $0.8 1.1% Other $0.1 0.0% Total $4.5 0.2% FOR FURTHER INFORMATION You may request additional information by writing to: Jeffery Salazar, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCalGas Web site at: www.socalaas.com/regulatory/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/re ug latory/. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all -proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCalGas' formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4`h St., Ste. 500, Los Angeles, CA 90013 or send an e-mail to: public.advisor.la(acpuc.ca.„ov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.10-08-002 in any correspondence. RECEIVEI SOUTHERN CALIFORNIA GAS COMPANY JUN 21 2010 NOTICE OF FILING OF THE GAS COST.INCENTTVE MECHANISM (GCWO CITY CLEF APPLICATION NO. A.10-06-006 On June 14, 2010, Southern California Gas Company (SoCalGas®) filed an application (A.10-06-006) with the California Public Utilities Commission (CPUC) to collect on an approved incentive as specified by the Gas Cost Incentive Mechanism (GCIM). The GCIM is a CPUC -authorized ratemaking mechanism that SoCalGas uses to purchase natural gas on behalf of its core customers. Under the GCIM program, the CPUC approves a "competitive benchmark" (based on market price) that SoCalGas strives to beat when purchasing natural gas on the open market for its customers. If SoCalGas purchases gas above the competitive benchmark beyond a certain tolerance band, then the utility is penalized. If SoCalGas purchases gas below the competitive benchmark beneath a certain tolerance band, the utility is rewarded. SoCalGas has been operating under this program for 16 years. During GCIM year 16, SoCalGas was able to purchase natural gas at $39.9 million below the competitive benchmark during the program year extending from April 1, 2009 to March 31, 2010. This effort helped mitigate price spikes, providing customers a net benefit of $33.9 million in lower gas costs. The June 14, 2010 filing requests that SoCalGas collect from customers $6 million for its shareholders as incentive for purchasing gas below the competitive benchmark price. EFFECT ON GAS RATES AND BILLS If this request is approved, the impact on a residential customer's monthly summer bill for 32 therms of gas will increase by 5 cents/month, from $33.24 to $33.29/month. Based on a 12 -month period, a residential customer's average monthly bill will increase by 8 cents. The impact on each customer and customer class will vary depending on individual usage and the final decision. If approved, the proposed change in rates for each customer class is as follows: Customer Class Annual $ (million) %. increase Residential $4.2 0.3% Commercial/Industrial $1.6 0.6% Other Core $0.2 12.0% Total $6.0 0.4% * excluding franchise fees and uncollectibles. FOR FURTHER INFORMATION You may request additional information by writing to: Jeffery Salazar, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-10.11. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCalGas Web site at: www.socalgas.com/remdatory/cpuc.shtml. . Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalszas.com/regulatoKy. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels.. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCalGas' formal request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4m St., Ste. 500, Los Angeles, CA 90013 or send an e-mail to: public.advisor.lg@gpuc.ca.sov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.10-06-006 in any correspondence. SG, :HERN CALIFORNIA GAS COMI. .dY UAI [I' + NOTICE OF APPLICATION FOR THE REVIEW OF THE FIRM ACCESS RIGHTS SYSTEM AND ANTICIPATED INCREASE IN NATURAL GAS RATES APPLICATION NO. A.10-03-028 On March 29, 2010, Southern California Gas Company (SoCalGas®) filed an application (A.10-03-028) with the California Public Utilities Commission (CPUC) to assess how the Firm Access Rights (FAR) system is working and whether any changes or modifications are needed ("FAR update"). The FAR system enables natural gas market participants (including commercial and industrial customers, wholesale customers, gas suppliers and California gas producers) to hold access rights at receipt points on the SoCalGas natural gas transmission system. Access rights allow the holder priority in delivering their natural gas into the SoCalGas natural gas transmission system. A receipt point is the location where interstate natural gas pipelines deliver natural gas into the SoCalGas natural gas transmission system. In approving the implementation of the FAR.system, the CPUC directed SoCalGas to file its FAR update application 18 months after the initial FAR open season concluded. An open season is a process where natural gas market participants submit interest in obtaining the access rights to deliver their natural gas at a' specific receipt point into the SoCalGas transmission system. Access rights are granted at the end of the open season process. EFFECT ON GAS RATES AND BILLS If this request is approved, the impact on a residential customer's monthly summer bill for 32 therms of gas will decrease by 9 cents/month, from $37.71 to $37.62/month. Based on a 12 -month period, a residential customer's average monthly bill will decrease by 13 cents. The impact on each customer and customer class will vary depending on individual usage and the final decision. If approved, the proposed change in rates for each customer class is as follows: Customer Class Increase (decrease) Residential $0.009 /therm Core Commercial/Industrial $0.008 /therm NGV $0.008 /therm NonCore ($0.006)/therm Access Rights $0.050 $/dth/day FOR FURTHER INFORMATION RECEIVED �Y 0,' 20I- SLO CITY CLERK You may request additional information by writing to: Jeffery Salazar, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCalGas Web site at: www.socalgas.com/re latorv/cuuc shtmi; Copies of this insert wL. oe available for viewing and printing on me SoCalGas Web site at www.socalgas.com/rep-ulatory, CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCalGas' formai request. If you would like additional information or would like to attend these hearings, you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4d' St:, Ste. 500, Los Angeles, CA 90013 or send an e-mail to: public.advisor.la(cvcpuc.ca.gov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.10-03-028 in any correspondence. A. SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF AN APPLICATION TO EXPAND INJECTION CAPACITY OF THE ALISO CANYON NATURAL GAS STORAGE FACILITY AND ANTICIPATED INCREASE IN GAS RATES cc : $�ix2 APPLICATION NO. A.09-09-020 r.J�.rE2 Proposed Project: On September 30, 2009, Southern California Gas Company (SoCalGase) filed an application (A.09-09-020) with the California Public Utilities Commission (CPUC) for the expansion of the injection capacity of the Aliso Canyon.Natural Gas Storage Facility. Purpose of Project: The Aliso Canyon Storage Injection Capacity Expansion Project is needed to ensure a stable and reliable supply of natural gas within SoCalGas' service area and to develop additional in-state storage resources. Project Description and Location: SoCalGas will upgrade the existing injection system by constructing and operating a new compressor station at the Aliso Canyon Storage Facility located in Northridge, California. SoCalGas' activities will take place within the Aliso Canyon facility's existing property boundaries. Additional electrical service upgrades performed by Southern California Edison to support SoCalGas' Injection Capacity Project will also be undertaken. The project will take approximately 30 months to complete at a cost of $205 million. If this request is approved, upon full completion of the project, the impact on a residential customer's monthly summer bill for 32 therms of gas will increase by 12 cents/month, from $29.12 to $29.24/month. Based on a 12 -month period, a residential customer's average monthly bill will increase by 17 cents. The impact on each customer and customer class will vary depending on individual usage and the final decision. If approved, the proposed costs allocated to each core customer class, and the increase over current costs, is follows: Customer Class Annual $ (million) % increase Residential $9.7 0.8% Commercial/Industrial $1.6 0.8% Other Core $0.01 1 0.05% Total* $11.3 1 0.8% *The actual number approved will include fees paid to cities and local governments. RECEWED OCT 0 5 1009 S! O CITY CLERK FOR FURTHER INFORMATION You may request additional information by writing to: Jeffery Salazar, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. SoCa1Gas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCa1Gas Web site at: www.socalgas.com/regulatory/cpue.shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/regulatoEy. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCa1Gas' formal request. If -you would like -additional information or would like to -attend -these hearings, you -can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4t' St., Ste. 500, Los Angeles, CA 90013 or send an e-mail to:, public.advisor.la(&cpuc.ca.gov. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.09-09-020 in any correspondence. NOTIFICATION OF APPLICATION FILING BY SOUTHERN CALIFORNIA GAS COMPANY: WILDFIRE CLAIMS COST RECOVERY A.09-08-020 RECEIVED SEP 0 R 2009 SLO CITY CLERK /72R trWi!1 / y On August 31, 2009, Southern California Gas Company (SoCalGaso), San Diego Gas and Electric Company, Pacific Gas and Electric Company and Southern California Edison Company (the Utilities) jointly filed Application No. 09-08-020 requesting authority from the California Public Utilities Commission (CPUC) to approve a mechanism to allow the Utilities to recover uninsured costs associated with wildfires. In the face of a potential insurance crisis that may limit the Utilities' ability to obtain insurance coverage, the application asks for CPUC approval for each Utility to establish a Wildfire Expense Balancing Account (WEBA) to record for future recovery all uninsured costs arising from wildfires, including: (1) Payments to satisfy wildfire claims, including any co-insurance and deductible expense paid by the Utilities; (2) Outside legal costs incurred in the defense of wildfire claims; (3) Premiums for insurance against wildfire claims, and (4) The cost of financing these amounts. Costs that have previously been authorized for recovery in rates in SoCalGas' General Rate Case shall not be added to the WEBA. Insurance proceeds, as well as any payments received from third parties, will be credited to the WEBA as they are received. The Application requests that amounts recorded in the WEBA be included in rates after review and approval by the Commission. However, while requesting approval of the mechanism, the Application does not request increases in current rates. FOR FURTHER INFORMATION You may request additional information or obtain a copy of the application and related exhibits by writing to: Chuck Manzuk, Southern California Gas Company, 8330 Century Park Court, San Diego, CA 92123. SoCalGas' application and exhibits may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application are available on the SoCalGas Web site at: www.socalgas.com/re ug latorv/cauc.shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at: www.socalgas.com/regulatoEy. THE CPUC PROCESS The CPUC's Division of Ratepayer Advocates (DRA) will review this application. DRA is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state and obtain the lowest possible rate for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. DRA's views do not necessarily reflect those of the CPUC. Other parties of record will also participate. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record present their proposals in testimony and are subject to cross-examination before an Administrative Law Judge (ALJ). The EHs are {00085742.DOC:1) open to the public, but only those who are formal parties of record can present evidence or cross-examine witnesses during the EHs. Members of the public may attend these hearings, but they are only allowed to listen. After considering all evidence presented during this process, the ALJ will issue a draft decision. When the CPUC acts on this application, it may adopt all or part of SoCalGas' proposal. The CPUC may approve the draft decision; it may adopt all or part of the draft; or the assigned Commissioner may issue an alternate decision. The final decision adopted may be different from what SoCalGas proposed in the application filing If you would like additional information on -the CPUC process, you may contact the Public Advisor's Office (PAO) at 1-866-849-8391 (toll free) or 213-576-7055. If you would like to attend these hearings and need assistance, you should contact the Public Advisor's Office (PAO) at 1-866-849-8390 (toll flee) or 415-703-2074 at least three business days in advance of the meeting. You may also send your comments to the PAO at the address: Public Advisor's Office, 320 West 4`h St., Ste. 500, Los Angeles, CA 90013 or send an e-mail to: pub[ic.advisor.la@cpuc.ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that your comments are regarding Application No. A.09-08-020. Reviewed by the California Public Utilities Commission 100085742. Doc: i I SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF AN APPLICATION TO EXPAND THE HONOR RANCHO NATURAL GAS STORAGE FACILITY AND ANTICIPATED INCREASE IN GAS RATES APPLICATION NO. A.09-07-014 Proposed Project: On July 13, 2009, Southern California Gas Company (SoCalGas®) filed an application (A.09-07-014) with the California Public Utilities Commission (CPUC) for the expansion of the Honor Rancho Natural Gas Storage Facility. Purpose of Project: The Honor Rancho Storage Expansion Project is needed to help ensure a stable and reliable supply of natural gas within SoCalGas' service area and to develop additional in-state storage resources. Project Description and Location: SoCalGas will drill up to six new wells at the Honor Rancho Storage Facility located near Valencia, California. All. activities will take place within the Honor Rancho facility's existing property boundaries. The project will take approximately 24 months to complete at a cost of $48.9 million. If this request is approved, upon full completion of the project, the impact on a residential customer's monthly summer bill for 32 therms of gas will increase by 4.0 centstmonth, from $30.94 to $30.98/month. Based on a 12 -month period, a residential customer's average monthly bill will increase by 6.0 cents. The impact on each customer and customer class will vary depending on individual usage and the final decision. If approved, the proposed costs allocated to each core customer class, and the increase over current costs, is as follows: Customer Class Annual $ (million) % increase Residential $3.2 0.3% Commercial/Industrial $0.6 0.2% Other Core $0.0 0.0% Total* $3.8 0.3% *The actual number approved will include fees paid to cities and local governments. t✓� : IZl�mvG�7 04 L--rc-2 s- rx �L,e i; z. RECEIVEDEp JUL 2 2 Hiog SLO CITY CAFE FOR FURTHER INFORMATION You may request additional information by writing to: Jeffery Salazar, Southern California Gas Company, 555 W. Fifth St., GT 14D6, Los Angeles, CA 90013-1011. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCalGas Web site at: www.socal2as.conVreizitlatorv/ci)uc.shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www ;ocalaas.com/regulatoryLLLLL=. CPUC PROCESS The CPUC may hold Evidentiary Hearings (EHs) whereby parties of record provide testimony and are subject to cross-examination before a CPUC's Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can participate. The CPUC has its own court reporters who will record the comments of those formal parties of record participating in the EHs. The Division of Ratepayer Advocates (DRA) is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state to obtain the lowest possible rates for service consistent with reliable and safe service levels. DRA has a multi -disciplinary staff with expertise in economics, finance, accounting and engineering. After considering all proposals and evidence presented during the formal hearing process, the assigned ALJ will issue a proposed draft decision. When the CPUC issues a final decision on the application, it may adopt, amend or modify all or part of the ALJ's proposed decision as written. The CPUC's decision may be different than SoCalGas' formal request. if you would like additional information or would like to attend these hearings you can contact the Public Advisor's Office. You may also send your comments to the Public Advisors' address, 320 West 4`h St.., Ste. 500, Los Angeles, CA 90013 or send an e-mail to: public advisor.la@c�. Any correspondence received will become part of the formal file in this application. Please reference Application No. A.09-07-014 in any correspondence. RECEIVED,, yr JUL 2 8 2008 St.. fHERN CALIFORNIA GAS COMr *NY NOTICE OF FILING ENERGY EFFICIENCY SLO CITY CLERK APPLICATION No. A.08-07-022 On July 21, 2008, Southern California Gas Company (SoCalGas®) filed with the California Public Utilities Commission (CPUC or Commission) a request for approval of its 2009-2011 energy efficiency programs and budgets. The proposed energy efficiency program portfolio is designed to provide energy efficiency programs and services to SoCalGas customers, help reduce their gas usage and achieve the utility's energy savings and demand reduction goals established in Decision 04-09-060. SoCalGas seeks approval of funding in the amounts of $75.964 million, $78.914 million and $81.745 million for 2009, 2010 and 2011, respectively. The current funding level for these programs is $73.781 million. If the Commission approves the 2009-2011 energy efficiency program budgets, SoCalGas will adjust the Public Purpose Program (PPP) surcharge on customer bills to reflect authorization of increased costs. Only the surcharge will be affected because energy efficiency costs are collected in the surcharge and not in transportation or procurement rates. The tables below show the 2009 through 2011 PPP surcharge rate impacts compared to present rates. Lc : l -t i 1P t �L Southern California Gas Company 2.723 1% 5.074 Energy Efficiency 1% Commercial/ Industrial 4.001 PPP Surcharge Class Average Rate Changes 6.380 ��'� �'� ✓ 2009 Gas Air Conditioning 4.173 4.269 Customer CARE Customers Non -CARE Customers �t�NUC+S- Class 2008 2009 '% Change 2008 2009 % Change 6.505 ¢/th a/th % c/th c/th % (a) (b) (c) (d) (e) (f) (g) Core Residential 2.695 2.677 -1% 5.074 5.056 0% Commercial/ Industrial 4.001 3.944 _1% 6.380 6.324 _1% Gas Air Conditioning 4.173 4.113 _1% 6.553 6.492 _1% Gas Engine N/A N/A N/A 6.505 6.446 -1% Natural Gas Vehicle N/A N/A N/A 2.379 2.379 0% Noncore Commercial/Industrial N/A N/A N/A 2.807 2.802 0% Southern California Gas Company Energy Efficiency PPP Surcharge Class Average Rate Changes 2010 Customer CARE Customers Non -CARE Customers Class 2008 2010 % Change 2008 2010 % Change a/th a/th (% a/th ¢/th % (a) (b) (c) (d) (e) (f) (g) Core Residential 2.695 2.723 1% 5.074 5.102 1% Commercial/ Industrial 4.001 4.092 2% 6.380 6.471 1% Gas Air Conditioning 4.173 4.269 2% 6.553 6.649 1% Gas Engine N/A N/A N/A 6.505 6.600 1% Natural Gas Vehicle N/A N/A N/A 2.379 2.379 0% Noncore Commercial/ Industrial N/A N/A N/A 2.807 2.816 0% Southern California Gas Company Energy Efficiency PPP Surcharge Class Average Rate Changes 2011 Customer CARE Customers Non -CARE Customers Class 2008. 2011 % Change 2008 2011 % Change Noncore Commercial/Industrial N/A N/A N/A 2.807 2.831 1% The average monthly residential bill (including the surcharge, transportation and core procurement charges) of 46 therms will change from $62.22 at present rates to $62.21 in 2009, $62.23 in 2010 and $62.25 in 2011. This represents a 0.1 % increase over the three-year program period. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold evidentiary hearings at which the parties of record present their proposals in testimony and are subject to cross-examination before an Administrative Law Judge. These hearings are open to the public, but only those who are parties of record can present evidence or cross-examine witnesses during evidentiary hearings. After considering all evidence presented, the Commission will issue a decision. The Commission may approve expenditures that differ from those we request. The actual rates may result in changes greater or less than those described in this notice. If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Commission's Public Advisor, 320 West 4°i St., Suite 500, Los Angeles CA 90013, or by e-mail to public advisor lama cpuc ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. in your letter, state that your comments are regarding Application No. A.08-07-022. FURTHER INFORMATION You may request additional information or obtain a copy of the application and related exhibits by writing to: Joy Yamagata, Regulatory Manager for SoCalGas, 8330 Century Park Court, San Diego, CA 92123. SoCalGas will provide a copy of the application, including testimony, upon request. A copy of the application and any amendments may be inspected at the SoCalGas business office, 555 West 5h St., Los Angeles, CA 90013. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application and of this insert are available on the SoCalGas Web site at www.socalgas.com/regulatory/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at http://www.socalgas-com/myaccount/regulatory.html. ¢/th a/th % ¢/th Q/th % (a) (b) (c) (d) (e) (f) (g) Core Residential 2.695 2.767 3% 5.074 5.146 1% Commercial/ Industrial 4.001 4.233 6% 6.380 6.612 4% Gas Air Conditioning 4.173 4.420 6% 6.553 6.799 4% Gas Engine N/A N/A N/A 6.505 6.748 4% Natural Gas Vehicle N/A N/A N/A 2.379 2.379 0% Noncore Commercial/Industrial N/A N/A N/A 2.807 2.831 1% The average monthly residential bill (including the surcharge, transportation and core procurement charges) of 46 therms will change from $62.22 at present rates to $62.21 in 2009, $62.23 in 2010 and $62.25 in 2011. This represents a 0.1 % increase over the three-year program period. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold evidentiary hearings at which the parties of record present their proposals in testimony and are subject to cross-examination before an Administrative Law Judge. These hearings are open to the public, but only those who are parties of record can present evidence or cross-examine witnesses during evidentiary hearings. After considering all evidence presented, the Commission will issue a decision. The Commission may approve expenditures that differ from those we request. The actual rates may result in changes greater or less than those described in this notice. If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Commission's Public Advisor, 320 West 4°i St., Suite 500, Los Angeles CA 90013, or by e-mail to public advisor lama cpuc ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. in your letter, state that your comments are regarding Application No. A.08-07-022. FURTHER INFORMATION You may request additional information or obtain a copy of the application and related exhibits by writing to: Joy Yamagata, Regulatory Manager for SoCalGas, 8330 Century Park Court, San Diego, CA 92123. SoCalGas will provide a copy of the application, including testimony, upon request. A copy of the application and any amendments may be inspected at the SoCalGas business office, 555 West 5h St., Los Angeles, CA 90013. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application and of this insert are available on the SoCalGas Web site at www.socalgas.com/regulatory/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at http://www.socalgas-com/myaccount/regulatory.html. RECEIVED JUN pppA S(JuTHE CALIFORNIA GAS COMP Y 1 WCE OF FILING OF THE GAS COST INCENTIVE MECHANISM (GLIM) SLO CITY CLERK APPLICATION NO. A.08-06-016 Nrz On June 16. 2008. Southern California Gas Company (SoCalGaso) filed an application (A.08-06-016) with the California Public Utilities Commission (Commission) to collect on an approved incentive as stipulated by the Gas Cost Incentive Mechanism (GCIM). Under the GCIM program. the Commission approves a "competitive benchmark" (based on market price) that SoCalGas strives to beat when purchasing natural gas on the open market for its customers. If SoCalGas purchases gas above the competitive benchmark within a certain tolerance band. then the utility is penalized. If SoCalGas purchases gas below the competitive benchmark within a certain tolerance band. the utility is rewarded. SoCalGas has been operating under this program for 14 years. Although natural gas prices were higher last winter, SoCalGas was able to purchase natural gas at $50.1 million below the competitive benchmark during the program year extending from April 1. 2007 to March 31, 2008. This effort helped mitigate price spikes, providing customers a net benefit of $43.6 million in lower gas costs. The June 16. 2008 filing requests that.SoCalGas collect from customers $6.5 million for its shareholders as incentive for purchasing gas below the competitive benchmark price. If the Commission approves SoCalGas' application. the proposed impact to each customer class would be allocated as follows: Customer Class $ (million) % increase Residential $5.0 0.4% Commercial/Industrial $1.4 1 Other Core $1 1 Total* $6.5** 0.4% *The actual number approved by the Commission will include fees paid to cities and local governments. **The total amount of $6.5 million does not include franchise fees and uncollectibles. If the Commission approves this request. a residential customer's monthly summer bill for 32 therms of gas would increase by 7 cents. from $55.60 to $55.67. Based on a 12 -month period. a residential customer's average monthly bill would increase by 9 cents. The impact on each customer and customer class will vary depending on individual usage and the Commission's final decision. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold evidentiary hearings at which the parties of record present their proposals in testimony and are subject to cross- examination before an Administrative Law Judge. These hearings are open to the public. but only those who are parties of record can present evidence or cross-examine witnesses during the evidentiary hearings. After considering all evidence presented. the Commission will issue a decision. The Commission may approve expenditures that differ from those we request. The actual rates may result in changes greater or less than those described in this notice. If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Commission's Public Advisor's Office, 505 Van Ness Avenue. San Francisco. CA 94102 or send an e-mail to: oublic.advisor. Ia@cpuc.ca.eov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that your comments are regarding Application No. A.08-06-016. FOR FURTHER INFORMATION You may request additional information or obtain a copy of the application and related exhibits by writing to: Dean Kinports, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. SoCalGas' application and attachments may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Copies of this application will be available for viewing and printing on the SoCalGas Web site at: www.socal,-,as-conVregulatol-v/cl2uc.shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.,ocaleas.cnm/regulatory. Southern California Gas Compariy NOTICE OF PROPOSED RATE INCREASE Biennial Cost Allocation Proceeding (BCAP) APPLICATION NO. A.08-02-001 1>0 I+ -OLP 0!�Ll RECEIVED FEB 13 2008 SLO CITY CLERK On February 4, 2008, Southern California Gas Company (SoCalGase) filed its BCAP Application No. A.08-02-001 ("Application") with the California Public Utilities Commission ("Commission") to revise its rates for natural gas transportation service, effective January 1, 2009. SoCalGas proposes in this application both embedded cost -based rates and marginal cost -based rates. Embedded cost -based rates rely generally on the historical costs of SoCalGas to provide service. Marginal cost -based rates rely generally on forecasted future costs of SoCalGas to provide service. The Commission will select one of these proposals for allocating costs to customer classes when it establishes new SoCalGas rates. EFFECT ON GAS RATES AND BILLS In this application, SoCalGas proposes an increase in overall transportation revenues of $67 million based on embedded cost -based rates, or an increase in overall transportation revenues of $48 million using marginal cost -based rates. These are percentage increases of 4% and 3.4%, respectively and would only apply to the transportation component of a total gas bill. The residential rate increase is due to updating the allocation of customer, distribution, and transmission costs, as well as a proposal to reduce a subsidy to residential customers that is currently paid for by small commercial customers. A typical monthly winter bill for a residential customer using 75 therms per month will increase by $0.71 per month under embedded cost -based rates, and increase $0.58 per month under marginal cost -based rates from the average of $94.14 per month under present rates (t). Proposed rates for small business and industrial customers are lower primarily due to higher forecasted consumption partially offset by higher allocation of costs. Proposed rates for large commercial and industrial customers are lower primarily due to lower forecasted consumption more than offset by lower allocation of costs. Proposed rates for electric generators are lower primarily due to lower forecasted consumption more than offset by lower allocation of costs. (1) These monthly bill estimates include charges for transportation, Public Purpose Program Surcharges and natural gas commodity and Firm Access Rights. SOUTHERN CALIFORNIA GAS COMPANY Illustrative Change in Class Average Rates Due to Proposed BCAP Effective January 1, 2009 Proposed % Change Proposed % Change Present Rates Rates using Rates Rates using Rates Embedded Marginal Costs Costs Customer Class/therm (0/therm)(g/therm) Residential Core • 45.6 48.8: 6.9% 47.0 3.1% Commercial/Industrial Core' 28.9 25.7 -11.1% 27.1 -6.4% Commercial/Industrial (Noncore)** 6.3 4.3 -31.6% 5.0 -21.2% Electric Generation 3.5 3.1 -10.9% 1 3.0 -13.9% Wholesale & International 1.3 2.0 50.5% 2.0 47.7% Firm Access Ri hts*" n/a 1 0.5 n/a 0.5 n/a * Core customers generals, .se smaller quantities of gas. ** Noncore customers are generally large gas users who purchase their own natural gas supplies for SoCalGas to deliver. *** Firm Access Rights are rights that customers may purchase for firm access into the SoCalGas system. Core customers who purchase gas supplies from SoCalGas will have this charge included in the gas commodity rate. Customers that do not purchase gas supplies from SoCalGas may purchase these rights directly from SoCalGas. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold evidentiary hearings where the parties of record present their proposals in testimony and are subject to cross-examination before an Administrative Law Judge. These hearings are open to the public, but only those who are parties of record can present evidence or cross-examine witnesses during evidentiary hearings. After considering all evidence presented, the Commission will issue a decision. The Commission may approve expenditures that differ from those we request. The actual rates may result in changes greater or less than those described in this notice. If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Commission's Public Advisor's Office, 320 West Fourth St., Suite 500, Los Angeles, CA 90013, or send an e- mail to public.advisor.laCa)cpuc.ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that your comments are regarding Application No. 08- 02-001. Please indicate if you would like a response to your letter. Otherwise, none will be sent. FOR FURTHER INFORMATION You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Beth Musich, Southern California Gas Company, 555 W. Fifth St., GT14D6, Los Angeles, CA 90013-1011. You may also view a copy of the application at the following address: California Public Utilities Commission, 505 Van Ness Ave., San Francisco, CA 94102. The application is available electronically on the SoCalGas Web site: www.socalgas.com/regulatory/couc-shtmi. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/regulatory. t1tU1Z1V rZU 01 JL. 71007 SLO CITY CLERK SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATE INCREASE APPLICATION NO. A.07-06-021 On June 15, 2007, Southern California Gas Company (SoCalGas®) filed an application (A.07-06-021) with the California Public Utilities Commission (Commission) to collect an approved incentive under the Gas Cost Incentive Mechanism (GCIM). Under the GCIM program, the Commission approves a "benchmark" price (based on market price) that SoCalGas strives to beat when purchasing natural gas on the open market for its customers. If SoCalGas purchases gas above the benchmark price, then the utility is penalized. If SoCalGas purchases gas below the benchmark, the utility is rewarded. SoCalGas has been operating under this program for 13 years. SoCalGas was able to purchase natural gas at $57.7 million below the market price during this program year, April 1, 2006 to March 31, 2007. This effort helped mitigate price spikes, providing customers a net benefit of $48.8 million in lower gas costs. The June 15, 2007 filing requests SoCalGas collect from customers $8.9 million for its shareholders as incentive for purchasing gas below the benchmark price. WHAT THIS MEANS TO YOU If the Commission approves SoCalGas' application, the proposed impact to each customer class would be allocated as follows: Customer Class $million % increase Residential $6.8 1% Commercial/Industrial $1.9 1% Other Core $0.2 2% Total* - $8.9 1 1% *The actual number approved by the Commission will include fees paid to cities and local governments. If the Commission approves this request, a residential customer's monthly summer bill for 32 therms of gas usage would increase by 9 cents, from $40.78 to $40.87. Based on a 12 -month period, a residential customer's average monthly bill would increase by 13 cents. The impact on each customer and customer class will vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from what is requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance or if you would like to send comments to the Commission, you may write to the Commission's Public Advisor's Office at the following mail or e-mail address: CPUC, Public Advisors Office 320 West Fourth St., Suite 500 Los Angeles, CA 90013 E-mail Public advisor.lancpuc.ca. MY If public participation hearings are held to gather additional comments from customers, notice of the dates, times and locations will be provided to you by separate notice. Any letters received from you will be circulated to the five Commissioners and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 07-06-021. Please indicate if you would like a response to your letter. Otherwise, none will be sent. I You may inspect a copy of the application at the address listed below or obtain a copy of the application by writing to: Kari Kloberdanz Southern California Gas Company 555 W. Fifth St., GT14D6 Los Angeles, CA 90013-1011 You may also view a copy of the application at the company web site: www.socalp-as.com/regulatOM/cDuc-shtml You may also view a copy of the application at the following address: California Public Utilities Commission 505 Van Ness Ave. San Francisco, CA 94102 Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalizas-co i/regulatoa c SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF FILING OF LOW-INCOME PROGRAM APPLICATION NO. A.06-06-033 On June 30, 2006, Southern California Gas Company (SoCalGas') filed its request for approval of proposed funding of Program Year (PY) 2007-2008 for the Low -Income Energy Efficiency (LIEE) Program and administrative costs associated with the California Alternate Rates for Energy (CARE) Program. These programs are directed at helping customers use energy more efficiently, and in assisting qualified low-income customers with their energy bills. The proposed funding of $34.925 million per year for the LIEE program is higher than the currently authorized budget for PY 2006 of $33.325 million. The increased budget will be used to provide funding for required LIEE carbon monoxide testing activities. SoCalGas proposes to increase its administrative CARE budget to $4.713 million annually from $4.107 million, the currently authorized budget for 2006. The higher budget will be used to increase program participation through customer outreach and program system enhancements. SoCalGas is not proposing to increase gas rates at this time because current revenues should be sufficient to cover the anticipated budget increases. Should conditions change, however,. requiring SoCalGas to increase rates as a result of this filing, SoCalGas expects the rate increase would be minimal and would be reflected as part of SoCalGas' annual Public Purpose Program rate update filed via advice letter in October for rates effective January 1 of the following year. THE CPUC MAY HOLD EVIDENTIARY HEARINGS Before acting on our application, the California Public Utilities Commission (CPUC) may hold hearings to examine evidence and hear testimony presented by SoCalGas and any other interested parties, including the CPUC's Division of Ratepayer Advocates (DRA). If hearings are held, parties may offer proposals to the CPUC that differ from those we present. After considering all evidence presented, the CPUC will issue a decision. The CPUC'may approve a program different from that included in this application. HEARINGS ARE OPEN TO THE PUBLIC YOU ARE WELCOME TO COMMENT AND TO PARTICIPATE IN THE HEARINGS If you wish to participate in the evidentiary hearings and need advice on how to do so, or if you would like information on the location and schedule of the hearings, please write to the CPUC's Public Advisor at the following address: Public Advisor, California Public Utilities Commission, 320 West Fourth St., Suite 500, Los Angeles, CA 90013, or by e-mail to public.advisor.laAcpuc.ca.gov. If you cannot attend the evidentiary hearings, you may submit written comments to the CPUC at the above address; Make sure to include the application number on your correspondence. The Public Advisor will give your letter to the Commissioners, DRA staff and the Administrative Law Judge assigned to'the case, and it will become part of the formal correspondence file. If you have a question or need further information about participating, please state in your letter that you would like a response. Otherwise, no reply will be sent. FOR FURTHER INFORMATION Questions concerning this application may be directed to J. Yamagata, Regulatory Manager for SoCalGas, 8330 Century Park Court, San Diego, CA 92123. SoCalGas will provide a copy of the application, including testimony, upon request. A copy of the application and any amendments may be inspected at the SoCalGas business office, 555 West 5`s St., Los Angeles, CA 90013. SoCalGas' application and attachments may also be inspected at the CPUC office located at California Public Utilities Commission 320 West Fourth St., Suite 500 Los Angeles, CA 90013 Copies of this application and of this insert are available on the SoCalGas Web site at www.soca]2as.com/regulEttoly/cpuc.shtml. Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/regulatory. al OLO E VED SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATE INCRE2006 APPLICATION NO. A.06-06-017 OUNCIL On June 15, 2006, Southern California Gas Company (SoCalGas') filed an application (A.06-06-017) with the California Public Utilities Commission (Commission) to collect on an approved incentive under the Gas Cost Incentive Mechanism (GCIM). Under the GCIM program, the Commission approves a "benchmark" price (based on market price) that SoCalGas strives to beat when purchasing natural gas on the open market for its customers. If SoCalGas purchases gas above the benchmark price, then the utility is penalized. If SoCalGas purchases gas below the benchmark, the utility is rewarded. SoCalGas has been operating under this program for 11 years. Although natural gas prices were higher nationwide last winter, SoCalGas was able to purchase natural gas at $69.1 million below the market price during this program year, April 1, 2005 to March 31, 2006. This effort helped mitigate price spikes, providing customers a net benefit of $59.3 million in lower gas costs. The June 15, 2006 filing requests SoCalGas collect from customers $9.8 million for its shareholders as incentive for purchasing gas below the benchmark price. WHAT THIS MEANS TO YOU If the Commission approves SoCalGas' applications, the proposed impact to each customer class would be allocated as follows: Customer Class $ (million) % increase Residential $7.50 1% Commercial/Industrial $2.10 1% Other Core $0.20 2% Total* $9.80** 1% *The actual number approved by the Commission will include fees paid to cities and local governments. **The total amount of $9.80 million does not include franchise fees and uncollectibles. If the Commission approves this request, a residential customer's monthly summer bill for 32 therms of gas usage would increase by 12 cents, from $40.81 to $40.93. Based on a 12 -month period, a residential customer's average monthly bill would increase by 14 cents. The impact on each customer and customer class will vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO You may view a. copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Gregory Healy Southern California Gas Company 555 W. Fifth Street, 14`s Floor, GT141)6 Los Angeles, CA 90013-1011 You may also view a copy of the application at the following address: California Public Utilities Commission 320 W. Fourth Street, Room 500 Los Angeles, CA 90013 Before acting on; our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following e-mail address: ptiblic.advisor.la@cpuc.ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that your comments are regarding Application No. 06-06-017. Please indicate if you would like a'response to your letter. Otherwise, none will be sent. A copy of this application is available on the SoCalGas Web site at wwu,. socal gas. com/re sul atory/cpuc. shtml. Copies of this notice will be available for viewing and printing on the SoCalGas Web site at www.socalgas.corn/regulatory. :i 001_.- iVv,i=rl CORRECTED NOTICE SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF FILING OF LOW-INCOME and ENERGY -EFFICIENCY APPLICATION Nos. A.05-06-012 and A.05-06-011 Some customers may have received a notice in their June 2005 gas bill regarding the proposed rate impacts in Applications 05-06-011 and 05-06-012. That notice contained errors. Please disregard any previous notice and refer to the corrected information on the proposed rate impacts in Applications 05-06-011 and 05-06-012 below. This notice is to advise our customers of the filing of two applications, the timing of which is determined by the California Public Utilities Commission (CPUC). On June 1, 2005, Southern California Gas Company (SoCalGasS") filed applications with the CPUC seeking approval of its programs and associated budgets for Low lncome.Energy Efficiency (LIEE), California Alternate Rates for Energy (CARE) and Energy Efficiency. These programs are directed at helping customers use energy more efficiently, and in assisting qualified low-income customers with their energy bills. Each application will be described separately in this notice. APPLICATION A.05-06-012, LOW-INCOME PROGRAMS SoCalGas filed this application with the CPUC requesting approval of proposed 2006-2007 funding for the LIEE Program and administrative costs associated with the CARE Program. The LIEE and CARE programs are CPUC -authorized activities designed to assist low-income customers with their energy bills. The LIEE Program provides direct weatherization and energy - efficiency services. The CARE Program provides a 20% rate discount to income -qualified households on their gas bills. SoCalGas proposes that the LIEE Program budget be reduced by $1.2 million, and the administrative budget for CARE be reduced by $0.6 million, compared to the amounts recovered in present rates, which will result in a slight reduction in rates as shown below. This table shows the gas rate impact compared to present rates for only the proposed public purpose program (PPP) surcharge portion of the total bill.. Southern California Gas Company - LOW INCOME PPP Surcharge Class Average Rate Changes Customer CARE Customers Non -CARE Customers Class 2005 2006-07 % Change 2005 2006-07 % Change (a) Com.. Residential Commercial/ Industrial Gas Air Conditioning a/th a/th % ' a/th a/th % (b) (c) (d) (e) (f) (g) 2003. .1.956 -2.3% 1.642 1.642 0.085 0.085 3.802 .3.742 .. ..