PUBLIC UTILITIES COMMISSIONPublic Utilities Commission of the State of California Subject Establish...

STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor

PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

August 17, 2016

Advice Letter 3732-G

Pacific Gas and Electric Company

Attn: Erik Jacobson, Director, Regulatory Relations

Senior Director, Regulatory Relations

77 Beale Street, Mail Code B10C

P.O. Box 770000

San Francisco, CA 94177

SUBJECT: Establish Memorandum Accounts and Modify Existing Balancing Account

Related to the Transmission Integrity Management Program

Dear Mr. Jacobson:

Advice Letter 3732-G is effective as of August 7, 2016.

Sincerely,

Edward Randolph

Director, Energy Division

Erik Jacobson Director Regulatory Relations

Pacific Gas and Electric Company 77 Beale Street, Mail Code B10C P.O. Box 770000 San Francisco, CA 94177 Fax: 415-973-7226

July 8, 2016 Advice 3732-G (Pacific Gas and Electric Company ID U 39 G)

Public Utilities Commission of the State of California Subject Establish Memorandum Accounts and Modify Existing Balancing

Account Related to the Transmission Integrity Management Program Pacific Gas and Electric Company (PG&E) submits for filing revisions to its gas tariffs. The affected gas preliminary statements are listed in the enclosed Attachment 2. Purpose Pursuant to Ordering Paragraphs (OP) 10, 22, and 23 of Decision (D.) 16-06-056, the purpose of this advice letter is to update PG&E’s gas tariffs to:

1. Establish the Hydrostatic Pipeline Testing Memorandum Account (HPTMA) to track actual costs incurred for hydrostatic testing of transmission pipes above the authorized amounts (OP 10);

2. Modify the existing Integrity Management Expense Balancing Account (IMEBA) to track expenses and capital costs listed in Appendix I of the Decision (OP 22); and

3. Establish the Transmission Integrity Management Program Memorandum Account (TIMPMA) (OP 23).

Background and Discussion On July 1, 2016, the Commission issued D.16-06-056 authorizing PG&E’s 2015-2018 Revenue Requirements for Gas Transmission and Storage Services (Decision). In that decision, the Commission adopts new cost recovery mechanisms related to PG&E’s Transmission Integrity Management Program (TIMP). Hydrostatic Pipeline Testing Memorandum Account (HPTMA) Ordering Paragraph 10 requires PG&E to establish a memorandum account to track the aggregated Hydrostatic Testing for transmission pipeline costs incurred during the 2015 Gas Transmission and Storage (GT&S) rate case cycle (2015-2018) above the adopted funding. Only amounts above the adopted $418.205 million of funding will be recorded

Advice 3732-G - 2 - July 8, 2016 to the HTPMA. The table below details the total adopted Hydrostatic Testing for the transmission pipeline funding.

(Thousands of Nominal Dollars)

2015 2016 2017 2018 Total

Adopted Funding 100,927 (a) 103,339 (b) 105,766 (b) 108,173 (b) 418,205

(a) Appendix D, Table 1, Line 3 (b) Attachment 1 shows the derivation of the 2016-2018 adopted funding.

Transmission Integrity Management Program Balancing Account (TIMPBA) Ordering Paragraph 22 requires PG&E to continue the existing one-way TIMP Balancing Account. The amounts to be tracked, by program, are in Appendix I, Table 1 and Table 2 of the decision. OP 24 limits the amounts to be tracked in the account to the aggregated 2015-2018 TIMP adopted expense and capital amounts of $377.794 million1 and $336.693 million2, respectively. The revenue requirements associated with any unspent funding at the end of the funding cycle will be returned to customers through transportation rates.3 Transmission Integrity Management Program Memorandum Account (TIMPMA) Ordering Paragraph 23 requires PG&E to establish a Transmission Integrity Management Program Memorandum Account (TIMPMA) to track costs associated with any new transmission integrity management statutes or rules effective after January 1, 2015. Expenses and capital revenue requirements associated with incurred capital costs for the following programs will be tracked in the account:

Description Category 1. Traditional In‐Line Inspections (ILI) Expense/Capital

2. Non‐Traditional ILI Expense/Capital

3. ILI Casings Expense

4. Traditional ILI ‐ Direct Examinations and Repairs Expense

5. Non‐Traditional ILI ‐ Direct Examinations and Repairs Expense

6. External Corrosion Direct Assessments Expense

7. Internal Corrosion Direct Assessments Expense

8. Stress Corrosion Cracking Direct Assessments Expense

9. TIMP Pressure Tests Expense

10. Geological Hazard Monitoring Expense

11. Root Cause Analyses Expense

12. Risk Analysis Process Improvements Expense

PG&E is allowed to seek recovery of the costs in this memorandum account through a formal application. 1 Appendix I: Table 1, sum of amounts for 2015-2018 on Line 13. 2 Appendix I: Table 2, sum of amounts for 2015-2018 on Line 3. 3 OP 24 states that the amounts to be included in rates are the revenue requirements associated with the actual expenses and capital costs set forth in Appendix I.

