SAN DIEGO GAS AND ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
2009 BIENNIAL COST ALLOCATION PROCEEDING (A.08-02-001)
1st DATA REQUEST FROM SOUTHERN CALIFORNIA EDISON COMPANY (SCE-01)
______________________________________________________________________
QUESTION 1:
Subject: Cold-Temperature Year Weather Design
Re: Workpapers of Herb Emmrich, pp 385-368
a. According to the workpapers, the weights for each zone (shown in table 1 of
page 385 of the workpapers) is based on “the proportion of gas customers
within each temperature zone based on calendar year 2006 customer
counts.” Please provide an electronic spreadsheet showing the customer
counts by temperature zone from 1950 to the present and the forecasted
customer counts for these same zones through 2020 or as far into the future
as SoCalGas has forecasts, should it not have forecasts for 2020.
b. Please provide in an electronic spreadsheet, the data in table 2, page 386 of
the workpapers showing unweighted heating degree days for each
temperature zone for each month from 1900 (or as far back as SoCalGas has
history) to the present.
c. Please provide in an electronic spreadsheet, the data from table 2, page 386
of the workpapers showing weighted heating degree days (using the
weightings shown in table 1, page 386) for each temperature zone from 1900
to the present for each month, and weighted for the year.
d. Please provide, or point to the relevant place in the testimony and
workpapers, any studies and statistics which SoCalGas used in determining
the level of gas use per degree day for SoCalGas.
e. Please provide the same information in electronic format for SDG&E as was
provided in response to questions a-d above.
RESPONSE 1: The response to this question will be provided in two main parts: one
each, for SoCalGas and SDG&E.
SocalGas:
a. Please see the attached EXCEL file that provides the customer count data
used for SoCalGas calculations of system average weather variables, e.g.,
daily heading degrees and monthly or annual heating degree-days. At the
time SoCalGas computes system average weather variables, it employs the
adopted set of temperature zone weights for both the historical as well as the
forecast time frame. For example, in our 2009 BCAP filing, as described in
Mr. Emmrich’s work papers on p. 385, the system average heating degree1
SAN DIEGO GAS AND ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
2009 BIENNIAL COST ALLOCATION PROCEEDING (A.08-02-001)
1st DATA REQUEST FROM SOUTHERN CALIFORNIA EDISON COMPANY (SCE-01)
______________________________________________________________________
days by month were based on the weights computed from the customer count
data as provided for year 2006 in the attached EXCEL file.
Scg_SCE
DR-01(Q#1a)Resp.xls
b. Please see the attached EXCEL file that provides the monthly heating
degree-days for each of the six(6) temperature zones (columns F-K) along
with the rounded and un-rounded system-wide heating degree-days (columns
D and E).
Scg_SCE
DR-01(Q#1b)Resp.xls
c. The respective temperature zone weights employed to calculate the systemwide heating degree-days are shown in row#1, columns N-S, of the EXCEL
file provided in “b” above. The weighted heating degree-days for each
temperature zone (1-6) are calculated beginning at row#2, columns N-S.
d. Below is an example, using the work papers for SoCalGas’ residential market,
to illustrate how to use the gas demand forecasts to calculate the level of gas
use per heating degree-day.
Over the 2009 BCAP period (2009 through 2011):
837.3 MTh/Hdd = (2,723,455 MTherms in Cold Yr
- 2,483,989 MTherms in Avg Yr)
/ (1,665 Hdd in Cold Yr - 1,379 Hdd in Avg Yr)
Scg_SCE
DR-01(Q#1d)Resp.xls
2
SAN DIEGO GAS AND ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
2009 BIENNIAL COST ALLOCATION PROCEEDING (A.08-02-001)
1st DATA REQUEST FROM SOUTHERN CALIFORNIA EDISON COMPANY (SCE-01)
______________________________________________________________________
SDG&E:
a. During 2007, SDG&E made a slight change in the weighting applied to the
three locations used to compute system average weather variables, e.g., daily
heading degrees and monthly or annual heating degree-days. The current
weights are simply “1/3” for each location; previously, a weight of “0.35” was
applied to each of El Cajon and Mirimar; while a weight of “0.30” was applied
to the Lindberg Field location.
b. Please see the attached EXCEL file that provides the monthly heating
degree-days for each of the three(3) locations/temperature zones (columns FG) along with the (un-rounded) system-wide heating degree-days (column E).
Sdge_SCE
DR-01(Q#1b)Resp.xls
c. The respective location/temperature zone weights employed to calculate the
system-wide heating degree-days are shown in row#1, columns K-M, of the
EXCEL file provided in “b” above. The weighted heating degree-days for
each location/temperature zone (1-3) are calculated beginning at row#2,
columns K-M.
d. Below is an example, using the work papers for SDG&E’s residential market,
to illustrate how to use the gas demand forecasts to calculate the level of gas
use per heating degree-day.