-,1.6% 0.0% '3.440 3.428 -0.4% 0.0% 1.884 1.871 -0.7% RECEIVED i JUN 3 0 2005 SLO CITY CLER8 Gas Engine N/A N/A N/A 2.115 2.102 -0.6% Natural Gas Vehicle N/A N/A N/A 1.799 1.786 -0.7% Noncom Commercial/Industrial N/A N/A N/A 1.828 1.815 -0.7% In 2006 and 2007, the average monthly Residential bill of 46 therms will decrease from $47.79 to $47.76, or -0.1 % compared to present rates. APPLICATION A.05-06-011, ENERGY -EFFICIENCY PROGRAMS This application requests approval of SoCalGas' proposed 2006-2008 energy -efficiency programs and budgets. The proposed program portfolio is designed to provide energy -efficiency programs and services to all SoCalGas customers; help customers reduce their energy usage; and, achieve the utility's energy savings and demand reduction goals established in Decision 04-09-060.. SoCalGas seeks approval of funding in the amounts of $47.9 million, $61.1 million, and $73.5 million for 2006, 2007 and 2008, respectively. If the Commission approves the 2006-2008 energy -efficiency budgets, SoCalGas will adjust rates to reflect authorization of increased costs. Gas rates will increase by $20.9 million in 2006, by $34.1 million in 2007, and by $46.5 million in 2008, compared to present rates, to fully find the 2006-2008 authorized energymefficiency programs. SoCalGas requests that the proposed gas rate and revenue requirement increase become effective on January- 1, 2006, or as soon thereafter as possible. The tables below show the 2006 through 2008 gas rate impacts compared to present rates for only the proposed PPP surcharge portion of the total bill. Southern California Gas Company — ENERGY EFFICIENCY PPP Surcharge Class Average Rate Changes 2006 Customer CARE Customers Non -CARE Customers Class 2005 2006 % Change 2005 2006 % Change (a) Com Residential Commercial/Industrial Gas Air Conditioning a/th a/th (b) (c) 2.003 a/th a/th % (d) (e) (f) (g) 2.003 2.271 13.476 3.802 4.070 1.642 2.694: 64.176 3.440 4.493 7.196 30.69'6 0.085 2.120 2385.6% 1.884 3.918 108.0% rd Gas Engine N/A N/A N/A 2.115 3.759 77.8% Natural Gas Vehicle N/A N/A N/A 1.799 1.799 0.0% Noncore Commercial/Industrial N/A N/A N/A 1.828 2.058 12.6% Southern California Gas Company — ENERGY EFFICIENCY PPP Surcharge Class Average Rate Changes 2007 Customer CARE Customers Non -CARE Customers Class 2005 2007 % Change 2005 2007 % Change c/th a/th % e/th a/th (a) (b) (c) (d) (e) (f) (g) Core Residential 2.003 2.476 23.6% 3.802 4.275 12.4% Commercial/Industrial 1.642 3.415 108.0% 3.440 5.213 51.5% Gas Air Conditioning 0.085 2.696 3060.8% 1.884 4.494 138.6% Gas Engine N/A N/A N/A 2.115 4.287 102.7% Natural Gas Vehicle N/A N/A N/A 1.799 1.799 0.0% Noncore Commercial/Industrial N/A N/A N/A 1.828 2.124 16.2% Southern California Gas Company — ENERGY EFFICIENCY PPP Surcharge Class Average Rate Changes 2008 Customer CARE Customers Non -CARE Customers Class 2005 2008 % Change 2005 2008 % Change ¢/th c/th % ¢/th Q/th (a) (b) (c) (d) (e) (f) (g) Core Residential . 2.003 2.667 33.2% 3.802 4.466 17.5% Commercial/Industrial 1.642 4.087 148.9% 3.440 5.885 71.1% Gas Air Conditioning 0.085 3.233 3690.4% 1.884 5.031 167.1% Gas Engine N/A N/A N/A 2.115 4.779 126.0% Natural Gas Vehicle N/A N/A N/A 1.799 1.799 0.0% Noncom Commercial/Industrial N/A N/A N/A 1.828 2.185 19.5% The average monthly Residential bill of 46 therms will change from $47.79 at present rates to $47.91 in 2006, $48.00 in 2007, and $48.09 in 2008. This represents a 0.6% increase over the three-year program period THE CPUC MAY HOLD EVIDENTIARY HEARINGS Before acting on our application, the CPUC may hold hearings to examine evidence and hear testimony presented by SoCalGas and any other interested parties, including the CPUC's Office of Ratepayer Advocates (ORA). If hearings are held, parties may offer proposals to the CPUC that differ from those we present. After considering all evidence presented, the CPUC will issue a decision. The CPUC may approve a program different from that included in this application. HEARINGS ARE OPEN TO THE PUBLIC YOU ARE WELCOME TO COMMENT AND TO PARTICIPATE IN THE HEARINGS If you wish to participate in the evidentiary hearings and need advice on how to do so, or if you would like information on the location and schedule of the hearings, please write to the CPUC's Public Advisor at the following address: Public Advisor, California Public Utilities Commission, 320 West Fourth Street, Suite 500, Los Angeles, CA 90013, or by e-mail to public. advisor. lancpuc.ca.gov. If you cannot attend the evidentiary hearings, you may submit written comments.to the CPUC at the above address. Make sure to include the application number on your correspondence. The Public Advisor will give your letter to the Commissioners, ORA staff and the Administrative Law Judge assigned to the case, and it will become part of the formal correspondence file. If you have a question or need further information about participating, please state in your letter that you would like a response. Otherwise, no reply will be sent. FOR FURTHER INFORMATION Questions concerning this application may be directed to J. Yamagata, Regulatory Manager for SoCalGas, 8330 Century Park Court San Diego, CA 92123. SoCalGas will provide a copy of the application, including testimony, upon request. A copy of the application and any amendments may be inspected at the SoCalGas business office, 555 West 5h Street, Los Angeles, CA 90013. SoCalGas' application and attachments may also be inspected at the CPUC office located at: California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 Copies of this insert will be available for viewing and printing on the SoCalGas Web site at sA,ww.socalgas.com/regulatory/inserts/index.shtml. Copies of this application are available on the SoCalGas Web site at www.socalgas.com/regulatory/cpuc.shtml. SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATE IN, APPLICATION NO. 05-06-030 RECEIVED .JUN G 3 2005 CITY CLERK �; Lori yY10� S� On June 15, 2005, Southern California Gas Company (SoCalGas'� filed an application (A.05-06-030) with the California Public Utilities Commission (Commission) to collect from customers $2.5 million for its shareholders as incentive for purchasing gas below a benchmark price. The Commission approved an incentive program called the Gas Cost Incentive Mechanism (GCIM) to provide SoCa1Gas with an incentive to keep gas costs low for its customers. If SoCalGas purchases gas above a benchmark price, which is based on market price, then the utility is penalized. If SoCalGas purchases gas below the benchmark, the utility is rewarded. SoCalGas has been operating under this program for 10 years. This year, which ran from April 1., 2004 to March 31, 2005, SoCalGas indicates the utility purchased gas at $31.4 million below the benchmark. The $31.4 million savings is shared between customers and shareholders; customers would retain a net benefit of $28.9 million in lower gas cost, while shareholders would receive a $2.5 million reward. WHAT THIS MEANS TO YOU If the Commission approves SoCalGas' applications, the proposed impact to each customer class would be allocated as follows: Customer Class $ (million). % increase Residential $1.95 0.2% Commercial/Industrial $0.54 0.2% Other Core $0.01 0.4% Total* $2.50 0.2% *The actual number approved by the Commission will include fees paid to cities and local governments. If the Commission approves this request, a residential customer's monthly summer bill for 70 therms of gas usage would increase by 2 cents, from $36.63 to $36.65. Based on a 12 -month period, a residential customer's average monthly bill would increase by 4 cents. The impact on each customer and customer class will vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO You may. view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Gregory Healy Southern California Gas Company 555 W. Fifth Street, 14'h Floor, GT14D6 Los Angeles, CA 900134011 You may also view a copy of the application at the following address: California Public Utilities Commission 320 W. Fourth Street, Room 500 Los Angeles, CA 90013 Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following e-mail address: public.advisor.la@cpuc.ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that your comments are regarding Application No. 05-06-030. Please indicate if you would like a response to your letter. Otherwise, none will be sent. Copies of this notice will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/regulatory. SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF FILING OF LOW-INCOME and ENERGY -EFFICIENCY APPLICATION Nos. A.05-06-012 and A.05-06-011 This notice is to advise our customers of the filing of two applications, the timing of which is determined by the California Public Utilities Commission (CPUC). On June 1, 2005, Southern California Gas Company (SoCalGas") filed applications with the CPUC seeking approval of its programs and associated budgets for Low Income Energy Efficiency (LIEE), California Alternate Rates for Energy (CARE) and Energy Efficiency. These programs are directed at helping customers use energy more efficiently, and in assisting qualified low-income customers with their energy bills. Each application will be described separately in this notice. APPLICATION A.05-06-012, LOW-INCOME PROGRAMS:: SoCalGas filed this application with the CPUC requesting approval of proposed 2006-2007 funding for the LIEE Program and administrative costs associated with the CARE Program. The LIEE and CARE programs are CPUC -authorized activities designed to assist low-income customers with their energy bills. The LIEE Program provides direct weatherization and energy - efficiency services. The CARE Program provides a 20% rate discount to income -qualified households on their gas bills. SoCalGas proposes that the LIEE Program budget be reduced by $1.2 million, and the administrative budget for CARE be reduced by $0.6 million, compared to the amounts recovered in present rates, which will result in a slight reduction in rates as shown below. This table shows the gas rate impact compared to present rates for only the proposed public purpose program (PPP) surcharge portion of the total bill. Southern California Gas Company Low Income PPP Surcharge Class Average Rate Changes Customer CARE Customers Non -CARE Customers Class 2005 2006-07 % Change 2005 2006-67 % Change RLZ"D D .K';N 15 2005 SLO CITY CLERK c/th c/th % e/th ¢/th % (a) (b) (c) (d) (e) (f) (g) Core Residential 2.003 1.956 -2.3% 3.802 3.742 -1.6% Commercial/Industrial 1.642 1.642 0.0% 3.440 3.428 -0.4% Gas Air Conditioning 0.085 0.085 0.0% 1.884 1.871 -0.7% Gas Engine N/A N/A N/A 2.115 2.102 -0.6% Natural Gas Vehicle N/A N/A N/A 1.799 1.799 0.0% RLZ"D D .K';N 15 2005 SLO CITY CLERK Noncore Commercial/Industrial N/A N/A N/A 1.828 1.815 -0.7% In 2006 and 2007, the average monthly Residential bill of 46 therms will decrease from $47.79 to $47.76, or -0.1 % compared to present rates. This application requests approval of SoCalGas' proposed 2006-2008 energy -efficiency programs and budgets. The proposed program portfolio is designed to provide energy -efficiency programs and services to all SoCalGas customers; help customers reduce their energy usage; and, achieve the utility's energy savings and demand reduction goals established in Decision 04-09-060. SoCalGas seeks approval of funding in the amounts of $47.9 million, $61.1 million, and $73.5 million for 2006, 2007..and 2008, respectively. If the Commission approves the 2006-2008 energy -efficiency budgets, SoCalGas will adjust rates to reflect authorization of increased costs. Gas rates will increase by $20.9 million in 2006, by $34.1 million in 2007, and by $46.5 million in 2008, compared to present rates, to fully fund the 2006-2008 authorized energy -efficiency programs. SoCalGas requests that the proposed gas rate and revenue requirement increase become effective on January 1, 2006, or as soon thereafter as possible. The tables below show the 2006 through 2008 gas rate impacts compared to present rates for only the proposed PPP surcharge portion of the total bill. Southern California Gas Company Energy Efficiency PPP Surcharge Class Average Rate Changes 2006 Customer CARE Customers Non -CARE Customers Class 2005 2006 % Change 2005 2006 % Change (a) Core Residential Commercial/Industrial Gas Air Conditioning Gas Engine Natural Gas Vehicle Oth Oth % (b) (c) (d) 2.003 2.901 44.8% 1.642 1.165 -29.1% c/th ¢/th % (e) (f) (g) 3.802 4.700 23.60/6 3.440 2.963 -13.9% 0.085 0.898 952.5% 1.884 2.696 43.1% N/A N/A N/A 2.115 2.638 24.8% N/A N/A N/A 1.799 1.799 0.0% Noncore Commercial/Industrial Southern California Gas Company Energy Efficiency PPP Surcharge Class Average.Rate Changes 2007 N/A N/A N/A 1.828 1.977 8.2% Customer CARE Customers Non -CARE Customers Class 2005 2007 % Change. 2005 2007 % Change Oth e/th % ¢/tfi elth pro (a) (b) (c) (d) (e) (f) (g) Core Residential 2.003 3.280 63.8% 3.802. 5.079 33.6% Commercial/Industrial 1.642 1.462 -10.9% 3.440 3.261 -5.2% Gas Air Conditioning 0.085 1.135 1231.2% 1.884 2.934 55.7% Gas Engine N/A N/A N/A 2.115 2.856 35.1% Natural Gas Vehicle N/A N/A N/A 1.799 1.799 0.0% Noncore Commercial/Industrial N/A N/A N/A 1.828 2.020 10.5% Southern California Gas Company Energy Efficiency PPP Surcharge Class Average Rate Changes 2008 Customer CARE Customers Class 2005 2008 % Change Non -CARE Customers 2005 2008 % Change e/th Oth % c/th cith % (a) (b) (c) (d) (e) (f) (g) Core Residential 2.003 3.634 81.4% 3.802 5.432 42.9% Commercial /Industrial Gas Air Conditioning Gas Engine Natural Gas Vehicle Noncore Commercial/Industrial 1.642 1.740 6.0% 0.085 1.357 1491.1% N/A N/A N/A N/A N/A N/A N/A N/A N/A 3.440 3.538 2.8% 1.884 3.156 67.5% 2.115 3.059 44.7% 1.799 1.799 0.0% 1.828 2.060 12.70/o The average monthly Residential bill of 46 therms will change from $47.79 at present rates to $47.91 in 2006, $48.00 in 2007, and $48.09 in 2008. This represents a 0.6% increase over the three-year program period. THE CPUC MAY HOLD EVIDENTIARY HEARINGS Before acting on our application, the CPUC may hold hearings to examine evidence and hear testimony presented by SoCalGas and any other interested parties, including the CPUC's Office of Ratepayer Advocates (ORA). If hearings are held, parties may offer proposals to the CPUC that differ from those we present. After considering all evidence presented, the CPUC will issue a decision. The CPUC may approve a program different from that included in this application. HEARINGS ARE OPEN TO THE PUBLIC YOU ARE WELCOME TO COMMENT AND TO PARTICIPATE IN THE HEARINGS If you wish to participate in the evidentiary hearings and need advice on how to do so, or if you would like information on the location and schedule of the hearings, please write to the CPUC's Public Advisor at the following address: Public Advisor, California Public Utilities Commission, 320 West Fourth Street., Suite 500, Los Angeles, CA 90013, or by e-mail to public.advisor.la(a)cpuc.ca. gov. If you cannot attend the evidentiary hearings, you may submit written comments to the CPUC at the above address. Make sure to include the application number on your correspondence. The Public Advisor will give your letter to the Commissioners, ORA staff and the Administrative Law Judge assigned to the case, and it will become part of the formal correspondence file. If you have a question or need further information about participating, please state in your letter that you would like a response. Otherwise, no reply will be sent. . FOR FURTHER INFORMATION Questions concerning this application may be directed to J. Yamagata, Regulatory Manager for SoCalGas, 8330 Century Park Court, San Diego, CA 92123. SoCalGas will provide a copy of the application, including testimony, upon request. A copy of the application and any amendments may be inspected at the SoCalGas business office, 555 West 5th Street, Los Angeles, CA 90013. SoCa1Gas's application and attachments may also be inspected at the CPUC office located at California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 Copies of this application and of this insert are available on the SoCalGas Web site at www. socalgas. com/regulatory/cpuc Copies of this insert will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/regulator.y/cpuc 101 Ash Street A Sempra Energy company Mail Loc. H006B San Diego, CA 92101-3017 Tel: 619-69&2246 Fax: 619-696-3060 dsteele@sempra.com March 29, 2005 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo. CA 93401 Dear Sir or Madam: Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $103,880.66 for the calendar year 2004.. Also enclosed is a statement showing the municipal surcharge; due of $38,685.78 for the calendar year 2004. The total amount due of $142;566.44 will be paid by Electronic Fund Transfer to be initiated on April 15, 2005, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: David L. Steele ABA Number: Principal Tax Advisor Account No.: Tax Services The Gas Southern California Campany Gas Company 101 Ash Street A Sempra Energy company Mail Loc. H006B San Diego, CA 92101-3017 Tel: 619-69&2246 Fax: 619-696-3060 dsteele@sempra.com March 29, 2005 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo. CA 93401 Dear Sir or Madam: Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $103,880.66 for the calendar year 2004.. Also enclosed is a statement showing the municipal surcharge; due of $38,685.78 for the calendar year 2004. The total amount due of $142;566.44 will be paid by Electronic Fund Transfer to be initiated on April 15, 2005, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Enclosures RECEIVED SLO CITY CLERK JUTHERN CALIFORNIA GAS COMPAN STATEMENT FOR THE CALENDAR YEAR 2004 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ................ $ Investment in Distributing Agencies in: Public and Private Rights of Way .................. $ Public Highways only ........................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ................................ $ Less: Uncollectible Bills ....................... $ Total Receipts .............................:. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (44.88825% x $3,775,259,871) ................. $ Public Highways only (10.58225% x $3,775,259,871) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................... Mileage in Highways ............................. Percent of Mileage in Highways to Total Mileage .... If R] 7,013,360,243 3,148,174, 537 742,171,267 44.88825% 10.58225% 3, 784, 025, 309 (8,765,438) 3, 775, 259, 871 1,694,648,089 399,507,438 49,559.3194 mi. 40,646.2776 mi. 82.01541% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.01541% x $1,694,648,089) .................. $ 1,389,872,578 Public Highways only (100% x $399,507,438) ......................: $ 399,507,438 Total ....................................... $ 1,789,380,016 Total Mileage in Highways as above ................. 40,646.2776 mi. Mileage in Highways of this Franchise 117.9858 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.29027% Gross Receipts applicable to this Franchise (0.29027% x $1,789,380,016) ..................... $ 5,194,033 Amount due based on 2% of the above applicable Gross. Receipts ...................................... $ 103,880.66 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings ................................. .. $ 10,016,622.51 Less: Uncollectible Bills .......................... ... $ (5,174.19) Gross Receipts ............................. .. $ 10,011,448.32 Amount due based on (1 %) of the above Gross Receipts .. $ 100,114.48 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $103,880.66. 2 JUTHERN CALIFORNIA GAS COMPAf MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2004 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .... :.......... $ 7,013,360,243 Investment in Distributing Agencies in: 40,646.2776 mi. Public and Private Rights of Way .................. $ 3,148,174,537 Public Highways only ........................... $ 742,171,267 Percent of Distributing Agencies to Total for: Public and Private Rights of Way .................. $ 44.88825% Public Highways only ........................... 10.58225% Total Imputed Revenue from Transportation Customers $ 141,367,472 for Period: $ 633,180,023 Imputed Revenue .............................. $ 1,335,892,382 Imputed Revenue applicable to Distributing Agencies in: 117.9858 mi. Public and Private Rights of Way (44.88825% x $1,335,892,382) .................. $ 599,658,712 Public Highways only (10.58225% x $1,335,892,382) .................. $ 141,367,472 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... 49,559.3194 mi. Mileage in Highways ............................. 40,646.2776 mi. Percent of Mileage in Highways to Total Mileage ...... 82.01541% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.01541% x $599,658,712) ................... $ 491,812,551 Public Highways only (100% x $141,367,472) ....................... $ 141,367,472 Total ..................................... $ 633,180,023 Total Mileage in Highways as above ................. 40,646.2776 mi. Mileage in Highways of this Franchise 117.9858 mi. Percent of Mileage of this Franchise to Total Mileage in Highways .................................. 0.29027% C. Imputed Revenue applicable to this Franchise (0.29027% x $633,180,023) ........................ $ 1,837,932 D. Amount due based on 2% of the above applicable Imputed Revenue ............................... $ 36,758.64 San Luis Obispo SECTION B Computation of payment of one percent (1%) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............ $ 236,744.71 Amount due based on (1%) of the above Imputed Revenue ... $ 2,367.45 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ 36,758.64 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ........................... $ 1,927.14 Total amount due .................................... $ -- 38,685.78 Municipal Surcharge Bad Debts ......................... $ 0.00 Net amount due ..................................... $ 38,685.78 2 CERTIFICATION I, the undersigned, say: I am Director, Corporate Tax for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 28, 20059 at San Diego, California. Terry F. Palmer Director - Corporate Tax If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Transactional Tax 101 Ash Street/ HQ06B San Diego, CA 92101-3017 UTHERN CALIFORNIA GAS CO. ANY NOTICE OF PROPOSED CHANGES TO GAS RATES �V System Integration, Firm Access Rights and Off System Deliveries Application APPLICATION NO. A.04-12-004 OUR REQUEST On December 2. 2004, Southern California Gas Company (SoCalGas) filed Application No. A.04-12-004 (Application) with the California Public Utilities Commission ("Commission") to revise its rates for gas service. Specifically, this Application proposes to revise SoCalGas' rates to combine the costs of the integrated SoCalGas and San Diego Gas & Electric Company transmission systems, to establish a separate charge for access into the system (which will be credited back to customer rates), and to establish a separate fuel charge for transmission service. The Application also proposes new service offerings for off system deliveries and revisions to various tariffs.. This application is being filed pursuant to CPUC decision D.04-09-022. in which the Commission ordered SoCalGas to file an application identifying the rate impacts of proposals made by the utility in Phase I of the Commission's Rulemaking R.04-01-025 to ensure that California consumers will continue to have long -tens access to natural gas supplies. In this Application, SoCalGas proposes an overall decrease in gas transportation rates of $2.4 million, or 0.1 % for SoCalGas customers in general, but an increase in certain rates such as residential rates. A typical winter bill for a SoCalGas residential customer using 75 therms will increase by $0.32 under the proposed rates, from the average $67.20 under present rates. Proposed rates on average for SoCalGas' business and industrial customers are also higher. Proposed rates for electric generation customers will be lower. WHAT THIS MEANS TO YOU The following table shows the rate impact to each customer class of SoCalGas' proposals. Customer Class Present Revenuest Proposed & Estimated Revenuestt ( i ons) % Change Rates Million) Residential (Core' $1,133.1 $1,143.2 0.9% Commercial/Industrial (Core)* $245.4 $248.9 1..4% Commercial/Industrial (Noncore)** $81.4 $85.3 4.8% Electric Generation $96.2 $92.8 -3.5% Wholesale $37.9 $20.2 -46.5% International $0.9 $1.0 4.9% Net PPP Revenues"" $144.9 $144.9 0.0% Core customers generally use smaller quantities of gas. Noncore customers are generally large gas users who often have alternate fuel capacity- " PPP stands for the Public Purpose Programs surcharge. The revenues fund certain state -mandated programs, including income -qualified subsidy programs, conservation and research and development. I Present Revenues include all bundled service costs including those services unbundled by D.01-12-018. tt Includes estimates to reflect average expenses for each customer class for the separate reservation charge of 5¢ / dth for firm access rights and cost of in-kind fuel for transmission. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on SoCalGas' Application, the Commission will hold formal evidentiary hearings that will be open to the public and devoted to analyzing the need for the requested rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Office of Ratepayer Advocates and other interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all the proposals, the Commission will issue a decision. You may view a copy of the Application at the address listed below or obtain a copy of the Application and related testimony by writing to: Beth Musich Regulatory Affairs Case Manager for Southern California Gas Company 555 W. Fifth Street, M.L GT1406 Los Angeles, CA 90013-1011 You may also view a copy of the Application at the following address: California Public Utillitles Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Public Advisor's Office at the address above, or send an e-mail to public.advisor.la cD-cpuc.ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. A.04-12-004. Please indicate if you would like a response to your letter. Otherwise, none will be sent. Copies of this insert will be available for viewing and printing after December 13, 2004 on the SoCalGas Web site. at www.socalgas.com/regulatory. SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATE INCREASE APPLICATION NO. 04-06-025 On June 15, 2004, Southern California Gas Company (SoCalGas'� filed an application (A.04-06-025) with the California Public Utilities Commission (Commission) to collect from customers $2.4 million for its shareholders as incentive for purchasing gas below a benchmark price. The Commission approved an incentive program called the Gas Cost Incentive Mechanism (GCIM) to provide SoCalGas with an incentive to keep gas costs low for its customers. If SoCalGas purchases gas above a benchmark price, which is based on market price, then the utility is penalized. If SoCalGas purchases gas below the benchmark, the utility is rewarded. SoCalGas has been operating under this program for nine years. This year, which ran from April 1, 2003 to March 31, 2004, SoCalGas indicates the utility purchased gas below the benchmark, saving its customers $27 million. The $27 million savings is shared between customers and shareholders; customers would retain a net benefit of $24.6 million in lower gas cost, while shareholders would receive a $2.4 million reward. WHAT THIS MEANS TO YOU Depending on Commission action on SoCalGas' requests, the proposed impact to each customer class would be allocated as follows: Customer Class $ million % increase Residential $1.84 0.2% Commercial/Industrial $0.51 0.2% Other Core $0.01 0.4% Total* $2.36 6.2% *The actual number approved by the Commission will include fees paid to cities and local governments. If the Commission approves this request, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 5 cents, from $62.42 to $62.47. Based on a 12 - month period, a residential customer's average monthly bill would increase by 3 cents. The impact on each customer and customer class will vary depending on individual usage and the Commission's final decision. RECEIVED JUN 2!1 2004 SLO C, Ty COUNCIL WHAT YOU CAN DO You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Gregory Healy Southern California Gas Company 555 W. Fifth Street, 14th Floor Los Angeles, CA 90013-1011 You may also view a copy of the application at the following address: California Public Utilities Commission .320 W. Fourth Street, Room 500 .Los Angeles, CA 90013 Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following e-mail address: public. advisor.la@cpuc.ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that your comments are regarding Application No. 0406-025. Please indicate if you would like a response to your letter. Otherwise, none will be sent. Copies of this notice will be available for viewing and printing on the SoCalGas Web site at www..socalgas.com/regulatory. Sempra Energy` May 3, 2004 Steven D. Patrick Attorney 555 W. Fifth Street, Suite 1400 Los Angeles, CA 90013-1011 Tel: 213.244.2954 Fax: 213.629.9620 spatrick@sempra.com NOTICE OF AVAILABILITY OF APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904 G) TO: All Parties of Record in A.00-05-002 Please be advised that on May 3, 2004 Southern California Gas Company ("SoCalGas") filed with the California Public Utilities Commission ("CPUC') a document entitled APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904 G). Pursuant to Rule 2.3(c) of the CPUC's Rules of Practice and Procedure, a copy of SoCalGas' 2004 AEAP Application will be mailed to you upon your request. Your request should be directed to: Merrie Lamb 8330 Century Park Court San Diego, CA 921234530 E -Mail: mlamb@semprautilities.com Very ru yours Steven D. Patrick Attorney for Southern California Gas Company A The Gas Company - A *Sempra Energy company March 29, 2004 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sir or Madam: RECEIVED APR U 1 2004 SLO CITY CLERK 4o jtriof it,� David L. Steele Principal Tax Advisor Tax Services Southern California Gas Company 101 Ash Street Mail Loc. H006B San Diego. CA 92101-3017 Tel. 619-696-2246 Fax: 619-696-2999 dsteele@sempra.com Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $90,936.64 for the calendar year 2003. Also enclosed is a statement showing the municipal surcharge due of $37,179.85 for the calendar year 2003. The total amount due of $128,116.49 will be paid by Electronic Fund Transfer to be initiated on April 15, 2004, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Sincerely, Enclosures SOUTHERN CALIFORNIA GAS COMPANY STATEMENT FOR THE CALENDAR YEAR 2003 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. $ Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (44.99224% x $3,244,914,636) ................. $ Public Highways only (10.90629% x $3,244,914,636) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ..... C A 6,715,328,735 3, 021, 376, 979 732,393,506 44.99224% 10.90629% 3,251,218,356 (6,303,720) 3,244,914,636 1,459, 959,781 353, 899, 800 49,012.5154 mi. 40,265.3706 mi. 82.15324% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.15324% x $1,459,959,781) ................. $ 1,199,404,263 Public Highways only (100% x $353,899,800) ....................... $ 353,899,800 Total .................................... $ 1,553,304,063 Total Mileage in Highways as above ................ 40,265.3706 mi. Mileage in Highways of this Franchise 117.8641 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.29272% Gross Receipts applicable to this Franchise (0.29272% x $1,553,304,063) ................... $ 4,546,832 Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 90,936.64 San Luis Obispo SECTION B Computation of payment of one percent (I%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................. $ 8,484,212.25 Less: Uncollectible Bills ............................ $ (16,059.27) Gross Receipts .............................. $ 8,468,152.98 Amount due based on (I%) of the above Gross Receipts .. $ 84,681.53 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $90,936.64. 1) SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2003 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............... $ 6,715,328,735 Investment in Distributing Agencies in: 40,265.3706 mi. Public and Private Rights of Way ................... $ 3,021,376,979 Public Highways only ........................... $ 732,393,506 Percent of Distributing Agencies to Total for: Public and Private Rights of Way .................. $ 44.99224% Public Highways only ........................... 10.90629% Total Imputed Revenue from Transportation Customers $ 136,755,156 for Period: $ 600,233,003 Imputed Revenue .............................. $ 1,253,910,875 Imputed Revenue applicable to Distributing Agencies in: 117.8641 mi. Public and Private Rights of Way (44.99224% x $1,253,910,875) .................. $ 564,162,590 Public Highways only (10.90629% x $1,253,910,875) .................. $ 136,755,156 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... 49,012.5154 mi. Mileage in Highways ............................. 40,265.3706 mi. Percent of Mileage in Highways to Total Mileage ....... 82.15324% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.15324% x $564,162,590) ................... $ 463,477,847 Public Highways only (100%x$136,755,156) ....................... $ 136,755,156 Total ..................................... $ 600,233,003 Total Mileage in Highways as above ................. 40,265.3706 mi. Mileage in Highways of this Franchise 117.8641 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................. 0.29272% C. Imputed Revenue applicable to this Franchise (0.29272% x $600,233,003) ...................... $ 1,757,002 D. Amount due based on 2% of the above applicable Imputed Revenue ............................... $ 35,140.04 0 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............ $ 19,966.57 Amount due based on (1%) of the above Imputed Revenue ... $ 199.67 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ 35,140.04 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ........................... $ 2,041.02 Total amount amount due ..................................... $ ------------- 37,181.06 Municipal Surcharge Bad Debts ........................ $ (1.21) Net amount due ..................................... $ -------------------- 37,179 85 2 CERTIFICATION I, the undersigned, say: I am Director, Corporate Tax for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 29, 2004, at San Diego, California. Terry F. Palmer Director - Corporate Tax If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Transactional Tax 101 Ash Street/ HQO6B San Diego, CA 92101-3017 L SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATE INCREASEJiJN LYCI �:''APPLICATION N0.03-06-021SLOCITLL ix June 16, 2003, Southern California Gas Company (SoCa]Gas) filed an application (A. 03-06-021) with the California Public Utilities Commission (Commission) to collect from customers S6.3 million for its shareholders as incentive for purchasing.gas below a benchmark. The Commission approved an incentive program called the Gas Cost Incentive Mechanism (GCIM) to provide SoCalGas with an incentive to keep gas costs low for its customers. If SoCalGas purchases gas above a benchmark price, which is based on market price, then the utility is penalized. If SoCalGas purchases gas below the benchmark, the utility is rewarded. SoCalGas has been operating under this program for nine years. This year, which ran from April 1, 2002 to March 31, 2003, SoCalGas indicates the utility purchased gas below the benchmark, saving its customers $39 million. The $39 million savings is shared between customers and shareholders, customers would retain a net benefit of $32.6 million in lower gas cost, while shareholders would receive a $6.3 million reward. WHAT THIS MEANS TO YOU Depending on Commission action on SoCalGas' requests, the proposed impact to each customer class would be allocated as follows: Customer Class $ million % increase Residential $4.8 0.5% Commercial/Industrial $1.4 0.7% Core Subscription $0.1 N/A Total $6.3* 0.4% *The actual number approved by the Commission will include fees paid to cities and local governments. If the Commission approves this request, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 14 cents, from $60.20 to $60.34. Based on a 12 -month period, a residential customer's average monthly bill would increase by 9 cents. The impact on each customer and customer class .will vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Gregory Healy Sempra Utilities 555 W. Fifth Street, 14`h Floor Los Angeles, CA 90013A011 You may also view a copy of the application at the following address: California Public Utilities Commission 320 W. Fourth Street, Room 500 Los Angeles, CA 90013 Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following e-mail address: public.advisor.la@cpuc.ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in.this application. In your letter, state that your comments are regarding Application No. 03-06-021. Please indicate if you would like a response to your letter. Otherwise, none will be sent. Copies of this notice will be available for •viewing and. printing on the SoCalGas Web site at www.socalgas.com/regulatory. M The Gas Company A *SempIa Erlergy' company March 26, 2003 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sir or Madam: RE(,cIVED Bank of America MAR 1 200 David L Steele Account No.: Principal Tax Advisor SLO CITY CLERK Tax Services Southern C 1tam i a Gas Company 101 Ash Street Mail Loc. H006B San Diego, CA 92101-3017 Tel: 619-696-2246 Fax: 619-696-2999 dsteele@sempra.com Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $74,369.56 for the calendar year 2002. Also enclosed is a statement showing the municipal surcharge due of $16,861.51 for the calendar year 2002. The total amount due of $91,231.07 will be paid by Electronic Fund Transfer to be initiated on April 15, 2003, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Enclosures iv SOUTHERN CALIFORNIA GAS COMPANY STATEMENT FOR THE CALENDAR YEAR 2002 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. $ Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing_ Agencies in: Public and Private Rights of Way (45.04859% x $2,614,698,499) ................. $ Public Highways only (11.17823% x $2,614,698,499) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ..... C. 9 6,436,435,558 2,899,523,145 719,479, 714 45.04859% 11.17823% 2,621,263,376 (6,564,877) 2,614,698,499 1,177, 884,807 292,277, 012 48,501.5511 mi. 39,905.3640 mi. 82.27647% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.27647% x $1,177,884,807) ................. $ 969,122,040 Public Highways only (100% x $292,277,012) ....................... $ 292,277,012 Total .................................... $ 1,261,399,052 Total Mileage in Highways as above ................ 39,905.3640 mi. Mileage in Highways of this Franchise 117.6355 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.29479% Gross Receipts applicable to this Franchise (0.29479% x $1,261,399,052) ................... $ 3,718,478 Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 74,369.56 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................... $ 6,917,991.50 Less: Uncollectible Bills ............................. $ 940.46 Gross Receipts ................................. $ 6,918,931.96 Amount due based on (1%) of the above Gross Receipts.. $ 69,189.32 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $74,369.56. 2 r SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2002 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............... $ 6,436,435,558 Investment in Distributing Agencies in: Public and Private Rights of Way .................. $ 2,899,523,145 Public Highways only ........................... $ 719,479,714 Percent of Distributing Agencies to Total for: Public and Private Rights of Way .................. 45.04859% Public Highways only ........................... 11.17823% Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue .............................. $ 560,280,679 Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (45.04859% x $560,280,679) ................... $ 252,398,546 Public Highways only (11.17823% x $560,280,679) ................... $ 62,629,463 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................... 48,501.5511 mi. Mileage in Highways ............................. 39,905.3640 mi. Percent of Mileage in Highways to Total Mileage .... :. 82.27647% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.27647% x $252,398,546) ................... $ 207,664,614 Public Highways only (100% x $62,629,463) ........................ $ 62,629,463 Total ..................................... $ 270,294,077 Total Mileage in Highways as above ................. 39,905.3640 mi. Mileage in Highways of this Franchise 117.6355 mi. Percent of Mileage of this Franchise to Total Mileage in Highways .................................. 0.29479% C. Imputed Revenue applicable to this Franchise (0.29479% x $270,294,077) ....................... $ 796,800 D. Amount due based on 2% of the above applicable Imputed Revenue ...............................: $ 15,936.00 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............ $ 8,404.00 Amount due based on (1%) of the above Imputed Revenue ... $ 84.04 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ 15,936.00 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than thetotal amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ........................... $ 925.54 Total amount due .................................... $ 16,861.54 Municipal Surcharge Bad Debts ........................ $ (0.03) Net amount due ................................... :.. $ 16,861.51 2 CERTIFICATION I, the undersigned, say:. I am Tax Manager, Corporate Tax for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf, and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct Executed on March 25, 2003, at San Diego, California. Terry F. Pa mer Tax Manager, Corporate Tax If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Tax Manager - Transactional 101 Ash Street/ HQ06B San Diego, CA 92101-3017 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of SOUTHERN CALIFORNIA GAS COMPANY for authority to update its gas revenue requirement and base.rates. (U 904 G) Application of SAN DIEGO GAS & ELECTRIC COMPANY for authority to update its gas and electric revenue requirement and base rates. . (U 902-M) TO ALL PARTIES: A.02-12-027 A.02-12-028 NOTICE OF PREHEARING CONFERENCE NOTICE IS HEREBY GIVEN that the Public Utilities Commission of the State of California has set a prehearing conference in the above -entitled matter before Administrative Law Judge Douglas Long, for February 7; 2003, at 10:00 a.m., in the Commission Courtroom, State Office Building, 505 Van Ness Avenue, San Francisco, California. A prehearing conference is called to determine the parties, positions of the parties, issues, and other procedural matters. Parties desiring expedited or daily transcripts should advise the Chief Hearing Reporter by telephone at (415) 703-2288, no later than three days prior to the first day of hearing. If you have questions about the hearing date, time, or place, call the Calendar Clerk at (415) 703-1203. BY ORDER OF THE PUBLIC UTILITIES COMMISSION. Dated January 14, 2003, at San Francisco, California. .IAN 212003 SLO CITY Cl P; 139354 CAROL BROWN Interim Chief Administrative Law Judge Titov ' Sk- - fHERN CALIFORNIA GAS COM_ .11qY RECEIVED NOTICE OF PROPOSED INCREASE IN GAS RATES APPLICATION NO. 02 -12 -XXX DEC 3 0 1002 On December 20, 2002, Southern California Gas Company (SoCalGas) filed hnSLO CITY CLERK application with the California Public Utilities Commission (Commission) requesting authority to increase its base rates, effective January 1, 2004. SoCalGas' application` covers its costs of providing natural gas distribution, transmission and underground storage services (but not the cost of the natural gas itself). SoCalGas' application includes a detailed forecast of these costs for 2004. SoCalGas also proposes a formula for adjusting its base rates in 2005 through 2008 to reflect the impacts of inflation, offset by improved productivity, on the cost of service per customer. SoCalGas believes its request is necessary to.continue to deliver safe and reliable service to all of its customers. WHAT THIS MEANS TO YOU If the Commission approves SoCalGas' proposal, a typical residential customer using 46 therms per month will see an average monthly bill increase beginning in January 2004 of $1.69. Atypical average monthly gas bill will increase from $38.10 (at present rates) to $39.79 (at proposed rates). This is an increase of 4.4% in the average monthly bill. The percentages shown do not necessarily reflect the changes that you may see in your bill. Changes in individual bills vary with how much energy each customer uses. The following chart shows the gas rate increase SoCalGas is requesting for 2004. The proposed rates were determined by dividing the proposed gas revenues by the last forecast of annual gas sales adopted by the Commission. Customer Class Residential (Core) /1 Commercial/Industrial (Core) Commercial/Industrial (Noncore) /I Electric Generation Wholesale International NSBA Allocation /2 System Total /3 Proposed Gas Increase Proposed Proposed Revenue Rate Increase Increase ($000) Percent (Cents/Therm) Percent 92,517 8.4% 3.6 8.4% 19,566 8.0 2.3 8.0 6,112 9.9 0.4 9.9 6,448 10.6 0.2 10.6 2,282 12.7 0.1 12.7 55 11.1 0.2 11.1 3,048 25.4 NA 25.4 130,028 8.5% 13 8.5% " Core Customers primarily use:smaller amounts of gas, and include residential and small commercial and industrial gas users. Non -Core Customers are larger commercial and industrial gas users. 