Advice 3732-G - 3 - July 8, 2016 Tariff Revisions

1. Hydrostatic Pipeline Testing Memorandum Account (HPTMA), Gas Preliminary Statement Part DO, is established to track the expenses incurred during the 2015 GT&S rate case cycle (2015-2018) above the authorized amount of $418.205 million.

2. Integrity Management Expense Balancing Account, Gas Preliminary Statement Part

CL, is revised to:

• be renamed Transmission Integrity Management Program Balancing Account (TIMPBA);

• include two subaccounts, one for expenses and one for capital revenue requirements. The “Expense Subaccount” tracks actual TIMP expenses up to the adopted 2015-2018 aggregated amount of $377.794 million. For TIMP capital expenditures, PG&E will maintain a sub ledger to track the monthly capital expenditures as recorded in its accounting system of record for the programs. If the aggregated capital expenditures recorded at the end of the GT&S rate case cycle is less than the adopted amount of $336.693 million, the “Capital Subaccount” will record the revenue requirement associated with unspent capital expenditures, to be refunded to customers;

• update the “Revision Dates” Section, to dispose of any unspent funding at the end of the funding cycle, including specifying that the amount PG&E will return to the customers in rates, is the revenue requirement associated with any unspent funds recorded in the subaccounts; and

• update the “Accounting Procedure” Section in the new “Expense Subaccount” to conform the existing entries to the specific requirements in the Decision and add entries in the new “Capital Subaccount” to record at the end of the funding cycle the capital revenue requirement associated with any unspent adopted funding for capital expenditures.

3. Transmission Integrity Management Program Memorandum Account (TIMPMA), Gas Preliminary Statement Part DP, is established to track actual expenses and revenue requirements related to actual capital expenditures associated with any new transmission integrity management statutes or rules effective after January 1, 2015.

PG&E anticipates additional modifications to the above accounts related to the Phase 2 decision in the 2015 Gas Transmission and Storage case, A. 13-12-012, addressing shareholder funded safety spending.

This filing will not increase any current rate or charge, cause the withdrawal of service, or conflict with any rate schedule or rule.

Advice 3732-G - 4 - July 8, 2016 Protests Anyone wishing to protest this filing may do so by letter by July 28, 2016, which is 20 days from the date of this filing. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. Protests should be mailed to:

CPUC Energy Division ED Tariff Unit 505 Van Ness Avenue, 4th Floor San Francisco, California 94102 Facsimile: (415) 703-2200 E-mail: [email protected]

Copies of protests also should be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest shall also be sent to PG&E either via E-mail or U.S. mail (and by facsimile, if possible) at the address shown below on the same date it is mailed or delivered to the Commission:

Erik Jacobson Director, Regulatory Relations c/o Megan Lawson Pacific Gas and Electric Company 77 Beale Street, Mail Code B10C P.O. Box 770000 San Francisco, California 94177 Facsimile: (415) 973-7226 E-mail: [email protected]

Any person (including individuals, groups, or organizations) may protest or respond to an advice letter. (General Order 96-B, Section 7.4.) The protest shall contain the following information: specification of the advice letter protested; grounds for the protest; supporting factual information or legal argument; name, telephone number, postal address, and (where appropriate) e-mail address of the protestant; and statement that the protest was sent to the utility no later than the day on which the protest was submitted to the reviewing Industry Division (General Order 96-B, Section 3.11). Effective Date PG&E requests that this Tier 2 advice filing become effective on August 7, 2016, which is 30 calendar days after the date of filing.

Advice 3732-G - 5 - July 8, 2016 Notice In accordance with General Order 96-B, Section IV, a copy of this advice letter is being sent electronically and via U.S. mail to parties shown on the attached list and the parties on the service list for A. 13-12-012 and I. 14-06-016. Address changes to the General Order 96-B service list should be directed to PG&E at email address [email protected]. For changes to any other service list, please contact the Commission’s Process Office at (415) 703-2021 or at [email protected]. Send all electronic approvals to [email protected]. Advice letter filings can also be accessed electronically at: http://www.pge.com/tariffs/. ___________/S/_______________ Erik Jacobson Director, Regulatory Relations cc: Service List A. 13-12-012 Service List I. 14-06-016

Attachments

CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY

ENERGY UTILITY

MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Company name/CPUC Utility No. Pacific Gas and Electric Company (ID U39 G)

