Fung are escalated. Please provide a reference to a specific cell or series of cells and associated workbook tab. RESPONSE 5.2: 5.2.1. The embedded cost studies, including the backbone transmission cost study, were developed using 2013 recorded costs and were not escalated to 2017 dollars. This can be seen in the cost allocation workpapers (SoCalGas Cost Allocation Model.xlsx, tab: Cost Allocation, cell E65). It shows the 2013 backbone transmission costs for SoCalGas of $214.9 million ($214,896 thousand) as set forth in Table 18 (page 12) of the Testimony of Sim-Cheng Fung. SoCalGas’ marginal costs, are based on 2013 underlying activities and then escalated to 2017 dollars to reflect SoCalGas and SDG&E’s estimated Test Year costs for this TCAP. 5.2.2. See response to 5.2.1 and the cost allocation workpapers (SDGE Cost Allocation tab: Cost Allocation, cell E42). It shows the 2013 backbone transmission costs for SDGE of $38.2 million ($38,229 thousand) as set forth in Table 18 (page 12) of the Testimony of Sim-Cheng Fung. QUESTION 5.3: With respect to the statement on page 8: O&M loading factors are applied to the direct “The O&M costs to develop the O&M costs for each customer class.” “fully-loaded” 5.3.1. Does the reference to each customer class reflect a focus on marginal customer costs rather than marginal distribution costs even though the discussion is jointly about developing marginal customer and marginal distribution costs? 5.3.2. If the answer to the previous question is please explain why and how separate “no,” O&M costs would be developed for each customer class within a marginal distribution cost calculation. RESPONSE 5.3: 5.3.1. Yes.
Fung are escalated. Please provide a reference to a specific cell or series of cells and associated workbook tab. RESPONSE 5.2: 5.2.1. The embedded cost studies, including the backbone transmission cost study, were developed using 2013 recorded costs and were not escalated to 2017 dollars. This can be seen in the cost allocation workpapers (SoCalGas Cost Allocation Model.xlsx, tab: Cost Allocation, cell E65). It shows the 2013 backbone transmission costs for SoCalGas of $214.9 million ($214,896 thousand) as set forth in Table 18 (page 12) of the Testimony of Sim-Cheng Fung. SoCalGas’ marginal costs, are based on 2013 underlying activities and then escalated to 2017 dollars to reflect SoCalGas and SDG&E’s estimated Test Year costs for this TCAP. 5.2.2. See response to 5.2.1 and the cost allocation workpapers (SDGE Cost Allocation tab: Cost Allocation, cell E42). It shows the 2013 backbone transmission costs for SDGE of $38.2 million ($38,229 thousand) as set forth in Table 18 (page 12) of the Testimony of Sim-Cheng Fung. QUESTION 5.3: With respect to the statement on page 8: “The O&M loading factors are applied to the direct O&M costs to develop the “fully-loaded” O&M costs for each customer class.” 5.3.1. Does the reference to each customer class reflect a focus on marginal customer costs rather than marginal distribution costs even though the discussion is jointly about developing marginal customer and marginal distribution costs? 5.3.2. If the answer to the previous question is “no,” please explain why and how separate O&M costs would be developed for each customer class within a marginal distribution cost calculation. RESPONSE 5.3: 5.3.1. Yes.
SCGC-05.docx