'Costs allocated to the Noncore Storage Balancing Account and recovered in rates the following year. r, Revenue and rate changes are for gas distribution, transmission and storage and exclude the cost of the natural gas itself. System totals exclude Public Purpose Program and Enhanced Oil Recovery revenues. WHAT YOU CAN DO Before acting on SoCalGas' application, the Commission is expected to hold formal evidentiary hearings. They will be open to the public and will analyze the need for the requested increase. At these hearings, the Commission will receive testimony from 1 1 SoCalGas, the Commi. ..en's Office of Ratepayer Advocates at. cher interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to send comments or to participate in this proceeding, write to the Commission's Public Advisor's Office at 320 West Fourth Street, Suite 500, Los Angeles, CA 90013, or by e-mail to Public.advisor.la(a).cnuc.ca.gov. If public participation hearings are held to gather additional comments from customers, notice of the dates, times and locations will be provided to you by separate notice. Any letters received from you will be circulated to the five Commissioners and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 02 -12 -XXX. Please indicate if you would like a response to your letter, otherwise none will be sent. You may inspect a copy of the application at the address listed below or obtain a copy of the application by writing to: Ron van der Leeden Regulatory Affairs Department Southern Califomia Gas Company 555 West Fifth Street Los Angeles, CA 90013-1011 You may also view a copy of the application at the company web site: www.socalgas.com/regulatorv. You may also view a copy of the application at the following address: California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of SOUTHERN CALIFORNIA ) GAS COMPANY for authority to update its ) gas revenue requirement and base rates ) (U 904 G) Application of SAN. DIEGO GAS & ) ELECTRIC COMPANY for authority to ) update its gas and electric revenue ) requirement and base rates (U 902-M) ) Application No. 02-12-_ Application No. 02-12-_ NOTICE OF AVAILABILITY SOUTHERN CALIFORNIA GAS COMPANY (U 904 G) AND SAN DIEGO GAS & ELECTRIC COMPANY (U 902-M) APPLICATIONS FOR TEST YEAR 2004 COST OF SERVICE On December 20, 2002, Southem California Gas Company ("SoCalGas") and San Diego Gas & Electric Company ("SDG&E") each filed an application for a Test Year 2004 Cost of Service application with the California Public Utilities Commission ("Commission"). SoCalGas and SDG&E concurrently filed a motion to consolidate their two applications. Pursuant to Rule 2.3(c) of the Commission's Rules of Practice and Procedure, SoCalGas and SDG&E hereby provide notice of the availability of their applications. Each application, including supporting prepared testimony, contains in the neighborhood of a thousand pages. SoCalGas' application covers its costs of providing natural gasdistribution, transmission, and underground storage services (but not the cost of the natural gas itself). In its application SoCalGas proposes an increase, to be effective January 1, 2004, of approximately $130 million in authorized base rate revenues. SoCalGas' proposed increase in authorized revenues and base rates is as follows: Customer Class Residential (Core) Commercial/Industrial (Core) Commercial/Industrial (Noncore) Electric Generation Wholesale International NSBA Allocation /1 System Total /2 Proposed SoCalGas Increase Proposed Proposed Revenue Rate Increase Increase ($000) (Cents/Therm) Percent Percent 92,517 8.4 3.6 8.4 19,566 8.0 2.3 8.0 6,112 9.9 0.4 9.9 6,448 10.6 0.2 10.6 2,282 12.7 0.1 12.7 55 11.1 0.2 11.1 3,048 25.4 NA 25.4 130,028 8.5 13 8.5 Costs allocated to the Noncore Storage Balancing Account and recovered in rates the following year. Revenue and rate changes are for gas distribution, transmission and storage and exclude the cost of the natural gas itself. System totals exclude Public Purpose Program and Enhanced Oil Recovery revenues. SoCalGas' application also includes proposals for a base rate ratemaking framework, including a formula for adjusting its base rates in 2005 through 2008, a formula for sharing earnings varying from its authorized return, and proposed rewards/penalties for performance relative to service and safety indicators. SDG&E's application covers its costs of providing electric distribution and gas distribution and transmission (excluding the cost of gas), as well as costs related to the ownership and operation of its interest in the San Onofre Nuclear Generating Station. In its application SDG&E proposes an increase, to be effective January 1, 2004, of approximately $59 million in authorized electric revenues and of approximately $22 million in authorized gas revenues. SDG&E's proposed increase in authorized revenues and base rates is as follows: // // // // // // // F, Proposed SDG&E Electric Rate Increase " Revenue and rate changes are for electric distribution including the impact of expenses associated with SDG&E's share of the San Onofre Nuclear Generating Station. Proposed SDG&E Gas Rate Increase Proposed Proposed Revenue Rate Increase Increase ($000) (Cents/kWh) Customer Class Percent Percent Residential $16,320 Residential $37,373 3.7 0.551 3.7 Small Commercial 11,180 3.3 0.558 3.3 Medium & Large 1.9 5.9 Industrial Commercial/Industrial 9,603 1.0 0.095 1.0 Agriculture 329 2.7 0.412 2.7 Lighting 402 2.8 0.469 2.8 System Total $58,886 25 0.309 2.5 " Revenue and rate changes are for electric distribution including the impact of expenses associated with SDG&E's share of the San Onofre Nuclear Generating Station. Proposed SDG&E Gas Rate Increase SDG&E's application also includes proposals fora base rate ratemaking framework, including a formula for adjusting its base rates in 2005 through 2008, a formula for sharing earnings varying from its authorized return, and proposed rewards/penalties for performance relative to service, reliability, and safety indicators. Copies of the application (with supporting testimony) for SoCalGas and for SDG&E may be viewed at www.socalgas.com and www.sdee.com, respectively. 3 Proposed Proposed Revenue Rate Increase Increase ($000) (Cents/Therm) Customer Class Percent Percent Residential $16,320 11.3 5.0 11.3 NGV 73 5.0 1.8 5.0 Core Commercial and 2,417 5.9 1.9 5.9 Industrial Noncore Commercial and 665 10.2 0.8 10.2 Industrial Electric Generation 2,153 10.6 0.2 10.6 Public Purpose Programs 0 0.0 0.0 0.0 System Total $21,628 9.1 15 9.1 ' Revenue and rate changes are for gas distribution and transportation and exclude the cost of purchasing natural gas. SDG&E's application also includes proposals fora base rate ratemaking framework, including a formula for adjusting its base rates in 2005 through 2008, a formula for sharing earnings varying from its authorized return, and proposed rewards/penalties for performance relative to service, reliability, and safety indicators. Copies of the application (with supporting testimony) for SoCalGas and for SDG&E may be viewed at www.socalgas.com and www.sdee.com, respectively. 3 Paper copies of either or both of the applications referenced above will be provided promptly upon request. Requests for a paper copy of either or both applications should be directed to: Ms. Billie J. Overturf Regulatory Case Administrator Mail Location CP32 SDG&E 8330 Century Part Court San Diego, CA 92123 Telephone: (858) 654-1779 Facsimile: (858) 654-1788 Email for SoCalGas application: scecose.semprautilities.com Email.for SDG&E application: sdgecos@semprautilities.com This Notice of Availability is dated December 20, 2002. 4 CERTIFICATE OF SERVICE I hereby certify that a copy of the Notice of Availability has been served on parties of record on the service list in A.95-06-002, A.98-01-014, A.00-11-038 , A.01-09-024, A.01-10- 005, and by mailiW a copy thereof properly stamped and addressed. Dated: December 20, 2002 Darleen Evans Southern California Gas Company Notice of Application to Increase Program Costs Application No. 02-07-001 On July 1, 2002, Southern California Gas Company (SoCalGas) filed an Application with the California Public Utilities Commission (CPUC) seeking approval of its Low Income Energy Efficiency (LIFE) and California Alternate Rates for Energy (CARE) programs and budgets for Program Year 2003. SoCalGas filed this application in response to an order from the CPUC. The LIEE and CARE programs are CPUC - authorized activities designed to assist low-income customers with their energy bills. The LIEE program provides direct weatherization and energy efficiency services. The CARE program provides a 20% discount to income -qualified households on their gas bills. If the Commission approves the 2003 LIEE and CARE program budget, SoCalGas will adjust its Public Purpose Program (PPP) surcharge to reflect the authorization of increased costs. While SoCalGas' proposed 2003 CARE program budget will increase from current levels, it is only one component of the PPP surcharge that will be updated effective January 1, 2003. In the fourth quarter of 2002, the PPP surcharge will be established for 2003 based on the most current estimates at that time. Based on current estimates, this year-end adjustment would result in an average 37 cent or 1.04% decrease driven primarily from an overcollection projected in the CARE account at year-end 2002 to the total rates of non -CARE residential customers. THE CPUC MAY HOLD EVIDENTIARY HEARINGS Before acting on SoCalGas' application, the CPUC may hold evidentiary hearings. At the hearings, the Commission will accept testimony from SoCalGas, the Commission's Office of Ratepayer Advocates (ORA) and other interested parties who may offer proposals that differ from those applied for by SoCalGas. After considering all evidence presented, the CPUC will issue.a decision on this application. The actual rates approved by the CPUC may be different from those proposed in this notice. EVIDENTIARY HEARINGS ARE OPEN TO THE PUBLIC If you wish to participate in the evidentiary hearings and need advice on how to do so, or if you would like to submit written comments, please write to the CPUC's Public Advisor at the following address: Public Advisor, California Public Utilities Commission, 320 West Fourth Street, Suite 500, Los Angeles, CA 90013 or by e-mail to public.advisor.la@cpuc.ca.gov. Make sure that you specify the application number, (A.) 02-07-001 in your letter. The Public Advisor will give your comments to the Commissioners and the Administrative Law Judge assigned to the case. Your comments will become part of the formal correspondence file in this proceeding. Also, please indicate in your letter if you would like a response. Otherwise, none will be sent. FOR FURTHER INFORMATION You may obtain a copy of the application and related exhibits by writing to: Margee Moore, Regulatory Case Manager for Southern California Gas Company, 8315 Century Park Court CP 22D, San Diego, CA 92123-1550. You may also view a copy of this application at the following address: California Public Utilities Commission 320 West Fourth Street, Suite 506 Los Angeles, CA 90013 Copies of this notice will be available for viewing and printing on die SoCalGas Web site at www.socalgas.com/regulatory. SOUTHERN CALIFORNIA GAS COMPANY l�S NOTICE TO CUSTOMERS OF PROPOSED RATE INCREASE APPLICATION NO. 02-0.6-035 OUR REQUEST On June 17, 2002, Southern California Gas Company (SoCalGas) filed Application No. 02-06-035 with the California Public Utilities Commission (Commission). This application reports SoCalGas' gas supply and storage operations for. "Year Eight" (April 1, 2001 through March 31, 2002) and requests approval to recover in rates shareholder incentives of $17.4 million earned under its Gas Cost Incentive Mechanism (GCIM) program. Under the GCIM, the actual cost SoCalGas pays for gas to meet the needs of its core customers is measured against a Commission approved benchmark for the prevailing market price of gas. If SoCa1Gas is able to purchase gas below the benchmark, customers and shareholders share the savings. The Year Eight cost savings of $189.8 million are calculated as the difference between the actual cost of gas, $1,290.3 million, and the GCIM benchmark of $1,480.1 million. SoCalGas seeks approval of the shareholder portion of the :cost savings, totaling $17.4 million from these cost savings. If the Commission approves SoCalGas' shareholder portion, SoCalGas.' ratepayers will retain a net benefit of $172.4 million in lower costs from the GCIM. WHAT THIS MEANS TO YOU Depending on Commission action on SoCalGas' requests, the proposed impact to each customer class would be allocated as shown below: Customer Class $ Million %Increase Residential 13.5 1.3 Commercial/Industrial 3.7 1.9 Core Subscription 0.2 N/A TOTAL $17.4* 1.3% * The actual number approved by the Commission will include fees paid to cities and local governments. If the Commission approves A.02-06-035 and grants the $17.4 million shareholder award, based on the estimated average monthly gas procurement costs for the 2002-2003 winter season, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 38 cents, from $46.20 to $46.58. Based on a 12 -month period, a residential customer's average monthly bill would increase by 27 cents. (Proposed rate changes assume a 31 -day peak usage month and utilize the new baseline allowances effective as of June 1, 2002.) The impact on each customer and customer class will vary depending on individual usage and the Commission's final decision. RECEIVED j tj 1 01 16.51 SLO CITY CLERK WHAT YOU CAN DO You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Gregory Healy Sempra Utilities 555 West Fifth Street, 14'h Floor Los Angeles, CA 90013-1011 You may also view a copy of the application at the following address: California Public Utilities Commission 320 West Fourth Street, Room 500 Los Angeles, CA 90013 Before acting on our application, the Commission may hold formal evidentiary hearings.. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from those requested by SoCalG.as. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following e-mail address: public.advisor.la@cpuc.ca.gov. The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing to regard to Application No. 02-06=035. Please indicate if you would like a response. to your letter. Otherwise, none will be sent. Copies of this notice will be available for viewing and printing on the SoCalGas Web site at www.socalgas.com/regulatory. It RECEIVED BEFORE THE PUBLIC UTILITIES COMMISSION OF THE MAY 10 2002 j STATE OF CALIFORNIA SLO CITY COUNCIL j Order Instituting Rulemaking into ) Implementation of Assembly Bill 1149 ) R.00-01-005 Regarding Underground Electric and ) Telecommunications Facilities. ) (Filed January 6, 2000) COMMENTS OF SOUTHERN CALIFORNIA EDISO_N U 33&E) ON ENERGY DIVISION WORKSHOP REPORT DAVID E. VAN IDERSTINE MICHAEL D. MONTOYA Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-3121 Facsimile: (626) 302-2050 E-mail: David.VanIderstine@SCE.com Dated: May 7, 2002 'r BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking into ) Implementation of Assembly Bill 1149 ) R..00-01-005 Regarding Underground Electric and ) Telecommunications Facilities. ) (Filed January 6, 2000) COMMENTS OF SOUTHERN CALIFORNIA EDISON (U.338 -E) ON ENERGY DIVISION WORKSHOP REPORT As requested by the Energy Division in its Workshop Report dated April 10, 2002, Southern California Edison Company (U 338-E)("SCE") herewith submits its comments on that Workshop Report. L INTRODUCTION. SCE thanks the Energy Division for its attendance at the March 13, 2002 workshop in San Diego hosted by San Diego Gas & Electric Co. ("SDG&E") and for its draft report of that workshop. SCE believes the report reflects in substantial part the contributions and concerns of the attendees. SCE's comments below are intended to sharpen some of those points, make appropriate distinctions and, SCE hopes, help guide Phase 2 of this OIR. In D.01-12-009, the Commission directed the electric utilities to develop a proposed Standardized Data Reporting template that was to include the following information for each electric circuit in the utilities' systems: • Percentage of overhead and underground lines, • What technology is used, and • The age of the equipment i The Decision goes on, however, to state that ItJhe goal of the data tracking and standardized reporting is to allow the utilities, the Commission, and interested parties, to track the safety, service reliability, and lifetime costs for both overhead and underground projects and make valid and reliable comparisons between systems." (D.01-12-009, Slip op. at p. 27.) SCE pointed out at the Workshop that the order as respects standardized reporting will not accomplish all of those goals and that certain of the goals may not be attainable. SCE, along with SDG&E and Pacific Gas and Electric Company ("PG&E") (SCE, SDG&E and PG&E are sometimes referred to herein as the "Joint Electric Utilities") entered the workshop with a revision to the proposed template that had already been served on,the parties in advance of March 13, and agreed to further modifications "in the room." The Joint Electric Utilities further proposed the creation of a second report, one relating to equipment age, to be maintained separately from the circuit template, such separate maintenance being unavoidable given the frequent changes in the composition of particular circuits. Hereinbelow, SCE comments on specific observations contained in the draft. Workshop Report, utilizing the headings and subheadings contained in the draft Workshop Report itself. H. DISCUSSION A. Criteria for an Internal Measure Contrary to the impression the draft Workshop Report may create concerning measurement criteria, Attachment 2 to the draft Workshop Report did not constitute any position taken by the Facilitator, Mr. Chris Stiehl, as to what the utilities should be required to report. Rather, Mr. Stiehl proposed to any intervenors who might call for the utilities to report particular information beyond .2. that to which they agreed, that any particular additional criteria or measures called for by any participant to this OI.R should have to pass the screen or test set forth in the attachment (Attachment 2).1 B. Utilities' Proposals and Concerns The Joint Electric Utilities came into the Workshop with a revision to the draft template that is Attachment 3, and indeed agreed to further modifications during the course of the Workshop. Attachment 3 therefore does not represent the Joint Electric Utilities' tracking and reporting intentions and is not operative. The draft Workshop Report may inadvertently create the mistaken impression that all information the Joint Electric Utilities do and will report can and will be contained in a single report. This is not, and cannot be, the case. As the draft Workshop Report states, the Joint Electric Utilities have agreed to report on a completed conversion project basis, "the numbers of poles removed, the numbers of services converted, [and] the underground mainline footage installed," in addition to the project cost. The Joint Electric Utilities do not report and the Decision does not explain what is meant by "the technology used to underground." (Draft Workshop Report at p. 2.) The Joint Electric Utilities propose to begin tracking within 180 days of final approval by the Commission, the information —chiefly installation dates — set forth in Attachment 4 concerning newly -installed overhead ("OH") and underground ("UG") equipment. The Joint Electric Utilities pointed out that distribution circuits consist of many miles of conductor and other equipment that has been installed or changed out -at varying times over the years. Because of this, extracting and providing installation dates for specific items of equipment is not practical and 1 Mr. Stiehl also stated that the "customer" in this exercise is the Commission, which called for the template's creation. 3- inventory information generally is not maintained by circuit. For these reasons, i.e., that the composition of circuits changes from time to time, this information will not be reported by circuit. Moreover, reporting this information by circuit is not necessary for life -cycle comparisons. This new information, which as Mr. Frech of Citizens Concerned About EMFs recognizes will take a number of years to accumulate to meaningful levels, should form the basis for meaningful comparison of the life -cycle costs of OH vs. UG facilities. The Joint Electric Utilities will also track the cost of the data collection process itself, to better inform both the Commission and. intervenors of the true costs of this OIR process. C. Maior Concerns of Interested Parties 1. Safetv The Joint Electric Utilities' response to intervenor concerns about reporting of "Safety" issues is that those concerns presume that OH facilities are per se unsafe. The Joint Electric Utilities contend the opposite, that the Commission's General Orders 95 and 128 specify construction and standards and that facilities constructed and maintained consistent with G.O. 95 and 128 are per se safe. Any requested changes in those standards should be addressed to the appropriate committee. 2. Costs The Joint Electric Utilities pointed out that CCAE's proposed definition of life -cycle costs that would include the societal costs and consequential damages of outages does not fit the established definition of the term "life -cycle costs." Moreover, even the attempt to identify and track these consequential costs would itself be prohibitively expensive: M The Joint Electric Utilities believe that cost reporting at the project level, with per -mile figures, is sufficient for making the comparative determinations the Commission intends. Any proposed requirement to report costs at the component -item level would not only be unduly burdensome and could compromise utility outsourcing practices, it also incorrectly underassesses the number and importance of factors involved in utility procurement. "Undergrounding" is not a commodity like pencils, and undergrounding of electric facilities cannot be "acquired" pursuant to an acquisition model — even a "competitive" one — anything like the model used to acquire commodities. Rather, undergrounding is a complex process that includes not only equipment and labor, but also downstream operational costs and reliability concerns that are not "price point sensitive" and cannot simply be bid out like a contract for pencils. 3. Reliability Momentary outages — which, by definition, have a duration of less than five minutes— are of limited tracking value. Except in cases where an entire circuit is OH or UG, it is not possible in most instances (on mixed OH/UG circuits) to determine whether a momentary outage occurred on the overhead portion or the underground portion. 4. Age of Circuits The Joint Electric Utilities' new additional report will track the age of specified new OH and UG equipment on a going forward basis. As such,. given the time that CCAE's Mr. Frech recognized would be required, this new report will supplement what limited information. each of the Joint Electric Utilities already have on the longevity of OH vs. UG systems. -5- The Joint Electric Utilities do not track this information from this perspective today, and although the installation dates of some types of equipment are known, equipment is often removed from service for reasons (capacity upgrades, for example) having nothing to do with failure, and therefore merely reporting how long a particular piece of equipment was in service does not necessarily correlate to its innate durability as either an overhead component versus an underground component. 5. Data Collection and Report Formats The Joint Electric Utilities believe this OIR and any reporting are and must be confined to distribution facilities that are under Commission jurisdiction, since undergrounding is only paid for out of CPUC jurisdictional retail distribution rates. -6- I The Joint Electric Utilities believe that attempting to track data on a segment basis (i.e., that portion of a circuit which is OH and that which is UG) would be extremely burdensome even if a method to track such data were invented. SCE alone, for example, has some 4,000 distribution circuits, most of which have two or more segments. May 7, 2002 Respectfully submitted, DAVID E. VAN IDERSTINE MICHAEL D. MONTOYA \1 6Q. By' David E. Van Ide'r-s-fine Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-3121 Facsimile: (626) 302-2050 E-mail: David.VanIderstine@SCE.com .7. CERTIFICATE OF SERVICE I hereby certify that, pursuant to the Commission's Rules of Practice and Procedure, I have this day served a true copy of COMMENTS OF SOUTHERN CALIFORNIA EDISON (U 338-E) ON ENERGY DIVISION WORKSHOP REPORT on all parties identified on the attached service list. Service was effected by one or more means indicated below: Placing the copies in properly addressed sealed envelopes and depositing such envelopes in the United States mail with first-class postage prepaid (Via First Class Mail); ❑ Placing the copies in sealed envelopes. and causing such envelopes to be delivered by hand to the offices of each addressee (Via Courier), Transmitting the copies via facsimile,. modem, or other electronic means (Via Electronic Means). Executed this 7th day of May, 2002, at Rosemead, California. Cristina Robinson Project Analyst SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 E -Mail: caseadmin@sce.com BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of Southern California Gas ) Company (U904G) for Authority to Increase its Gas Revenue ) Requirements to Reflect its Accomplishments for Demand- ) Side Management Program Year 1997, Energy ) Efficiency Program Year 2001, and Low -Income Program ) Years 2000 and 2001 in the 2902 Annual Earnings Assessment) Application 02-05 Proceeding ("AEAP") ) May 3, 2002 NOTICE OF AVAILABILITY OF APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U904G) Vicki L. Thompson Attorney for SOUTHERN CALIFORNIA GAS COMPANY 101 Ash Street San Diego, California 92101 Telephone: (619) 699-5130 Facsimile: (619) 699-5027 E -Mail: vthompson@sempra.com RECE EVI k -1.v 0 6 Lui!( SLO--_Y CL BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of Southern California Gas' ) Company (U904G) for Authority to Increase its Gas Revenue ) Requirements to Reflect its Accomplishments for Demand-' ) Side Management Program Year 1997, Energy ) Efficiency Program Year 2001, and Low -Income Program ) Years 2000 and 2001 in the 2002 Annual Earnings Assessment) Application 02-05-, Proceeding ("AEAP") ) NOTICE OF AVAILABILITY OF APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U904G) Please be advised that on May 1, 2002, Southern California Gas Company ("SoCalGas") filed with the California Public Utilities Commission ("CPUC") its 2002 Annual Earnings Assessment Proceeding ("AEAP"), as captioned above. Pursuant to Rule 2.3(c) of the CPUC's Rules of Practice and Procedure, you may receive a copy of the Application by directing your request to: Joy Yamagata Regulatory Manager Phone: 858/654-1755 Facsimile: 858/654-1788 E-mail: jyamagata@sempra.com In its 2002 AEAP Application, SoCalGas requests a gas revenue increase of $ 2,652,694 million. SoCalGas requests that the Commission authorize this increase within a time frame that will allow the company to implement this increase, effective January 1,.2003, or as soon thereafter as possible. MThe Gas Company A ,Sempra Energy'oompany March 26, 2002 RECEIVED AFR 012GG2 SIA CIN CLEF City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sirs: David L Steele Senior Tax Specialist Tax Services Southern California Gas Company 101 Ash Street Mail Loc. H006B San Diego. CA 92101-3017 Tel: 619-696-2246 Fax: 619-6964999 dsteeleL&sempra.com Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $94,061.82 for the calendar year 2001. Also enclosed is a statement showing the municipal surcharge due of $53,858.86 for the calendar year 2001. The total amount due of $147,920.68 will be paid by Electronic Fund Transfer to be initiated on April 15, 2002, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Sincerely/, Enclosures SOUTHERN CALIFORNIA GAS COMPANY STATEMENT FOR THE CALENDAR YEAR 2001 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............... $ Investment in Distributing Agencies in: Public and Private Rights of Way ................: $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (44.39710% x $3,328,746,358) .................. $ Public Highways only (11.22386% x $3,328,746,358) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ...... C. A 6,280,317,208 2,788,278,430 704,893,773 44.39710% 11.22386% 3, 343, 807,114 (15,060,756) 3,328,746,358 1,477,866,849 373,613,831 48,139.8770 mi. 39,682.3700 mi. 82.43139% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.43139% x $1,477,866,849) .................. $ 1,218,226,186 Public Highways only (100% x $373,613,831) ....................... $ 373,613,831 Total .................................... $ 1,591,840,017 Total Mileage in Highways as above ................ 39,682.3700 mi. Mileage in Highways of this Franchise 117.2409 mi. Percent of Mileage of this Franchise to Total Mileage in Highways .................................: 0.29545% Gross Receipts applicable to this Franchise (0.29545% x$1,591,840,017) .................... $ 4,703,091 Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 94,061.82 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................... $ 9,211,005.33 Less: Uncollectible Bills ............................ $ (14,614.95) Gross Receipts ................................ $ 9,196,390.38 Amount due based on (1%) of the above Gross Receipts .. $ 91,963.90 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $94,061.82. SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2001 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies :in Highways of which this Franchise is a part Total Investment in Physical Properties ............... $ 6,280,317,208 Investment in Distributing Agencies in: Mileage in Highways ............................. Public and Private Rights of Way .................. $ 2,788,278,430 Public Highways only ........................... $ 704,893,773 Percent of Distributing Agencies to Total for: Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way .................. 44.39710% Public Highways only ........................... 11.22386% Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue .............................. $ 1,805,808,979 Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (44.39710% x $1,805,808,979) .................. $ 801,726,818 Public Highways only (11.22386% x $1,805,808,979) ................... $ 202,681,472 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... 48,139.8770 mi. Mileage in Highways ............................. 39,682.3700 mi. Percent of Mileage in Highways to Total Mileage ...... 82.43139% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.43139% x $801,726,818) ................... $ 660,874,560 Public Highways only (100%x$202,681,472) ....................... $ 202,681,472 Total ..................................... $ 863,556,032 Total Mileage in Highways as above ................. 39,682.3700 mi. Mileage in Highways of this Franchise 117.2409 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................: 0.29545% C. Imputed Revenue applicable to this Franchise (0.29545% x $863,556,032) ...................... $ 2,551,376 D. Amount due based on 2% of the above applicable Imputed Revenue ................................ $ 51,027.52 I San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............. $ 114,728.01 Amount due based on (1%) of the above Imputed Revenue ... $ 1,147.28 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ........................... $ Total amount due .................................... $ Municipal Surcharge Bad Debts ........................ $ Net amount due ...................................:. $ 51,027.52 2,831.34 53,858.86 0.00 53,858.86 CERTIFICATION I, the undersigned, say: I am Director of Tax Services for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 26, 2002, at San Diego, California. Wayne Services If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Group Tax Manager - Transactional 101 Ash Street/ HQ06B San Diego, CA 92101-3017 SP'THERN CALIFORNIA GAS COMPANY AMENDED K ICE OF PROPOSED CHANGES GAS RA Biennial Cost Allocation Proceeding (BCAP) APPLICATION NO. 01-09-024 RE'5E'VEp 14 Pt 1 luut OUR REQUEST SLO CI On September 21, 2001, Southern California Gas Company ("SoCalGas") filed Application N CLERK No.01-09-024 (Application) with the California Public Utilities Commission ("Commission") to revise its rates for gas service effective January 1, 2003. On December 11, 2001 the Commission issued Decision No.01-12-018. That decision unbundled certain transmission and storage services from SoCalGas' bundled rates and established revenue requirements and rates for some of those services through August 31, 2006. As a result, it was necessary to amend the Application to incorporate the changes required by D.01-12-018. On March 4, 2002, SoCalGas filed a Second Amendment to the Application ("Amendment"). The Amendment also includes changes caused by the passage of time, such as updated forecasts of gas demand and updated forecasts of regulatory accounts. One substantial change SoCalGas makes in the Amendment is to eliminate rate proposals for certain transmission and storage services because those rates have been established in D.01-12-018. SoCalGas proposes in the Amendment to allocate among customer classes costs it incurs to provide gas distribution and local transmission services for all customers, and gas storage services it provides for residential and small business customers. These costs are reflected in the transportation component of SoCalGas' rates. As it did previously, SoCalGas proposes in the Amendment both marginal cost -based rates and embedded cost -based rates. Marginal cost -based rates rely generally on forecast future costs of SoCalGas to provide service. Embedded cost -based rates rely generally on the historical costs of SoCalGas to provide service. The Commission will select one of these proposals for allocating costs to customer classes when it establishes new SoCalGas rates. In the Amendment, SoCalGas proposes a decrease in overall transportation rates of $135.2 million, based on marginal cost -based rates or a decrease of $136.1 million using embedded cost -based rates. These are percentage reductions of 7.8% and 7.9%, respectively. A typical winter bill for a residential customer (using 75 therms) will decrease by $2.50 under marginal cost -based rates, and $2.09 under embedded cost -based rates, from the average $46.28 under present rates. Proposed rates for small business and industrial customers are also lower, primarily for the same reasons. Proposed rates are higher for large commercial and industrial customers, as well as electric generation customers, primarily due to an expected reduction in gas demand that will result in fewer therms across which to spread required costs. WHAT THIS MEANS TO YOU The impact to each customer class on the proposed effective date of April 1, 2003 will be as follows: Core customers generauy use smaller quantities of gas. Noncore customers are generally large gas users who often have alternate fuel capacity. PPP stands for the Public Purpose Programs surcharge. The revenues fund certain state -mandated ?rograms including income -qualified subsidy programs, conservation and research and development. Present Revenues include all bundled service costs including those services unbundled by D.01-12-018. t Proposed Amended Revenues for the core include an estimate for the costs related to services unbundled by D.01-12-018 (primarily certain transmission and storage services), however revenues for noncore customers do not. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. Proposed Present Revenues Revenuest Mar 'nal Co tsf % Change Rates Proposed Revenues Embedded Cost % Change Rates Customer Classmillions millions millions Residential Core' 1,160.6 1,091.4 -6.0% 1,107.8 -4.5% Commercial/Industrial (Core)* 303.8 240.6 -20.8% 215.8 -29.0% Commercial/Industrial Noncore)" 52.5 53.7 2.3% 56.9 8.4% Electric Generation 40.6 51.7 27.5% 58.8 44.9% Wholesale 16.8 41.6 147.4% 42.1 150.2% International 0.5 0.7 32.3% 0.7 33.9% Net PPP Revenues' 136.9 108.7 -20.6% 105.5 -22.9% Core customers generauy use smaller quantities of gas. Noncore customers are generally large gas users who often have alternate fuel capacity. PPP stands for the Public Purpose Programs surcharge. The revenues fund certain state -mandated ?rograms including income -qualified subsidy programs, conservation and research and development. Present Revenues include all bundled service costs including those services unbundled by D.01-12-018. t Proposed Amended Revenues for the core include an estimate for the costs related to services unbundled by D.01-12-018 (primarily certain transmission and storage services), however revenues for noncore customers do not. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on SoCalGas' Amenument, the Commission will hold formal evidentiary heaeings which will be open to the public and devoted to analyzing the need for the requested rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's office of Ratepayer Advocates and other interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all the proposals, the Commission will issue a decision. You may view a copy of the Amendment at the address listed below or obtain a copy of the Amendment and related exhibits by writing to: Gillian Wright Director of California Regulatory Affairs for Southern California Gas_ Company 555 W. Fifth Street, M.L. GT14D6 Los Angeles, CA 90013-1011 You may also view a copy of the Amendment at the following address; California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA .90013 If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Public Advisor's Office at the address above, or send an e-mail to public.advisor.la cDcouc.ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 01- 09-024. Please indicate if you would like a response to your letter. Otherwise, none will be sent. SOUTHERN CALIFORNIA GAS COMPANY U✓ J � AMENDED NOTICE OF PROPOSED CHANGES TO GAS RATES Biennial Cost Allocation Proceeding APPLICATION NO. 01-09-024 OUR AMENDED REQUEST On September 21, 2001, Southern Califomia Gas Company (SoCalGas) filed Application No.01-09-024 (Application) with the California Public Utilities Commission (Commission) to revise its rates for gas service effective January 1, 2003. On November 13, 2001, SoCalGas filed an Amendment to the Application (Amendment) for the purpose of describing various proposed corrections and additions to the Application. These corrections and additions change the level of ?ates proposed in the Application. The purpose of the Application is to revise the allocation of non -gas costs of service among customer Gasses, which in tum changes customer rates. Non -gas costs of service include the costs incurred by SoCalGas to provide distribution, transmission and storage gas services, and are reflected in the transportation component of rates. The gas component of rates is not part of this proceeding. In the Amendment, SoCalGas makes substantive corrections and additions to the Application. The most significant corrections impacting the proposed rates are corrections to the forecasted amounts in two regulatory balancing accounts and the forecasted amount of interstate pipeline demand charges. In the aggregate, these changes cause customer rates to increase slightly from what was shown in the Application. The Amendment creates an alternative set of proposed rates. The most significant addition to this proceeding addressed in it is SoCalGas' proposal to allocate non -gas costs of service using an embedded -cost methodology. The embedded -cost allocation is proposed as an alternative to the marginal cost allocation used in the Application. WHAT THIS MEANS TO YOU Depending on whether the Commission uses the embedded or marginal cost allocation approach to determine revised rates, the impact to each customer class (after factoring in the corrections in the Amendment) on the proposed effective date of January 1, 2003 will be as follows: The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. IN,1i �i I SAO Curr CCUN01L.! Proposed Proposed Amended % Amended % Present Marginal Cost Change Embedded Cost Change Customer Class Revenues Revenues Rates Revenues Rates ($ millions) ($ millions) ($ millions) Residential (Core)' 1,035.7 1,158 11.8% 1,132 9.3% Commercial/Industrial (Core)' 229.5 241.9 5.4% 215.2 (6.3%) Commercial/Industrial (Noncore)•' 57 60.7 6.5% 71.9 26.2% Electric Generation 54.4 57.4 5.4% 79.7 46.4% Wholesale 22 44.3 101.5% 58 164.1% International 0.6 0.7 4.6% 1 61.2% Unbundled Storage 15.8 16.4 3.8% 21.4 35.6% Net PPP Revenues 58.7 138.6 136% 137.9 135% ' Core customers generally use smaller quantities of gas. •' Noncore customers are generally large gas users who often have alternate fuel capacity. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. IN,1i �i I SAO Curr CCUN01L.! WHAT YOU CAN DO Before acting on SoCalGas' Application and Amendment, the Commission will hold formal evidentiary hearings. These hearings will be open to the public and will be devoted to analyzing the need for the requested rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Office of Ratepayer Advocates and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all the proposals, the Commission will issue a decision. You may view a copy of the Application. and Amendment at the address listed below or obtain a copy of the Application, Amendment and related exhibits by writing to: Gillian Wright Regulatory Case Manager for Southern California Gas Company 555 W. Fifth Street, M.L. GT14D6 Los Angeles, CA. 90013-1011 You may also view a copy of the Application and Amendment at the following address.: California Public Utilities Commission 320 West Fourth Stieet, Suite 500 Los Angeles, CA 90013 If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Public Advisor's Office at the address above, or send an e-mail to public.advisor.laCcDcpuc.ca.4ov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 01-09-024. Please indicate if you would like a response to your letter. Otherwise, none will be sent 'bOUTHERN CALIFORNIA GAS COMOANY S — ��G� NOTICE OF PROPOSED CHANGES TO GAS RATES ove Increase in Rates .�Q ov Changes in Noncore Service Offerings Biennial Cost Allocation Proceeding, Application No.01-09-024 OUR REQUEST On September 21, 2001, Southern California Gas Company (SoCalGas) filed Application No.01-09-024 with the California Public Utilities Commission (Commission) to revise its rates for gas service effective January 1, 2003. The purpose of the Application is to revise the allocation of non -gas costs of service among customer classes, which in tum causes changes to customer rates. ikon -gas costs of service represent the costs incurred by SoCalGas to provide distribution, transmission, and storage gas service and are reflected in the transportation component of rates. In decision number D.96-08-037, the Commission approved monthly pricing for gas costs. Therefore, the gas cost component of rates is not part of this proceeding. SoCalGas proposes an increase in overall transportation rates of $187 million or 12.5%. For residential customers, proposed rates will be somewhat higher in 2003, an average change of $0.04/therm, primarily as a result of completing a Commission -ordered refund to rates at the end of 2001, higher costs for Commission ordered enhancements to SoCalGas' income qualified assistance program and updated allocations of costs. Proposed rates are slightly higher for small business and industrial customers primarily due to reduced gas usage, and the higher costs for income qualified assistance programs. Proposed rates are also slightly higher for electric generation customers, primarily to offset expected lower gas usage by these customers that would result in fewer therms across which to spread required costs. WHAT THIS MEANS TO YOU If the Commission approves our request; the imPect to each cuVomcr class wiii bewme effective on January 1, 2003 as follows.- Customer ollows: Customer Class Present Proposed % Change Residential (Core)* Revenues 1,036.0 Revenues 1,143.1 Rates 10.3% Commercial/Industrial (Core)* 227.8 246.1 8.1% Commercial/Industrial (Noncore)*" 57.0 56.6 (0.6%) Electric Generation 53.9 58.1 7.8% Wholesale 33.0 31.9 (3.5%) International 0.6 0.8. 18.8% Unbundled Storage 15.8 16.4 3.8% Net PPP Revenues 58.9 126.6 114.9% * Core customers generally use smaller quantities of gas. Noncore customers are generally large gas users who often have alternate fuel capability. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. Our Application also proposes changes in certain service offerings to our large ("noncore") commercial, industrial and electric generation customers, which may cause those customers' rates to change. We propose to segment those customers into two sizes: "large" and "small." We propose to offer the "large" customers a choice between two firm intrastate transmission service offerings. "Small" customers would have essentially the same firm service options they have today. Finally, we propose a new single interruptible service offering for both large and small noncore customers. The impact of these changes on affected noncore customers would depend upon which service offerings customers select, and the customers' patterns of gas usage. WHAT YOU CAN DO Before acting on SoCalGas' Application, the Commission will hold formal evidentiary hearings. These hearings will be open to the public and will be devoted to analyzing the need for the requested rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Office of Ratepayer Advocates and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. You may view a copy of the Application at.the address listed below or obtain a copy of the Application and related exhibits by writing to: Gillian Wright Regulatory Case Manager for Southern California Gas Company 555 W. Fifth Street, GT -14D6 Los Angeles, California 90013-1011 You may also view a copy of the Application at the following address: California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 If you would like to participate in the hearings and need assistance, or if you would like to send comments to the Commission, you may write to the Public Advisor's Office at the address above, or by e-mail to public.advisor.la@cpuc.ca.gov. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this Application. In your letter, state that you are writing in regard to Application No.01-09-024. Please indicate if you would like a response to your letter. Otherwise none will be sent. w G� BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of Southern ) California Gas Company (U904G) for Authority to ) Application 01-05-_ Increase its Gas Revenue Requirements to Reflect its ) Accomplishments for Demand -Side Management ) Program Years 1996 and 1997, Energy Efficiency ) Program Year 2000, and Low -Income Program Years) 1999 and 2000 in the 2001 Annual Earnings ) Assessment Proceeding ("AEAP") 1 NOTICE OF AVAILABILITY OF APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904 G) ALESSANDRA M. MESSINEO LONG Attorney for SOUTHERN CALIFORNIA GAS COMPANY 101 Ash Street, 120' Floor San Diego, CA 92101-3017 Telephone: (619) 699-5077 Facsimile: (619) 696-4838 Email: amlonaaa,sempra.com Dated: May 1, 2001 RECEIVED MAY 0 3 2001 85940 - l - SLO CITY CLERK BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of Southern California Gas Company (U904G) for Authority to Increase its Gas Revenue Requirements to Reflect its Accomplishments for Demand -Side Management Program Years 1996 and 1997, Energy Efficiency Program Year 2000, and Low -Income Program Years 1999 and 2000 in the 2001 Annual Earnings Assessment Proceeding ("AEAP") Application 01 -05 - NOTICE OF AVAILABILITY OF APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904 G) TO: All Parties of Record in R. 98-07-037 Please be advised that on May 1, 2001, Southern California Gas Company ("SoCalGas") filed with the California Public Utilities Commission ("CPUC") a document entitled "In the Matter of the Application of Southern California Gas Company (U 904G) for Authority to Increase its Gas Revenue Requirements to Reflect its Accomplishments for Demand -Side Management -Program Years 1996 and 1997, Energy Efficiency Program Year 2000, and Low -Income Program Years 1999 and 2000 in the 2001 Annual Earnings Assessment Proceedings (`AEAP')." Pursuant to Rule 2.3 (c) of the CPUC's Rules of Practice and Procedures, a copy of SoCa1Gas' 2001 AEAP Application will be mailed to you upon your request. Your request should be directed to: Joy C. Yamagata Regulatory Project Manager Phone: 619/696-4325 Facsimile: 619/696-4027 E -Mail: jyamaeataaa sempra.com In its 2001 AEAP Application, SoCa1Gas requests an increase m gas rates of $2,613,253 or, 18% beginning January 1, 2002. SoCa1Gas requests that the proposed gas rate and revenue requirement increase become effective on January 1, 2002 or as soon thereafter as possible. It is requested that this authorization be received in late 2001 so SoCa1Gas can reflect these awards in gas rates effective January 1, 2002 85940 _ 2 _ a CERTIFICATE OF SERVICE I hereby certify that.a copy of the Notice of Availability of the APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY (U 904G) has been sent to all parties of record in R.98-07-037, properly stamped and addressed. By: ���T-�—�n y�'r' "' `�-- Date: May 1, 2001 Cathy S. Moore 8.940 -3- The an Compaq A WSempra Energroompany March 27, 2001 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sirs: David L Steele Senior Tax Specialist Tax Services Southern Califomia Gas Company 101 Ash Street Mail Loc. H006B San Diego, CA 92101-3017 Tel: 619.696-2246 Fax: 619-696-2999 dsteele@sempra.com Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 770 of $86,882.40 for the calendar year 2000. Also enclosed is a statement showing the municipal surcharge due of $39481.79 for the calendar year 2000. The total amount due of $126,064.19 will be paid by Electronic Fund Transfer to be initiated on April 13, 2001, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Sincerely, �/ Lii ,40 Enclosures RECEIVED APR 0 2 2001 SLO CITY CLF► SOUTHERN CALIFORNIA GAS COMPANt STATEMENT FOR THE CALENDAR YEAR 2000 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY:ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. $ Investment in Distributing Agencies in: Public and Private Rights of Way .................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only ........................... Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ........................ $ Total Receipts ..............................' $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (43.93244% x $3,098,367,184) ................. $ Public Highways only (11.18584% x $3,098,367,184) .................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ..... C. FBI 6,174,32.1,446 2,712,529,795 690,649,510 43.93244% 11.18584% 3,105,600,418 (7,233,234) 3, 098, 367,184 1,361,188, 304 346,578,396 47,765.4230 mi. 39,451.3608 mi. 82.59397% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.59397% x $1,361,188,304) .................. $ 1,124,259,459 Public Highways only (100% x $346,578,396) ....................... $ 346,578,396 Total .................................... $ 1,470,837,855 Total Mileage in Highways as above ................ 39,451.3608 mi. Mileage in Highways of this Franchise116.5208 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.29535% Gross Receipts applicable to this Franchise (0.29535% x $1,470,837,855) ................... $ 4,344,120 Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 86,882.40 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................... $ 7,819,517.63 Less: Uncollectible Bills ............................ $ (8,878.74) Gross Receipts ................................. $ 7,810,638.89 Amount due based on (1 %) of the above Gross Receipts .. $ 78,106.39 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $86,882.40. 2 SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2000 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ................ $ Investment in Distributing Agencies in: Public and Private Rights of Way .................. $ Public Highways only ........................... $ Percent.of Distributing Agencies to Total for: Public and Private Rights of Way .................. Public Highways only ........................... Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue ............................... $ Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (43.93244% x $1,352,911,435) .................. $ Public Highways only (11.18584% x $1,352,911,435) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... Mileage in Highways ............................. Percent of Mileage in Highways to Total Mileage ...... C. Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.59397% x $594,367,004) ................... Public Highways only (100% x $151,334,508) ....................... Total....................................... Total Mileage in Highways as above ................ •. Mileage in Highways of this Franchise Percent of Mileage of this Franchise to Total Mileage in Highways ................................. $ $ Imputed Revenue. applicable to this Franchise (0.29535% x $642,245,813) ....................... $ Amount due based on 2% of the above applicable Imputed Revenue ...............................: $ 6,174,321,446 2,712,529,795 690,649,510 43.93244% 11.18584% 1,352,911,435 594,367,004 151,334,508 47,765.4230 mi. 39,451.3608 mi. 82.59397% 490,911,305 151,334,508 642,245,813 39,451.3608 mi. 116.5208 mi. 0.29535% 1,896,873 37,937.46 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............. $ 132,513.86 Amount due based on (1%) of the above Imputed Revenue".. $ 1,325.14 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC.§ 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference .......................... . $ Total amount due .................. ................. $ Municipal Surcharge Bad Debts ...................... . $ Net amount due .................................... . $ 0 37,937.46 1,244.33 39,181.79 0.00 39,181.79 CERTIFICATION I, the undersigned, say: I am Director of Tax Services for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf, and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct Executed on March 14, 2001, at San Diego, California. Christian Fonss Director of Tax Services If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Group Tax Manager - Transactional 101 Ash Street/ H006B San Diego, CA 92101-3017 March 27, 2001 Ladies and Gentlemen: Dale M. Bailey Case Management & Tariff Administration Regulatory Affairs sh� On July 24, 2000, Southern California Gas Company (SoCalGas) filed with the California Public Utilities Commission (CPUC) Application No.00-07-040 to discontinue permission for gas customers to have new installations of earthquake -activated automatic gas shut-off valves on SoCalGas' facilities. SoCalGas also sought a rate increase to recover the costs of inspecting earthquake valves already installed on its system. Public Utilities Commission Rule 24 requires that SoCalGas mail notice of a rate increase application to state, counties and municipalities within ten days of the filing. Due to an oversight on the part of SoCalGas' staff, such a notice was not mailed in this application. SoCalGas did publish notice of the application in newspapers in each county in which it serves, and provided notice in inserts in all customers' bills. To correct this oversight, on March 12, 2001, CPUC Administrative Law Judge (ALJ) O'Donnell issued a ruling requiring SoCalGas to mail a notice of the application now to state, county and city officials. This notice is enclosed. In Application No.00-07-040 a preheating conference was held by the CPUC on California, on October 26, 2000. On November 7, 2000, a scoping memo was issued by Assigned Commissioner Carl Wood adopting a procedural schedule and identifying issues to be addressed. Evidentiary hearings were held on February 20, 2001. Opening and reply briefs will be due March 30, 2001 and April 13, 2001 respectively. According to ALJ's ruling, should any entity receiving the enclosed notice wish to participate in this proceeding, it may file a protest with the Commission within 30 days of service of this supplemental notice. A service list in the application is also enclosed for your use if you decide to file a protest. if any such protests are flied, the ALJ will then provide further procedural direction. If you have any questions or comments please contact me at your convenience at (213)244-2517. Sincerely, Dale M. Bailey Enclosures 555 W. Ft th.Rnxt lnrAngeks.. CA 90013-1011 Mailing Address: Boz 3249 Lar Angeles C4 90051-1249 M.L GT -14D6 ter 213-244-2517 f= 213-244-1820 RED MAR 3 0 2001 1 SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED INCREASE IN RATES FOR EARTHQUAKE VALVE INSTALLATION AND INSPECTION Application No. 00-07-040 Our Request Southern California Gas Company (SoCalGas) filed Application 00-07- 040 with the California Public Utilities Commission (Commission) on July 24, 2000. This application addresses.the installation of valves that automatically shut the flow of gas in an earthquake (EQVs) on SoCalGas' side of its gas meters. SoCalGas proposes to end its current practice of allowing customers to have EQVs installed on SoCalGas' side of the meter, either by authorized independent contractors or by SoCalGas. Customers would continue to be able to have EQVs installed on their own gas lines downstream of SoCalGas' meters, but.SoCalGas would not offer the service of installation on customers' gas lines. In Decision No.00-06-038, issued on June 8, 2000, the Commission directed SoCalGas to file a'plan for inspecting customer -owned EQVs that independent contractors had previously installed on SoCalGas' side of the meter, but that SoCalGas had not inspected. That decision also allowed SoCalGas to propose recovery in rates of the cost of such inspections. SoCalGas estimates the cost to be $400,000 for inspections, not including any repairs it finds to be necessary. SoCalGas does not have an adequate basis for making an estimate of the cost of repairs at this time. SoCalGas proposes that it be authorized to increase rates to recover the actual amount it incurs to conduct such inspections and to make necessary repairs not paid for by the person responsible for the EQV. If immediate repairs are required due to safety conditions, SCG proposes to make such repairs and bill the customer. What This Means To You Using the estimated cost to SoCalGas of $400,000 for inspection of valves and assuming no cost for repairs, SoCalGas' proposal would result in an increase in rates for one year only to each customer class as shown below. The actual increase could be more or less depending on the actual cost of inspections and repairs. Customer Class $ Increase 8 Increase Core Residential 294,000 0.029 Commercial/Industrial 83,000 0.043 Large Master Meter 4,000 0.039 Total* 400,000 0.031 The actual number approved by the Commission includes fees paid to ,ities and local government. If the proposed increase is granted, based on the average monthly gas procurement costs for the 2000-2001 winter season, a residential Dale M. Bailey Regulatory Affairs (M.L. 14D6) Southern California Gas Company 555 West Fifth Street Los Angeles, CA 90013-1011 You may also view a copy of the Application at the following address: California Public Utilities Commission 320 West 4" Street, Suite 500 Los Angeles, CA .90013 If you would like to send. comments or to participate in this proceeding, write to the Commission's Public Advisor's Office at the address above, or by e-mail to Public. advisor. la@cpuc.ca.gov. If hearings are held, notice of the dates, times and locations will be provided to you by separate notice. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this Application. In your letter, state that you are writing in regard to Application No. 00-07-040. Please indicate if you would like a response to your letter, otherwise none will be sent. SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATEINCREASE Application No. 00-06-023 OUR REQUEST On June 15, 2000, Southern California Gas Company (SoCalGas) filed Application No. 00-06-023 with the California Public Utilities Commission (Commission). This application reports SoCalGas' gas supply and storage operations for "Year Six° (April 1, 1999 through March 31, 2000) of its Gas Cost Incentive Mechanism (GCIM) and requests approval to recover in rates shareholder incentives of $9,759,744 earned under the program. In Year Six of the GCIM, SoCalGas realized total gas cost savings of $24,151,386. These cost savings have been passed on to SoCalGas customers in the form of lower rates during Year Six. On December 17, 1998, the Commission extended the GCIM on an annual basis for 12 -month cycles beginning in Year Six, i.e. April 1, 1999, unless the GCIM is modified or discontinued by further order of the Commission. Under the GCIM, the actual cost SoCalGas pays for gas to meet the needs of its core customers is measured against a benchmark (previously approved by the Commission) for the prevailing market price of gas. During Year Six, SoCalGas acquired gas below the GCIM benchmark. The resultant cost savings of $24,151,386 are calculated as the difference between the actual cost of gas of $1,037,113,228 and the GCIM benchmark of $1,061,264,614. Under the GCIM, SoCalGas' ratepayers share these cost savings with shareholders. SoCalGas is seeking approval of a shareholder award of $9,757,744 from these cost savings. If the Commission approves SoCalGas' shareholder award, SoCalGas' ratepayers will retain a net benefit of $14,391,642 from the GCIM. JUN 7.61, o ,_ OLE WHAT THIS MEANS TO YOU SoCalGas proposes that the increase to each customer class, be allocated as shown below. Customer Class Core* Residential Commercial/Industrial Transportation Noncore*' Retail (Core Subscription only) Wholesale Unbundled Storage/ Zone Rate Credit TOTAL Million %Increase 7.564 0.742% 2.296 1.115% 0.000 0.000% 0.095 N/A 0.000 0.000% 0.000 0.000% $9.955'•• 0.804% • Core Customers primarily use smaller quantities of gas, have priority access to gas service and do not have aftemative fuel capability. Noncore Customers are generally large gas users who typically have aftemative fuel capability. ° The actual number approved by the Commission includes fees paid to cities and local government. If the proposed increase is granted, based on the average monthly gas procurement costs for the 2000-2001 winter season, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 21 cents, from $55.20 to $55.41. The impact on each customer and Customer Class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Office of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: J. Suwara Case Administrator For Southern California Gas Company 555 West Fifth Street, 14'" Floor Los Angeles, CA 90013-1011 You may also view a copy of the application at the following address: Public Utilities Commission ' 320 West Fourth Street, Room 500 Los Angeles, CA 90013. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following email location: public.advisor.la@cpuc. ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 00-06-023. Please indicate if you would like a response to your letter, otherwise none will be sent. 0 The Gas Camp' •f March 21, 2000 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sirs: David L. Steele Senior Tax Specialist Tax Services .00019 z -abW saww cafdomia Gas Company rot AshSoeel Mad Lor HQ06B San Diego, CA 91101-3017 Enclosed is the certified franchise statement of Southern California Gas Company rel 61"96-1146 showing an amount due pursuant to Ordinance No. 770 of $73,201.44 for the far 61996.1999 calendar year 1999. Also enclosed is a statement showing the municipal surcharge due of $20,449.36 for the calendar year 1999. The total amount due of $93,650.80 will be paid by Electronic Fund Transfer to be initiated on April 14, 2000, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Sincerely, Enclosures SOUTHERN CALIFORNIA GAS COMPANY STATEMENT FOR THE CALENDAR YEAR 1999 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. $ 6,050,073,377 Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ 2,643,142,082 Public Highways only ........................:. $ 677,679,243 Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. 43.68777% Public Highways only .......................... 11.20117% Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ 2,621,634,398 Less: Uncollectible Bills ....................... $ (10,468,045) Total Receipts ................................ $ 2,611,166,353 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (43.68777% x $2,611,166,353) .................. $ 1,140,760,351 Public Highways only (11.20117% x $2,611,166,353) ................. $ 292,481,182 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. 47,372.7057 mi. Mileage in Highways ............................. 39,190.8720 mi. Percent of Mileage in Highways to Total Mileage ..... 82.72880% Gross Receipts applicable to Mileage to Highways for. Public and Private Rights of Way (82.72880% x $1,140,760,351) ................. $ 943,737,349 Public Highways only (100%x$292,481,182) ....................... $ 292,481,182 Total .................................... $ 1,236,218,531 Total Mileage in Highways as above ................ 39,190.8720 mi. Mileage in Highways of this Franchise 116.0330 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.29607% C. Gross Receipts applicable to this Franchise (0.29607% x $1,236,218,531) ................... $ 3,660,072 D. Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 73,201.44 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings ..................................... $ 7,153,295.72 Less: Uncollectible Bills ............................. $ (8,404.79) Gross Receipts ................................ $ 7,144,890.93 Amount due based on (1%) of the above Gross Receipts .. $ 71,448.91 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $73,201.44. 2 SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 1999 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies: in Highways of which this Franchise is a part Total Investment in Physical Properties ................ $ Investment in Distributing Agencies in: Public and Private Rights of Way .................. $ Public Highways only ........................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way .................. Public Highways only ........................... Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue .............................. $ Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (43.68777% x $695,765,747) ................... Public Highways only (11.20117% x $695,765,747) .................... B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... Mileage in Highways ............................. Percent of Mileage in Highways to Total Mileage ...... C. R) Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.72880% x $303,964,539) .................. Public Highways only (100% x $77,933,904) ....................... Total..................................... Total Mileage in Highways as above .................. Mileage in Highways of this Franchise Percent of Mileage of this Franchise to Total Mileage in Highways ................................. $ $ Imputed Revenue applicable to this Franchise (0.29607% x $329,400,120) ..................... $ Amount due based on 2% of the above applicable Imputed Revenue ............................... $ 6,050,073,377 2,643,142,082 677,679,243 43.68777% 11.20117% 695,765,747 303,964,539 77,933,904 47,372.7057 mi. 39,190.8720 mi. 82.72880% 251,466,216 77,933,904 329,400,120 39,190.8720 mi. 116.0330 mi. 0.29607% 975,255 19,505.10 u San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............ $ 116,165.32 Amount due based on (1%) of the above Imputed Revenue ... $ 1,161.65 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of .......... $ 19,505.10 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ........................... $ 944.26 Total amount due ..................................... $ 20,449.36 F CERTIFICATION I, the undersigned, say: I am Director of Tax Services for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement. on its behalf, and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of pedury.that.the foregoing is true and correct. Executed on March 17, 2000, at San Diego, California. Christian Fonss Director of Tax Services If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Group Tax Manager - Transactional 101 Ash Street/ HQ06B San Diego, CA 92101-3017 TO: Southern California Gas Company Pacific Telephone Company Pacific Gas & Electric Company tiCharter Communications SUBJECT: Abandonment of a portion of Johnson Avenue, between Buchon Street and the Union Pacific Railroad R/W. The City Council passed a "conditional' Resolution of Abandonment for a portion of excess Johnson Avenue R/W on January 19, 1999 (attached), which required the execution of a "common driveway" agreement between the affected property owners, prior to recordation of the resolution. The common driveway agreement and abandonment resolution.have now been recorded. The attached recorded copy is transmitted for your records, in accordance with Section 8347 (b) of the California Streets & Highways Code. The final Resolution of Abandonment includes the reservation of a public utility easement to accommodate existing and any future public utilities. If you have any questions regarding this matter, please contact me at (805) 781-7194. Sincerely, J Kenny pervising Civil Engineer Attachment: Resolution No. 8901 (1999 Series) cc: Lee Price, City Clerk J Jorgensen, City Attorney MM/MB/HB/file DevRev/ ... /Johnson Ave. Abandonment - Utility Co. Final Resolution transmittal ,=�t►vED J U l 14 1999 The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. I e � TO: Southern California Gas Company Pacific Telephone Company Pacific Gas & Electric Company tiCharter Communications SUBJECT: Abandonment of a portion of Johnson Avenue, between Buchon Street and the Union Pacific Railroad R/W. The City Council passed a "conditional' Resolution of Abandonment for a portion of excess Johnson Avenue R/W on January 19, 1999 (attached), which required the execution of a "common driveway" agreement between the affected property owners, prior to recordation of the resolution. The common driveway agreement and abandonment resolution.have now been recorded. The attached recorded copy is transmitted for your records, in accordance with Section 8347 (b) of the California Streets & Highways Code. The final Resolution of Abandonment includes the reservation of a public utility easement to accommodate existing and any future public utilities. If you have any questions regarding this matter, please contact me at (805) 781-7194. Sincerely, J Kenny pervising Civil Engineer Attachment: Resolution No. 8901 (1999 Series) cc: Lee Price, City Clerk J Jorgensen, City Attorney MM/MB/HB/file DevRev/ ... /Johnson Ave. Abandonment - Utility Co. Final Resolution transmittal ,=�t►vED J U l 14 1999 The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. C SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED $7.7 MILLION RATE INCREASE Application No. 99-06-027 OUR REQUEST Application No. 99-06-027 r� On June 15, 1999, Southern California Gas Company (SoCalGas) filed Application No. 99-06-027 with the California Public Utilities Commission (Commission). This application reports SoCalGas' gas supply and storage operations for "Year Five" (April 1, 1998 through March 31, 1999) of its Gas Cost Incentive Mechanism (GCIM) and requests authority to recover in rates shareholder incentives earned under the program. In Year Five of the GCIM, SoCalGas realized total gas cost savings of $18.2 million. These cost savings have been passed on to SoCalGas.' customers in the form of lower rates during Year Five. Under the cost savings sharing mechanism in the GCIM, SoCalGas shareholders earned incentives of $7.7 million during Year Five. In Application No. 99-06-027, SoCalGas requests recovery of this earned incentive through a rate increase of $7.7 million. SoCalGas is asking that it become effective when the Commission issues its final decision (expected in the first quarter of 2000). On December 17, 1998 the Commission extended the GCIM on an annual basis for 12 - month cycles beginning in Year Six, i.e. April 1, 1999, unless the GCIM is modified or discontinued by further order of the Commission. Under the GCIM, the actual cost SoCalGas pays for gas to meet the needs of its core customers is measured against a benchmark (previously approved by the Commission) for the prevailing market price of gas. During Year Five, SoCalGas acquired gas below the GCIM benchmark. The resultant cost savings of $18.2 million are calculated as the difference between the actual cost of gas of $631.1 million and GCIM benchmark of $649.3 million. The total shareholder incentive requested is $7.7 million. Correspondingly, if our request is granted, ratepayers' costs will have been reduced by a net of $10.5 million. RECEIVED JUN 7 3 iggq SLO CITY CLERK WHAT THIS MEANS TO YOU If the Commission approves our request, we propose that the increase to each customer class, effective by the end of first quarter 2000, be allocated as shown below: Customer Class Million %Increase Core* Residential 5.691 0.357% Commercial/Industrial 1.580 0.448% Transportation 0.000 0.000% Noncore** Retail (Core Subscription only) 0.616 N/A Wholesale 0.000 0.000% Unbundled Storage/ 0.000 0.000% Zone Rate Credit TOTAL $7.888**" 0.345% Core Customers primarily use smaller quantities of gas, have priority access to gas service and do not have alternative fuel capability. Noncore Customers are generally large gas users who typically have alternative fuel capability. **'The actual number approved by the Commission includes fees paid to cities and local government. If the proposed increase is granted, based on the average monthly gas procurement costs for the 1999-2000 winter season, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 15 cents, from $42.50 to $42.65, effective upon issuance of a final decision by the Commission by the end of the first quarter of 2000. The impact on each customer and Customer Class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Office of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After. considering all proposals, the Commission will issue a decision. r You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: J. A. Suwara Case Administrator For Southern California Gas Company 555 West. Fifth Street, GT -20G2 Los Angeles, CA 90013-1011 You may also view a copy of the application at the following address: Public Utilities Commission 320 West Fourth Street, Room 500 Los Angeles, CA 90013 If you would like to participate in the hearings and need assistance, you may write to the Public Advisor's Office at the above address or at the following email location: public.advisor.la@cpuc.ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 99-06-027. Please indicate if you would like a response to your letter, otherwise none will be sent. The Gas Compa March 26, 1999 City Clerk City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Dear Sirs: dDpj g C David L Steele Senior Tax Specialist Tax Services Enclosed is the certified franchise statement of Southern California -Gas Company showing an amount due pursuant to Ordinance No. 770 of $80,894.50 for the calendar year 1998. Also enclosed is a statement showing the municipal surcharge due of $19,069.59 for the calendar year 1998. The total amount due of $99,964.09 will be paid by Electronic Fund Transfer to be initiated on April 15, 1999, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: ABA Number: Account No.: Bank of America 121000358 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Sincerely, Enclosures SoudwnCald Gn Coq=W 101 Ash Stec Mail Loc HQ06B Sim Diego, C! 91101-3017 tel 619.696.2146 fax 619696-2999 .,OUTHERN CALIFORNIA GAS COMPAN . STATEMENT FOR THE CALENDAR YEAR 1998 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. $ Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for. Public and Private Rights of Way ................. Public Highways only ............................ Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (43.62153% x $2,866,373,520) ................. $ Public Highways only (11.33945% x $2,866,373,520) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ..... . C. 9 5,947,847,685 2,594,542,416 674,452,968 43.62153% 11.33945% 2,879,590,851 (13,217,331) 2,866,373,520 1,250,355,985 325,030,992 47,026.7655 mi. 38,971.7395 mi. 82.87140% Gross Receipts applicable to Mileage to Highways for. Public and Private Rights of Way (82.87140% x $1,250,355,985) ................. $ 1,036,187510 Public Highways only (100% x $325,030,992) ........................ $ 325,030,992 Total ..................................... $ 1,361,218,502 Total Mileage in Highways as above ................. 38,971.7395 mi. Mileage in Highways of this Franchise 115.7997 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................. 0.29714% Gross Receipts applicable to this Franchise (0.29714% x $1,361,218,502) ................... $ 4,044,725 Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 80,89.4.50 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................... $ 7,442,337.98 Less: Uncollectible Bills ............................ $ (10,074.47) Gross Receipts ................................ $ 7,432,263.51 Amount due based on (1%) of the above Gross Receipts.. $ 74,322.64 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $80,894.50. `A CERTIFICATION I, the undersigned, say: I am Director of Tax Services for Sempra Energy and its subsidiary Souther California Gas Company. .1 am duly authorized to prepare and file the foregoing statement on its behalf, and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 26, 1999, at San Diego, California. a Christian P. Fonss Director of Tax Services If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Group Tax Manager - T_ransactional 101 Ash Street/ H006B San Diego, CA 92101-3017 oOUTHERN CALIFORNIA GAS COMPA1%. MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 1998 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............... $ Investment in Distributing Agencies in: Public and Private Rights of Way .................. $ Public Highways only .........................:. $ Percent of Distributing Agencies to Total for. Public and Private Rights) of Way .................. Public Highways only .......................... . Total Imputed Revenue from Transportation Customers for Period:. Imputed Revenue .............................. $ Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (43.62153% x $617,735,806) .................... Public Highways only (11.33945%x$617,735,806) ................... B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ..................:. Mileage in Highways ............................. Percent of Mileage in Highways to Total Mileage ....... C. A Imputed Revenue applicable to Mileage to Highways for Public and Private Rights of Way (82.87140% x $269,465,810) ................... Public Highways only (100% x $70,047,843) ........................ Total..................................... Total Mileage in Highways as above .................. Mileage in Highways of this Franchise Percent of Mileage of this Franchise to Total Mileage in Highways ................................. $ Imputed Revenue applicable to this Franchise (0.29714% x $293,357,932) ...................... $ Amount due based on 2% of the above applicable Imputed Revenue ............................... $ 5,947,847,685 2,594,542,416 674,452,968 43.62153% 11.33945% 617,735,806 269,465,810 70,047,843 47,026.7655 mi. 38,971.7395 mi. 82.87140% 223,310,089 70,047,843 293,357,932 38,971.7395 mi. 115.7997 mi. 0.29714% 871,684 17,433.68 i San Luis Obispo SECTION B Computation of payment of one percent (1%) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city ............ $ 113,698.39 Amount due based on (1%) of the above Imputed Revenue ... $ 1,136.98 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ 17,433.68 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ............................ $ 1,635.79 Total amount due .................................... $ 19,069.47 2 A %Z 0/—U(, NOTICE OF PROPOSED CHANGES SOUTHERN CALIFORNIA GAS COMPANY'S GAS RATES Decrease in Rates Increase in Customer Charge Reduced Baseline Allowance APPLICATION NO. 98-10-012 OUR REQUEST On October 1, 1998, Southern California Gas Company (SoCalGas) filed Application No. 98-10-012 with the California Public Utilities Commission (Commission) to revise its rates for gas service effective August 1, 1999. The purpose of the Application is to revise the allocation of rates for non -gas costs of service. Non -gas costs of service are reflected in the transportation component of the rate and represent the costs incurred by SoCalGas to provide distribution, transmission, and storage gas service. In D.96-08-037 the Commission approved monthly pricing for gas costs; therefore, the gas cost component of the rate is not set in this proceeding. SoCalGas proposes a decline in overall transportation rates of $204.4 million or 11.2%. For residential customers, rates are slightly lower primarily as a result of the higher than normal sales during the last heating season. Residentiall customers benefit with lower rates from higher than expected sales. The benefits from the higher sales are partially offset by lower customer refunds from underspendings in Demand Side Management/ Conservation and Research and Development Programs; and lower forecasted demand. All customer segments benefited, particularly the noncore customers, with lower proposed rates from lower transition costs related to the deregulation of interstate pipeline capacity and the buydown of specific gas contracts. Noncore customers bear the majority of these transition costs. Our Application also proposes changes to residential rates to more accurately reflect the cost of service. SoCalGas proposes to increase the single family and small master meter customer charge from $5.00 to $7.00 while retaining the multi -family customer charge at $5.00. Depending on the consumption of individual customers, the increased customer charge may or may not be offset by lower gas rates. SoCalGas also proposes a reduction to the tier differential between baseline and non - baseline rates from 35% to 20%. This proposal will increase the baseline rate and decrease the non -baseline rate. This proposal is consistent with the objective of a cost— based ostbased rate design. SoCalGas also proposes to lower summer and winter baseline allowance from 15 and 50 therms to 14 and 49 therms, respectively. RECEI`� OCT 19 °+18 SLS^'"", s..iC�lt WHAT THIS MEANS TO YOU If the Commission approves our request, the impact to each customer class will become effective on August 1, 1999 as follows: Customer Class S Million % Chan¢e Core Residential -35.3 -2.9 CommerciaUIndustrial* -51.7 -17.8 Noncore CommerciaUIndustrial** -24.9 -26.3 Electric Generation -59.9 -42.0 Wholesale -28.4 -50.4 International 0.4 — Unbundled Storage -5.8 -21.4 Net CARE Revenues 1.2 133.3 *Core Commercialandustrial customers generally use smaller quantities of gas. **Noncore Commercial/Industrial customers are.generally large gas users who often have alternative fuel capacity. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on SoCalGas' Application, the Commission will hold formal evidentiary hearings. These hearings will be open to the public and will be devoted to analyzing the need for the requested.rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Office of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. You may view a copy of the.Application at the address listed below or obtain a copy of the Application and related exhibits by writing to: J. Steven Rahon Regulatory Case Manager for Southern California Gas Company 555 W. Fifth Street - M.L. 25A1 Los Angeles, California 90013-1011 You may also view a copy of the Application at the following address: California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, California 90012 If you would like to participate in the hearings and need assistance, you may write to the Public Advisor's Office at the address above, or by e-mail to public.advisor.la@cpuc.ca.gov. The Commission welcomes your comments. You may write or e-mail the Commission's Public Advisor's Office at the addresses above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this Application. In your letter, state that you are writing in regard to Application No. 98-10-012. Please indicate if you would like a response to your letter, otherwise none will be sent. *G- /vo/ -a C J U N 2 9 1998` NOTICE OF PROPOSED RATE INCREASE ISLO CITY Application No. 98-06-033 OUR REQUEST Application No. 98-06-033 On June 15, 1998, Southern California Gas Company (SoCalGas) filed Application No. 98-06-M with the California Public Utilities Commission (Commission). This application reports SoCalGas' gas supply and storage operations for "Year Four" (April 1, 1997 through March 31, 1998) of its Gas Cost Incentive Mechanism (GCIM) and requests authority to recover in rates shareholder incentives earned under the program. In Year Four of the GCIM, SoCalGas realized total gas cost savings of $7.0' million. This cost savings has been passed on to SoCalGas' customers in the form of lower rates during Year Four. Under the cost savings sharing mechanism in the GCIM, SoCalGas shareholders earned incentives of $2.1' million during Year 4.. In Application No. 98-06-033, SoCalGas requests recovery of this earned incentive through a rate increase of $2.1' million. SoCa.IGas is asking that it become effective when the Commission issues its final decision (expected in the first quarter of 1999). On June 11, 1997 the Commission granted a two-year extension of the GCIM program (through March 31, 1999) and modified the program so that the storage incentive mechanism portion is eliminated and the GCIM is based solely on SoCalGas' gas procurement practices. Under the GCIM, the actual cost SoCalGas pays for gas to meet the needs of its core customers is measured against a benchmark (previously approved by the Commission) for the prevailing market price of gas. During Year 4, SoCalGas acquired gas below the GCIM benchmark. The resultant cost savings of $7.0' million are calculated as the difference between the actual cost of gas of $685.6 million and GCIM benchmark of $678.6' million. The total shareholder incentive requested is $2.1' million. Correspondingly, ratepayers' costs have already been reduced by a net of $4.9' million. ' The actual numbers approved by the Commission include fees paid to cities and local governments.. WHAT THIS MEANS TO YOU If the Commission approves our request, we propose that the increase to each customer class, effective by the end of first quarter 1999, be allocated as shown below: Customer Class Million %Increase Core* Residential 1.501 0.089% Commercial/Industrial 0.419 0.111% Transportation 0.000 0.000% Noncore" Retail (Core Subscription only) 0.163 N/A Wholesale 0.000 0.000°x6 Unbundled Storage/ 0.000 0.000°x6 Zone Rate Credit TOTAL $2.081 0.085% ' Core Customers primarily use smaller quantities of gas, have priority access to gas service and do not have aftemative fuel capability. "Noncore Customers are generally large gas users who typically have alternative fuel capability. If the proposed increase is granted, based on the average monthly gas commodity costs for the 1997-1998 winter season, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 4 cents, from $51.29 to $51.33, effective upon issuance of a final decision by the Commission by the end of the first quarter of 1999. The impact on each customer and Customer Class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN CO Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Office of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. ►a You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Denise Diaab Canning Tariff and Regulatory Proceedings Manager Southern California Gas Company 555 West Fifth Street, M.L. 25A1 Los Angeles, CA 90013-1011 You may also view a copy of the application at the following address: Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you would like to participate in the hearings and need assistance, you may write to the Public Advisor's Office at the above address or at the following email location: public. advisor.la@cpuc.ca.gov The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 98-06=033. Please indicate if you would like a response to your letter, otherwise none will be sent. 3 F The Gas Company APR 0 6 1998 March 27, 1998 City Clerk City of San Luis Obispo met p90 A/m San Luis Obispo, CA 93493 ?3 510/ Dear Sirs: David L Steele State & Local Tax Consultant Tax Services sotew cafria casCm;o r 555 W. Fifth Street Madlamtion 14A0 Los AWd= CA 90013.1011 Enclosed is the certified franchise statement of Southern California Gas Company tel 213.244-3322 showing an amount due pursuant to Ordinance No. 770 of $74,474.30 for the f= 213-244-8142 calendar year 1997. Also enclosed is a statement showing the municipal surcharge due of $19,895.20 for the calendar year 1997. The total amount due of $94,369.50 will be paid by Electronic Fund Transfer to be initiated on April 15, 1998, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 0061080249 If your banking information is incorrect or has changed, please contact me immediately. Sincerely, Enclosures STATEMENT FOR THL .;ALENDAR YEAR 1997 PURSUANT TO TnE FRANCHISE GRANTED BY THE CITY OF San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .............. .$ Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ..............:................ $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (43.26572% x $2,656,756,795) ................. Public Highways only (11.28108% x $2,656,756,795) .................. B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ..... C. Fol Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.99714% x $1,149,464,956) ................. Public Highways only (100% x $299,710,859) ........................ Total.................................... Total Mileage in Highways as above ................ Mileage in Highways of this Franchise Percent of Mileage of this Franchise to Total Mileage in Highways ................................ Gross Receipts. applicable to this Franchise (0.29701 % x $1,253,733;898) ................... $ Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 5,895,791,414 2,550,856,673 665,108,853 43.26572% 11.28108% 2,668,849,285 (12,092,490) 2,656,756,795 1,149,464,956 299,710,859 46,700.5900 mi. 38,760.1545 mi. 82.99714% 954,023,039 299,710,859 1,253,733,898 38,760.1545 mi. 115.1203 mi. 0.29701% 3,723,715 74,474.30 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from thesale of gas within the limits of the city. Gross Billings ..................................... $ 6,525,563.33 Less: Uncollectible Bills ............................. $ (12,510.26) Gross Receipts ............................... $ 6,513,053.07 Amount due based on (1 %) of the above Gross Receipts .. $ 65,130.53 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of'the two amounts shown above, namely, the amount due under Section A in the sum of $74,474.30. 2 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Vice President & Treasurer of Southern California Gas -Company. I am -duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed.on March 26,.1998, at. Los Angeles, California. Vice President & Treasurer Southern California Gas Company If additional information is required, please address inquiries to: Southern California Gas Company ATTN: State & Local Tax Manager M. L. 14AO 555 W. Fifth Street Los Angeles, CA 90013-1011 MUNICIPAL PUBLIC LAN. S USE SURCHARGE STATEMENT FOR UkLENDAR YEAR 1997 MUNICIPAL SURCHARGE DUE TO THE CITY OF San Luis Obispo SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............... $ 5,895,791,414 Investment.in Distributing Agencies in: Public and Private Rights of Way .................. $ 2,550,856,673 Public Highways only ........................... $ 665,108,853 Percent of Distributing Agencies to Total for: Public and Private Rights of Way .................. 43.26572% Public Highways only ........................... 11.28108% Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue ............................... $ 654,986,707 Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (43.26572% x $654,986,707) ................... $ 283,384,715 Public Highways only (11.28108% x $654,986,707) ................... $ 73,889,574 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ................... 46,700.5900 mi. Mileage in Highways ............................... 38,760.1545 mi. Percent of Mileage in Highways to Total Mileage ...... 82.99714% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.99714% x $283,384,715) ................... $ 235,201,209 Public Highways only (100% x $73,889,574) ........................ $ 73,889,574 Total ..................................... $ 309,090,783 Total Mileage in Highways as above ................. 38,760.1545 mi. Mileage in Highways of this Franchise 115.1203 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................. 0.29701% C. Imputed Revenue applicable to this Franchise (0.29701 % x $309,090,783) ...................... $ 918,031 D. Amount due based on 2% of the above applicable Imputed Revenue ............................... $ 18,360.62 San Luis Obispo SECTION B Computation of payment of one percent (1 %) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city .............. $ 87,596.99 Amount due based on (1%) of the above Imputed Revenue ... $ 875.97 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of ......... $ 18,360.62 The total amounts calculated and collected pursuant to Public Utilities Code § 6353 were greater than the total.:amounts calculated pursuant to Public Utilities Code § 6354(b). Your share of this difference ............................. $ 1,534.58 Total amount due .................................... $ 19,895.20 2 . . . . . . . . . . . . . a CD L 01 no N lu ri rr, Cn —4 M N PAESORTEI CD FIRST CLAQ 000 N 40 cr SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF PROPOSED $27.8 MILLION RATE INCREASE Application 95-06-002/Advice No. 2633 BACKGROUND 0 0 C f 1 0 1997 CITY CLERK On June 1, 1995, Southern California Gas Company (SoCalGas) filed with the California Public Utilities Commission (Commission), Application No. 95-06-002 requesting adoption of a Performance Based Regulation (PBR) Mechanism. This application was later amended on May 3, 1996. In the amended application, SoCalGas proposed that future increases in rates for utility service (through at least the year 2001) would be limited to the annual increase of inflation reduced by a productivity offset of 1.01/o (annual PBR rate adjustment). Exceptions to this rate setting formula would include the cost of gas purchased by SoCalGas (including its interstate transportation), mandated social programs, costs of catastrophic events (such as earthquakes), and a limited number of other costs. In Decision No. 97-07-054, dated July 16, 1997, the Commission approved SoCalGas' PBR application which resulted in an overall rate decrease of $191.5 million for SoCalGas' customers, effective on August 1, 1997. In this decision, the Commission also approved a PBR mechanism which would index SoCalGas' margin per customer over the next five years starting in 1998. The indexing formula adjusts rates each year for inflation minus productivity plus customer growth. OUR REQUEST On October 1, 1997, in compliance with Decision No. 97-07-054, SoCalGas filed Advice No. 2633 requesting the Commission to grant authorization to implement the annual PBR rate adjustment for 1998. SOCaIGas is requesting an overall net increase in base margin of $27.8 million over SoCalGas' current base margin of $1,315.3 million. The increase in SoCalGas' base margin consists of the following components: inflation, productivity, and customer growth in the amounts of $34.5 million, -27.6 million, and $20.9 million, respectively. The total increase in present rates requested is $27.8 million, effective January 1, 1998. WHAT THIS MEANS TO YOU If the Commission approves our request, the increase to each customer class, effective January 1, 1998, would be as follows: Customer Class Core's Increase/Decrease $Million % Residential (Sales) 19.881 1.2 G-10 (Sales) 3.491 1.0 G-20 (Sales) 0.076 0.5 Gas A/C (Sales) 0.007 0.5 Gas Engines (Sales) 0.037 0.5 Core Transportation 1.364 1.5 Noncore** Retail 2.122 1.0 Wholesale 0.546 0.9 Unbundled Storage 0.395 2.2 Zone Rate Credit -0.155 -2.2 Total Increase 27.764 1.1 *Core Customers primarily use smaller amounts of gas, and include residential and small commercial and industrial gas users. **Noncore Customers are the larger commercial and industrial gas users who typically have alternate fuel capability. If the proposed increase is granted, an average residential customer's monthly winter bill for 70 therms of gas usage would increase by $0.53 cents,.from $42.87 to $43.40, effective January 1, 1998. The impact on each customer and customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN. DO The Commission welcomes your comments. You may write to the Commission at the address below. Your letters will be circulated to each Commissioner and will become part of the formal correspondence file in this advice filing. In your letter, please state that you are writing in regards to Application No. 95-06-002/Advice No. 2633. Please indicate if you would like a response to your letter, otherwise none will be sent. You may view a copy of the Advice Letter at the address below: Public Advisor's Office Public Utilities Commission 107 South Broadway - Room 5109 Los Angeles, CA 90012 public.advisor.la@cpuc.ca.gov You may also view a copy of the Advice Letter at the address listed below or obtain a copy of the Advice Letter and related exhibits by writing to: Denise Diaab Canning Tariff and Regulatory Proceedings Manager 555 W. Fifth Street, M.L. 25A1 Los Angeles, CA 90013-1011 SOUTHERN CALIFORNIA GAS COMPANY HEARING NOTICE OF PROPOSED MAJOR CHANGE IN REGULATION AND PROPOSED CHANGE IN RATES APPLICATION NO. 95-06-002 OUR REQUEST On June 1, 1995, Southern California Gas Company (SoCalGas) filed with the California Public Utilities Commission, Application No. 95-06-002 requesting adoption of a Performance Based Regulation (PBR) Mechanism which would significantly change the current cost of service regulation. This application was updated on May 3, 1996. Currently rates are based on a detailed review by the CPUC of the utility operations every three years in a general rate case proceeding. If the PBR is approved, rates will be adjusted annually for inflation and decreased by a productivity factor according to a formula that would be approved by the Commission. However, under PBR annual expenditures would not be reviewed by the Commission. In general, our PBR application would limit rates for utility service through at least the year 2001, to the annual increase of inflation reduced by a productivity offset of 1.0%. Exceptions to this rate setting formula would include the cost of gas purchased by SoCalGas (including its interstate transportation), mandated social programs, costs of catastrophic events (such as earthquakes), and a limited number of other costs. SoCalGas' application requests a decrease in rates by approximately $33.5 million effective January 1, 1997 as compared to rates currently in effect based on a forecast inflation rate of 3.2%. The application also proposes the following changes in residential rate design. The monthly residential customer charge (currently at $5.00) would increase on January 1, 1997, to an estimated $7.21 for customers in single-family homes and $5.50 for customers in apartments or other multi -family dwellings. Customer charges thereafter would increase each year until they reached an estimated $13.57 per month for single family customers and $10.35 per month for multi -family customers. At the same time, SoCalGas would reduce its volumetric rates per therm consumed so that the total average rate to residential customers would not be increased by the changes in monthly customer charges. By 2001, rates per therm for baseline quantities would decrease about $0.11 per therm and for quantities over baseline would decrease by about $0.25 per therm. The quantities qualifying for baseline in most geographical areas would decrease from 50 to 46 therms in winter and from 15 to 14 therms in summer, with proportionate reductions in the quantities for colder areas. To ensure that SoCalGas does not have an incentive to reduce the quality of its service to customers, SoCalGas proposes that its rates would be further reduced by up to $4 million per year if customer satisfaction, as measured by random surveys, fell below current levels. SoCalGas is also requesting permission to offer on a competitive, unregulated basis utility -related products and services that it does not currently offer. On May 3, 1996, SoCalGas amended its proposal to add a proposal for authority to impose a late payment charge for overdue gas bills. SoCalGas proposes to charge 1.2% per month on any unpaid balance. The charge would be imposed on the unpaid balance when the bill for the following month is issued. Late payment charges would appear as a separate line item on bills. SoCalGas proposed that its late payment charge be effective January 1, 1998. Customers could still have their gas service discontinued by SoCalGas for failure to pay bills. C OCT 3 1 1904 ... CITY CLERK r3.AN LUG 061SPO, CA WHAT THIS MEANS TO YOU While the actual impact on revenue requirement resulting from this proposed PBR mechanism is unknown, SoCa/Gas estimates that if all of its assumptions are accurate, that this proposal will result in a $33.5 million decrease in the revenue requirement If the Commission approves our request, the decrease to each customer class, effective January 1, 1997, would be as follows: Customer Class . Increase/(Decrease) $ Million % Core*: Residential (Sales) $ (26,996) (1.548)% G-1 O/G-20 (Sales) (1,997) (0.523)% Gas A/C (Sales) (0) 0.021% Gas Engines (Sales) 19 0.727% Core Transportation (1,031) (1.046)% Noncore**: Retail (1,296) (0.533)% Wholesale (1,513) (2.458)% Unbundled Storage (1,171) (4.897)% Zone Rate Credit 436 6.128% Total Decrease $ (33,549) (1.316)% *Core Customers primarily use smaller amounts of gas, and include residential and small commercial and industrial gas users. "Nen-Core Customers are the larger commercial and industrial gas users who typicafly have alternate fuel capability. If the proposed decrease is granted, an average residential customer's monthly winter bill for 70 therms of gas usage would decrease by 47 cents, from $44.71 to $44.24, effective January 1, 1997. The impact on each customer and customer class could vary depending on individual usage and the actual rate of inflation compared to the estimate of 3.2%. f WHAT YOU CAN DO Before acting on our application, the Commission will hold formal evidentiary hearings. These hearings will be open to the public and will be devoted to analyzing the proposal from SoCalGas to change the regulatory structure and to change rates. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Office of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. The Commission welcomes your comments. You may write to the Commission at the address below. Your letters received will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing in regards to Application No. 95-06-002. Please indicate if you would like a response to your letter, otherwise none will be sent. You may view a copy of the Application at. the address below: Public Advisor's Office Public Utilities Commission 107 South Broadway. Room 5109 Los Angeles, CA 90012 If you would like to participate in the hearings and need assistance, you may also write to the Public Advisor's Office at the address above. The hearings for this application are scheduled to begin November 18, 1996.. The hearings will begin at 10:00 a.m. and will be held in a hearing room at the Commission's headquarters at 505 Van Ness Avenue, San Francisco, California 94102. You may also view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: Nena Maralit Regulatory Compliance and Information Specialist Southern California Gas Company 555 W. Fifth Street, M.L. 27B2 Los Angeles, CA 90013-1011 REVISED NOTICE OF PROPOSED CHANGES TO SOUTHERN CALIFORNIA GAS COMPANY'S GAS RATES Proposed Decrease in Rates Proposed Increase in Customer Charge Proposed Reduction in Baseline Allowances Proposed Increase in CARE Surcharge OUR REQUEST On March 15, 1996, Southern California Gas Company (SoCalGas) filed Application No. 96-03-031 with the California Public Utilities Commission (Commission) to revise its rates for gas service effective January 1, 1997. The purpose of the Application is to develop rate estimates for gas services and the cost of gas supplies. On March 23, 1996, SoCalGas began informing its customers by bill insert of its intent to revise rates. The total rate decrease provided in that notice was overstated by $10.2 million or 0.4%. This notice now contains the revised information. In addition, the table detailing the rate changes for each customer class has been adjusted to include the net impact of the Surcharge to Fund Public Utilities Commission Utilities' Reimbursement Account (SRF) and the proposed increase in the California Alternate Rates for Energy (CARE) surcharge. All other aspects of the previous notice remain unchanged, but are repeated herein for your reference and convenience. SoCalGas is proposing in A96-03-031 an overall decrease in base rates of $137.7 million or 5.3 percent. The primary reasons for the requested decrease in rates are as follows: (1) $38.2 million is due to a decrease in system operating costs, (2) approximately $66.5 million is due to a credit related to savings in Demand Side Management/Conservation and Research and Development Programs, and (3) approximately $104.7 million is due to the fact that gas costs are forecast to be lower than present. This total reduction in revenue is offset by increased costs as follows: (1) $15.1 million for the costs of capacity on interstate pipelines and (2) approximately $56.6 million to recover undercollections in various regulatory accounts authorized by the Commission. Our Application also proposes the following changes to residential rates. To more accurately reflect the cost of providing service, SoCalGas proposes to increase the current monthly customer charge from $5.00 per month to $7.12 for customers in single-family homes and $5.26 for customers in apartments or other multi -family dwellings. Depending on the consumption of individual customers, the increased customer charge may or may not be offset by lower gas rates. Our proposal also requests a reduction in baseline allowances. The summer baseline allowance would be reduced from 16 therms to 14 therms and the winter baseline allowance would be reduced from 50 therms to 46 therms per month. SoCalGas is also requesting an increase in the (CARE) surcharge from 0.9 cents per therm to approximately 2.0 cents per therm to cover the sharply increased cost of this program. We are proposing that the surcharge apply only to the first 250,000 therms of annual consumption. WHAT THIS MEANS TO YOU If the Commission approves our. request, the net increase or decrease to each . customer class, (i.e. changes to base rates and the impact of increasing the CARE - surcharge) effective January 1, 1997, would be as follows: Customer Class $ Million % Change Residential (Core)" -12.9 -0.7 Commercial/Industrial (Core)" -83.8 -16.8 Commercial/Industrial (Noncore)' 0.6 0.6 Utility Electric Generation -1.3 -1.2 Cogeneration -0.5 -1.2 Wholesale -2.8 4.6 Unbundled Storage/ -12.3 -73.3 Zone Rate Credit TOTAL $-113.0 -4.3% Core Commercial/Industrial customers generally use smaller quantities of gas, have priority access to gas service and do not have alternative fuel capacity. •• Nonoore Commemi0ndustrial customers are generally large gas users who typically have alternative fuel capability. The average residential customer's annual gas bill will decline from $408.76 under current rates to $400.35 based on SoCalGas' proposed rates. The $8.41 decrease in the customer's annual bill represents a decrease of 2.1 %. However, this decrease will be offset by an increase in the cost of the CARE program. The annual cost to the average customer of the SRF and the CARE program increases from $5.81 to $12.46. When SoCalGas includes the cost of these programs in the customer's annual bill, the annual bill decreases from $414.57 under current rates to $412.8 based on SoCalGas' proposed rates, an annual decrease of $1.76; or 0.42%. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our Application, the Commission will hold formal evidentiary hearings to analyze the proposed rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Division of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. You may view a copy of the Application at the address listed below or obtain a copy of the Application and related exhibits by writing to: Brian K Cherry Regulatory Proceedings Manager Southern California Gas Company 555 W. Fifth Street, M.L. 25A1 Los Angeles, CA 90013-1011 You may also view a copy of the Application at the following address: Public Advisor's Office Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 public. advisor. I a@cpuc. ca. gov If you would like to participate in the hearings and needi assistance, you may write to the Public Advisors Office at the address above. The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this Application. In your letter, state that you are writing in regard to Application No. 96- 03-031. Please indicate if you would like a response to your letter, otherwise none will be sent. NOTICE OF PROPOSED GAS RATE INCREASE Requested Increase in Rate of Return in Application 96-05-024 OUR REQUEST On May 8, 1996, Southern California Gas Company (SoCalGas) filed its 1997 Cost of Capital No. 96-05-024. In this application, SoCalGas requests the Commission authorize an increase in the rate of return from 9.42% to 9.74%. The overall rate of return, if approved, includes an increase in our return on common equity from 11.60% to 11.95%, and would increase revenues by $11.839 million. We believe this rate of return is necessary to attract capital at reasonable rates and compensates the utility for increased business and financial risks. Annually, the Commission reassesses the current and projected financial and business risks of each California energy utility for the purpose of authorizing a fair and reasonable return on equity and overall rate of return for the following year. The Commission requires each utility to file an annual Cost of Capital Application with testimony and exhibits to support its request. WHAT THIS MEANS TO YOU If the Commission approves our request, the increase or (decrease) to each customer class, effective January 1, 1997, would be as follows: Customer Class Million % Change- hangeResidential Residential(Core)* 8.442 0.47 CommerciaUIndustrial (Core)* 2.227 0.43 CommercialJIndustrial (Noncore)** 0.388 0.43 Utility Electric Generation 0.290 0.28 Cogeneration 0.120 0.28 Wholesale 0.237 0.39 Unbundled Storage/ Zone Rate Credit 0.134 0.80 TOTAL 11.839 0.45 * Core CommcciaUindustrial customers generally use smaller quantities of gas, have priority access to gas service and do not have altermtive fuel capacity. ** Noncore Commercial/Industrial cudOmers are generally large gas users who typically Gave alternative fuel capability.® 1 A#I� #0 / "?04) C7" �9q4 SqNq (/( �pk .0 A If the proposed increase is granted, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 22 cents, from $44.80 to $45.02, effective January 1, 1997. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our Application, the Commission will hold formal evidentiary hearings to analyze the proposed rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Division of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. You may view a copy of the Application at the address listed below or obtain a copy of the Application and related exhibits by writing to: Brian K. Cherry Regulatory Proceedings Manager Southern California Gas Company 555 W. Fifth Street, M.L. 25H2 Los Angeles, CA 90013-1011 You may also view a copy of the Application at the following address: Public Advisor's Office Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 public.advisor.la@cpuc.ca.gov If you would like to participate in the hearings and need assistance, you may write to the Public Advisor's Office at the address above. The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this Application. In your letter, state that you are writing in regard to Application No. 96-05-024. Please indicate if you would like a response to your letter, otherwise none will be sent. �E- SOUTHERN CALIFORNIA GAS COMPANY NOTICE TO CUSTOMERS OF PROPOSED RATE INCREASE APPLICATION NO. 96-04=044 OUR REQUEST On April 29, 1996, Southern California Gas Company (SoCalGas) filed Application No. 96-04-044 (1996 Annual Earnings Assessment Proceeding) with the California Public Utilities Commission. In this application, we are requesting a rate increase of $1,635,800 for shareholder incentives for certain 1994 and 1995 energy conservation program accomplishments. These include such things as the promotion of home energy audits, higher efficiency gas appliances, home weatherization and other conservation measures. Because saving energy is less expensive than consuming energy, the Commission established shareholder incentives to encourage utilities to invest in conservation and energy efficiency, instead of costly new supply sources and energy delivery systems. The proposed rate increase to incorporate our current earnings of $1,635,800 will result in an increase in rates over what they otherwise would have been beginning on January 1, 1997. This increase is shown in the table below. However, rates will actually be slightly less than they are currently, in 1996, since last year's AEAP proceeding included an additional tax adjustment of $7,254,000 and shareholder incentives of $785,000 that are not applicable to this year's AEAP proceeding. These amounts are currently reflected in 1996 rates, but will be removed from rates beginning in 1997 because they will be collected in full by year-end 1996. Therefore, compared to current rates, there will be a net decrease beginning in 1997 because $7,254,000 and $785,000 will be taken out of rates and only $1,635,800 for the new AEAP application will be added in. In addition to these changes, when the impact of.other rate changes that have already been proposed in separate applications are considered, there will still be an overall net decrease in core customers' rates beginning January 1, 1997. The table below, however, shows a rate increase because it only considers the impact of adding in the new $1,635,800 that is being requested in this application. It does not consider the offsetting removal of last year's AEAP amounts. RECEIVED MAY 9 199A CRY CLERK a WHAT TRIS MEANS TO YOU If the Commission approves our request., the change to each customer class, effective January 1, 1997, will be as follows: Core*: Residential +1.177 +0.067* Commercial/Industrial +0.346 +0.079% Transportation +0.113 +0.107& Noncore**: Retail 0 0% - Wholesale 0 0%- Unbundled %Unbundled Storage 0 0% Total Change +1.636 +0.071$ *Core Customers primarily use smaller amounts of gas, have priority access to gas service and do not have alternate fuel capability. Core customers include residential and small commercial and industrial gas users. **Noncore Customers are the larger commercial and industrial gas users who typically have alternate fuel capability. As directed by the Commission, shareholder incentives are only recovered from core customers. If the proposed change is granted, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 3.2 cents, from $47.25 to $47.28, effective January 1, 1997. The impact on each customer and customer class could vary depending on individual usage and the Commission's final decision. WHAT CAN YOU DO Before acting on our application, the Commission will hold formal evidentiary hearings. These hearings will be open to the public and will be devoted to analyzing the need for the requested rate change. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Division of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. The Commission welcomes your comments. You may write to the Commission at the address below. Letters received will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, state that you are writing about Application No. 96-04-044. Please indicate if you would like a response, otherwise none will be sent. You may view a copy of the Application at the address below: Public Advisors Office Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you would like to participate in the hearings and need advice, you may contact the Public Advisor's Office at the address above or E- mail at public.advisor.la@cpuc.ca.gov. You may also view a copy of the application at our headquarters at the address listed below, or obtain a copy of.the application and related exhibits by writing to: Herbert S. Emmrich Director, Sales and Supply Forecasting southern California.Gas Company 555 W. Fifth Street Los Angeles, CA 90013-1011 M.L. 24A1 Southern California Gas Company Notice of Proposed Change in Gas Rates Application No. 96-03-060 OUR REQUEST On March 29,1996, Southern California Gas Company (SoCalGas) filed Application No. 96-03-060 with the California Public Utilities Commission (CPUC) asking for approval to change the way we calculate gas rates for residential and core commercial/industrial customers. The impact would be that gas rates for these customers will change each month to reflect changing prices in the natural gas market Currently, SoCalGas' gas rates for core customers are based on an an-nual forecast cf gas prices for the year. Although the price SoCalGas pays for core gas changes from month-to-month as prices in the gas market move up or down, the rates paid by core customers stay the same. Then, at the end of the year, the month-to-month differences between the rates paid by core customers and the prices paid by SoCalGas are added up and reflected in customer rates the next year. This annual forecasting and adjusting process can create significant differences between the current market price of gas and the rates that our core customers pay for it. In particular, if prices in the gas market drop below SoCalGas' forecasted prices, as they have recently, our customers may have to wait until the next year to receive the benefit of those falling prices. Similarly, if market prices rise above our forecast, our customers may not pay for these increased costs until the next year. WHAT THIS MEANS TO YOU In the Application filed by SoCalGas on March 29,1996, we are asking the CPUC to allow SoCalGas to forecast core gas prices on a monthly rather than an annual basis, and to change core gas prices each month to reflect changes in gas market prices. Under SoCalGas' new plan, if market prices rise, SoCalGas' core customers would pay increased rates more quickly than with today's annual price forecasts. If prices fall, SoCalGas' core customers would pay lower rates more quickly as well. In sum, SoCalGas' proposed gas rates would more closely reflect the current market price of gas. Because SoCalGas cannot forecast gas market prices with certainty, it is impossible to predict whether this proposal will increase or decrease core gas rates in any particular month Overall, SoCalGas will not receive a greater or lesser recovery in rates from our core customers as a result of this proposal. Instead, only the timing of when SoCalGas receives the recovery will change. APR , WA CITY CLERK SAN LUIS OBISPO, CA SoCalGas has requested that the CPUC grant this request without hearings on an expedited basis. After considering our application, the CPUC may approve rates that differ from those we request For Further Information You may obtain further information or a copy of the Application and related exhibits by writing to: Herbert S. Emmrich. Director, Sales and Supply Forecasting Southern California Gas Company 555 West 5th Street, M.L. 24A1 Los Angeles, CA 90013-1011 You may also view a copy of the Application at the address listed above. You may submit written comments regarding SoCalGas' application to: Public Advisor's Office California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 Internet address: Public.Advisor.la®cpuc.ca.gov. The Public Advisor will give your letter to Commissioners, Division of Ratepayer Advocates staff, and the Administrative Law Judge assigned to the Application, and it will become part of the formal correspondence file. If you have a question or need further information, please state in your letter that you would like a response; otherwise, no reply will be sent NOTICE OF PROPOSED CHANGES TO SOUTHERN CALIFORNIA GAS COMPANY'S GAS RATES Decrease in Rates Increase in Customer Charge Reduction in Baseline Allowances Increase in CARE Surcharge in Application 96-03-031 OUR REQUEST On March 15, 1996, Southern California Gas Company (SoCalGas) filed Application No. 96-03-031 with the California Public Utilities Commission (Commission) to revise its rates for gas service effective January 1, 1997. The purpose of the Application is to develop rate estimates for gas services and the cost of gas supplies. SoCalGas is proposing an overall decrease in rates of $147.9 million or 5.7 percent. The primary reasons for the requested decrease in rates are as follows: (1) $47 million is due to a decrease in system operating costs, (2) approximately $65 million is due to a credit related to savings in Demand Side Management/Conservation and Research and Development Programs, and (3) approximately $103 million is due to the fact that gas costs are forecast to be lower than present. This total reduction in revenue is offset by increased costs as follows: (1) $15 million for the costs of capacity on interstate pipelines and (2) approximately $52 million to recover undercollections in various regulatory and balancing accounts authorized by the Commission. Our Application also proposes the following changes to residential rates. To more accurately reflect the cost of providing service, SoCalGas proposes to increase the current monthly customer charge from $5.00 per month to $7.12 for customers in single-family homes and $5.26 for customers in apartments or other multi -family dwellings. Depending on the consumption of individual customers, the increased customer charge may or may not be offset by lower gas rates. Our proposal also requests a reduction in baseline allowances. The summer baseline allowance would be reduced from 16 therms to 14 therms and the winter baseline allowance would be reduced from 50 therms to 46 therms per month. SoCalGas is also requesting an increase in the California Alternate Rates for Energy (CARE) surcharge from 0.9 cents per therm to approximately 2.0 cents per therm to cover the sharply increased cost of this program. We are proposing that the surcharge apply only to the first 250,000 therms of annual consumption. to FS, II/F1) MAR C 6 1994 CITY CLERK SAN LUIS OBISPO, CA WHAT THIS MEANS TO YOU If the Commission approves our request, the increase or (decrease) to each customer class, effective January 1, 1997, would be as follows: Customer Class Million % Change Residential (Core)* (42.1) (2.4) CommerciaUIndustrial (Core)* (96.2) (19.4) CommerciaVIndustrial (Noncore)** 7.7 8.1 Utility Electric Generation (1.4) (1.3) Cogeneration (0.6) (1.3) Wholesale (2.9) (4.7) Unbundled Storage/ (12.4) (73.6) Zone Rate Credit TOTAL ($147.9) (5.7%) • Core ComnerciaUlnd atrial customers generally use smaller quantities of gas. •• Noncore CCommnerccialadusn+al customers are generally large gas users who typically have alternative fuel capability. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our Application, the Commission will hold formal evidentiary hearings to analyze the proposed rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Division of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. zkfter considering all proposals, the Commission will issue a decision. You may view a copy of the Application at the address listed below or obtain a copy of the Application and related exhibits by writing to: Brian K. Cherry Regulatory Proceedings Manager Southern California Gas Company 555 W. Fifth Street, M.L. 25H2 Los Angeles, CA 90013-1011 You may also view a copy of the Application at the following address: Public Advisor's Office Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you would like to participate in the hearings and need assistance, you may write to the Public Advisor's Office at the address above. The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the formal correspondence file in this Application. In your letter, state that you are writing in regard to Application No. 96-03-031. Please indicate if you would like a response to your letter, otherwise none will be sent. 3ou=RN CALIFORNIA GAS COMPANY NOTICE OF PROPOSED RATE DECREASE APPLICATION NO. 95-08-001 OUR REQUEST On August 10, 1995, Southern California Gas Company (SoCalGas) filed with the California Public Utilities Commission (CPUC) Application No. 95-08-001 requesting a decrease in core rates of $191.9 million. i In this application, SoCalGas is requesting the Commission to authorize a lower core gas procurement rate to reflect the lower cost of gas. The proposed decrease in gas procurement rates totals $191.9 million annually. This decrease will allow SoCalGas' core customers to benefit by offering a rate more closely reflective of ;the market price of gas and will contribute to rate stability for core customers in 1995, 1996 and beyond. WHAT THIS MEANS TO YOU If the Commission approves our request, the decrease to each customer class, effective September 1, 1995, would be as follows: Customer Class core*: Residential Commercial/Industrial Transportation Noncore**: Retail Wholesale Unbundled Storage Total Decrease $ Million `k Decrease 148.358 .43.547 0.000 0.000 0.000 0.000 191.905 7.9178 8.5858 0.0008 0.0008 0.0008 0.0008 6.886% * Core Customers primarily use smaller amounts of gas, and include residential and small commercial and industrial gas users. **Noncore Customers are the larger commercial and industrial gas users who typically have alternate fuel capability. If the proposed decrease is granted, a residential customer's monthly winter bill for 70 therms of gas usage would decrease by $3.97 dollars, from $47.73 to $43.76, effective September 1, 1995. The impact on each customer and customer class could vary depending on individual usage and the Commission's final decision. i s:#;Njb'{.l$04"; M 1e Before acting on our application, the Commission might hold formal evidentiary hearings. If held, these hearings will be open to the public and will be devoted to analyzing the need for the requested rate decrease. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Division of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. The Commission welcomes your comments. You may write to the Commission at the address below. Letters received will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, please state that you are writing in regards to Application No. 95-08-001 and if you would like a response, otherwise none will be sent. Public Advisor's Office Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you would like to participate in the•hearings and need advice, you may contact the Public Advisor's Office at the address above. You may also inspect a copy of the application•at our headquarters at the address listed below, or at the Commission office listed above; or you can obtain a copy of the application and related exhibits by writing to: Dale Borhaug Regulatory Proceedings Administrator Southern California Gras Company 555 W. Fifth street, M.L. 26A0 Los Angeles, CA 90012-1011 0 S Lce.dx SOUTHERN CALIFORNIA GAS COMPANY NOTICE OF PROPOSED RATE INCREASE 1996 Cost of Capital Application No. 95-05-021 On May 8, 1995, SoCalGas filed its 1996 Cost of Capital Application No. 95-05-021.. In this application, SoCalGas requests the Commission authorize an increase in the rate of return from 9.67% to 9.90%. The overall rate of return, if approved, includes an increase in our return on common equity from 12.00% to 12.50%, and would increase revenues by $13.928 million. We believe this rate of return is necessary to attract capital at reasonable rates and compensate the utility for increased business and financial risks. Annually, the Commission reassesses the current and projected financial and business risks of each California energy utility for the purpose of:authorizing a fair and reasonable. return on equity and overall rate of return for the following year. The Commission requires each utility to file an annual Cost of Capital Application. with testimony and exhibits to support its request. What This Means To You If the Commission approves our request, the increase in rates for each customer class, effective January 1, 1996, would be as follows: Customer Class Million %Increase Core': Residential 9.385 0.50% Commercial/Industrial 2.351 0.46% Transportation 0.815 0.75% Noncore"': Retail 0.873 0.34% Wholesale 0.279 0.52% Unbundled Storage 0.225 0.96% Total Increase $13.928 0.49% *Core Customers primarily use smaller quantities of gas, and include residential and small commercial and industrial gas users. "Noncore Customers are larger commercial and industrial gas users who typically have alternate fuel capacity. 4L�._ If the proposed increase is granted, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 25 cents, from $47.73 to $47.98, effective January 1, 1996. The impact on each customer and customer class could vary depending on individual usage and the Commission's final decision. What You Can Do Before acting on our application, the Commission will hold formal evidentiary hearings. These hearings will be open to the public and will be devoted to analyzing the need for the requested increase. At these hearings, the Commission will receive testimony from SoCalGas, the Commission's Division of Ratepayer Advocates, and other interested parties who may offer proposals which differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. The Commission welcomes your comments. You may write to the Commission at the address below. Letters received will be circulated to each Commissioner and will become part of the formal correspondence file in this application. In your letter, please state that you are writing in regards to Application No. 95-05-021 and if you would like a response, otherwise none will be sent. Public Advisor's Office Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you would like to participate in the hearings and need advice, you may contact the Public Advisor's Office at the address above. You may also inspect a copy of the application at our headquarters at the address listed below; or at the Commission office listed above; or you can obtain a copy of the application and related exhibits by writing to: P. J. Cardenas, Vice President Support Services Southern California Gas Company 555 West Fifth Street, (M.L. 26AO) Los Angeles, CA 90013-1011 June 13, 1994 t MEMORANDUM TO: Diane Gladwell, City Clerk FROM: Jerry Kenny, Supervising Civil Engineer VIA: Wayne Peterson, City Engineer SUBJECT: Broad Street widening deed (Southern California Gas co) The attached deed provides for a 10 ft. widening of the Broad Street right of way at the northeast corner of Industrial Way to accommodate possible future widening. This was a condition of the development of the new Southern California 'Gas Co. maintenance facility (processed as a County project, prior to annexation) but was never submitted until now. This will accommodate installation of the new traffic signal, required as a condition of the Marigold Shopping Center across the street from the gas company facilities. (to save possible reloca- tion costs in the future) Please have the Mayor sign a standard acceptance certificate and have it recorded in accordance with the authorizing resolution. Please send me a copy of the recorded document for PW records. Attachment: 1) Original deed to City c: J Rawles HB/MB file G:\WP51\DReview\Misc\SCGDeed.Rec N When recorded mail to: Southern California Gas Real Estate Section P. 0. Box 3249 Los Angeles, California IRREVOCABLE & PERPETUAL OFFER TO DEDICATE Company t0-%5 ferry 90051 "� THIS OFFER TO DEDICATE, by Southern California Gas Coi of the County of San Luis 0 termed Offeror: made the 18th day of May , 1994 , spo, State o a, WHEREAS, said offeror desires to make an offer to dedicate, irrevocably, to the public, an easement, for public road purposes, which offer may be accepted at any time by any governmental entity which has the power to establish, construct and maintain roads. NOW, THEREFORE, said Offeror covenants and promises as follows; 1. That said Offeror is the owner of the following interest described below: Fee owner of Lot'95 of the San Luis Obispo Suburban Tract, in the County of San Luis Obispo, California, according to the map filed in Book 1 of Licensed Surveys at Page 92, records of said County; excepting therefrom that portion conveyed to the State of California by deed recorded May 2, 1975, in Volume 1830 of Official Records at Page 878. 2. That said Offeror does hereby irrevocably and in perpetuity offer to such governmental entity a dedication of a public right- of-way for road purposes and incidental uses upon the following described property: That portion of Lot 95 of the San Luis Suburban Tract, in the County of San Luis Obispo, State of California, according to the map filed in Book 1 of Licensed Surveys at Page 92, records of said County; excepting therefrom that portion of said Lot conveyed to the State of California by deed recorded May 2, 1975, in Volume 1830 of Official Records at Page 878, described as follows: A 10 -foot strip of land lying easterly and adjacent to the following described line: Beginning at the westerly corner of the original said Lot 95, thence North 66030"21" East 27.52 feet to a point on the edge of said dedication of street conveyed to the State of California per 1830 OR 878, said point being the TRUE POINT OF BEGINNING, thence southerly along a curve, being the line of said dedication with a radius of 6945' through a central angle of 02°16153' and an arc length of 276.531; to an angle point in the right-of-way. The ends of the easement are to be lengthened or shortened so as to terminate on the northerly line of Lot 95, and the current northerly right-of-way line of Industrial Way. 3. That until such time as the above offer of dedication is accepted by such a government entity,, all owners of property contiguous to the above described road parcel shall have the right to use of said road parcel as a private road. 4. That said Offeror agrees that said offer of dedication shall be irrevocable and that such a government entity may; at any time in the future, accept said offer of dedication of the public right-of-way. 5. That said Offeror agrees that this irrevocable and perpetual offer to Dedicate is and -shall be binding on his successors and assignees. IN WITNESS WHEREOF, this Offer to Dedicate is hereby executed by the said Offeror on the day and year first above written. (Attach Notary Certificate) nbc/socaigas by SOUTHERN CALIFORNIA GAS COMPANY -i�415 A California Corporation L. M Stewart /1rW/ Vice President of Engineering and Operations Support Secretary' T s c. s er .. co Lf .,v 0 %.10 X. r I Vr co oN z \ liJ O cr) tD N C7 -- o z _-o W ; o Z _ m O t Z_LL co cl LL W Z e') QI O' °�ia Z � W- 717,4 !d - ' - f922c - . _ .. CN ce) I C to OO ..... _ -._ t Of, j N CIN OOQ ••-.1 ." .. b, �;'_. 