Utility type: Contact Person: Yvonne Yang

ELC GAS Phone #: (415) 973-2094

PLC HEAT WATER E-mail: [email protected] and [email protected]

EXPLANATION OF UTILITY TYPE

ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water

(Date Filed/ Received Stamp by CPUC)

Advice Letter (AL) #: 3732-G Tier: 2 Subject of AL: Establish Memorandum Accounts and Modify Existing Balancing Account Related to the Transmission

Integrity Management Program

Keywords (choose from CPUC listing): Compliance, Memorandum Account, Balancing Account

AL filing type: Monthly Quarterly Annual One-Time Other _____________________________

If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D.16-06-056

Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: No

Summarize differences between the AL and the prior withdrawn or rejected AL: ____________________

Is AL requesting confidential treatment? If so, what information is the utility seeking confidential treatment for: No

Confidential information will be made available to those who have executed a nondisclosure agreement: N/A

Name(s) and contact information of the person(s) who will provide the nondisclosure agreement and access to the confidential information: __________________________________________________________________________________________________

Resolution Required? Yes No Requested effective date: August 7, 2016 No. of tariff sheets: 7

Estimated system annual revenue effect (%): N/A

Estimated system average rate effect (%): N/A

When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: See Attachment 2

Service affected and changes proposed: Gas Preliminary Statement Part CL, Transmission Integrity Management Program, Gas Preliminary Statement Part DO, Hydrostatic Pipeline Testing Memorandum Account (HPTMA), Gas Preliminary Statement Part DP, Transmission Integrity Management Program Memorandum Account

Pending advice letters that revise the same tariff sheets: N/A

Protests, dispositions, and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to:

California Public Utilities Commission Pacific Gas and Electric Company

Energy Division EDTariffUnit 505 Van Ness Ave., 4th Flr. San Francisco, CA 94102 E-mail: [email protected]

Attn: Erik Jacobson Director, Regulatory Relations c/o Megan Lawson 77 Beale Street, Mail Code B10C P.O. Box 770000 San Francisco, CA 94177 E-mail: [email protected]

Advice 3732-G July 8, 2016

Attachment 1


2015 Gas Transmission and Storage Case (2015 GT&S) (Phase I - Final Decision)

Attachment 1

Pacific Gas and Electric Company2015 Gas Transmission and Storage Case (2015 GT&S) (Phase I - Final Decision)

2015Adopted Amount

2016Adopted

Escalation Factor (1)

2016Adopted Amount

2017Adopted


2017Adopted Amount

2018Adopted


2018Adopted Amount

Hydrostatic Testing 100,927 1.0239 103,339 1.0235 105,766 1.0228 108,173

Note: Amounts do not reflect any adjustments for benefits and payroll taxes adopted from the 2014 GRC Decision

000s of $

(1) Amounts are calculated from Results of Operation Post Test-Year Ratemaking (PTYR) Workpapers which are available electronically on ALJ-

2, in the folder titled "2015GTS_FinalDecisionRO", File: RO_Gas.xlsm, Tab: AttritionExp, Columns A-J starting with 2016 on Row 101, 2017 on

Row 201 and 2018 on Row 301.



GT&S Request

Attrition Year 2016 Expenses

(Thousands of Dollars)

2015

Line Escalation Escalation Base Expense Line Composite

No. Description Basis Factor Estimate Adjustments Estimate No. Escalation

(A) (B) (C) (D) (E)

