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CPUC Proposal Would Place Winter Moratorium on New Commercial and Industrial Natural Gas Hooks Ups for Service From Aliso Canyon

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Today we issued a proposal that, if approved by our Commissioners at our January 11, 2018 Voting Meeting, would order Southern California Gas Company (SoCalGas) to implement an emergency moratorium on new commercial and industrial customer connections in areas of Los Angeles County that would rely on Alison Canyon Natural Gas Storage Facility for service. The moratorium, which is being proposed in order to ensure reliability for existing customers, would last from January 11, 2018 until further CPUC action or March 31, 2018 (the end of the natural gas heating season), whichever is earlier.


The moratorium would help avoid increased demand for natural gas by new commercial and industrial customers until such time as the CPUC is assured by SoCaGas that there is adequate capacity in the system to meet foreseeable need.


The proposal is available at www.cpuc.ca.gov/Aliso.


The CPUC's Aliso Canyon Winter Risk Assessment Technical Report 2017-18 Supplement issued on November 28, 2017, identified an emergency moratorium on new connections as a potential measure to avoid increased demand for natural gas. The report described a series of outages on the SoCalGas system that includes all of the major system elements: storage facilities, pipelines, and compressor stations. The outages collectively put SoCalGas' system reliability at risk this winter and jeopardize reliability of natural gas service to customers.


The moratorium would only affect new connections for industrial and commercial connections. It would not affect residential connections or the transfer of existing connections.


The typical 30-day comment period for this proposal has been reduced due to the unforeseen emergency situation caused by unplanned gas system outages and maintenance issues detailed in the Technical Report that threaten to severely impair public health and safety. Comments are due January 4, 2018.

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