3�OtiZiV099N .. .1.Z'9L .. - ... ,10'Ot7l ........... _ .. lir o- __. _ ._ .. _._..... -...: /f� _. CALIFORNIA ALL-PURPOSE E.. ANOWLEDGMENT State of California County of Los Angeles On June 2, 1994 Tom,",W" rsdna DATE before me, Ardyce G. Jones•,. Notary Public NAME, TITLE OF OFFICER - E.G.. 'JANE DOE. NOTARY PUBLIC' No. 5907 ly appeared Thomas C. Sanger - .• NAME(S) OF SIGNER(S) )pally; known .to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/� subscribed to the within instrument and ac- knowledged to hie that he/WmMe acexecuted the same in his/k%&(Afjyf authorized capacityi)iea), and that by his/bte6d It signature(R) on the instrument the person(s), th t't V1 a en I y upon behalf of which the °CEG. J erso s acted, executed the instrument. LWA ARDYCE G. JONES P � ) NOTARY PuauC-CALroRwA PRINCiPALOFFICE IN GELES COUNTY r)r�1M WITNESS my hand and official seal. IGNATURE OF TARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL 0 CORPORATE OFFICER Corporate Secretary TRUE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) DESCRIPTION OF ATTACHED DOCUMENT cable & Perpetual Offer TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE ®1993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 State of California County of Inc Angptps } On June 2, 1994 before me, Alice Ledesma-Buczek DATE NAME. TITLE OF OFFICER - E.G.,'JANE DOE, NOTARY PUBLIC' personally appeared L.M. Stewart ATTENTION NOTARY: Although the information requested THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: 1 CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL(S) ®'CORPORATE V_D_ Fngin OFFICER(S) Ober. Sup. TITLE(S) ❑ PARTNER(S) ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ SUBSCRIBING WITNESS ❑ GUARDIAN/CONSERVATOR, ❑ OTHER: SIGNER ISAORESENTING: NAME OF PERSON(S) OR.IENTITY(IF,S) Southern California Gas -C( it could prevent fraudulent attachment of this certificate to unauthorized document. .Title or Type of Document _Irrevocable & Perpetual Offer to Dedicate Number of Pages 4 Date of Document May 18, 1994 Signer(s) Other Than Named Above Thomas C. Sanoer 01991 NATIONAL NOTARY ASSOCIATION • 6236 Remmet Ave. • P.O. Boz 7194 • Canoga Park, CA 91300.716 NAME(S) OF SIGNER(S) ® personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and ac- knowledged to me that he/she/they executed OFRISEAL the same in his/her/their authorized. ALICE UDA-WC ZEK capacity(ies), and that by his/her/their Now o1dO signature(s) on the instrument the erson s p ()' COUNTY -�� LOS ANGf!o My Comn Expros or the entity upon behalf of which the person(s). ' May1995 acted, executed the instrument. Witness my hand and official seal. ATTENTION NOTARY: Although the information requested THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: 1 CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL(S) ®'CORPORATE V_D_ Fngin OFFICER(S) Ober. Sup. TITLE(S) ❑ PARTNER(S) ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ SUBSCRIBING WITNESS ❑ GUARDIAN/CONSERVATOR, ❑ OTHER: SIGNER ISAORESENTING: NAME OF PERSON(S) OR.IENTITY(IF,S) Southern California Gas -C( it could prevent fraudulent attachment of this certificate to unauthorized document. .Title or Type of Document _Irrevocable & Perpetual Offer to Dedicate Number of Pages 4 Date of Document May 18, 1994 Signer(s) Other Than Named Above Thomas C. Sanoer 01991 NATIONAL NOTARY ASSOCIATION • 6236 Remmet Ave. • P.O. Boz 7194 • Canoga Park, CA 91300.716 IIS III city of sAn. tuis OBISPO �i 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 CERTIFICATE OF ACCEPTANCE 4 i i 7t i f f f f f i t THIS IS TO CERTIFY that the interest in real property conveyed by the Irrevocable and Perpetual Offer to Dedicate dated May 18 1994, from the Southern California Gas Company, A California Corporation to the CITY OF SAN LUIS OBISPO, a Political Corporation, is hereby accepted by the undersigned officer on behalf of the City Council pursuant to authority conferred by Resolution No. 5370 (1984 Series), recorded June 15, 1984, in Volume 2604, Official Records, Page 878, San Luis Obispo County, California, and the Grantee consents to recordation thereof by its duly authorized officer or his agent. Date: CITY OF SAN LUIS OBISPO ATTEST: 6e R. GladwelI, ity Clerk Rev. 12/92 :P NOTICE OF PROPOSED CHf. ES TO SOUTHERN CALIFORNIA GAS COMPANY'S GAS RATES 1)epf�� L On September 1, 1993, Southern California Gas Company (SoCalGas) filed Application 93-09-006 with the California Public .Utilities Commission (Commission) to revise its rates for gas service effective April 1, 1994. The purpose of the Application is to develop estimates over the next two years of gas usage and the cost of gas supplies. SoCalGas is requesting an overall increase in rates of $134.0 million or 4.9%. The primary reasons for the requested increase in rates are as follows: 1) approximately $70.0 million of the total request is due to recent warm winters which have resulted in less gas usage and revenue than projected; '2).� NG iy. een _, ��:._,.. of the tcta! re ;'.:est i;: tho ruc`ilt nf. fe)recasted gas a IuAl�iiatel v.+v.v ...i... v.. costs which were approved by the Commission but turned out to be lower than the actual cost of gas; and 3) approximately $35.0 million is the result of implementing new regulations which affect gas service. In addition, SoCalGas has proposed an increase in the residential monthly customer charge from $3.10 per month to $5.00, which we feel will more accurately reflect the cost of providing service. Our proposal also requests a reduction in the summer baseline allowance from 19 therms to 13 therms to bring the allowance into compliance with statutory guidelines. What it Means If the Commission approves our proposed rate increases, the changes allocated to each. customer class will be as follows, effective April 1, 1994: Increase % Customer Class Million Decrease % Residential (Core) 191.6 10.5% Commercial/Industrial (Core) CommerciaUfndustrial (Noncore)** 3.5 4.6% Utility Electric Generation -1.2 -1.4% Cogeneration -1.6 -4.5% Wholesale 6.2 10.4% Unbundled Storage/ -12.6 N/A Zone Rate Credit TOTAL $134.0 4.9% ° Core CommercialYIndustrial customers generally use smaAer quantities of gas. •O Non -Core CommerciaUlndustrial customers are generally large gas users who typically have alternative fuel capabdity. R E 0, FE iv P!,3 SEP 2 A 1993 CITY CLERK LL':S OBI, ^,p0, C. If the proposed rate changes are granted, a residential customers' monthly summer bill for 28 therms would increase by $3.64 from $20.17 to $23.81. A residential mUnthly winter bill for 70 therms would increase by $3.62 from $45.31 to $48.93. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. What You Can Do Before acting on SoCalGas' Application, the Commission will hold evidentiary hearings to analyze the proposed rate changes. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Division of Ratepayer Advocates and other interested parties. Parties at these hearings may offer proposals that differ from those made by SoCaiGas. After considering all proposals, the Commission will issue a decision. The Commission welcomes your comments. You may write to the Commission at the address below. Letters received will be circulated to each Commissioner and will become part of the formal correspondence file in this application In your letter, state that you are writing in regards to Application No. 93-09-006. Please indicate if you would like a response; otherwise none will be sent. You may view a copy of the Application at the address below: Public Advisors Office California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you wish to participate in the hearings and need advice, you may also write to the Commission's Public Advisor at the address above. You may also view a copy of the Application at our headquarters at the address listed below cr obtain a copy of the Application and related exhibits by writing to: Regulatory Affairs (M.L. 27H1) Southern California Gas Company 555 West Fifth Street Los Angeles, CA 90013-1011 �I��h��UI�WlIIIIIIIIIIIIlllulll � r M�fING DATE: Cj � S� (,(,(�S QBjsp� May 18 1993 0024 COUNCIL AGENDA REPORT I� NUMBER: /�-/ MM: Michael McCluskey, Public Works Directdo Av� Prepared by: Gerald W. Kenny, Supervising Civil Engineer SUBJECT: Reimbursement Agreement with Southern California Gas Co. CAO RECOMMENDATION: By Motion, Approve Reimbursement Agreement with Southern California Gas Co. for Future Direct Connections to the Industrial Way Watermain. DISCUSSION: The construction of the new Southern California Gas Co's. (SCG) maintenance facility at Broad St. and Industrial Way required the construction of a new 12 -inch diameter watermain in Industrial Way in order to provide adequate fireflow and domestic service for the development. Although the property was in unincorporated territory at the time, the property had previous approval for and use of City water service. This water main was constructed as a link of a proposed looped main system designed by the Utilities Department. The reimbursement agreement contained two basic sections: 1) the City reimburses the developer for. oversizing; 2) new developers reimburse the original developer for the benefit of connecting to the water main. The City has already met its obligations for the first part of the agreement. In accordance with City policy per Resolution No. 5906 (1986 Series), the City paid the developer the difference in cost between the installation of an 8" main and a 12" main. The second portion of the agreement allows a 15 year time frame for others to make a "direct" connection to the main and pay a benefit fee to the original developer. The only likely developer which may or may not make a direct connection to the main is the proposed "Marigold Shopping Center." The Southern California Gas Co., owner and contractor, installed the water main per City requirements. SCG has requested a reimbursement agreement per City regulations (MC 16.44.91) and in accordance with such regulations staff has prepared the attached reimbursement agreement. SCG has complied with the requirements of all City regulations and the rate of reimbursement has been determined from actual certified cost. ALTERNATIVES: Option 1: Deny approval of the agreement. This does not appear to be a logical option, since SCG has met the code requirements and the work is complete. ������►rhiidlllllflllll►��1°i���lU City O� San LUIS OBISPO NRMZM COUNCIL AGENDA REPORT SCG Reimbursement Agreement Meeting of May 18, 1993 Page Two. FISCAL BIPACT: The cost for the oversizing ($ 6,640) has already been paid, per City policy. There are no additional costs to the City. CONCURRENCES: The City Attorney and Acting Utilities Director concur with the recommended action. Attachments: 1 - Agreement 2 - Vicinity Map GA..Misc%SCGWe .AG WATERLINE REIMBURSEMENT. AGREEMENT between SOUTHERN CALIFORNIA GAS COMPANY and CITY OF SAN LUIS OBISPO THIS AGREEMENT is made and entered into this day of , 1992, by and between the CITY OF SAN LUIS OBISPO, a chartered municipal corporation of the State of California, hereinafter referred to as "City," and SOUTHERN CALIFORNIA GAS COMPANY, a California corporation, hereinafter referred to as "Developer." WITNESSETH WHEREAS, a condition of the construction of Developer's new maintenance facilities at 750 Industrial Way (unincorporated territory) required the construction of 830 linear feet of 12 -inch public water main (City) between Broad Street (State Highway 227) and the easterly property line of Developer's site; and WHEREAS, Developer's property currently is served by City water under a previous agreement, and WHEREAS, these public facilities will benefit properties other than those owned by the Developer; and WHEREAS, City regulations provide for reimbursement to developers as prescribed in Chapter. 16.44.091 of the Municipal Code and Resolution No. 5906 (1986 Series); and WHEREAS, the City has approved the installation of these public improvements per plans approved by the City Engineer and Utilities Engineer. NOW, THEREFORE, in consideration of the above, the City and Developer agree as follows: 1. The City shall pay Eight Dollars ($8.00) per linear foot of water main to Developer for oversizing from eight -inch to twelve -inch diameter pipe upon completion and acceptance of the main per Resolution No. 5906 (1986 Series) (830 LF x $8.00 = $6,640.00) upon inspection and approval of the water main. 2. The Developer shall submit a certified statement showing the actual cost of the water main extension. C��13 01002092.doc 0910 - 2 - 3. The City will collect charges for direct water service connections for adjacent properties, based upon an eight -inch main, as indicated on the Reimbursement Map and Rate Sheet attached hereto and marked "Exhibit All, and incorporated by reference herein. Said charges shall be based on a proportion of the actual cost of the main and fire hydrants, as determined by the City Engineer. 4. The Developer shall be;eligible for a refund for a period up to fifteen (15) years from the above date. No interest shall be paid on, or accrue on any funds subject to such refund. Frontage reimbursement shall be made only if, as and when such connection charges are collected by the City per Chapter 16.44.091. 5. Disbursements of funds collected by the City shall be made to: Southern California Gas Company Attention: -6:-eheri-eoniev C.T. Saunders P. 0. Box 3249, -Pe al-46%kAew- M.L.20G0 Los Angeles, California 90051-1249 Any funds collected by City and sent to the above name and address shall be deemed to have been properly reimbursed by the City. The City will not attempt nor be required to mail the funds collected to any party other than listed above unless the City is notified in writing of any change in the name or address. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. CITY OF SAN LUIS OBISPO SOUTHERN CALIFORNIA GAS COMPANY, a California corporation By: Mayor W.R. Goulden 4'`��ID Title: Staff Sup rvisor ATTEST: By. Title: City Clerk 01002092.doc 0910 State of APPROVED AS TO FORM: ATT RNE appeared before OF E.G.. *JANE / / NAME(S) OF SIGNER(S) rsonally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and ac- knowledged to me that he/she/they executed OFRCIAL SEAL the same in his/her/their authorized YOLANDA E PINEDA capacity(ies), and that by his/her/their Notcry Public-CaGfornlo signature(s) on the instrument the person(s), ® LOS ANGELES COUNTY My Cion E)q*es orthe entity upon behalf of whichthe person(s) Mcry 30. 1995 acted, executed the instrument. Witness my hand pniql official sea CAPACITY CLAIMED BY SIGNER ❑ INDIVIOUAL(S) OFFICER(S) ❑ PARTNER(S) V ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ SUBSCRIBING WITNESS ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME WER (S) OR ENT�) ATTENTION NOTARY: Although the information re a below is OPTIONAL, it oouuld prevent ffrraudulent attac�h� of this certificate to unauthorized document THIS CERTIFICATE Title r ype of Documen��!/c.srcc' �.i7� �%�� MUST BE ATTACHED Nu er of Pa es .6� Date of Document TO THE DOCUMENT g DESCRIBED AT RIGHT: Signer(s) Other Than Named Above O 1991 NATIONAL NOTARY ASSOCIATION - 8239 5 • P.O. Box 7184 - Cariogn Park CA 91304.7184 08/25/92 13:46 e805 543 4609 RRM DESIGN GROUP 10005 ���'�� • o 1-Z Its y to —• C m w a. �c ti . w O H V Td \_ gosp +. is `S ob A - LOY �xi's J EXHIBIT A (Sheet 2 of 2) REIMBURSEMENT RATE SHEET WATERMAIN EXTENSION IN INDUSTRIAL WAY, EASTERLY OF BROAD STREET, FOR SOUTHERN CALIFORNIA GAS COMPANY MAINTENANCE FACILITY A. Total Cost of Watermain B. Less $ 8.00/lf x 830 ft (City oversizing contribution) C. Net Cost of Watermain (A -.B) D. Reimbursable Portion (C/2) E. Assessable Frontage (Pcl A per 2 PM 83) F. Rate (D/E) B:\Jerry\SCGReim.wp $ 42,676.00 -6,640.00 36,036.00 $ 18,018.00 763 LF $ 23.61/LF 2•//-7 al " HOPKIN 7- - .. �-//�8' NOTICE OF PROPOSED INCREASE IN GAS RATES OUR REQUEST On March 29, 1993, Southern California Gas Company (SoCalGas) filed Application No. 93-03-069 with the California Public Utilities Commission (Commission). SoCalGas has requested that the Commission approve a long- term lease by SoCalGas of pipeline facilities between Kern County and Ventura County owned by the Cuyama Pipeline Company, the Casitas Pipeline Company and the ARCO Oil & Gas Company. SoCalGas has also requested that the Commission authorize SoCalGas to increase rates by $4.001 million in 1994, in order to recover lease payments, property tax on leased property, and operating and maintenance costs. WHAT IT MEANS SoCalGas has requested that the Commission find that it is reasonable to enter into the lease because of the operational benefits it will provide. The lease of the pipeline will allow SoCalGas to avoid the construction and operation of facilities that would otherwise be required to transmit gas produced in the San Joaquin Valley to SoCalGas customers. The leased pipeline will also improve the reliability of gas service in the Ojai Valley and the Cuyama area. The lease will also give SoCalGas greater flexibility to deal with changes in operating circumstances. SoCalGas is requesting an increase in rates to cover the cost of the pipeline lease, and associated costs of connecting to and operating the leased pipeline. The requested increase in SoCalGas'.total rates, and the proposed increase in rates for any specific customer class defined in the table below as core, noncore and wholesale, is less than 1% of currently -effective rates. This increase in rates was also included in the total rate increase requested in SoCalGas' Test Year 1994 General Rate Case, Application No. 92-11-017, notice of which has previously been provided to customers. SoCalGas has requested that the results of this Application be incorporated in the Commission's decision in the General Rate Case and be implemented in rates on January 1, 1994. APR Ci"fY CLERK AKI LUIS OBISPO, CA HOW THE RATE CHANGE WILL BE APPORTIONED If the Commission grants this rate increase as requested, effective January 1, 1994, SoCalGas proposes that the rate changes for each customer class will be as follows: Customer Class S Revenue Increase Increase Core: Residential 2,647,000 0.14 Small Commercial/ 950,000 0.14 Industrial Transportation Only 71,000 0.20 Noncore: Industrial/Commercial 103,000 0.11 Cogeneration 24,000 0.06 Utility Electric 69,000 0.06 Generation Wholesale: Long Beach 14,000 0.08 San Diego Gas 69,000 0.09 & Electric Unbundled Storage 54.000 0.26 TOTAL INCREASE 41001,000 0.13 If this rate change is approved as requested, a residential customers' monthly winter bill for 70 therms would only increase by about 6 cents from $43.15 to $43.21. The impact on each customer and customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on SoCalGas' Application, the Commission will provide an opportunity for formal hearings to analyze the lease of the pipeline and the requested rate increase. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Division of Ratepayer Advocates and other interested parties. Parties at these hearings may offer proposals that differ from those made by SoCalGas. After considering all proposals, the Commission will issue a decision. r - The Commission welcomes your comments. You may write to the Commission at the address below.. State that you are writing about Application No. 93-03-069. You may view a copy of the Application at the address below: Public Advisor Office California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, California 90012 If you wish to participate in the hearings and need advice, you may also write to the Commission's Public Advisor at the address above. You may also view a copy of the Application at our Headquarters at the address listed below or obtain a copy of the Application and related exhibits by;writing to: Regulatory Affairs (M.L: 2.7 Hl) Southern California Gas Company 555 West Fifth Street Los Angeles, CA 90013=1011 y NOTICE OF FILING FOR CHANGES IN GAS RATES Southern California Gas Company (SoCalGas) filed Application No. 93-02-007 on February 1, 1993, asking the California Public Utilities Commission's (CPUC) approval to increase rates for some customers and decrease rates for others. SoCalGas also asked for approval to make the new rates effective on or about September 1, 1993. WHAT WE ARE REQUESTING SoCalGas' proposal will not change the total amount of revenue the company collects from customers. However, it will affect the rates that different classes of customers, such as residential or industrial, pay for gas. Specifically, SoCalGas has asked to increase rates for residential and some business customers and to lower rates for most large industrial customers. (See table below). SoCalGas is also proposing to create new subclasses within its noncore customer class (which includes larger commercial and industrial gas users). WHY WE ARE ASKING FOR A CHANGE SoCalGas' request would implement a rates for each customer class based SoCalGas to serve them. This policy recent CPUC decision (D. 92-12-058). DECEIVED FEB 2 E 5993 CITY CLERK new CPUC policy to have on what it will cost was established in a I qq HOW THE RATE CHANGE WILL BE APPORTIONED Based on the rates in effect January 1, 1993, SoCalGas proposes gas rate changes as follows: Proposed Allocation of Gas Revenue Changes Transportation Revenue Percent Change Customer Increase/(Decrease) From January 1, Catecrory S in Millions 1993 Rates *Core: Residential 96.1 5.4 Non-residential 36.3 5.4 Noncore: **Industrial/ Commercial 0-12 MDTH/Y (0.2) (13.0) 12-50 MDTH/Y (4.5) (23.1) 50-200 MDTH/Y (16.7) (34.3) Over 200 MDTH/Y (36.6) (45.1) Total (average) (58.0) (38.4) Cogeneration (22.5) (36.2) Utility Electric Generation (66.4) (36.2) Wholesale: Long Beach (2.6) (12.6) San Diego Gas & Electric (6.0) (6.9) * The percentage changes for core bundled services are 5.4%. The percentage changes for core transportation service only are 7.7%. ** The Industrial/Commercial market .is proposed to be segmented by customer size in thousand decatherms per year (MDTH/Y). If this rate change is approved, a residential customer's monthly winter bill for 71 therms of gas would increase by about $2.43 from $43.88 to $46.31. The impact on each customer and each customer class could vary depending on individual usage and the Commission's final decision. WHAT YOU CAN DO Before acting on our Application, the Commission will provide an opportunity for formal hearings to analyze the rate changes proposed. At these hearings, the Commission will accept testimony from SoCalGas, the Commission's Division of Ratepayer Advocates and other interested parties. Parties at these hearings may offer proposals that differ from those made by SoCalGas. After considering all proposals, the Commission will issue a decision. The Commission welcomes your comments. You may write to the Commission at the address below. State that you are writing about Application No. 93-02-007. You may view a copy of the Application at the address below: Public Advisors Office California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 If you wish to participate in the hearings and need advice, you may also write to the Commission's Public Advisor at the address above. You may also view a copy of the Application at our headquarters at the address listed below or obtain a copy of the Application and related exhibits by writing to: Regulatory Affairs (M.L. 27 H1) Southern California Gas Company 555 W. Fifth Street Los Angeles, CA 90013=1011 -yv: ya � •r� • �� SOUIHEE;V C3IISKRUA GAS CCHPANY NOTICE M CtJS'� OF PUBLIC HEARINGS IN OII 88-02-013 The California Public Utilities Commission will hold public hearings on its investigation into the curtailment of gas service to lanae ocamdercial and industrial and utility electric generation customers of Southern California Gas Company. (I. 88-02-013) Southern California Gas C=pany curtailed certain customers during December of 1987 and January of 1988. The Commission wishes to review the causes of these its and will take testimony an a number of topics, including but not limited to: a. Causes of curtailment b. Methods of implementing curtailment c. Extent of curtailment d. Means to prevent or minimise future curtailments Public ommerlt hearings, at the date, time and location shown below, will be held so that ousters will have an opportunity to express their views to the Commission. You may submit written oolmuents or make a brief oral statement at the hearings. The date and location of the hearing is: June 13, 1988 10:00 a.m. Commission scion Girt Room—State Building 107 South Broadway Los Angeles, CA The place of hearing is accessible to the handicapped. The Canaissicn welcomes your camtnents. If you cannot attend this hearing you may wish to submit written oomments to the Ccmmm scion at the address listed below. Simply state that you are writing about OII 38-02-013. Public Advisor California Public Utilities Commission Rocco 5109 107 South Broadway IDs Angeles, CA 90012 J U N 0 6 1988 CITY CLERK SAN LUIE-091Sp0. CA 1y� f) SOUTHERN CALIFORNIA gaS COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES. CALIFORNIA 90051 {2o m Ea -p March 30, 1988 City Clerk City of San Luis Obispo P. 0. Box 8100 San Luis Obispo, CA 93403 Dear Sir: Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1987. A check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. FOW/dck Enclosure Very truly yours, ? v L. Robert Olson Plant Accounting Manager RECEIVE® MAR 31 1988 cffy«um SMLL"tise110.CA STATEMENT FOR THE .ENDAR YEAR 1987 PURSUANT TO TH .RANCHISE GRANTED BY THE CITY OF SAN LUIS OBISPO BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or pos- session of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company of California, 42 cal. 2d 129. V B. C Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties .................$ 3,446,281,174 Investment in Distributing Agencies in: Public and Private Rights of Way .....................$ 1,4793287,366 Public Highways Only ................... ............$ 357,571,779 Percent of Distributing Agencies to Total for: Public and Private Rights of Way ..................... 42.92416 % Public Highways Only ................................. 10.37558 % Total Gross Receipts from Operations for Period: Gross Revenues .......................................$ 3,516,823,466 Less Uncollectible Bills .............................$ 99064,847 Total ...........................................$ 39507,758,619 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (42.92416% x $3,507,758,619) .........................$ 1,505,675,922 Public Highways Only (10.37558% x $3,507,758,619) .........................$ 363,950,302 Mileage of Main in Pipeline System Total Mileage in Pipeline System ......................... Mileage in Highways ..................................... Percent of Mileage in Highways to Total Mileage...... Gross Receipts applicable to Mileage in Highways for: Public and Private Rights of Way (83.97029% x $1,505,675,922) .........................$ Public Highways Only (100.00000% x $363,950,302) .........................$ Total............................. ............$ Total Mileage in Highways as above ...................... Mileage in Highways of this Franchise ..................... Percent of Mileage of this Franchise to Total Mileage in Highways ............... ............ Gross Receipts applicable to this Franchise: (.31112% x $1,628,270,740)........ . ...................$ 41,046.9034 mi. 34,467.2048 mi. 83.97029 % 1,264,320,438 363,950,302 1,628,270,740 34,467.2048 mi. 107.2356 mi. .31112 % 5,065,876 D. Amount due based on 2% of the above applicable Gross Receipts .......................................$ 101,317.52 The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $101,317.52. SECTION B Computation of payment of one percent (1%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings........ ...................................$ 5,905,498 Less Uncollectible Bills ................................$ 9,317 Gross Receipts .......................................$ 51896,181 Amount due based on 1% of the above Gross Receipts ...... $ 58,961.81 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $101,317.52. C E R T I F I C A T I O N I, the undersigned, say: I am an officer, to wit, Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct tothe best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 30, 1988, at Los Angeles, California. Treasurer of Southern California Gas Company If additional information is required, please address inquiries to: SOUTHERN CALIFORNIA GAS COMPANY Attention: Plant Accounting Manager Box 3249, Terminal Annex Los Angeles, California 90051 SOUTHERN CALIFORNIA gqS COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES. CALIFORNIA 90017 i TED CARDWELL Manager of Taxes MAILING ADDRESS: BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 29, 1985 City Clerk City of San Luis Obispo P. O. Box 321 San Luis Obispo, CA 93406 Dear Sir: Enclosed is the certified franchise, statement of Southern California Gas Company showing the amount due for the calendar year 1984. A check covering payment thereof will be forwarded to you within the time period specified -under the terms of the franchise. Very truly yours, TW: ia Enclosure IR ECEI%/E® APR 3 1985 CITY CLERK SAN LUIS OBISPO, CA FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY The Ordinance for which this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (2%) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise: provided, however, that such payment shall in no event be less than one percent (1%) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B, respectively. STATEMENT FOR THE CALENDAR YEAR 1984 PURSUANT TO THE FRANCHISE GRANTED BY- __ City of San Luis Obispo By ORDINANCE NO. SECTION A 770 Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use. operation or possession of the franchise computed in accordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company of California, 42 Cal. 2d 129. A. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ....................... $2,297,200,436 Investment in Distributing Agencies in: Public and Private Rights of Way ......................... $1,086,595,861 Public Highways Only ................................... $ 261,709,298 Percent of Distributing Agencies to Total for: Public and Private Rights of Way .......................... 47.30087% Public Highways only ................................... 11.39253% Total Gross Receipts from Operations for Period: Gross Revenues ........................................ $4,524,665,227 Less Uncollectible Bilis.................................. $ 12,262,494 Total .............................................. $4,512,402,733 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way ( 47.30087% x $4,512,402,733) ..................•••••• $2,134,405,751 Public Highways only (11.39253% x $4,512,402,733) ........................ $ 514,076,835 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .......................... 38,270.6801 mi. Mileage in Highways .................................... 32,918.9598 mi. Percent of Mileage in Highways to Total Mileage ........ 86.01613% Gross Receipts applicable to Mileage in Highways for: \ Public and Private Rights of Way (86.01613% x $2,134,405,751)• ....................••• $1,835,933,226 Public Highways only (100.00000% x $514,076,835 ).......................• $ 514,076,835 Total .............................................. $2,350,010,061 Total Mileage in Highways as above .......................... Mileage in Highways of this Franchise ........................ Percent of Mileage of this Franchise to Total Mileage in Highways ................................ C. Gross Receipts applicable to this Franchise ( .30695% x $2,350,010,061)...•• ...................••••$ D. Amount due based on 2% of the above applicable GrossReceipts .........................................$ 32,918.9598 mi. 101.0443 mi. .30695% 7,213,356 144,267.12 SECTION B Computation of payment of one percent Q%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ...........................................$5,894, 811 Less Uncollectible Bills ................................... $ 13,319 Gross Receipts.......................................$5,881,492 Amount due based on 1% of the above Gross Receipts .......... $ 58, 814.92 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section in the sum of S 144,267.12 CERTIFICATION I, the undersigned, say: I am an officer, to wit. Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf. and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 29 , 193, at Los Angeles, California. Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Manager of Taxes Box 3249, Terminal Annex Los Angeles, California 90051 SOUTHERN CALIFOPNIA gas N COM?A E' Y ��il IINI IIIIM I�IIIIII IIII�� IIIIII�IIIIII� � � Cit! ®f San luis ovisp0 OFFICE OF THE CITY CLERK • 990 PALM STREET Post Office Box 321 • San Luis Obispo, CA 934060321 • 805/549-7100 January 8, 1985 Mr. O.P. Chase Southern California Gas Company 883 Marsh Street San Luis Obispo, CA 93401 Dear Mr. Chase: Pursuant to your request, we hereby return your Certificate of Continuous Bond for Contractor's License Bond No. 109923 issued by Pacific Indemnity Company on December 2, 1941. After review of the City's franchise with Southern California Gas Company, no provisions can be determined for continuance of this bond. Should you have any questions, please feel free to call. Sincerely, amela Voges City Clerk PV:js Enclosure .06 RIDER TO AMEND BOND TO BE ATTACHED to and form a part of Contractors License Bond Bond No. 109923 , executed by the PACIFIC INDEMNITY COMPANY, effective December 2, 1941 in the amount of Five hundred - - - DOLLARS ($ 500.00 ) on behalf of Southern Counties Gas Company of California (Hereinafter called Principal) and in favor of City of San Luis Obispo IN CONSIDERATION of the premium charged for the attached bond, it is understood and agreed that the said bond shall be and the same is hereby amended, effective as of August 1, 1970 by changing the name of the Principal on said bond FROM: Southern Counties Gas Company of California To: Southern California Gas Company PROVIDED, HOWEVER, that the attached bond as changed by this Rider shall be subject to all its agree- ments, terms, conditions and limitations except as herein expressly modified, and that the liability under the attached bond and under the attached bond as changed by this Rider shall not be cumulative and shall be limited in the aggregate to the penalty of the said bond. SIGNED, SEALED and DATED this 3rd day of August , I9 70 . SOUTHERN CALIFORNIA GAS COMPANY ....... y .. T-E— Y PACIFIC INDEMNITY COMPANY 1 By��..�..-'^'ti. ..._ Attorney -in -Fact. Form G1062 . c -e`- _ '� :c -�; y Vis•,. � ,�-�=.,�_«- �'. - '� •M..' ;i, ;.1. '.: rrr'• -:Y r` /i�.•F "rK `:y^�'\ -41. _ f: ^..1 :�. .Yx-' S.N�',t�'� Ki.� = '�"ryY� \r. �..J �" is •.T•• :. >'� .� )�;� ' .fir � _ M1'.i. �'�: � ... �• � .•P _ '�'�'•a. 'µf,. -,i `_`t � ,"•nf.a •> .���i'�-:a i. !�:'�t�.S�y� _'. a3_.c. '+.:�.i''•,'"r��, r:�`3 y_�' t .rc y ZJZ^r \f+Sr k, MJ Ttr i~'r � R,,?s-•7:.`- 1 F .:i:_ r^`•gr�rt,,.: �-'+y - •��1•`." L:c :-c� oi, .bt"-i: f aL ci [Fi,� c :�'• F .s •� S.- yy,: �.j �. �yCT_...;F ��(.i��w.ra y�2,`:. ,cl �i+:G�•'-�'�F.... ��;�� (}i"';°� ui�":}..,•.'ei �,'y.�'�r :j 'a •_ 'y�. tier. rM1 _ .: :.7•- -+: .... irJ .•-v +.,},q`r�u:..yYaa�1'�� J �+ :'i'i 4". •2: e. wr-:. :ax ny• �KJ.IY ^•J�J _ .a .n.. - •R `%".a-.. _ r +�r(,f..t'1,wa `�^�~�yti_.+iT rr°,i �� _ a�:!'��`f.:y -`r%: . 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Vii:".i .,.',y.,;•fS_•r.. �� �<.�'ac;'i•�,r-.^�� �,;.�}J'.:. � ' �: _ _ __' r� ' _ -' --r'.�i: •.: _' ' ''�•?" 1 '.�tJ7.?.: .-,..^�.::. �- ,�,}: .&, Vii; �►- .. =:�� __,.. - ��: ,-re��,1� �..r..y ,s'.� � `-':_ .i^�� ��.���%Jr,,,:"�,.�.+'',�•,�;.•.�_�'�'it•.-:�-�c:.'.'.•�".'•, S FT�r e.+f .'.•_. C'_ J�.hc��'It+i"i :".Y+•t'�:"74.•+.x'2•'_1 sr - ��'F�'-, t�'Y __•!•..�'r .' � �r' i y , STATS OF CALIFORNIA, touat'y o9--`��371a'J ss 04 tA+� rei ._.-_.day of_... f� �n,' 31St• ................... 19....0 before me, - ..............A•'L�� C. _i ° Nosy Public in and for said County and State, residing therein duly commissioned and sworn, Y _ personally appeared ..................... known to me to be the duly authorized Attorney -in- Fact of PACIFIC INDEMATITY COM- PANY, and the same person whose name is subscribed to the within instrument and he (she) acknowledged to me that he (she) subscribed his (her) own name as the Attorney -in -Fact for and on behalf of PACIFIC INDEMNITY COMPANY. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this Certificate first above written. Form Rev. ARLEEN C. jAWNY Notary Puixo - CatEfornia `- Principal Officc in p ............... _..............---•--�' e Lo: Angeles County INotar on Expires April In t ole y Public in and for ANG of California Cit; Clerk _ Cit;,•• of San LuisObi '�• San Luis Obispo,Cali:' � :nia .CERTIFICATE OF CONTINUOUS BOND This is to certify that Contractor's License issued by the undersigned, dated the 2nd day of December . . Bond No. 1C;1O23 19 41, in the amount of FIVE HUNDRED AND I01100-------------- -Dollars ($ 500.00 ) on behalf of S OUT---' n,i3Id _. C QUAY IES GAS C 012AITV OF C - - IF ORIS: IA and ;n favor of CITY OF Si, -1 LUIS OBISPO, CALIFORNIA is a continuous instrument and covers an indefinite term beginning on the 2nd day of DECE',FBER '1941 , and ending with the cancellation or termination of said bond, as therein provided; that said bond is now in full force and effect and will continue in full force until canceled or terminated, as so provided. SIGNED, SEALED and DATED this E :ECY.ITED IN DIPL_IC::TE Foam 61068 IM 856 (PI) STATE OF CALIFORNIA,j County of Los Angeles 21st day of NOVEMBER .;19 66 PACI IC I DEM TY am Y . , ER IC K L OI S:,() gorney-in-Fact On this. ------ 1.611a ............ day of ........ 10-VEmt3er.......... in the year one thousand nine hundred and ....... juxty ... One ................ before me, ............ /iR[,.EEN C. JAWNY .......a Notary Public in and for said Count and S ....................................................... Y tate, residing therein duly commissioned and sworn, personally appeared ........................ s--- G .• J oflYlstQn J r.--.. Imown to me to be the duly authorized Attorney -in -Fact of PACIFIC INDEMNITY COMPANY, and the same person whose name is subscribed to the within instrument as the Attorney -in -Fact of said Company, and the said .... -........... 8.. ... JG.....JOY]nston,...Jracknowl..-----.......- edged to me that he subscribed the name of PACIFIC INDEMNITY COMPANY, thereto as surety and his own name as Attorney -in -Fad. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year m this Certificate first above written. _ Form XG1000 Rev. C IOM SW �J Public in and for County of Los Angeles State of Califnrn;a i ,1 r- q RESOLUTION NO. 5364 (1984 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO GRANTING ENCROACHMENT PERMIT TO SOUTHERN CALIFORNIA GAS COMPANY FOR A PORTION.OF SOUTH STREET BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. An encroachment permit is hereby granted to Southern California Gas Co. for the northerly half of South Street as it abuts their property between Broad Street and Emily Street. SECTION 2. The term of the permit shall be 3 years. The permit shall be automatically renewed for successive 3 year periods. However, at any time after the initial term, or any period of renewal:, the permit may be revoked by city upon .1 year written notice, or immediately without notice for noncompliance of any of the below described specific conditions. SECTION 3. All improvements proposed by permittee is subject to city approval. SECTION 4. The permit holder agrees to hold harmless and free from liability the city, its officers, employees, and agents, from any and all claims for damages arising out of their use and/or possession of the subject premises; and further, to defend and indemnify same should any legal action result. SECTION 5. The permit holder by their acceptance of this permit, agree to obtain and maintain public liability insurance in an amount determined by, and subject to whatever reasonable conditions may be imposed by, the City Attorney. SECTION 6. Copies of this resolution shall be sent to Southern California Gas Co., MDW, the Community Development Director, and the Public Works Director. On motion of Councilman Dunin , seconded by Councilman Griffin and on the following roll call vote: AYES: Councilmembers Dunin, Griffin, Dovey and Vice -Mayor Settle NOES: None ABSENT: Mayor Billig R 5364 t Resolution No. 5364 the foregoing Resolution was passed and adopted this 15th day of 1984. ATTEST CITY LERK PAMELA VO ES Pau."', !- ; City Administrative Ofificerfi ty Community Public Works Director Director May $ l 1 VICE -MAYOR ALLEN K. SETTLE C �III��I���� �I► � III,II��I� city of San WIS OBIspo II i OFFICE OF THE CITY CLERK • 990 PALM STREET Post Office Box 321 • San Luis Obispo, CA 934060321 • 8051541-1000 Play 18, 1984 tterriam, Deasey & Whisenant, Associates 979 Osos Street, Suite C San Luis Obispo, CA 93401 Gentlemen: i Please be advised that the San Luis Obispo City Council took action at its meeting of May 15, 1984, to adopt Resolution No. 5364 (1984 Series), a resolution granting an encroachment permit to Southern California Gas Company for a portion of South Street between Broad and Emily Streets. A copy of the resolution is enclosed please feel free to call. Si rely, amela Voges City Clerk PV:js Should you have additional questions, cc: Southern California Gas Company David Romero, Public Works Director Enclosure 5-3 L MEMORAWDUM,;;,,��I.�:�,,, at, ,f san Luis oBispo •.,,. Office of thetity Attorney 805/5497140 To City Council FROM Roger Picquet tk- SUBJECT Attached Resolution 990 Palm Street, P.O. Box 321, San Luis Obispo, CA 93406-0321 MEETING AGENDA DATE Olt 17.84 ITEM # DATE This resolution was changed in several minor aspects by Councilman Griffin. This may be considered an alternate Resolution. 4-17-844 (4 C., 6u4ce C) Z IIIN�Ir�lllllll�lll�l Ilulll MEETING DATE: G � Illi CiVJ O SaI1 La.II S OBISpO � Ma 15-1984 ITEM577: ER: COUNCIL AGENDA REPORT ... . FROM: David F. Romero SUBJECT: South Street Encroachment Permit CAO RECOMMENDATION: Adopt resolution approving encroachment permit. BACKGROUND: At its meeting of April 17, 1984, the City Council considered an encroachment permit for the use of both sides of South Street between Broad Street and Emily Street. For a variety of reasons, the City Council determined that it did not wish to approve -the encroachment permit in the form presented. At the request of the applicant, staff has modified the permit to include only the _ north side (Southern California Gas Company side) of South Street in the permit. It has also modified the conditions to call for a 3=year term with automatic 3 -year renewals and 90 day termination. ALTERNATIVES: Alternative 1: Approve encroachment permit'approach as recommended. This alternative will permit the Gas Company to use the nroperty while at the same time preserving the city's option to utilize South Street at some future date. Alternative 2:. Abandon South Street. This alternative will permit the Gas Company to acquire South Street, but will preclude the city option of utilizing South Street.for public purposes should it be needed at some future date. Alternative 3: Do nothing. This does not satisfy the request of the applicant, however, it preserves the city's option for future use of South Street. FISCAL IMPACT: None RECOMMENDATION: Staff recommends that Council adopt the resolution granting an encroachment permit to Southern California Gas Company. DFR:yh Attachments: Resolution Exhibit A Exhibit B a 60 An. 0�- I (D I SITE PLA SCALE,10 , 20'-0- Mmlff m FIE STORAGE 'Fq � , V-3 '. � 0 - I �II�h����II�IIIIIIIIII�lllllllMEETING DATE: city 1" Lal Cf � J' � San a S OBISPO April 17 19 COUNCIL AGENDA REPORT ITEM NU FROM: David F. Romero, Public Works Director SUEUECT: South Street Encroachment Permit CAO RECOMMENDATION: Adopt resolution approving encroachment permit. BACKGROUND: MDW has been conducting development studies for both Southern California Gas Company and Mid State Bank and has concluded that each of these entities could make use of the South Street right-of-way between Broad.Street and Emily Street (Exhibit A). MDW first approached city staff regarding.an abandonment of this unused portion of street. Prior to 1982 all city General Plan maps since 1962 had shown South Street extending across the railroad tracks and connecting to Johnson Avenue (Exhibit B). This extension of South Street had been subjected to a great deal of study during the 1970's and had been a key element of the city street planning program. In 1982 the city determined that the extension of South Street was no longer a part of its street planning program and this route was dropped from the General Plan (Exhibit Q. Considering the long term planning and detailed studies for this route, the Public Works Department staff felt that it could not recommend that the Council find that this portion of street is "unnecessary for present or prospective public use", which is a finding the City Council must make prior to abandoning a street (Exhibit D). In view of this, MDW has suggested an alternative approach and has written letters on behalf of their clients (Exhibit E), requesting a long term encroachment permit with automatic renewal periods. Staff is comfortable with this approach, provided the city is able to revoke the permit within some reasonable period should its planning process ever again determine that the South Street crossing of the railroad tracks should proceed, and so long as reasonable conditions are imposed on the permit which protect the city's interests (e.g. insurance and "hold harmless" provisions). Under the encroachment permit process, the city would also retain control of improvements placed within the South Street right-of-way. ALTERNATIVES: Alternative 1: prove encroachment permit approach as recommended. This alternative will permit the Gas Company and Bank to use the property while at the same time preserving the city's option to utilize South Street at some future date. Alternative 2: Abandon South Street. This alternative will permit the Gas Company and Bank to acquire South Street, but will preclude the city option of utilizing South Street for public purposes should it be needed at some future date. Alternative 3: Do nothing. This does not satisfy the request of the applicant, however, it preserves the city's option for future use of South Street. s-/ ���►����►►pIiIIIIIIIIP�►llUlll city o f San I' IS OBISpo COUNCIL AGENDA REPORT South Street Encroachment Permit Meeting of April 17, 1984 Page 2 FISCAL IMPACT: None RECOMMENDATION: Staff recommends that Council adopt the resolution granting an encroachment permit to Southern California Gas Company and Mid -State Bank. DFR:jj Attachments: Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E s. zw .