Gathering

1 Labor 1,269 1.0275 1,303 0 1,303 1

2 Materials & Supplies 614 1.0226 628 0 628 2

3 Other 0 1.0000 0 0 0 3

4 Total Gathering A 1,882 B 1,931 0 1,931 4

Storage

5 Labor 5,005 1.0275 5,142 11 5,153 5

6 Materials & Supplies 11,682 1.0217 11,936 3 11,938 6

7 Other 0 1.0000 0 0 0 7

8 Total Storage A 16,687 B 17,078 13 17,091 8

Transmission

9 Labor 112,591 1.0275 115,688 342 116,029 9

10 Materials & Supplies 339,070 1.0226 346,717 3,446 350,162 10

11 Other 0 1.0000 0 0 0 11

12 Total Transmission A 451,661 B 462,404 3,787 466,192 12

Distribution

13 Labor 173 1.0275 178 0 178 13


15 Other 0 1.0000 0 0 0 15

16 Total Distribution A 346 B 355 0 355 16

Customer Accounts

17 Labor 2,728 1.0297 2,809 0 2,809 17


19 Other 0 1.0000 0 0 0 19

20 Total Customer Accounts (Excluding Uncollectibles) A 3,483 B 3,585 0 3,585 20

Customer Service

21 Labor 4,944 1.0297 5,091 0 5,091 21


23 Other 0 1.0000 0 0 0 23

24 Total Customer Service A 5,955 B 6,130 0 6,130 24

Administrative & General

25 Labor 19,908 1.0297 20,500 0 20,500 25


27 Other 12,964 1.0000 12,964 0 12,964 27

28 Medical 14,044 1.0630 14,928 0 14,928 28

29 Wage-Related 3,121 1.0297 3,213 0 3,213 29

30 Total Admin & General (Excluding Franchises) 66,612 68,650 0 68,650 30Other

31 Labor 0 1.0297 0 0 0 31


33 Other (1,775) 1.0000 (1,775) 575 (1,199) 33

34 Total Other Adjustments (1,775) (1,775) 575 (1,199) 34

35 Total Labor Excl Wage-Related A&G 146,618 150,710 352 151,063 35

36 Wage-Related Administrative & General 3,121 3,213 0 3,213 36

37 Total Labor 149,738 153,923 352 154,276 37

38 Total Materials & Supplies 369,881 378,318 3,448 381,766 38

39 Total Other 11,190 11,190 575 11,765 39

40 Total Medical 14,044 14,928 0 14,928 40

41 Total Operating & Maintenance Expenses (Excl F&U) 544,852 558,359 4,376 562,735 41

42 Increase 13,507 4,376 17,883 42

43 Uncollectibles 45 14 59 43

44 Franchises 128 42 170 44

45 Total Increase Including Uncollectibles & Franchises 13,680 4,432 18,113 45

∑A 480,014 ∑B 491,484 ∑B/∑A 1.023894

2016

Please note that the workpaper below from the Results of Operation Post Test-Year Ratemaking (PTYR) Workpapers, available electronically on

ALJ-2 has been modified to include the calculation of the Composite Escalation Factors





GT&S Request



2016



(A) (B) (C) (D) (E)

Gathering

1 Labor 1,303 1.0260 1,337 0 1,337 1


3 Other 0 1.0000 0 0 0 3

4 Total Gathering C 1,931 D 1,979 0 1,979 4

Storage

5 Labor 5,153 1.0260 5,287 51 5,338 5


7 Other 0 1.0000 0 0 0 7

8 Total Storage C 17,091 D 17,485 64 17,550 8

Transmission

9 Labor 116,029 1.0260 119,046 12,525 131,571 9

10 Materials & Supplies 350,162 1.0226 358,074 17,777 375,851 10

11 Other 0 1.0000 0 0 0 11

12 Total Transmission C 466,192 D 477,120 30,303 507,422 12

Distribution

13 Labor 178 1.0260 182 0 182 13


15 Other 0 1.0000 0 0 0 15

16 Total Distribution C 355 D 364 0 364 16

Customer Accounts

17 Labor 2,809 1.0260 2,882 0 2,882 17


19 Other 0 1.0000 0 0 0 19

20 Total Customer Accounts (Excluding Uncollectibles) C 3,585 D 3,680 0 3,680 20

Customer Service

21 Labor 5,091 1.0260 5,223 0 5,223 21


23 Other 0 1.0000 0 0 0 23

24 Total Customer Service C 6,130 D 6,291 0 6,291 24


25 Labor 20,500 1.0260 21,033 0 21,033 25


27 Other 12,964 1.0000 12,964 0 12,964 27

28 Medical 14,928 1.0660 15,914 0 15,914 28

29 Wage-Related 3,213 1.0260 3,297 0 3,297 29

30 Total Admin & General (Excluding Franchises) 68,650 70,721 0 70,721 30

Other

31 Labor 0 1.0260 0 0 0 31


33 Other (1,199) 1.0000 (1,199) (51) (1,250) 33

34 Total Other Adjustments (1,199) (1,199) (51) (1,250) 34

35 Total Labor Excl Wage-Related A&G 151,063 154,990 12,577 167,567 35


37 Total Labor 154,276 158,287 12,577 170,863 37

38 Total Materials & Supplies 381,766 390,475 17,790 408,265 38

39 Total Other 11,765 11,765 (51) 11,714 39

40 Total Medical 14,928 15,914 0 15,914 40


42 Increase 13,705 30,315 44,020 42


44 Franchises 130 288 419 44


∑C 495,285 ∑D 506,919 ∑D/∑C 1.023490

2017





GT&S Request



2017



(A) (B) (C) (D) (E)

