Summary of D. 00-00-000: The Commission provisionally finds that shippers should be allowed to trade or sell imbalance rights since they pay for a balancing tolerance as a component of their intrastate transmission rates and are entitled to have the plus or minus tolerance on a daily or monthly basis. The trading of imbalance rights would give shippers the ability to adapt to daily balancing rules, where they apply, during a given day's nomination cycles. The Commission finds the concept of imbalance trading to hold sufficient promise to merit further inquiry. The Commission also encourages parties to consider whether a mechanism could be developed to produce the hoped-for benefits versus its costs. (pp. 41-44, FoF 24-26, Appendix C) ======================================================================== Subject to Rule 51 of the CPUC Rules of Practice and Procedure, Rule 601 et seq. of the FERC Rules of Practice. Rule 408 of the Federal -- --- Rules of Evidence, and Section 1152 of the California Evidence Code ======================================================================== CPUC Promising Gas Options I.00-00-000 Comprehensive Gas OII Settlement Agreement ------------------------------------------
Summary of D. 00-00-000: The Commission recommends the re-examination of local distribution company core procurement and the default provider function if the market share exceeds 30% of the number of customers, but even at that point the Commission has seen no compelling reason to eliminate local distribution company procurement as an option for customers. (pp. 50-59, Appendix C)
Summary of D. 00-00-000: The Commission recommends exploration of the unbundling of storage costs for core customers. (p.49)
Summary of D. 00-00-000: The Commission believes that disclosure of the transaction-specific details requested by parties is basic and fundamental to an efficient market. In Conclusion of Law 17, the Commission directs the utilities either to provide timely information along the lines of the specific requests outlined in this decision, or to find different ways to convey to shippers information that they need to function effectively in the marketplace without compromising confidentiality concerns. (pp. 00- 00, XxX 00, XxX 00, Xxxxxxxx X)
Summary of D. 00-00-000: The Commission states that competing gas and electric providers should be able to choose to provide a consolidated xxxx for gas and electricity so that the customers of such providers will not face duplicative charges for the billing function. The Commission feels that it may be appropriate for the natural gas utilities to provide billing options similar to those currently offered on the electric side. The Commission states that it should be just as possible for an electricity provider to xxxx its customers for gas service as it would be for a gas provider to xxxx for electric service. The Commission includes this as a promising option for further study and wants to examine cost system conversion and potential labor impacts associated with providing competitive billing and other services in the cost/benefit phase. (pp. 85-86, FoF 43, CoL 19, Appendix C)
Summary of D. 00-00-000: The Commission agrees that the creation of firm, tradable intrastate transmission rights offers the hope of improving efficiency through value-based pricing, as well as providing individual shippers with greater certainty as to their ability to move certain quantities of gas through the pipeline system. (pp. 12-14, XxX 0 & 0, XxX 0, 0, 0, Xxxxxxxx X)
Summary of D. 00-00-000: The Commission believes there would be more efficient use of the hard-to-find gas storage resources if individual shippers and customers could bid for firm storage access rights. In addition, the local distribution company will be motivated to pursue more complete utilization of its storage assets if its shareholders bear the risk for cost recovery. If accompanied by an active secondary market, the bidding and trading of storage rights should lead to pricing that reflects demand. (pp. 23-24, XxX 0, XxX 0, Xxxxxxxx X)
Summary of D. 00-00-000: The Commission anticipates that the existence of an active secondary market for storage would reduce a utility's ability to increase its storage revenues in an unfair manner. Shippers should be more willing to acquire storage rights when they know they are able to sell unused capacity on the secondary market. Participation in the secondary market transactions through a mandatory Electronic Bulletin Board is consistent with the Commission's goals of enhancing market efficiency, preventing anti-competitive behavior, and providing additional competitive tools to the marketplace. The Commission wants to understand the costs of providing such a service before determining whether to require its provision. (p. 24, FoF 38, Appendix C)
Summary of D. 00-00-000: The Commission requests the parties to consider the costs and benefits related to creating a system of tradable storage rights in Southern California that places the utility at risk for unused resources and preserving such a market in Northern California beyond the period of the Gas Accord. (pp. 20-24, Appendix C)
Summary of D. 00-00-000: The Commission would like to separate hub services, where possible, from the procurement function to eliminate the possibility of a conflict of interest affecting the two functions. (pp. 48-49, CoL 10, Appendix C)
