Document Gm8ZVDJdpeybg3DbxBQzMkyMr

PACIFIC OA.S uAjSTO XuSOTF^IO COMPANY UPCGt^-IS --f~ 356- E. AlISAL STREET 0. SOX 1171 SALINAS. CALIFORNIA 93301 * 1408) 422-8322 VV,, _ . M O ^ ^ A Y OlViiiO-N ***haGEX` December 12, 1975 Dear Interruptible Gas Customer; ' On December 2, 1975, by Decision No. 85189, the Cal i forni a Publ i c Lit i 1 i ti es Commission has ordered that; " California gas utilities shall not provide service to new or additional service to customers wherein the customer's new requirement will be in excess of 50 Mcf/day and that requirement can be met with an alternate fuel." and "Commission approval will be required before a gas utility can (1) provide service to any new non-residential customer with a demand of 50 Mcf/day and (2) install additional facilities to provide additional service to 5 nonresidential customer wherein the new level of service is in excess of 50 Mcf/day." The Commission's decision modifies the provisions of PGandE's Gas Rule 19 that heretofore focused on 200 Mcf/day for non-residential customers as a dividing line. Further in the decision, the Commission established five priority classes, noting that the Federal Power Commission had adopted an end-use curtailment plan for 1 Paso Natural Gas Company, one of California's major suppliers of natural gas, and that the California Legislature had added to the Public Utilities Code sections requiring the PUC to establish a system of priorities among categories in desending order, starting with those which "provide the most important public benefits and serve the greatest need." - Appendix "3" of the Commissi on's decision is attached which describes the new end-use priorities. The now priorities will not affect your operation until May. 31,. 1976, -Following are the approximate forecast of levels of gas service for this curtailment year under the old system and for the 1976-77 through 1977-78 curtailment years under the new end-use priorities; y. 1975- 76 Curtailment Year (Gas Supp1ies Forecast) Curtailment Group Numbers, 5975-76 2. 76% 3 3/% 4 37% 5 99^% 1976-78 Curtailment Years (Exhibit 203 of the C?UC Staff In Case 9642). Priorities 1976-77 1 1GC% 2A 100% 28 100% 3 90-95% 4 70-85% 1977-78 i 00% 100% 100% 80-90% 60-70% UCC 009337 In ter pup11b1e Gas December 12, 1975 Page 2 These numbers are subject to adjustment and the same general qualifications as previous data you received (average year, maintenance of existing supplies, etc,} As a result of this decision, many changes In our tariffs and policies will be required Energy Conservation Is extremely Important! Postive conservation efforts will enable us to supply your future energy requirements. Lets get together to discuss ways you can make your operation more efficient to save energy and reduce your energy costs. Please call me at 422 8322 for an appointment. AKS/sw Enclosures Industrial Power Engineer v UCC 009338 ATTACHMENT 1 C.95QI et al. Itc ' INTERIM ORDER IT IS ORDERED that: . 1. A- system of end-use priorities for statewide allocation of natural gas based on the criteria set forth In Appendix 3 of this decision is hereby adopted on an interim basis pending resolution of any environmental impact issues. Tariff schedules reflecting the end-use priorities established herein shall be riled by the respondent utilities in accordance with General Order No. 96-A to become effective within one hundred and eighty days from the effective date of this order. 2. Southern California Gas Company (SoCal)Pacific Gas and . Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&5) shall maintain data and report to the Commission quarterly on the number of customers and consumption of nonresidential customers with peak-day demands between 50-100 Mcf/d. 3. California gas utilities shall not provide service to new customers, or additional service to current customers, when the customer's new requirement will be in excess of 50 Mcf/d and that requirement can be met with an alternate fuel. 4. Commission approval will be required before a gas utility can (1) provide service to any new nonresidential customer with a demand in excess of 50 Mcf/d and (2) install additional facilities to provide additional service to a nonresidential customer when the new level of demand is in excess of 50Mcf/d. 5. SoCal, PG&E, and SDC&E, shall file with the Commission within one, hundred and twenty days after the effective date of this order lists o* f customers falling; into, the categories of priority 2-A and priority 2-3 permanent, and priority 2-A and Priority 2-B temporary. -30UCC 009339 C.,9581 et a 1. ltc 6. PG&E and SoCal. shall expand their mutual assistance agreement cr negotiate a separate agreement to protect deliveries to Priority 1 and priority 2 customers on a statewide basis. 7. PG&E, SDG&E, and Southern California Edison Company (Edison) shall submit to the Commission within one hundred and eighty days from the effective date of this order a detailed estimate of the cost of converting igniter, start-up, and flame stabilization fuel requirements and a detailed analysis of the quantities used for these purposes. 