Gathering

1 Labor 1,337 1.0260 1,372 1,372 1

2 Materials & Supplies 642 1.0216 656 656 2

3 Other 0 1.0000 0 0 3

4 Total Gathering E 1,979 F 2,028 0 2,028 4

Storage

5 Labor 5,338 1.0260 5,477 5,477 5

6 Materials & Supplies 12,211 1.0202 12,458 12,458 6

7 Other 0 1.0000 0 0 7

8 Total Storage E 17,550 F 17,935 0 17,935 8

Transmission

9 Labor 131,571 1.0260 134,992 134,992 9


11 Other 0 1.0000 0 0 11

12 Total Transmission E 507,422 F 518,949 0 518,949 12

Distribution

13 Labor 182 1.0260 187 187 13


15 Other 0 1.0000 0 0 15

16 Total Distribution E 364 F 372 0 372 16

Customer Accounts

17 Labor 2,882 1.0260 2,957 2,957 17


19 Other 0 1.0000 0 0 19

20 Total Customer Accounts (Excluding Uncollectibles) E 3,680 F 3,775 0 3,775 20

Customer Service

21 Labor 5,223 1.0260 5,359 5,359 21


23 Other 0 1.0000 0 0 23

24 Total Customer Service E 6,291 F 6,455 0 6,455 24


25 Labor 21,033 1.0260 21,579 21,579 25


27 Other 12,964 1.0000 12,964 12,964 27

28 Medical 15,914 1.0660 16,964 16,964 28

29 Wage-Related 3,297 1.0260 3,382 3,382 29

30 Total Admin & General (Excluding Franchises) 70,721 72,855 0 72,855 30

Other

31 Labor 0 1.0260 0 0 31


33 Other (1,250) 1.0000 (1,250) 1,072 (179) 33

34 Total Other Adjustments (1,250) (1,250) 1,072 (179) 34

35 Total Labor Excl Wage-Related A&G 167,567 171,923 0 171,923 35


37 Total Labor 170,863 175,306 0 175,306 37

38 Total Materials & Supplies 408,265 417,135 0 417,135 38

39 Total Other 11,714 11,714 1,072 12,785 39

40 Total Medical 15,914 16,964 0 16,964 40


42 Increase 14,363 1,072 15,435 42


44 Franchises 137 10 147 44


∑E 537,285 ∑F 549,514 ∑F/∑E 1.022761

2018

ATTACHMENT 2 Advice 3732-G

Cal P.U.C. Sheet No. Title of Sheet

Cancelling Cal P.U.C. Sheet No.

Page 1 of 1

32802-G GAS PRELIMINARY STATEMENT PART CL TRANSMISSION INTEGRITY MANAGEMENT PROGRAM BALANCING ACCOUNT Sheet 1

28891-G



32805-G GAS PRELIMINARY STATEMENT PART DO HYDROSTATIC PIPELINE TESTING MEMORANDUM ACCOUNT (HPTMA) Sheet 1

32806-G GAS PRELIMINARY STATEMENT PART DP TRANSMISSION INTEGRITY MANAGEMENT PROGRAM MEMORANDUM ACCOUNT (TIMPMA) Sheet 1

32807-G GAS TABLE OF CONTENTS Sheet 1

32735-G

32808-G GAS TABLE OF CONTENTS Sheet 5

32609-G

Pacific Gas and Electric Company San Francisco, California U 39

Revised Cal. P.U.C. Sheet No. 32802-G Cancelling Original Cal. P.U.C. Sheet No. 28891-G

GAS PRELIMINARY STATEMENT PART CL Sheet 1

TRANSMISSION INTEGRITY MANAGEMENT PROGRAM (T) BALANCING ACCOUNT (T)

(Continued)

Advice Letter No: 3732-G Issued by Date Filed July 8, 2016

Decision No. 16-06-056 Steven Malnight Effective August 7, 2016

Senior Vice President Resolution No. 1H30 Regulatory Affairs

CL. Transmission Integrity Management Program Balancing Account (TIMPBA)

(T)

1. PURPOSE: The purpose of the Transmission Integrity Management Program Balancing Account (TIMPBA) is to track Transmission Integrity Management Program (TIMP) expenses and capital expenditures incurred during the 2015 Gas Transmission and Storage (GT&S) rate case cycle (2015 through 2018), up to the total adopted expense and capital expenditure amounts. The actual expenses and capital expenditures tracked will not exceed the adopted amounts of $377.794 million and $336.693 million, respectively.

2. APPLICABILITY: The TIMPBA will apply to all customer classes, except for those

specifically excluded by the Commission. 3. REVISION DATES: If the actual amounts incurred are less than the 2015-2018

aggregated adopted expenses of $377.794 million and capital expenditures of $336.693 million at the end of the rate case cycle, PG&E will refund the revenue requirements associated with the unspent expenses and capital expenditures to customers through the Annual Gas True-Up filing.

4. RATES: The TIMEBA does not have a separate rate component. 5. ACCOUNTING PROCEDURE: The TIMPBA consists of two subaccounts:

For TIMP expenses, the “Expense Subaccount” tracks the integrity management expenses for the programs listed in Appendix I, Table 1, up to the adopted 2015-2018 aggregated amount of $377.794 million. If the aggregated expenses incurred at the end of the GT&S rate case cycle are less than the adopted amount, PG&E will refund the unspent funding to customers.