Over the 2009 BCAP period (2009 through 2011):
125.8 MTh/Hdd = (369,798 MTherms in Cold Yr
- 326,003 MTherms in Avg Yr)
/ (1,654 Hdd in Cold Yr - 1,306Hdd in Avg Yr)
Sdge_SCE
DR-01(Q#1d)Resp.xls
3
SAN DIEGO GAS AND ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
2009 BIENNIAL COST ALLOCATION PROCEEDING (A.08-02-001)
1st DATA REQUEST FROM SOUTHERN CALIFORNIA EDISON COMPANY (SCE-01)
______________________________________________________________________
QUESTION 2:
Subject: The Cost of Gas Storage
Re: Direct Testimony of Rick Morrow (general)
a.
Please explain fully and in detail, with numerical examples as appropriate,
how SoCalGas calculates the profit on storage which it proposes to split
with customers. This explanation should include (but not be limited to)
i. The estimated Long Run Marginal Cost (LRMC) of storage to
SoCalGas used in this proceeding. (Note: this question calls for the
unscaled LRMC, not the Scaled LRMC). If this LRMC does not match
the estimated cost to expand storage, please explain why it does not.
ii. The scalar which SoCalGas proposes to apply to LRMC in determining
the cost of storage.
iii. The variable costs of storage.
iv. The total (embedded) cost of storage and the total variable costs of
operating storage for SoCalGas.
b.
Please provide an electronic spreadsheet showing the following
information for each year from 1990 to the present:
i. Total storage inventory available to the system in terms of inventory,
injection, and withdrawal capacity.
ii. Total storage inventory available through the unbundled storage
program only in terms of inventory, injection, and withdrawal capacity.
iii. The price of storage inventory to core customers, and the quantity of
inventory, injection, and withdrawal capacity core customers held.
Please include the levels for both SoCalGas and SDG&E core
customers.
iv. Price of inventory capacity, injection capacity, and withdrawal capacity
paid through the unbundled storage program. For those years when
these were not marketed separately, please describe the bundle(s)
which customers could bid on and the price(s) paid for those bundles.
4
SAN DIEGO GAS AND ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
2009 BIENNIAL COST ALLOCATION PROCEEDING (A.08-02-001)
1st DATA REQUEST FROM SOUTHERN CALIFORNIA EDISON COMPANY (SCE-01)
______________________________________________________________________
RESPONSE 2:
(a) The unscaled marginal cost of unbundled storage is provided in Ms. Smith’s Cost
allocation workpaper tab, cell Z98: $45,776,000. The total unscaled marginal cost of
storage is $117,886,000 per AF98 of the same spreadsheet.
Ms. Smith then scales all storage costs to the $81,640,000 level shown by Mr. Emmrich
in Table 27. This is a negative 30.7 percent (69.3%) scalar. The resulting scaled
marginal cost of unbundled storage is $31,701,000, as shown in Z101 of that same
spreadsheet. This amount is $4 million higher than the embedded cost of unbundled
storage presented by Mr. Emmrich in his Table 27 because unbundled storage
accounts for 39% of total storage marginal cost ($45,776,000 ÷ $117,886,000) whereas
it accounts for only 33% of embedded costs in Mr. Emmrichs’ Table 27 ($27,235,000 ÷
$81,640,000).
SoCalGas is proposing a zero variable O&M charge. Those costs are included in the
embedded costs of O&M provided by Mr. Emmrich in his Table 27. SoCalGas is
proposing an in-kind injection fuel charge for all customers.
SoCalGas is recommending the adoption of an embedded cost framework. If, however,
an LRMC framework was adopted, then the 50/50 sharing of unbundled storage
revenues suggested by SoCalGas would be 50/50 sharing around a based allocation to
unbundled storage of $31,701,000.
LRMC Example:
Assume unbundled storage revenues from existing storage assets (i.e., assets less than
131.1 Bcf inventory, 3195 MMcfd withdrawal, and 850 MMcfd injection)
Revenues
Minus scaled unbundled cost
=
Ratepayer refund =
Shareholder portion =
$61,701,000*
$31,701,000
$30,000,000
$15,000,000
$15,000,000
*Revenues from customers of expansion storage would not be shared.
Again, SoCalGas’ preferred position is embedded cost using Mr. Emmrich’s Table 27.
5
SAN DIEGO GAS AND ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY
2009 BIENNIAL COST ALLOCATION PROCEEDING (A.08-02-001)
1st DATA REQUEST FROM SOUTHERN CALIFORNIA EDISON COMPANY (SCE-01)
______________________________________________________________________
Preferred, Embedded Cost Example:
Assume unbundled storage revenues from existing storage assets (i.e., assets less than
131.1 Bcf inventory, 3195 MMcfd withdrawal, and 850 MMcfd injection)
Revenues
Minus embedded cost
=
Ratepayer refund =
Shareholder portion =
$61,701,000*
$27,235,000
$34,466,000
$17,233,000
$17,233,000
*Revenues and costs of expansion storage would not be shared.
(b)
The attached spreadsheet provides the data from 2000 to date. The detailed
data being requested is not available for the 1990’s.
sce2b.xls
6