-., :. • '•— .... .::..: . ='::'• -jvm��,14m a. ••• ••••, 0 ••4 ��- �7••••• : ••�•• ••• •'� • a. ••t.1 �'•,.• as V • •• jt El II its###to R QL v 4- F" V I �J STREETS AND HIGHWAYS CODE Section 8324. Hearing; findings; adoption of resolution (a) At the hearing, the legislative body shall hear the evidence offered by persons interested. (b) If the legislative body finds, from all the evidence submitted, that the street highway, or public service easement described in the resolution of intention or petition is unnecessary for present or prospective public use, the legislative body may adopt a resolution vacating the street; highway, or public service easement. The resolution of vacation may provide that the vacation occurs only after conditions required by the legislative body have been satisfied and may instruct the clerk that the resolution of vacation not be recorded until the conditions have been satisfied. S- y (Exhibit D) v 'J8 16 March 1984 Mr. David Romero, Director, Public Works Department City of San Luis Obispo, San Luis Obispo, CA Re: South Street Encroachment Permit Dear Mr. Romero, ni du MDW Associates Architecture/ Planning/ Engineering Andrew G. Merriam AIA. AICP, Principal Jay R. Whisenant AIA, Principal Bruce D. Fraser, Jr. AIA, Principal Sherr C. Stoat, Principal MDW has been requested by Mid State Bank to request your approval of an encroachment permit for the South Street right of way adjacent to their property. They are familiar with the terms requested by our other client in this matter (Southern California Gas Company) and are requesting that an encroachment permit be granted with the same terms and conditions, as follows: 1. That the encroachment permit be granted for an initial term of 10 years. Further, the permit be continuously and automatically renewed for periods of 5 years, subject to City action as described in (2) below. 2. That the City provide 5 years notice of permit revocation. 3. That all improvements proposed by Mid State Bank within the right -of way are the responsibility of Mid State Bank. All improvements are subject to City approval. Our discussions with both parties indicates a willingness to jointly develop solutions and improvements regarding the drainage problem in that area. The approval of an encroachment permit for both owners, with the same conditions, will provide for the appropriate coordinated program. Sincerely MDW ASSOCIATES OVL_� Jay R. Whisenant, AIA, Principal Ext bJ E 979 Osos Street, Suite C San Luis Obispo, CA 93401 - 3296 �_ (805) 543-7057 16 March 1984 Mr. David Romero, Director, Public Works Department City of San Luis Obispo, San Luis Obispo, CA Re: South Street Encroachment Permit Dear Mr. Romero, mdu MDW Associates Architecture / Planning / Engineering Andrew G Merriom AIA, AICP, Principal Jay R. Whisenant AiA, Principal Bruce D =raser, Jr. AIA, Principal Sherri C Sroot, Principal This letter respectfully requests your consideration and approval of our proposal regarding development of the existing South Street right-of-way adjacent to the Southern California Gas Facility. Briefly summarized, this proposal is to develop surface parking for SOCAL employee use within the South Street right of way. A site plan showing the proposal is attached. As a result of our past discussions and the action of the Planning Commission regarding abandonment of South Street, I understand that the appropriate procedure to accomplish this proposal is to obtain an encroachment permit, granted by the City Council. I would suggest that the following conditions be considered as a part of this approval. 1. That the encroachment permit be granted for an initial term of 10 years. Further, the permit be continuously and automatically renewed for periods of 5 years, subject to City action as described in (2) below. 2. That the City provide 5 years notice of permit revocation. 3. That all proposed improvements are the responsibility of Southern California Gas Company, including storm drainage system improvements. All improvements are subject to City approval. Thank you for your consideration of this request. I'm sure that we can promptly accomplish the Council's review of this item and proceed with its implementation. Sincerely MOW ASSOCIATES Jay R. Whisenant, AIA, Principal JF� X 979 Osos Street, Suite C San Luis Obispo, CA 93401 - 3296 `�/ A b (805) 543-7057 V r I I - I I o I I I I I I I. .. I I I I I I I I I I I I I I 07 .5 —0— u K"1 SITE PLAN SCALE-. 1 20'•0n O rII n� L__J ✓✓ I . I ■ i ■ uAaw.W.. "—�u--•-.. •or..nnlnn /Fnpineern a� �_. c� o ©.'__ ) Lam'/ ✓✓ I . I ■ i ■ uAaw.W.. "—�u--•-.. •or..nnlnn /Fnpineern a� SOUTHERN CALIFORNIA gClS COMPANY 610 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA 90017 TED CARDWELL Manager of Taxes MAILING ADDRESS: BOX 3249 TERMINAL ANNEX, LOS ANGELES. CALIFORNIA 90051 March 30, 1984 City Clerk City Hall San Luis Obispo, CA 93401 Dear Sir: Enclosed is the certified franchise 'statement of Southern California Gas Company showing the amount due for the calendar year 1983. A check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. TW:ia Enclosure Very truly yours, REC VE-) � R 41984 CITY CLERK SAN. WIS OBiSP_Ot, G FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY The Ordinance for which this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (2%) of the gross annual receipts of grantee arising from the use, operation or possession ofsaid franchise; provided, however. that such payment shall in no event be less than one percent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B. respectively. STATEMENT FOR THE CALENDAR YEAR 1983 PURSUANT TO THE FRANCHISE GRANTED BY City of San Luis Obispo BY ORDINANCE NO. 770 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company of California, 42 Cal. 2d 129. A. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ....................... $2,076,681,973 Investment in Distributing Agencies in: Public and Private Rights of Way ........................... $ 988,897,884 Public Highways Only ................................... $ 235,029,622 Percent of Distributing Agencies to Total for: Public and Private Rights of Way ........................... 47.61913% Public Highways only ................................... 11.31755% Total Gross Receipts from Operations for Period: Gross Revenues ........................................ $4,495,476,126 Less Uncollectible Bills ............................... $ 13, 233, 070. Total ......................................... .. $4,482,243,056 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way '(47.61913% x $4,482,243,056 )........• .........••... $2,134,4051148 Public Highways only (11.31755% x $4,482,243,056) ....................•••• $ 507,280,099 B. Mileage of Main in.Pipeline System Total Mileage in Pipeline System .......................... 37, 774.9732 mi. Mileage in Highways .................................... 32,549.2068 mi. Percent of Mileage in Highways to Total Mileage ........ 86.16606% Gross Receipts applicable to Mileage in Highways for: Public and Private Rights of Way (86.16606% x $2,134,405,148)...........•••••..••••••$1,839,132,820 Public Highways only (100.00000% x $507,280,099 )......................... $ 507,280,099 Total .............................................. $2,346,412,919 Total Mileage in Highways as above ........................... 32,549.2068 mi. Mileage in Highways of this Franchise ........................ 99.1913 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ .30474% C. Gross Receipts applicable to this Franchise (.30474% x $2,346,412,919 )............................ $ 7,1501459 D. Amount due based on 2% of the above applicable Gross Receipts .......................................... $143,009.18 284.25 SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ...........................................$5,842,710 Less Uncollectible Bills ...................................$ 8,987 Gross Receipts.......................................$5,833,723 Amount due based on 1% of the above Gross Receipts .......... $58,337.23 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of S 143.009.18 . CERTIFICATION 1. the undersigned, say: I am an officer. to wit. Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf. and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 30 .19 84 at Los Angeles, California. Treasurer of Southern California Gas Company If additional information is required. please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Manager of Taxes Box 3249. Terminal Annex Los Angeles. California 90051 SOUTHERN CALIFORNIA frl as COhilPANY 6 .. 11 SOUTHERN CALIFORNIA gas COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA H. T. JOHNSON Treasurer Mailing Address: BOX 3249 TERMINAL ANNEX. LOS ANGELES. CALIFORNIA 90051 April 14, 1983 City Clerk City Hall San Luis Obispo, CA 93401 Dear Sir: Enclosed is a check in the amount of $132,725.38 which represents the franchise payment due from Southern California Gas Company for the calendar year 1982. A certified franchise statement was filed on March.30, 1983. Mia Enclosure Very truly yours, Lobi CHECK NO. U028887 GENERAL FUND ACCOUNT SOUTHERN CALIFORNIAgas COMPANY BOX 3249 TERMINAL ANNEX LOS ANGELES, CALIF OR NI A 90051 1111litM131ttllitllllllll1111111111llllitllllllltllll11111tllllllllll1111111ll111111llll111ll 1111111111111111111111111111 mumunnn:1111 PAY SAN LUIS nunnmmiminititimnnnnnnnununuinnuwiiuuuunuuwtiuunw = OB ISPO, - CITY OF TO THE P. 0. BOX .321_ . ORDER SAN LUIS OBISPO CA 93406 OF REGIO y'_HEAD OFFICE t0=77 LOS < LES, CALIFORNIA 1220 I VOUCHER NO. CHECK DATE VENDOR NO. *04-0164 04/13/83 'p516 AMOUNT $132:725.38 11200000 2888 711' 1: 1 2 2000 7 7 Li: 100008 308 511' ENDORSEMENT OF THIS CHECK ACKNOWLEDGES PAYMENT IN FULL OF ITEMS SHOWN ON ATTACHED STATEMENT SOUTHERN CALIFORNIA GAS COMPANY— GENERAL FUND ACCOUNT VENDOR NO. 78516 VOUCHER NO. 04-0164 CHECK DATE 04/13/83 CHECK NO. U028887 INVOICE NO. INVOICE DATE"` INVOICE AMOUNT7' •= i=AMOUNT-PAID.=-• DISCOUNT OR ADJUSTMENT' NET CHECK AMOUNT, i 183 03/11/83 132, 725. 38 132,725."38 .00 132, 725. 38 CHECK TOTAL $132,725.38 117:i-- •.a_+.Y _-1• �t' :1'•�'t: _.._:i'— '!.�:r"`f.' ..�"1: �: 'Si�' _ .i• __ - - _ ._ ..i• _ `i•+ — 1: .1 -`. — .r :z+t` —t•t_....Il,.,.. t:�.—_i/�!-. 1...� . _ _ _ —. —_ �1: �7i �_. t:"..yet:.. ... _ —��:'. .— .i_: -_,'•_i: "r" r_. ..._.. FRANCHISE PAYMENT FOR THE'YEAR 1982 H. T. JOHNSON Treasurer City Clerk City Hall San Luis Obispo, CA Dear Sir: 93401 / y `f SOUTHERN CALIFORNIA gaS COMPANY 810 SOLITH.FLOWER STREET • LOS ANGELES, CALIFORNIA Mailing Address: BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 30, 1983 Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1982. A check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. Very truly yours, TW:ia RECEIVE® Enclosure APR 11983 CIT( CLERK SAN LUIS OBISPO.- CH FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY The Ordinance forwhich this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee sha11 pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (2%) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one percent (1 %) of the gross annual receipts of the grantee derived from the sale ofgas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B. respectively. STATEMENT FOR THE CALENDAR YEAR 1982 PURSUANT TO THE FRANCHISE GRANTED BY City of San Luis Obigpo BY ORDINANCE NO. 0770 , SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company of California, 42 Cal. 2d 129. A. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ....................... $1,907,767,247 Investment in Distributing Agencies in: Public and Private Rights of Way ......................... 909,643,802 Public Highways Only .................................. $ 2161240,050 Percent of Distributing Agencies to Total for: Public and Private Rights of Way .........................47.68107% Public Highways only ................................. 11.33472% Total Gross Receipts from Operations for Period: Gross Revenues ............................ .........$4,200,728,141 Less Uncollectible Bills ............................... .$ 81819,897 Total............................................. Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (47.68107% x $4,191,908,244 ) ........................$1,998,746,704 Public Highways only (11.33472% x $4,191,908,244 ) .......................$ 475,141,062 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ......................... 37,417.3480 mi. Mileage in Highways .................................... 32,284.4009 mi. Percent of Mileage in Highways to Total Mileage ........ 86.28191% Gross Receipts applicable to Mileage in Highways for: Public and Private Rights of Way (86.28191% x $1,998,746,704 ) .......................$1,724,556,832 Public Highways only 141,062 Q00.00000% x $475,141,062 )..................•••• $ 475, Total .............................................$2,199,697,894 Total Mileage in Highways as above .......................... 32,284.4009 mi. Mileage in Highways of this Franchise ........................ 97.4004 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ .30169 C. Gross Receipts applicable to this Franchise $ 6,636,269 (.30169% x $2,199,697,894 )••••.••• .. D. Amount due based on 2% of the above applicable .$132p725. . 38 GrossReceipts ....................................... Zea -2R SECTION B Computation of payment of one percent (1%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ...........................................$4,604,325 Less Uncollectible Bills ........................ .........$ 6,005 Gross Receipts.......................................$4,598,320 Amount due based on 1% of the above Gross Receipts .......... $45,983.20 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely. the amount due under Section A . in the sum of S 132, 725.38 CERTIFICATION I, the undersigned, say: I am an officer, to wit. Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf. and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 30 , 198-, at Los Angeles. California. reasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury/Tax Box 3249, Terminal Annex Los Angeles, California 90051 SOUTHERN CALIFORNIA 6 gas COMPANY �;i�' .•i I'lll; 111 ii'I i..!II:'.; i,il.�i i�,. •'i'i., "Til �l'�l liill !ISI I Ii III�I�'1�n i'�' li.l!Ill ill'I I Cit � IUIS OBISPLY gu;:,���1 II,p41 OFFICEOF THE MAYOR iR�ipP Post Office Box 321 •San Luis Obispo, CA 93406-0321 • 8051541-1000 March 30, 1982 Public Utilities Commission State Building 1.07 South Broadway Los Angeles, CA 90012 Gentlemen: Rer o`u ;_Sthernern California Gas Company, r� Pacific Lighting Gas.Supply Company Application No. 82-03-16 The City of San Luis Obispo has received notification of Southern California's application number 82-03-16 rate increase. Although we do not have the e;:pertise to fully understand the details of the proposed increase, the City of San Luis Obispo does have concerns. The overall rate increase of 29.5 percent will cause significant hard— ships on low—income and fired—incomed individuals in the city. When cities such as ours are dealing with such complex issues as the cost of housing, and the availability of affordable housing, rate increases such as these only add to already difficult problems. We would hope that the PUC reviews this request in a thorough and compassionate manner. Sincerely, .1/a.0• IMenie Bill.i P1avo r MCB/skl ACCEPTANCE OF FRANCHISE Los Angeles, California August 25, 1978 The Honorable City Council City of San Luis Obispo California Gentlemen: In compliance with the terms of Section Seventeen of Ordinance No. 770 entitled "An Ordinance Of The City Of San Luis Obispo Granting To Southern California Gas Company, A California Corporation, The Right, Privilege And Franchise To Lay And Use Pipes And Appurtenances For Transmitting And Distributing Gas For Any And All Purposes Under, Along, Across Or Upon The Public Streets, Ways, Alleys And Places, As The Same Now Or May Hereafter Exist, Within Said Municipality", Said Ordinance having been adopted on the 15th day of August, 1978, Southern California Gas Company hereby accepts said franchise and agrees to comply with the terms and conditions thereof. Yours respectfully, SOUTHERN CALIFORNIA GAS COMPANY By By RECEIVED SEP 11978 lr�• CITY CLERK SAN LUIS OBISPO, Cly f; SeAretary and Treasurer Approved: AFFIDAVIT STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN LUIS OBISPO) The undersigned, being first duly sworn, deposes and says: that he at all times hereinmentioned was, and now is, the duly qualified and acting City Clerk of the City of San Luis Obispo; that on September 1 , 1978, he caused a copy of Ordinance No. 770 "An Ordinance Of The City Of San Luis Obispo Granting To Southern California Gas Company, A California Corporation, The Right, Privilege And Franchise To Lay And Use Pipes And Appurtenances For Transmitting And Distributing Gas For Any And All Purposes Under, Along, Across Or Upon The Public Streets, Ways, Alleys And Places, As The Same Now Or May Hereafter Exist, Within Said Municipality" to be enclosed in an envelope addressed to "Mr. E. F. Gregory, District Director of San Luis Obispo County, State of California Transportation Agency, Department of Public Works, Division of Highways, Post Office Box L. San Luis Obispo, California 93406," and on said date caused the same to be deposited in the mail at San Luis Obispo, California, postage prepaid. I F TRICK City Clerk City of San Luis, Obispo Subscribed and sworn to before me this 1st day of September , 1978 NOTARYyPrUBLIC MARILYN PERRY NOTARY PUBLIC - CAUFORNIA 0MNCIPAL A OFFICE PJ SAN LUIS OBISPO COUNTY My Commission Expires July 20, 1979 ORDINANCE NO. 770 (1978 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO GRANTING TO SOUTHERN CALIFORNIA GAS COMPANY, A CALIFORNIA CORPORATION, THE RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE PIPES AND APPUR- TENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS, WAYS, ALLEYS AND PLACES, AS THE SAME NOW OR MAY HEREAFTER EXIST, WITHIN SAID MUNICIPALITY. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. DEFINITIONS. Whenever in this ordinance the words and phrases hereinafter in this section defined are used, they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning): (a) The word "Grantee" shall mean the corporation to which the franchise contemplated in this ordinance is granted and its lawful successors or assigns; (b) The word "City" shall mean the City of San Luis Obispo, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, con- solidated.or reincorporated form; . (c) The word "streets" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within city, including State highways, now or hereafter es-. tablished within city, and freeways hereafter established within city; 0 770 AG:ktm 6/9/78 (d) The word "Engineer" shall mean the City. Engineer of the City of San Luis Obispo or his designee; (e) The word "Gas" shall mean natural or manufactured gas, or a mixture of natural and manufactured gas; (f) The phrase "Pipes and Appurtenances" shall mean pipe, pipeline, main, service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment, ap- purtenance and any other property located or to be located in, upon, along, across, under or over the streets of the City, and used or useful in transmitting and distributing gas. (g) The phrase "lay and use" shall mean to lay, construct, erect, install, operate, maintain, use, repair, replace, or remove.. (h) The phrase "constitutional franchise" shall mean the right acquired through acceptance by grantee or its predecessor in estate of the offer contained in the provisions of Section 19 of Article XI of the Constitution of the State of California, as said section existed prior to its amendment on October 10, 1911. SECTION 2. GRANT OF FRANCHISE. That the right, privilege and franchise, subject to each and. all of the terms and conditions contained in this ordinance, and. pursuant to the provisions of Division 3, Chapter 2 of the Public Utilities Code of the State of California, known as the Franchise Act of 1937, be and the same is hereby granted to Southern California. Gas Company, a corporation organized and existing under and by virtue AG:ktm -2- 6/9/78 of the laws of the State of California, herein referred to as the "Grantee", to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the streets of the City. SECTION 3. TERM. This franchise shall be indeterminate, that is to say, this franchise shall endure in full force and effect until the same shall, with the consent of the Public Utilities Commission of the State of California, be voluntarily surrendered or abandoned by its possessor, or until the State of California or some municipal or public corpor- ation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of this franchise, and situate within the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or until -this franchise shall be forfeited for non- compliance with its terms by the possessor thereof. SECTION 4. CONSIDERATION. The Grantee shall pay to the City at the times hereinafter specified, in lawful money of the United States, a sum annuarly which shall be equivalent to two percent (2%) of the gross annual receipts of Grantee arising from the use, operation or possession of said franchise; provided, however, in case the State Legislature raises the minimum percentage allowable, the new rate shall apply; and provided, further; that such payment shall in no.event be less than one percent (1%) of the gross annual receipts of the Grantee from the sale of gas within the limits of.the.City under this AG:ktm -3- 6/9/78 franchise and said constitutional franchise. In addition to the foregoing, Grantee shall pay to City within thirty (30) days of the issuance by the Public Utilities Commission of a certificate of convenience and necessity to exercise the franchise the sum of Ten Thousand Dollars ($10,000.00). If, at any time after the payment of said sum, it shall be adjudged that said franchise did not become effective or was or is invalid, or if the Grantee shall, at any time, be prevented by the City or by judgment procured by any other person from exercising the same for any reason other than noncompliance with its terms by the Grantee, then said sum of Ten Thousand Dollars ($10,000.00) shall be forthwith repaid by the City to the Grantee. SECTION 5. REPORTS. The Grantee of this franchise shall file with the City Clerk within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the grant of this franchise, and within three (3) months after the expiration of each and every calendar year thereafter, a duly verified state- ment showing in detail the total gross receipts of the Grantee, its successors or assigns, during the preceding calendar year, or such fractional calendar year, from the sale of the utility service within the City for which this franchise is granted. It shall be the duty of the Grantee to pay to the City within fifteen (15) days after the time for filing such statement in lawful money of the United States, the specified percentage of its gross receipts for the calendar year, or such fractional calendar year, covered by such statement. Any neglect, omission or refusal by said Grantee to AG:ktm -4- 6%9/78 file such verified statement, or to pay said percentage, at the time or in the manner hereinbefore provided, shall be grounds for the declaration of a forfeitureof this franchise and of all rights thereunder. SECTION 6. EFFECT OF.ACCEPTANCE. This grant is made in lieu of all other franchises owned by the Grantee, or by any successor of the Grantee to any rights under this franchise, for transmitting and distributing gas within the limits of the City, as said limits now or may hereafter exist, and the acceptance of the franchise hereby granted shall operate. as an abandonment of all such franchises within the limits of'this City, as such limits now or may hereafter exist, in lieu of which this franchise is granted. SECTION 7. AUTHORITY FOR GRANT. This franchise is granted under the Indeterminate Franchise Act of .1937 and pursuant to Article XIII of the Charter of the City of San -Luis Obispo, adopted in 1955, and no other authority. SECTION 8. COMPLIANCE WITH.LAWS. The Grantee of this franchise shall construct, install and maintain all pipes and appurtenances in accordance with and in con- formity with all of the ordinances; rules and regulations heretofore, or hereafter adopted by the legislative body of this City in the exercise of its police powers and not in conflict with the paramount authority of the State of California, and as to -State highways, sub- ject to the provisions of general laws relating to the location and maintenance of such facilities. AG:ktm -5- 6/9/78 SECTION 9. ADMINISTRATIVE PRACTICES. The Engineer shall have power to give the Grantee such directions for the location of any pipes and appurtenances as may be reasonably necessary to avoid sewers, water pipes, conduits or other structures lawfully in or under the streets; and before the work of constructing any pipes and appurtenances is'commenced, the Grantee shall file with said Engineer plans showing the location thereof, which shall be subject to the approval of said Engineer (such approval not to be unreasonably withheld); and all such con- struction shall be subject to the inspection of said Engineer and done to his reasonable satisfaction. All street coverings or openings of traps, vaults, and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground traps, vaults and manholes may extend above the surface of the streets when said vents are located in parkways, between the curb and the property line. Where it is necessary to lay any underground pipes through, under or across any portion of a paved or macadamized street, the same, where practicable and economically reasonable shall be done by a tunnel or bore. -so as not to .disturb.the foundation of such paved or macadamized street; and in.the event that the same cannot be done, such work shall be done under a permit to be granted by the Engineer upon application therefor. SECTION 10. CITY RESERVED POWERS. (a) City reserves the right for itself to lay, construct, .erect, install, use,operate, repair, replace, remove, relocate, AG:ktm -6- 6/9/78 regrade or maintain below surface or above surface improvements of any type or description in, upon, along, across, under or over the streets of the City. City further reserves the right to re- locate, remove, vacate or replace the streets themselves. If the necessary exercise of the aforementioned reserved rights is made necessary in order to accommodate a municipal government purpose and conflicts with any underground pipes and appurtenances of Grantee constructed, maintained and used pursuant to the provisions of the franchise granted hereby, whether previously constructed, maintained and used or not, Grantee shall, without cost or expense to City after written notice from the City Administrative Officer, or his designated representative, and request to do so, begin the physical field construction of changing the location of all facil- ities or equipment so conflicting, which shall include the relocation of customer's facilities behind the meter in a public right-of-way if required by a grade or alignment change. Grantee shall proceed promptly to complete such required work. (b) Irrespective of any other provision of this ordinance, Grantee'.s right to construct, maintain and use, underground pipes and appurtenances thereto shall be subject at all times to the right of City, in the reasonable exercise of its police power in response to a direct and immediate threat to the health or safety of the public, to require the removal or relocation of said under- ground pipes and appurtenances thereto at the sole cost and expense of Grantee. SECTION 11. RESPONSIBILITY FOR DAMAGES. If any portion of any street shall be damaged by reason of defects in any of the pipes and appurtenances maintained or AG:ktm -7-.. 6/9/78 REV. 7/5/78 constructed under this grant, or by reason of any other cause arising from the operation or existence of any pipes and appurtenances con- structed or maintained under this grant, said Grantee shall, at its own cost and expense, immediately repair any such damage and restore such street, or portion of street, to as good a. condition as existed before such defect or other cause of damage occurred, such work to be done under the direction of the Engineer, and to his reasonable satisfaction. SECTION 12. FORFEITURE. (a) If the Grantee of this franchise shall fail, neglect or refuse.to comply with any of the provisions or conditions hereof, and shall not, within ten (10) days after written demand for com- pliance, begin the work of compliance, or after such beginning shall not prosecute the same with due diligence to completion, then the City, by its legislative body, may declare this franchise forfeited. (b) The City may sue in its own name for the forfeiture of this franchise, in the event of :noncompliance by the Grantee, its successors or assigns, with any of the conditions thereof. SECTION 13. ACQUISITION AND VALUATION. The franchise granted hereunder shall not -in any way or to any extent impair or affect the right of the City to acquire the property of the grantee hereof either by purchase or through the exercise of of the right of eminent domain,.and nothing herein con- tained shall be construed to contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee or any public utility. Nor shall this AG:ktm -8- 6/9/78 franchise ever be given any value before any court -or other public authority in any proceeding of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid by it to the City therefor at the time of the acquisition thereof. SECTION 14. RELOCATION OF FACILITIES. The Grantee of this franchise shall remove or relocate, without expense to the City, any facilities installed, used and. maintained under this franchise if and when made necessary by any lawful change of grade, alignment or width of any public street, way, alley or place, including the construction of any subway or viaduct by the City. SECTION 15. HOLD HARMLESS. The Grantee of this franchise shall indemnify and hold harmless the City and its officers from any and all liability for damages proximately resulting from any operations under this fran- chise; and be liable to the City for all damages proximately re- sulting from the failure of said Grantee well and faithfull to observe and perform each and every provision .of this franchise and each and every provision of Division 3, Chapter 2 of the Public Utilities Code of the State of California. SECTION 16. EFFECTIVE DATE. This ordinance shall become effective thirty (30) days after its final passage unless suspended by a referendum petition filed as provided by law. AG:ktm -9- 6/9/78 SECTION 17. WRITTEN ACCEPTANCE. The franchise granted hereunder shall not become effective until written acceptance thereof shall have been filed by the Grantee thereof with the City Clerk. When so filed, such acceptance shall constitute a continuing agreement of the Grantee that if and when the City shall thereafter annex or consolidate with, additional territory, any and all franchise rights and privileges owned by the Grantee therein shall likewise be deemed to be abandoned within the limits of such territory. SECTION 18. PUBLICATION AND PUBLICATION COSTS. This ordinance, together with the ayes and noes, shall be published once in full, at least three (3) days prior to its final passage in the Telegram -Tribune, a newspaper published and circulated in said City. The grantee of said franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by City in connection with the granting thereof, such pay- ment to be made within thirty (30) days after the City shall have furnished such Grantee with.a written statement --of such expenses. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a regular meeting thereof held on the 1st day of August 1978, on motion of Councilman Settle , seconded by Councilman Jorgensen and on the following roll call vote: AG:ktm _10- 6/9/78 AYES: Councilmen Dunin, Jorgensen, Settle, Petterson and Mayor Schwartz NOES: None ABSENT: None ATTEST: Cit e t .H.. Fitzpatrick Approved as to form: WENDT, MITCHELL, SINSHEIMER, de la MOTTE & LILLEY City Attorney By Allen Grimes AG:ktm r Kenneth E. Approved as to content: City Administra 've Officer Director of Public Services -N -11- 6/9/78 FINALLY PASSED this 15th day of August , 19 78 on motion of Councilman Jorgensen seconded by Councilman Settle on the following roll call vote: AYES: Councilmen Dunin, Jorgensen, Petterson, Settle and Mayor Schwartz NOES: None ABSENT: None ATTEST: J-J02SCzpatfLCk,• 9 -, C'^ty f ';Zcn lulls o iso CITY ATTORNEY'S OFFICE 1 Post Office Box 321 u San Luis Obispo. CA 93406 a 805 541-1000 July 28, 1978 MEMORANDUM: To . Honorable Mayor and City Council From . Allen Grimes, City Attorney tW Subject . August 1 Agenda Item No. 1: Southern California Gas Company Franchise Renewal Attached is a copy of a letter from Southern California Gas Company dated July 24, 1978, which is self-explanatory. After discussion with the gas company, the only item unresolved is in Paragraph 1 of the letter. The City Engineer and I met with Mr. 0. P. Chase and Mr. Stephen J. Stephanou, but were unable to reach a satisfactory solution to the matter outlined in Paragraph 1. AG:ktm enc. RECEIVED cc: City Administrative Officer City Clerk JUL 2 8.1978 City Engineer CITY CLERK SAN LUIS OBISP.O.'Cr& STEPHEN J. STEPHANOU Attorney 910 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • area Code 213 689-3306 i Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES. CALIFORNIA 90051 July 24, 1978 L'+rb�j� a JUL 1978 a REGE�'�'ED Allen Grimes, Esquire G�FiC� OF City Attorney S CITY T?vFi�tY City of San Luis Obispo Post Office Box 321 San Luis Obispo, CA 93406 Re: General Gas Distribution Franchise Renewal - Southern California Gas Company Dear Mr. Grimes: As you know,- I represent Southern California Gas Company ("SoCal") pertaining to the renewal of its general gas distribution franchise for. the City of San Luis Obispo. I have had the opportunity to review the proposed draft of the franchise which you forwarded to Mr. 0. P. Chase, SoCal's District Manager for the City. Generally, the draft as presented by you,is acceptable with -the exception of several items which we propose to,discuss with you in detail on Thursday, July 27. However, iii- order 'to allow you the opportunity to determine the City's position, the following are our comments and suggestionis':pertaning to the proposed ordinance. 1. section"4 - Consideration. As to the second paragraph of this section found on Page 4, SoCal must stren- uously resist the payment of additional consideration for the granting of the franchise. As you know, the previous franchise was acquired by a predecessor in interest to SoCal, Southern Counties Gas.Company, which agreed to pay a $5,000 granting fee. I believe that this'may have been paid partially as a settlement between the City and Southern Counties pertaining to disputes which existed between them pertaining to status of previously existing franchises within the City, Nevertheless, it is not SoCal's practice to make such payments for any of several reasons. First, such payment would be discriminatory U� • D ( � C I � � �j l 7. 810 SOUTH FLOWER STREET • LOS ANGELES. CALIFORNIA • Area Code 213 689.3306 STEPHEN 1. STEPHANOU Attorney Ma,ling Address BOX 3249 TERMINAL ANNEX. LOS ANGELES. CALIFORNIA 90051 July 24, 1978 Allen Grimes, Esquire City Attorney City of San Luis Obispo Post Office Box 321 San Luis Obispo, CA 93406 •JUL 1978 RECLi . G. ri,- Or CITY . 7ORidEY Re: General Gas Distribution Franchise Renewal - Southern California Gas Company Dear Mr. Grimes: As you know,.I represent Southern California Gas Company ("SoCal") pertaining to the renewal of its general gas distribution franchise for the City of San Luis Obispo. I have had the.opportunity to review the proposed draft of the franchise which you forwarded to Mr. 0. P. Chase, SoCal's District Manager for the City. Generally.,. the draft as presented by you.is acceptable with the exception of several items which we propose to discuss with you in detail on Thursday, July 27. However, in order to allow you the opportunity to determine the City's position, the following are our comments and suggestions:pertaining to the proposed ordinance. 0 1. Section 4 - Consideration.'.As to the second paragraph of this section found on Page 4, SoCal must stren- uously resist the payment of additional consideration for the granting of the franchise. As you know, -the previous franchise was acquired by a:predecessor in interest to SoCal, Southern Counties Gas.Company, which agreed to pay a $5,000 granting fee. I believe that this may have been paid partially as a settlement between the City and Southern Counties pertaining to disputes which existed between them pertaining to status of previously existing franchises within the City. Nevertheless, it is not SoCal's practice to make such payments for any of several reasons. First, such payment would be discriminatory Allen Grimes, Esquire July 24., 1978 .Page 2 pursuant to §532 of the California Public Utilities Code, which effectively prevents a public utility from extending to any corporation (including a municipality) or person any form of contract or agreement or any rule or regulation or any facility or privilege except such as are regularly or uniformly extended to all corporations and persons. The payment of such payment or consideration would require SoCal ratepayers in its .entire service area to effectively subsi- dize the operations of the City of San Luis Obispo. Furthermore, upon payment of such consideration to the City, other cities with which we negotiate in the future would likewise demand equal or additional consideration. Such action would be inconsistent with the general intention of the Franchise Act of 1937, which among other things, was enacted to provide for uniformity in dealings between utili- ties and cities. As you may know, SoCal already pays over $10,000 more in franchise fees to the City of San Luis Obispo than Pacific Gas and Electric. In 1977, SoCal paid over $42,000 in franchise fees to the City and the figure has been escalat- ing considerably over the past several years. Therefore, it is our position that the last paragraph of Section 4 of the franchise be eliminated. 2. Section 8 - Compliance with Laws. Commencing on Page 5, this section provides that the grantee shall comply with all ordinances, rules, and regulations heretofore, and hereafter adopted by the legislative body of the City. It is presumed that this language does not allow for the legislative body of the City to amend by ordinance any of the specific terms set forth in the franchise.. 3. Section 10a - City Reserved Powers. It appears that the language found in Section 10a, commencing on Page 6, is unnecessary in light of the language found in Section 14 on Page 9, which is effectively the language.found pertaining to relocation in the Franchise Act of 1937. Although we have no major difficulties with the language contained in Section 10a, I would appreciate your interpretation as to the purpose of this language. As to the inquiry contained in your letter dated June 27, 1978 to Mr. 0. P. Chase, our interpretation of Section 10a is simply that the grantee of the franchise is required to relocate any facilities installed within public streets if there is a lawful change of grade or realignment as provided in Allen Grimes, Esquire July 24, 1978 Page 3 Section 14 of the franchise. This does not obligate the grantee to relocate facilities which are located on private property. It is our position that it is inappropriate if not impossible, for the City to contract with us pertaining to the relocation of facilities located on private property. I think that you will find that this position is consistent with case law pertaining to relocation of franchise facilities. I hope that these comments are helpful to.you. Again, I look forward to discussing these matters in more detail with you during our Thursday meeting. Very truly yours, Stephen Jr,,. SteplZanou SJS:gw cc: Mr: 0. P. Chase I • Allen Grimes, Esquire July 24, 1978 Page 3 Section 14 of the franchise. This does not obligate the grantee to relocate facilities which are located on private property. It is our position that it is inappropriate if not impossible, for the City to contract with us pertaining to the relocation of facilities located on private property.: I think that you will find that. this position is consistent with+case law pertaining to relocation of franchise facilities. I hope that these comments are helpful to you: Again, I look forward to discussing these matters in more detail with you during our Thursday meeting. very truly yours, Step, len J. Stephanou SJS:gw cc: Mr. 0. P. Chase STEPHEN J. STEPHANOU Attorney ZCZJTHSRN C,=-LIQ=O^i1lIA ;; gas COMPANY 610 SOUTH FLOWER STREET • LOS ANGELES. CALIFORNIA • Area Code 213 669-3306 Mailing Address BOX 3249 TERMINAL ANNEX. LOS ANGELES. CALIFORNIA 90051 July 24, 1978 Allen Grimes, Esquire City Attorney City of San Luis Obispo Post Office Box 321 San Luis Obispo, CA 93406 JUL 1978 RECOVED GFFiCE 0'r CITY A77ORNEY Re: General Gas Distribution Franchise Renewal - Southern California Gas Company Dear Mr. Grimes: As you know, I represent Southern California Gas Company ("SoCal") pertaining to the renewal of its general gas distribution franchise for the City of San Luis Obispo. I have had the opportunity to review the proposed draft of the franchise which you forwarded to Mr. 0. P. Chase, SoCal's District Manager for the City. Generally, the draft as presented by you is acceptable with the exception of several items which we propose to discuss with you in detail on Thursday, July 27. However, in order to allow you the opportunity to determine the City's position, the following are our comments and suggestions pertaining to the proposed ordinance. 1. Section 4 - Consideration. As to the second paragraph of this section found on Page 4, SoCal must stren- uously resist the payment of additional consideration for the granting of the franchise. As you know, the previous franchise was acquired by a predecessor .in inteiest.to SoCal, Southern Counties Gas Company, which agreed to pay a $5,000 granting fee. I believe that this may have been paid partially as a settlement between the City and Southern Counties pertaining to disputes which existed between them pertaining to status of previously existing franchises within the City. Nevertheless, it is not SoCal's practice to make such payments for any of several reasons. First, such payment would.be discriminatory Allen Grimes, Esquire July 24, 1978 Page 2 pursuant to §532 of the California Public Utilities Code, which effectively prevents a public utility from extending to any corporation (including a municipality) or person any form of contract or agreement or any rule or regulation or any facility or privilege except such as are regularly or uniformly extended to all corporations and persons. The payment of such payment or consideration would require SoCal ratepayers in its entire service area to effectively subsi- dize the operations of the City of San Luis Obispo. Furthermore, upon payment of such consideration to the City, other cities with which we negotiate in the future would likewise demand equal or additional consideration. Such action would be inconsistent with the general intention of the Franchise Act of 1937, which among other things, was enacted to provide for uniformity in dealings between utili- ties and cities. As you may know, SoCal already pays over $10,000 more in franchise fees to the City of San Luis Obispo than Pacific Gas and Electric. In 1977, SoCal paid over $42,000 in franchise fees to the City and the figure has been escalat- ing considerably over the past several years.. Therefore, it is our position that the last paragraph of Section 4 of the franchise be eliminated. 