(T)I I I I I I I I I I I I I I I I I I I I I I I I I I I

(T)


Original Cal. P.U.C. Sheet No. 32803-G Cancelling Cal. P.U.C. Sheet No.



(Continued)




5. ACCOUNTING PROCEDURE: The TIMPBA consists of two subaccounts (Cont’d)

For TIMP capital expenditures, PG&E will maintain a sub ledger to track the monthly capital expenditures as recorded in its accounting system of record for the programs listed in Appendix I, Table 2, up to the adopted 2015-2018 aggregated amount of $336.693 million. If the aggregated capital expenditures incurred at the end of the GT&S rate case cycle are less than the adopted amount of $336.693 million, the “Capital Subaccount” will record the entries described in 5(II)(a) through 5(II)(d), to refund to customers, the revenue requirement associated with unspent capital expenditures.

I. Expense Subaccount

The following entries will be made to the account each month or as applicable:

a) A credit entry equal to one-twelfth of the annual adopted integrity management expenses.

b) A debit entry equal to the actual integrity management expenses incurred, including benefits burden, up to $377.794 million.

c) A debit entry to transfer the balance to other accounts for refund to customers.

d) An entry equal to the interest on the average balance in the account at the beginning of the month and the balance after the above entries, at a rate equal to one-twelfth of the interest rate on three-month Commercial Paper for the previous month, as reported in the Federal Reserve Statistical Release, H.15 or its successor.

(T)I I I I I I I

(T)

(N) I I I I I I I I I I I I I I I

(N)

(








5. ACCOUNTING PROCEDURE: The TIMPBA consists of two subaccounts (Cont’d)

II. Capital Subaccount

If the aggregated actual capital expenditures incurred at the end of the GT&S rate case cycle are less than the adopted amount of $336.693 million, the following entries will be made to the “Capital Subaccount”:

a. A credit entry equal to the revenue requirement associated with the aggregated 2015 through 2018 adopted capital expenditures of $336.693 million, excluding an allowance for Franchise Fees and Uncollectibles (FF&U).

b. A debit entry equal to the revenue requirement associated with the actual capital expenditures incurred, excluding FF&U, not to exceed the credit amount recorded in entry a. above. Capital-related revenue requirements include depreciation expense, the return on investment, federal and state income taxes, and property taxes associated with the costs.

c. An entry to transfer the balance to other accounts for refund to customers.

d. An entry equal to the interest on the average balance in the account at the beginning of the month and the balance after the above entries, at a rate equal to one-twelfth of the interest rate on three-month Commercial Paper for the previous month, as reported in the Federal Reserve Statistical Release, H.15 or its successor.

(N)

I I I I I I I I I I I I I I I I I I I I I I I

(N)



GAS PRELIMINARY STATEMENT PART DO Sheet 1 (N)

HYDROSTATIC PIPELINE TESTING MEMORANDUM ACCOUNT (HPTMA) (N)

(Continued)



Senior Vice President Resolution No. 1C21 Regulatory Affairs

DO. Hydrostatic Pipeline Testing Memorandum Account (HPTMA) (N)I

1. PURPOSE: The purpose of the Hydrostatic Pipeline Testing Memorandum Account (HPTMA) is to track 2015 Gas Transmission and Storage rate case cycle (2015-2018) actual expense incurred for hydrostatic testing of transmission pipeline exceeding the authorized amount of $418.205 million.

2. APPLICABILITY: The HPTMA will apply to all customer classes, except for those

specifically excluded by the Commission. 3. REVISION DATES: Disposition of the balance in this account will be through an

application, or as otherwise directed by the Commission. 4. RATES: The HPTMA does not have a separate rate component. 5. ACCOUNTING PROCEDURE: The following entries, will be made to the account each

month or as applicable:

a. A debit entry equal to actual costs incurred, including benefits burden, above the adopted amount.

b. An entry to transfer amounts to or from another account as authorized by the Commission.

c. An entry equal to the interest on the average balance in the account at the

beginning of the month and the balance after the above entries, at a rate equal to one-twelfth of the interest rate on three-month Commercial Paper for the previous month, as reported in the Federal Reserve Statistical Release, H.15 or its successor.

II I I I I I I I I I I I I I I I I I I I I I I I I I I I I

(N)



GAS PRELIMINARY STATEMENT PART DP Sheet 1 (N)

TRANSMISSION INTEGRITY MANAGEMENT PROGRAM (N) MEMORANDUM ACCOUNT (TIMPMA) (N)

(Continued)



Senior Vice President Resolution No. 1C20 Regulatory Affairs

DP. Transmission Integrity Management Program Memorandum Account (TIMPMA) (N)I

1. PURPOSE: The purpose of the Transmission Integrity Management Program Memorandum Account (TIMPMA) is to record and track costs associated with any new transmission integrity management statutes or rules effective after January 1, 2015.