8. PG&E, SDG&E, and Edison shall initiate a program designed to convert to an alternate fuel the natural gas now used for igniter. Start-up, and flame stabilization purposes. 9; Uses not exceeding 25 Mcf/d on a peakday may be in the next higher priority where such use is a part of a multi- or split- priority customer s total use. 10> PG&E, SDG&E, Edison., and SoCal.. shall report every six months on. present and future plans relative to conservation. The first such report is to be filed no later than December 30, 1975. 11. PG&E, SDG&E, Edison, and. SoCal shall file quarterly a detailed analysis of: a. Expenditures for the immediate past six months for conservation and expenditure forecasts. b, Conservation activities and results with - present interruptible and steam-electric customers. . - jiUCC 009340 C.S581 et al, Itc c. Conservation activities and results with all other customer classes. . d. Insulation activities. e. Customer information regarding energy conservation. 12. The authorization in Decision No. 83923 for certain petro chemical companies to transfer to C Block priority is hereby extended until the end-use priorities authorized herein become effective. The effective date ox this order is the date hereof. Dated at _____ San Francisco, California, this 2nd day of December, 1975. I will file a concurrence. }sl LEONARD ROSS _ Commissioner I will file a concurrence. /s/ ROBERT BATINOVrCH Commissioner D. W. HOLMES____________ ' president WILLIAM SYMONS, JR._________ VERNON L. STURGEON__________ LEONARD ROSS___________________ ROBERT BATINOVICH____________ Commissioners -32UCC 009341 C. 9531 at al. l.tc APPENDIX 3 Page 1 of 4 End-tjse Curtailment 1. The following will establish an end-use priority system to replace the existing price-volume priorities under which^ the gas distribution utilities presently curtail deliveries of natural gas. 2. The criteria for categorizing the uses of natural gas of the customers of record as of the effective date of this decision is as follows: . Priority Description 1 All residential use regardless of size. All other firm use with peak-day demands less than 100 Mcf/d. 2-A Where primary use is as a feedstock with no alternative. _ Current firm nonresidential use with peakday demands greater than 99 Mcf/d: . Where conversion to alternate fuel is not feasible. Where conversion to alternate fuel is feasible. - . Electric utilities start-up and igniter fuel. 2-B Current interruptible customers with LEG or other gaseous fuel standby facilities: ... Where conversion to alternate fuel is not feasible. Where conversion to alternate fuel is feasible. Other interruptible customers with CPUC-approved deviation from.requirements for standby facilities. 3 All use noc included in another priority. Industrial boiler fuel where capability of utilizing an alternate fuel is present. Cement plants. 5 Utility, steam-electric generation plants and utility gas turbines. UCC 009342 C.9581 et al. Inc . APPENDIX B Page 2 of 4 The following definitions are to be associated with the criteria Alternate fuels: ' Nongaseous fuels; particularly excluding SNG, LNG, and LPG. Boiler fuel: . Gas used specifically to fire_ boilers, regardless of the end use of the steam produced. Feasible alternate fuel: * . The condition of a customer who currently has no capability of using an alternate fuel (as defined above), but where conversion to alternate fuel is technologically possible and economically practicable, within the context of the customer ' in question. Feedstock usage: Natural gas used as raw material for its chemical properties in creating an end product. Firm customers: Customers currently purchasing gas under firm natural gas service schedules. Interruptible customers: Peak-day demand: Customers currently purchasing gas -under interruptible natural gas tariff schedules. A customer's highest month's require ment divided by the number of days of operation in that month. Residential use: Industrial use: Service to customers which consists of direct natural gas usage in a residential dwelling for space heating, air conditioning, cooking, ' water heating, and other residential. * uses. Service to customers engaged primarily in a process which creates or changes raw or unfinished materials into another form or product. * Note: Industrial use is further defined as uses in the categories failing under Division 3, Mining, Division C, Construction,, and Division D, Manufacturing in the Standard Industrial Classi fication. Manual issued, by ' the Executive Office of the President, Office of Management and Budget. UCC 009343 L-.93G1 et al. Itc APPENDIX B Page 3 of 4 Process Gas: Use for which alternate fuels.are not technically feasible such as in applications requiring precise temperature controls and precise flame characteristics. Electric utilit ss start- up and igniter uel; Electric utility natural gas use* where no alternate fuel capability exists for; (1) heating the boiler system adequately during start-up to enable efficient oil burning to meet pollution standards; and (2) insuring continuous ignition and flame stabilization within the boiler. UCC 009344 TZ'.iZZl et al. Itc AFFaI'DIZ 2t Fo.;';c 4 of 4 GAS PRIORITY CRITERIA Transfers To To t\`$r P rio ri t ids UCC 009345