2.. Section 8 - Compliance with Laws. Commencing on Page 5, this section provides that the grantee shall comply with all ordinances, rules, and regulations heretofore, and hereafter adopted by the legislative body of the City. It is presumed that this language does not allow for the legislative body of the City to amend by ordinance any of the specific terms set forth in the franchise. 3. Section 10a - City Reserved Powers. It appears that the language found in Section 10a, commencing on Page 6, is unnecessary in light of the language found in Section 14 on Page 9, which is effectively the language.found pertaining to relocation in the Franchise Act of 1937. Although we have no major difficulties with the language contained in Section 10a, I would appreciate your interpretation as to the purpose of this language. As to the inquiry contained in your letter dated June 27, 1978 to Mr. 0. P. Chase, our interpretation of Section 10a is simply that the grantee of the franchise is required to relocate any facilities installed within public streets if there is a lawful change of grade or realignment as provided in Allen Grimes, Esquire July 24, 1978 Page 3 Section 14 of the franchise. This does not obligate the grantee to relocate facilities which are located on private property. It is our position that it is inappropriate if not impossible, for the City to contract with us pertaining to the relocation of facilities located on private property. I think that you will find that this position is consistent with case law pertaining to relocation of.franchise facilities. I hope that these comments are helpful to you. Again, I look forward to discussing these matters in more detail with you during our Thursday meeting. Very truly yours; Step en J. Step anou SJS:gw cc: Mr. 0. P. Chase AFFIDAVIT STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN LUIS OBISPO) The undersigned, being first duly'sworn, deposes and says: That he at all times hereinmentioned was, and now is, the duly qualified and acting City Clerk of the City of San Luis Obispo, State of California; that on July 20 , 1978, he caused a copy of the "Application by Southern California Gas Company for The Right, Privilege and Franchise To Lay And Use Pipes And Appurtenances For Transmitting and Distributing Gas For Any And All Purposes Under, Along, Across Or Upon The Public Streets, Ways, Alleys And Places, As The Same Now Or May Hereafter Exist, Within Said Municipality" and the "Resolution.of Intention to Grant Franchise of the City of San Luis Obispo" to be enclosed in an envelope addressed as follows: "Mr. E. F. Gregory, District Director of San Luis Obispo County, State of California Transportation Agency, Department of Public Works, Division of Highways, Post Office Box L, San Luis Obispo, California 93406," and on said date he caused the same to be deposited in the United States Mail at San Luis Obispo, California, postage prepaid. J.FITZ CK City 'Clerk City of San Luis Obispo Subscribed and sworn to before me this 20th day of July 1978 m ' NOTARY PUBLIC Rrmrnnanurr: rrnrnnnrrirua*cmnrrrnriunr� .:: iTARILYN PERRY .';OT,xRY PUBLIC — CALIFORNIA )o]l`R1,\C1-"AL OFFICE IN SAN LU:S OBISPO COUNTY MY Commission Expires July 20, 1979 FRANCHISE STATEMENT C•l19 SOUTHERN CALIFORNIA GAS COMPANY The Ordinance for which this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (2%) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one percent (1%) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B, respectively. RESOLUTION NO. 3605 (1978 SERIES) A RESOLUTION OF INTENTION TO GRANT AN INDETER- MINATE FRANCHISE TO SOUTHERN CALIFORNIA GAS COMPANY. WHEREAS, Southern California Gas Company has requested renewal of its franchise; and WHEREAS, the City Council deems it to be in the public interest to award an indeterminate franchise for providing gas service to Southern California Gas Company; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. That in accordance with Article XIII of the 1955 San Luis Obispo City Charter, the City Council hereby declares its intention to grant a franchise to lay pipes and deliver gas in the City. of San Luis Obispo to SOUTHERN CALIFORNIA GAS COMPANY for an indeterminate period. SECTION 2. The terms and conditions of said franchise shall be as set forth in the ordinance proposed for adoption and in the application of the proposed Grantee, copies of which are on file in the Office of the City Clerk, City Hall, 990 Palm Street, San Luis Obispo, California. SECTION 3. A public hearing shall be held on August 1 1978, at•7.00 P.M. in the Council Chambers of the City Hall, 990 Palm Street, San Luis Obispo, California, when any person having any interest therein or any objections to the granting thereof may appear before the City Council and be heard thereon. R 3605 AG:ktm 6/12/78 Resolution No. 3605 So. Calif. Gas Co. (1973 Series) SECTION 4. The City Clerk shall publish this Resolution in the Telegram -Tribune, a newspaper published and circulated in said city at least once, within fifteen (15) days of its passage. On motion of Councilman Petterson seconded by 'Mayor Schwartz , and on the .following roll call vote: AYES: Councilmen Dunin, Jorgensen, Petterson, Settle and Mayor Schwartz NOES: None ABSENT: None the following resolution was passed and adopted this 5th day of July , 1978. ATTEST: C'Clerk J.H. Fitzpatrick Approved as to form: WENDT, MITCHELL, SINSHEIMER, de la MOTTE & LILLEY City Attor y t By Allen Grimes AG:ktm avor Kenneth E. Schwartz cent y ;hat the foregoing is a full,true and correct copy of ..QW; ;:::ed by the OIty Council of the City of San Lui3 JUL- - 5 197A H FITZPATRICK City Clerk; Approved as to content:.';' City Administrative Officer ..A i City Irneer -2- 6/12/78 .:,. ;til I•i•i III' III, I i:i':::. MEMORANDUM: r JUI 5 197BAGENDA ITEM ) APPROVED CONTINUED TO Clef Y s an 1, B- CITY ATTCRNEY'S OFFICE Post Office Box 321 • San Luis Obispo, CA 93406 a 805,•'541-1000 July 5, 1978 C--'7-3 DENIED To Honorable Mayor and City Council From Allen Grimes, pity Attorney Subject Agenda Item C-3, July 5, 1978 Southern.California Gas Company franchise ordinance After Item C-3 (franchise) was placed on the agenda for July 5, a matter came to the staff's attention which may affect the terms of the proposed franchise ordinance. The city engineer advised this office that a controversy had arisen as to whether it was the obligation of the gas company under the proposed franchise to relocate customer facilities behind the meter in the public right-of-way if required for a grade or alignment change. I wrote to Mr. 0. P. Chase, the district manager, to obtain his position on the matter and have not had.a reply as yet. Mr. Chase is on vacation and not due back in his office until July'10. Subject to further clarification, I recommend that the franchise ordinance being set for hearing be modified to substitute the attached revised page 7. The new material is underlined. AG:ktm CC: City Administrative'Officer City Clerk City Engineer enc. r regrade or maintain below surface or above surface improvements of any type or description in, upon, along, across, under or over the streets of the City. City further reserves the right to re- locate, remove, vacate or replace the streets themselves. If the necessary exercise of the aforementioned reserved rights is made necessary in order to accommodate a municipal government purpose and conflicts with any underground pipes and appurtenances of Grantee constructed, maintained and used pursuant to the provisions of the franchise granted hereby, whether previously constructed, maintained and used or not, Grantee shall, without cost or expense to City after written notice from the City Administrative Officer, or his designated representative, and request to do so, begin the physical field construction of changing the location of all facil- ities or equipment sc conflicting, which shall include the relocation of customer's facilities behind the meter.in a public right-of-way if required by a grade or alignment change. Grantee shall proceed promptly to complete such required work. (b) Irrespective of any other provision of this ordinance, Grantee's right to construct, maintain and use, underground pipes and appurtenances thereto shall be subject at all times to the right of City, in the reasonable exercise of its police power in response to a direct and immediate threat to the health or safety of the public, to require the removal or relocation of said under- ground pipes and appurtenances thereto at the sole cost and expense of Grantee. SECTION 11. RESPONSIBILITY FOR DAMAGES. If any portion of any street shall be damaged by reason of defects in any of the pipes and appurtenances maintained or AG:ktm -7- 6/9/78 Rev. 7/5/7R 5 1978AGENDA ITEM # C'V ( ) AllwrovEs, ) DENIED!� II Ililli!I C� 0 SAI I tU1 D� (� f CITY ATTORNEY'S OFFICE Post Office Box 321 • San Luis Obispo, CA 93406. 805/541-1000 June 20, 1978 MEMORANDUM: To Richard D. Miller, City Administrative Officer From Allen Grimes, City Attorney A Subject Southern California Gas Company franchise Attached please find: 1. Application of Southern California Gas Company for franchise. 2. Resolution of intention to grant an indeterminate franchise to Southern California Gas Company. 3. Suggested ordinance granting the franchise. The proposed franchise ordinance has been prepared as a result of staff review of the existing franchise and the franchise proposed by the gas company. The fundamental differences between the existing and the proposed franchise are: A. An indeterminate franchise is proposed for the term. B. Supplemental consideration of $10,000 is proposed for the granting of the franchise. Except as noted above, and except for minor changes in definitions and procedures, the proposed franchise is substantially consistent with the present franchise. AG:ktm enc ( 3 ) 0-2-1 .t w (To be used where Gas Company does not own a Constitutional Franchise) APPLICATION OF .... SQ1JViEBN_.CALLFQBNIA...GAS... CQMPANY........................................................... (Name of Applicant) FOR A GAS FRANCHISE PURSUANT TO THE PROVISIONS OF DIVISION 3, CHAPTER 2 OF THE PUBLIC UTILITIES CODE OF THE STATE OF CALIFORNIA, KNOWN AS THE FRANCHISE ACT OF 1937. CITY COUNCIL Tothe — -._....-.-..-..••---...•......................... ....._ - --............. -................... -.............. (Name of Legislative. Body) —CITY•_OF--SAN -,LUIS .,OBISPO .................... _...... — ... ____--.......... (Name of Municipality) California. Gentlemen: The undersigned applicant hereby makes an application, under and pursuant to the provisions of Division 3, Chapter 2 of the Public Utilities Code of the State of California, for a franchise, and, in compliance with the provisions of Section 6231 thereof, states: (a) The name of the applicant is..SOUTHERN.-CALIFOR._gIA..GAS.._COMPANY............................ The applicant is a corporation organized and existing under and by virtue of the laws of the State of California and engaged as a public utility corporation in transmitting and distributing gas for all pur- poses to consumers in various municipalities and communities in the State of California, including the CITX... OX.. SAN ... LUIS ...QaISPQ........ :_................ --............ -.............................................. :................ -- -- (Name of Municipality) (b) The purpose for which the franchise herein applied for is desired is to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the public streets, ways, alleys and places, as the same now or may hereafter exist within the CITY OF SAN LUIS OBISPO (Name of Municipality) The term for which the franchise herein applied for is desired is indeterminate, as defined in Sec- tion 6264 of the Public Utilities Code of the State of California. (c) The applicant, if granted the franchise herein applied for, will pay to the ...................................... CITY OF SAN LUIS OBISPO (Name of Municipality) during the life of such franchise, two per cent (2%) of the gross annual receipts of applicant arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (I 9o') of the gross annual receipts of applicant derived from the CITY OF SAN LUIS OBISPO sale of gas within the limits of the ................... :........... :...................................... under said gas franchise. (Name of Municipality) Dated this ... :...... 1a4! ..... day of_ .................. MaY-------------------- 78 SOUTHERN. CALIFORNIA GAS COMPANY ............................. - ------ ...... - ..................... ame of Applicant) By_ .... Senior Vice P sident ,fit Secretary Address: 810 South Flower Street, Los Angeles, California. FORM 2495-A M SOUTHERN CALIFORNIA gC1S COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES. CALIFORNIA SYSTEM LAW DEPARTMENT Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 (213) 689-3538 September 11, 1970 City Clerk City of San Luis Obispo City Hall San Luis Obispo, California Dear Sir: Enclosed is a rider naming Southern California Gas Company as the principal on the franchise bond previously filed by Southern Counties Gas Company of California in connection with Franchise Ordinance No. 247 N.S. Also enclosed is a rider to the Contras ors icense Bond No. 109923 previously filed by Southern Counties. These riders were made necessary by the merger, previously reported to you, of the two distributing companies on August 1, 1970. RS :1 c Enclosures Very truly yolirs, ��� Robert Salter Attorney RIDER TO AMEND BOND TO BE ATTACHED to and form a part of Franchise Bond No. 113322 , executed by the PACIFIC INDEMNITY COMPANY, effective August 18, 1943 in the amount of Two thousand five hundred -----------------DOLLARS ($ 2500.00 on behalf of Southern Counties Gas Companyof California (Hereinafter called the Principal) and in favor of City of San Luis Obispo IN CONSIDERATION of the premium charged for the attached bond, it is understood and agreed that the said bond shall be and the same is hereby amended, effective as of August 1, 1970 by changing the rams of the Principal on said bond as follows: FROM: Southern Counties Gas Company of California TO: Southern California Gas Company PROVIDED, HOWEVER, that the attached bond as changed by this Rider shall be subject to all its agree- ments, terms, conditions and limitations except as herein expressly modified, and that the liability under the attached bond and under the attached bond as changed by this Rider shall not be cumulative and shall be limited in the aggregate to the penalty of the said bond. STATE OF CALIFORNIA. County ofEL ..�®.� Gi_GE-.`S.. 1 ss. On this................3rd ......... -day of...... August........----........ 19...7-0, before me.----------------.ARLEEN C. JAWNY a Notary Public in and for said County and State, resitting therein duly commissioned and sworn, personally appeared -------------_------- R. L. 'vi =aE'i known to me to be the duly authorized Attorney -in -Fact of PACIFIC INDEMNITY COTI- PANY, and the same person whose name is suhscribed to the within instrument and he (she) acknowledged to me that he (she) subscribed hist (her) own name as the Attorney -in -Fact for and on behalf of PACIFIC INDEMNITY COMPANY. IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed my official seal the •• day and year in this Certificate first above written. ARLEEN C. ry mac-_•' NotaP .. i -nC - Ca4forria pz ......._-.........................L..�.L�s - a --------------------- Los An.scies County = LOS € My Commission Expires A ril 10 1972 = Y .g E1 N C Ew,.„��w,wuu,,,,„..���..............._p......_.. Notar Public m and for----------•---............------.................. Countyr ate of California Form G1000 Rev. F (568) TME 6 gas 810 SOUTH FLOWER STREET/ Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 SOUTHERN CALIFORNIA GAS COMPANY SOUTHERN COUNTIES GAS COMPANY SYSTEM LAW DEPARTMENT 689-3538 City Clerk City of San Luis Obispo City Hall San Luis Obispo, California Dear Sir: July 23, 1970 On August 1, 1970, the two natural gas distributing companies of the Pacific Lighting System are being merged into one company. The merged company will thereafter be known as Southern California Gas Company. At the present time Southern Counties Gas Company of California installs its pipelines within the public streets in the City of San Luis Obispo and pays annual franchise payments to the City pursuant to franchise Ordinance No. 247. N.S. After the merger, franchise payments will be made in the name of Southern California Gas Company. Under the merger agreement Southern California Gas Company will become obligated to comply with all of the terms and conditions of the franchise. The franchise bond which has been filed with the City in the name of Southern Counties Gas Company of California will be amended to reflect the name of Southern California Gas Company. If appropriate, would you please have the City Council adopt an ordinance consenting to franchise payments being made in the name of Southern.California Gas.Company. I would appre- ciate it if you would let me know the procedure to be followed. If an ordinance is passed, would you please send me a certified COPY'. Thank you very much for your assistance in this matter. Very truly yours, Robert Salter Attorney RS:lc cc: Mr. Harold Johnson, City Attorney Mr. Howard Newby 1 2 3 a 8 7 8 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 c SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA August 18, 1943 To the City Council of the City of San Luis Obispo and Clerk of the City of San Luis Obispo, San Luis Obispo, California I Gentlemen: Southern Counties Gas Company of California hereby files with you its written acceptance of the terms and conditions of Franchise Ordinance No, 247 New Series, and the undersigned.Southern Counties Gas Company of California hereby agrees to keep and observe each of the conditions and provisions thereof. Yours very truly, SOUTHERN COUNTIES GAS OF CALIFORNIA Attest: GES-jdd secretary I hereby certify that the attached letter dated August 18, 1943 is an exact copy of the original letter of acceptance dated August 18, 1943 of a franchise by the Southern Counties Gas Company of California, a corporation, covered by Ordinance No. 247'New Series, and that said original WL - letter of acceptance was received by me at . P*MM* on August 1943. Werf he Ci of San Lu s Obispo, California I I 1 2 3 4 5 6 7 8 9 10 11 12 13' 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ZO FRANCHISE BOND A%. Bond No, 113322 KNOW ALL NEN BYTHESE PRESENTS- That RESENTSe That we, SOU^1BERN COUR IES GAS COMPANY OF CALIFORNIA, II a corporation duly organized and existing under and by virtue of the laws of the State of California and having its principal place of business in the City of Los Angeles, County of Los Angeles, State of California, as principal, and PACIFIC INDEMITY COMPANY. a corporation created, organized and existing under and by virtue of the laws of the State of California, as surety, are held and firmly bound unto the City of San Luis Obispo, County of San Luis Obispo, State of California, in the penal sum of Two Thousand Five Hundred Dollars ($2,500.00)., lawful money of the United States of America, for the payment of which well and truly to be made we bind ourselves, our successors and assigns, jointly and severally, firmly by these presents;- V=,REAS, the above abounden Principal, SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA;, has been awarded a franchise for an indeterminate term but shall not exceed 35.years, pursuant to the provisions of the Franchise .Act of 1937 of the State of California, approved June 29, 1937, Chapter 650, Statutes of 1937s by Ordinance No.,247 New Series•of the City of San,Luis Obispo, County of San Luis Obispo, State of California, finally passed July 19, 19430 effective August 18, 1943, for the right, privilege and franchise to lay and use pipes and appurtenances for the transmission and distribution of gas for any and all purposes under, along, across or upon the public streets, ways, alleys, and places, as the same now or may hereafter exist, within said City of San Luis Obispo, the terns and conditions of said franchise being fully set forth in said Ordinance No. 247 New Series, granting the same; and WHEREAS, the said Principal, as Grantee of said franchise, 30 is required by said City of San Luis Obispo to file a bond in the j 31!sum of Two Thousand Five Hundred Dollars ($2,500.00) for the faith- 32ful performance of the terms and conditions thereof. - 1 - t I i 1 NOW, THEREFORE, if the said Principal, SOUTHERN COUNTIES GAS COMPAPTY OF CALIFORNIA, shall well and truly observe, fulfill and perform each and every term and condition of said franchise, then this obligation to be void, otherwise to remain in full force and effect. IN WITNESS WHEREOF, SOUTHERT COUNTIES GAS COMPANY OF CALIFOR_NtIA and PACIFIC INDEMNITY COMPANY have hereunto caused STATE OF CALIFORNIA, SS. County of Los Ange le s _j STATE OF CALIFORNIA, 68. County of_LOS AN' C-- S On this--- l8Lh day of AuEUSt _....,in the year one thousand nine hundred and. 43 before me, .__A .nom q na CARTFp _.......... ...... a Notary Public in and for said County and State, residing therein, duly commissioned and sworn, personally appeared .. ......_..Imown to me to be the duly'authorized Attorney -in -Fact of PACIFIC INDEMNITY COMPANY, and the same person whose name is subscribed to the within instrument as the Attorney -fn -Fact of said Company, and the said - ......... _I : C3Era91?2ill _._-.__..—_._.—acknowledged to me that he subscribed the name of PACIFIC INDEMNITY COMPANY, thereto as surety and his own name Be Attorney -in -Fact. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this Certificate first above written. _ I. Form ar000 tear. a 10M 042 (r.x.) Notary Public in and for.. LOS ..................AN..._....._._�...._....--% .. ouaty, State of -California. I hereby certify that the attached Franchise Bond dated August 18, 1943, was received on ;the 1/� day of August, 1943.�/o C 1erk of the City of Zan Luis Obispo, California 5 5 e 247 _ ORDINANCE NO. I- (New Series) AN ORDINANCE OF THE CITY OF SKN LUIS OBISPO GRANTING TO SOUTHERN COUNTIES GAS C014PANY OF CALIFORNIA, A CORPORATIOP4, 1''. RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE PIPES AND APPURTMANCES FOR TRANS:dITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS, WAYS, ALLEYS AND PLACES, AS THE SAME NOW OR YAY HER NIFTIER EXIST, WITH. SAID MUNICIPALITY. BE IT ORDAINED by the Council of the City of San Luis Obispo, as follows: SECTION ONE dhenever in this ordinance the words or phrases herein- after in this section defined are used, they shall have the respec- tive meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning): (a) The word "Grantee" shall mean the corporation to which the franchise contemplated in this ordinance is granted and its lawful successors or assigns; (b) The word "City" shall mean the City of San Luis Obispo, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated or reincorporated form; (c) The word "streets" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within said City; (d) The word "Engineer" shall mean the City Engineer of the City; (e) The word "Gas" shall mean natural or manufactured gas, or a mixture of natural and manufactured gas; (f) The phrase "Pipes and Appurtenances" shall mean pipe, pipeline, main, service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment, appurtenance and any other property located or to be located in, upon, along, across, under or over -1- the struts of the City, and used or useful in the transmitting and/or distribution of gas. (g) The phrase "Lay and use" shall mean to lay, construct, erect, install, operate, maintain, use, repair, replace, or remove, SECTION TWO That the right, brivilege and franchise, subject to each and all of the terms and conditions contained in this ordinance, and pursuant to the Provisions of the "Franchise Act of 1937", be and the same is hereby granted to Southern Counties Gas Company of California, a corporation organized and existing under and by virtue of the laws of the State of California, herein referred to as the "Grantee", to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the streets, of the City, for an indeterminate term or period from and after the effective date hereof, that is to say, this franchise shall endure in full force and effect until the same shall, with the consent of the Railroad Commission of the State of California, be voluntarily surrendered or abandoned by its possessor, or until the State of California or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of this franchise, and situate within the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or until this franchise shall be forfeited for non-compliance with its terms by the possessor thereof; provided, however, that notwithstanding anything to the contrary herein contained, the maximum length of time for which this franchise is granted is 35 years from the effective date thereof, and this franchise shall cease and determine upon the expiration of said period of 35 years, -2- T SECTION TIMEE The Grantee shall pay to the City at the times herein- after specified, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (20) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1%) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The Grantee of this franchise shall file with the Clerk of the City within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the grant of this franchise, and within three (3) months after the expiration of each and every calendar year thereafter a duly verified statement showing in detail the total gross receipts of the grantee, its successors or assigns, during the preceding calendar year, or such fractional calendar year, from the sale of the utility service within the City for which this franchise is granted. It shall be the duty of the grantee to pay to the City at the time of filing such statement, in lawful money of the United States, the specified percentage of its gross receipts for the calendar year, or such fractional calendar year, covered by such statement, Any neglect, omission or refusal by said grantee to file such verified statement, or to pay said percentage, at the times or in the manner hereinbefore provided, shall be grounds for the declaration of a forfeiture of this franchise and of all rights thereunder. Inasmuch as the grantee of this franchise has been occupying the streets of the City continually since the first day of November, 19410 such grantee shall pay to the City a sum equal to one per cent (1%) of the gross receipts of the grantee derived from the sale of gas within the limits of the City during the period from November 1, 1941 to December 31, 1942, inclusive, such -3- J payment to be made within thirty days after the effective date of this ordinance. Thereafter annual payments shall be made, as hereinbefore provided, for each calendar year beginning January 1, 1943. Payment at the stipulated percentage shall be made for the full calendar year of 1943, despite the fact that this franchise will be in effect for only a portion of such year. The provisions contained in Section 101 of the Charter of the City providing that no payment shall be made by the grantee of a franchiseuntil after five years from the granting thereof, are specifically waived by the grantee, and all payments shall be made as hereinbefore provided, In determining the payment to be made to the City annually, the City Council hereby declares that it has taken into consideration the provisions of the Franchise Act of 1937, adopted by the Legislature of the State of California, in which Act the minimum annual payment to be made by the grantee of any gas franchise issued under the provisions of said act, is fixed at one per cent of the gross annual receipts derived from the sale of gas within the limits of the City. In the event that the Legis- lature of the State of California hereafter and during the life of this franchise, adopts a new act regulating or providing for the grant of franchises by municipalities, or any act similar to said Franchise Act of 1937, or any amendment'to said Franchise Act of 1937, and, in said act or amendment, provides for a minimum payment to be made to municipalities in a sum greater than one per cent of the gross annual receipts derived from the sale of gas within the limits of the City, then this ordinance shall be deemed to be amended, and from and after the effective date of such action on the part of the Legislature of the State of California, the pay- ment thereafter to be made to the City shall be the minimum payment specified in such act of the Legislature of the State of California; provided, however, that in no event shall such payment exceed two per cent of the gross annual receipts derived from the sale of gas -4- it within the limits of the City, irrespective of the fact that such legislative act may contain a provision for the payment of a greater percentage. SECTION FOUR This grant is made in lieu of all other franchises, rights, or privileges owned by the grantee, or by any successor of the grantee to any rights under this franchise, for transmit- ting and distributing gas within the limits of the City as said limits now or may hereafter exist and the acceptance of the franchise hereby granted shall operate as an abandonment of all such franchises, rights and privileges within the limits of this City, as such limits now or may hereafter exist, in lieu of which this franchise is granted. SECTION FIVE The franchise granted hereunder shall not become effective until written acceptance thereof shall have been filed by the grantee thereof with the Clerk of the City. When so filed, such acceptance shall constitute a continuing agreement of the grantee that if and when the City shall thereafter annex or con- solidate with, additional territory, any and all franchise rights and privileges owned by the grantee therein, shall be deemed to be abandoned within the limits of such territory. SECTION SIX The franchise granted hereunder shall not in any way or to any extent impair or affect the right of the City to acquire the property of the grantee hereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the grantee or any public utility. Nor shall this franchise ever be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the grantee as provided in Section Eleven (11) hereof. -5- SECTION SEYEN The grantee of this franchise shall file a bond running, to the Cit;, with at least two good and sufficient sureties, to be approved by the legislative body thereof, in a penal sum of $2500.00, conditioned that the grantee shall well and truly observe, fulfill and perform each and every term and condition of this fran- chise, and that in case of any breach of condition of said bond, the whole amount of the penal sum therein named shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and sureties upon said bond. Said bond shall be filed with the legislative body of the City within five (5) days after the date of the granting of this franchise; and in case said bond shall not be so filed, or shall not receive the approval of the legislative body this franchise shall be forfeited and any money paid to the City in connection therewith shall likewise be forfeited. SECTION EIGHT The grantee of this franchise shall (a) construct, install and maintain all pipes and appurtenances in accordance with and in conformity with all of the ordinances, rules and regulations heretofore, or hereafter adopted by the legislative body of this City in the exercise of its police powers and not in conflict with the paramount authority of the State of California, and, as to State highways, subject to the provisions of general laws relating to the location and main- tenance of such facilities; (b) pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the grantee under this franchise; (c) indemnify and hold harmless the City and its officers from any and all liability for damages proximately result- ing from any operations under this franchise; (d) remove or re -locate, without expense to the City, any facilities installed, used or maintained under this franchise if and when made necessary by any lawful change of grade, alignment or width of any public street, way, alley or place, or if and when made necessary by the construction of any subway, viaduct or other structure by the City, or by the construction or change of any water line or sewer line by the City. SECTION NINE The City Council shall have power to give the grantee such directions for the location of any pipes and appurtenances as may be reasonably necessary to avoid sewers, water pipes, con- duits or other structures lawfully in or under the streets; and before the *Mork of constructing any pipes and appurtenances is commenced, the grantee shall file with said City Council plans showing the location thereof, which shall be subject to the approval of said City Council (such approval not to be unreasonably with- held); and all such construction shall be subject to the inspection of said City Council and done to its reasonable satisfaction. All street coverings or openings of traps, vaults, and manholes shall at all times be kept flush with the surface of the streets; pro- vided, however, that, subject to the approval of the City Council, vents for underground traps, vaults and manholes may extend above the surface of the streets when said vents are located in parkways, between the curb and the property line. Where it is necessary to lay any underground pipes through, under or across any portion of a paved or macadamized street, the same where practicable and economically reasonable shall be done by a tunnel or bore, so as not to disturb the foundation of such paved or macadamized street; and in the event that the same cannot be so done, such work shall be done under a permit to be granted by the City Council upon application therefor. SECTION TEN If any portion of any street shall beidamaged by reason of defects in any of the pipes and appurtenances maintained or constructed under this grant, or by reason of any other cause -7- T r arising from the operation or existence of any pipes and appur- tenances constructed or maintained under this grant, said grantee shall at its own cost and expense, immediately repair any such damage and restore such street, or portion of street, to as good a condition as existed before such defect or other cause of damage occurred, such work to be done under the direction of the City Council and to its reasonable satisfaction. SECTION ELEVEN At the expiration of the period for which the franchise herein described is granted, or at any time prior thereto, the city may at its election and upon the payment of a fair valuation therefor, to be made and determined by the Railroad Commission of the State of California in the manner provided by the Public Utilities Act of the State of California, which determination shall include a value based upon severance damages caused to the remaining properties of said grantee, purchase and take over to itself the property and plant of the grantee in its entirety within the limits of the City of. San Luis Obispo, but in no case shall the value of said franchise be considered or takeninto account in fixing such valuation; provided, however, that the amount paid the City as provided in Section 15 hereof may be con- sidered and taken into account in fixing such valuation, such amount to be pro -rated depending on the number of years remaining of the maximum period of this franchise, at.the date of such purchase. Upon such payment by the city the plant and property of grantee thus to be acquired shall become the property of the city by virtue of the grant in payment thereunder and without the execution of any instrument or conveyance. SECTION WELVE The franchise granted hereby shall not be leased, assigned or otherwise alienated without the express consent of the City, but no such lease, assignment or other alienation shall IRM constitute a forfeiture or termination of this franchise, except at the option of the City, expressed by resolution of its City Council. Such resolution declaring the forfeiture or termination of this franchise may be adopted by the City Council at any time subsequent to any such lease, assignment or other alienation, and irrespective of the length of time between such lease, assign- ment or other alienation, and the adoption of such resolution. No dealings with a lessee or assignee of the grantee on the part of the City to require the performance of any act or payment of any compensation by such lessee or assignee shall be deemed to operate as such consent; provided, that nothing herein shall be construed to prevent the grantee of such franchise from including the franchise in a mortgage or trust deed executed for the purpose of obtaining money for corporate objects. SECTION THIRTEEN This franchise is granted under and in accordance with the provisions of the Franchise Act of 1937 and of the Charter of the City of San Luis Obispo. This franchise is granted subject to all the rights, powers and privileges reserved to the City of San Luis Obispo, or to the City Council of said city, by the Charter of the City of San Luis Obispo, whether the reservation of any such right, power or privilege be expressed in this ordinance or not. SECTION FOURTEEN If the grantee of this franchise, its successors or assigns, shall fail, neglect or refuse to comply with any of the terms, limitations, provisions or conditions of this franchise or of the Charter of the City of San Luis Obispo and shall:nbt within ten (10) days after written demand for compliance, made upon order of the City Council of said city, begin the work of compliance or, after such beginning, shall not prosecute the same with due diligence to completion, then said city, by resolution adopted and .9- passed by its City Council,may declare this franchise forfeited. The city may sue, in its own name and in any court of competent jurisdiction, for the forfeiture of this franchise in the event of any failure, neglect or refusal by the grantee, its successors or assigns, to comply with any of the terms, limitations, provisions or conditions of this franchise. SECTION FIFTEEN The grantee of said franchise shall pay to the city a sum sufficient to reimburse it for all publication expenses in- curred by it in connection with the granting of this franchise, such payment to be made within thirty (30) days after the city shall have furnished such grantee with a written statement of such expenses; and, within such time, shall also pay to said City the sum of $53000,00. SECTION SIXTEEN This ordinance shall become effective thirty days after its final passage, unless suspended by a referendum petition filed as provided by law, SECTION SEVENTEEN To constitute this bill an ordinance it shall, before final action is taken hereon, be passed to print and published with the ayes and noes thereon for two successive days in the Telegram -Tribune, s daily newspaper of general circulation published: and circulated in said city. First introduced at a regular meeting of the City Council of said city held on the 7 day of June, 1943, and passed to print upon the 7 day of June, 1943, by the following vote: AYES: R,F.Ho-inell,Ralph C.Kennedy F.C,Kimball, Clyde T 0`Nan NOES: Joseph Leary ABSENT: t -nn o AT..payor of the City of San Luis Obispo �i���� 1 C:k2ofthe City of San Luis Obispo P 0 - Finally passed and adopted on the 19 day of July, 1943, (more than thirty (30) days after the introduction hereof) by the following vote: AYES: i �o%iell- .?. 0- ,'An-ney 7- (- __irnhal l nl.ro n r"Q NOES: j-osenh Leary ABSENT% None Mayor of the City of Jan Luis Obispo— ATTEST-'.1 spo ATTEST:, C er of the City of San Luis 0 i -Po -11- SOUTHERN COUNTIES GAS COANIPANY OF CALIFOHNIA SIXTH FLOOR 810 SOUTH FLOWER STREET OFFICE OF LOS ANGELES,CALIFORI�IA LEBOY bL EDWABDH, ""E January 28, 1943, wwn Ga. AL cooneE�. The City Council, �v �194.� City of San Luis Obispo, JN 2. San Luis Obispo, California. CITY C3.ERK Gentlemen: -'Yo ww Under date of January.21, 1943, we received a communica- tion from Mr, Ralph C. Kennedy, Commissioner of Finance, City of San Luis Obispo, advising us that the City,Council in regular session January 18, 1943, had instructed him to request our Com- pany "to submit its proposed franchise proposition at this time, so that it may be placed upon --the ballot for the City election to be held Monday, April 5, 1943." Ever since the Southern Counties Gas Company of California ac- o_uired the gas distribution system of the Santa Maria Gas Company in your City, it has made repeated -attempts to secure a gas fran- chise from your City, as it is very unsatisfactory for the Company to serve your City with natural gas without a franchise. Our Company has endeavored to give your City an excellent gas service, and we have, since taking over the gas system in ,your City, made a very substantial voluntary.reduction.in our gas rates. We be- lieve that we are entitled to receive a franchise and that it is in the public interest that a franchise be granted to us, The Southern Counties Gas Company of California holds franchises in 42 cities in Southern California, each franchise having the same uniform provision requiring the grantee to pay to the City "a sum annually which shall be equivalent to 2% of the gross an- nual receipts of grantee arising from the use, operation or possession of said franchise." It has been the policy of our Company during the 32 years of its existence to treat all cities upon its system impartially and without discrimination, and for that reason all of our franchises have contained the same identical clause for franchise payments. To pay one city more for franchise rights than is paid to other cities is discriminatory and cannot be justified upon any basis. In 1937,the League of Municipalities of the State of California drew up a new model franchise law for the State of California, The City Council, January 28, 19437 Page 2. known as the "Franchise Act of 1937", and at the instance of the California League of Municipalities this law was passed by the State Legislature in 1937. Enclosed herewith we are filing with your City an application for a gas franchise under the Franchise Act of 1937. Enclosed herewith is a suggested form of Franchise Ordinance, drawn in conformity with the Franchise Act of 1937 and conforming to the provisions of the City Charter of the City of San. Luis Obispo. We are willing to purchase such a .franchise from the City of San Luis Obispo, and will pay the City for such franchise the cash sum of $5,000, in.addition to the annual payments there- after to be paid asset forth in said proposed franchise ordi- nance. We respectfully request that our application receive your favorable consideration. I beg to remain Yours very truly, SOUTHERN COUNTIES GAS. COMPANY OF CAL�EORNIA j By LME: GG Enc. ice -President and General Counsel. (To be used where Gas Company does not own a Constitutional Franchise) APPLICATION OF.____SOUTHFRN -COUNTIES -GAS _COI_�IPANY OF CALIFORNIA _ (Name of Applicant) FOR A GAS FRANCHISE PURSUANT TO THE PROVISIONS OF THE FRANCHISE ACT OF 1937. To the___..__—Cit_,y _Council (Name of Legislative Body) San Luis Obis (Name of Municipality) California. Gentlemen: The undersigned applicant hereby makes an application, under and pursuant to the provisions of the Franchise Act of 1937, for a franchise, and, in compliance with the provisions of Section 2 thereof, states: (a) The name of the applicant is --- Southern Counties Gas Company of California -------------------------------- f California and engaged as a public utility corporation in transmitting and distributing gas for all pur- poses to consumers in various municipalities and communities in the State of California, including the ------------------------------ _Cit _of..San_Luis_ ObisIo•-••-----------•-•--•••-••------•-------•.......---•------------.............. (Name of Municipality) (b) The purpose for which the franchise herein applied for is desired is to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the public streets, ways, alleys and places, as the same now or may hereafter exist within the -- --- City of San Luis Obispo - —--•-•--•--....... -......................... ---------........................ -- (Name.of Municipality) The term for which the franchise herein applied for is desired is indeter inate, as defined in Sec- tion 5 of the Franchise Act of 1937, not exceeding, however, 3) years from its effective date. (c) The applicant, if granted the franchise herein applied for, will pay to the ...................................... --------------City-_of _San Luis••.Obi s po ----------------- ------------------------------ ....................... (Name of Municipality) during the life of such franchise, two per cent (2%) of the gross annual receipts of applicant arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (19o') of the gross annual receipts of applicant derived from the sale of gas within the limits of the ..... - .... Ci—y of San Luis Obispo ................••-•-•---•-----•-•-----....... — - . _............ ... under said gas franchise. (Name of Municipality) Dated this -_28 - ......... day of...........January . 19 43 Attest - Secretary Address A10 South Flower Street, Los Angeles, California. SOUTHERN COTRUIES GAS COMPANY OF CALIFORNIA, ..... ---.......................... (Name of Applicant) 'resident �- �[ L� CITY C1L.MRK IF i