2. APPLICABILITY: The TIMPMA shall apply to all customer classes, except for those

specifically excluded by the Commission. 3. REVISION DATES: Disposition of the balance in this account as of December 31,

2018 shall be through an application or as otherwise directed by the Commission. 4. RATES: The TIMPMA does not have a separate rate component. 5. ACCOUNTING PROCEDURE: The following entries, net of an allowance for Franchise

Fees and Uncollectible Accounts Expense (FF&U), will be made to the account each month or as applicable:

a. A debit entry equal to the fully burdened actual expenses incurred for the current month.

b. A debit entry equal to the revenue requirements, excluding FF&U, associated with incurred capital costs. Capital-related revenue requirements include depreciation expense, return on investment, federal and state income taxes, and property taxes associated with the costs of installed equipment.

c. An entry to transfer amounts to or from another account as authorized by the Commission.

d. An entry equal to the interest on the average balance in the account at the

beginning of the month and the balance after the above entries, at a rate equal to one-twelfth of the interest rate on three-month Commercial Paper for the previous month, as reported in the Federal Reserve Statistical Release, H.15 or its successor.

II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

(N)


Revised Cal. P.U.C. Sheet No. 32807-G Cancelling Revised Cal. P.U.C. Sheet No. 32735-G

GAS TABLE OF CONTENTS Sheet 1

(Continued)



Senior Vice President Resolution No. 1P13 Regulatory Affairs

TITLE OF SHEET

CAL P.U.C. SHEET NO.

Title Page ...........................................................................................................................................32807-GRate Schedules ....................................................................................................................... 32671,32736-G Preliminary Statements ............................................................................................................ 32600,32808-G Rules .................................................................................................................................................. 32310-G Maps, Contracts and Deviations ......................................................................................................... 31544-G Sample Forms ............................................................................. 30592,30323,30324,32737,32138,30439-G

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Revised Cal. P.U.C. Sheet No. 32808-G Cancelling Revised Cal. P.U.C. Sheet No. 32609-G

GAS TABLE OF CONTENTS Sheet 5

(Continued)



Senior Vice President Resolution No. 5P13 Regulatory Affairs

PART

TITLE OF SHEET

CAL P.U.C. SHEET NO.

Preliminary Statements

Part AC Catastrophic Event Memorandum Account ............................................................... 14178,14179-GPart AE Core Pipeline Demand Charge Account.................................................................... 29525,30644-GPart AG Core Firm Storage Account....................................................................................................2888-GPart AN Hazardous Substance Mechanism......................................................23281-23283,16693-16694-GPart AW Self-Generation Program Memorandum Account ................................................................24767-GPart BA Public Purpose Program-Energy Efficiency............................................................... 23360-23361-GPart BB Public Purpose Program Memorandum Account ...................................................... 23362-23363-GPart BH Public Purpose Program Surcharge-Low Income Energy Efficiency

Balancing Account ............................................................................................................. 23364-GPart BI Public Purpose Program Surcharge-Research, Development and Demonstration

Balancing Account .................................................................................................. 23365,23366-GPart BL Noncore Distribution Fixed Cost Account.............................................................................28415-GPart BQ Pension Contribution Balancing Account .................................................................. 24853,24224-GPart BS Climate Balancing Account ..................................................................................................29772-GPart BT Non-Tariffed Products and Services Balancing Account ......................................................26710-GPart BW Energy Efficiency 2009 – 2011 Memorandum Account............................................. 28304,27419-GPart CA California Solar Initiative Thermal Program Memorandum Account .......................... 28670,28060-GPart CB CARE/TANF Balancing Account ..........................................................................................28103-GPart CE San Bruno Independent Review Panel Memorandum Account (SBIRPMA) .......................28559-GPart CE San Bruno Independent Review Panel Memorandum Account (SBIRPMA) .......................28559-GPart CF Meter Reading Costs Memorandum Account.......................................................................28599-GPart CG Distribution Integrity Management Expense Memorandum Account ....................................28641-GPart CI AB32 Cost of Implementation Fee Memorandum Account – Gas ........................................28673-GPart CK TID Almond Power Plant Balancing Account .......................................................................28889-GPart CL Integrity Management Expense Balancing Account .................................................. 32802-32804-G (T)Part CM Gas Operational Cost Balancing Account ................................................................. 30645-30646-GPart CN Topock Adder Projects Balancing Account ..........................................................................28893-GPart CO Adjustment Mechanism For Costs Determined In Other Proceedings ...................... 28894-28897-GPart CP Gas Transmission & Storage Revenue Sharing Mechanism.......................... 28898,30647-30649-GPart CS Tax Act Memorandum Account – Gas ...................................................................... 32311,30272-GPart CT Low Income 2012 Memorandum Account (LIMA) ................................................... 29350, 29351-GPart CV Revised Customer Energy Statement Balancing Account - Gas (RCESBA-G) ...................29617-GPart CW Gas Pipeline Expense and Capital Balancing Account .................................. 31679,30510,31680-GPart CX Core Gas Pipeline Safety Balancing Account ........................................................... 31681,31682-GPart CY NonCore Gas Pipeline Safety Balancing Account ..................................................... 31683,31684-GPart CZ California Energy Systems for the 21st Century Balancing Account .................................. 30264*-GPart DA Statewide Marketing, Education and Outreach Expenditure Balancing Account ..................30434-GPart DC Energy Data Center Memorandum Account – Gas ..............................................................31288-GPart DD Gas Transmission & Storage Memorandum Account (GTSMA) .............................. 31340-31344-GPart DE Gas Leak Survey and Repair Balancing Account (GLSRBA)......................... 32210,32211,31826-GPart DF SmartMeter

TM Opt-Out Program Balancing Account – Gas (SOPBA-G) ........ 32304,32305,32306-G

Part DG Disconnection Memorandum Account - Gas (DMA-G).........................................................31695-GPart DH Gas Programs Balancing Account (GPBA) ............................................................... 31829,31830-GPart DI Greenhouse Gas Expense Memorandum Account - Gas (GHGEMA-G) .............................31831-GPart DJ Energy Efficiency Financing Balancing Account - Gas (EEFBA-G)............ 32040*,32041*,32042*-GPart DK Part DM

Shareholder-Funded Gas Transmission Safety Account................................ 32474,32475,32476-GAssembly Bill 802 Memorandum Account - Gas….……………………………………………...32607-G

Part DO Hydrostatic Pipeline Testing Memorandum Account…………………………………………….32805-G (N)Part DP Transmission Integrity Management Program Memorandum Account………………………..32806-G (N)

PG&E Gas and Electric Advice Filing List General Order 96-B, Section IV

AT&T Division of Ratepayer Advocates Office of Ratepayer Advocates

Albion Power Company Don Pickett & Associates, Inc. OnGrid Solar

Alcantar & Kahl LLP Douglass & Liddell Pacific Gas and Electric Company

Anderson & Poole Downey & Brand Praxair

Atlas ReFuel Ellison Schneider & Harris LLP Regulatory & Cogeneration Service, Inc.

BART Evaluation + Strategy for Social Innovation

SCD Energy Solutions

Barkovich & Yap, Inc. G. A. Krause & Assoc. SCE

Bartle Wells Associates GenOn Energy Inc. SDG&E and SoCalGas

Braun Blaising McLaughlin & Smith, P.C. GenOn Energy, Inc. SPURR

Braun Blaising McLaughlin, P.C. Goodin, MacBride, Squeri, Schlotz & Ritchie

San Francisco Water Power and Sewer

CPUC Green Charge Networks Seattle City Light

California Cotton Ginners & Growers Assn Green Power Institute Sempra Energy (Socal Gas)

California Energy Commission Hanna & Morton Sempra Utilities

California Public Utilities Commission International Power Technology SoCalGas

California State Association of Counties Intestate Gas Services, Inc. Southern California Edison Company

Calpine Kelly Group Spark Energy

Casner, Steve Ken Bohn Consulting Sun Light & Power

Cenergy Power Leviton Manufacturing Co., Inc. Sunshine Design

Center for Biological Diversity Linde Tecogen, Inc.

City of Palo Alto Los Angeles County Integrated Waste Management Task Force

TerraVerde Renewable Partners, LLC

City of San Jose Los Angeles Dept of Water & Power Tiger Natural Gas, Inc.

Clean Power MRW & Associates TransCanada

Clean Power Research Manatt Phelps Phillips Troutman Sanders LLP

Coast Economic Consulting Marin Energy Authority Utility Cost Management

Commercial Energy McKenna Long & Aldridge LLP Utility Power Solutions

Cool Earth Solar, Inc. McKenzie & Associates Utility Specialists

County of Tehama - Department of Public Works

Modesto Irrigation District Verizon

Crossborder Energy Morgan Stanley Water and Energy Consulting

Davis Wright Tremaine LLP NLine Energy, Inc. Wellhead Electric Company

Day Carter Murphy NRG Solar Western Manufactured Housing Communities Association (WMA)

Defense Energy Support Center Nexant, Inc. YEP Energy

Dept of General Services ORA

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