Capacity to handle an audit of the proposed scope in the allotted time; and Independence from SDG&E and SoCalGas. Applicants shall enter into a contract with the winning bidder at their expense. Applicants shall file a Tier 1 Advice Letter with the executed contract and audit budget to the Commission’s Energy Division no later than five business days after the contract is executed. SoCalGas and SDG&E shall serve as fiscal managers of the contract with the auditor. SED staff shall have complete responsibility for overseeing the audit, and shall consult with the Commission’s Utility Audit Finance and Compliance Branch as necessary to fulfill their responsibility. SED staff shall give direction to the auditor on an as-needed basis and determine the role of participants with respect to review of the draft findings of the auditor and review of the auditor’s final report before it is filed with the Commission. Based on feedback from parties and SED, the independent auditor shall perform the following tasks including but not limited to: (ORA Opening Brief at 6-8 references some of these items.) Review and verify all relevant pipeline attribute data, bellhole examination, maps, purchase orders, construction data and etc. using 49 CFR, Part 192 regulation requirements as a validation criteria; Review and verify attribute data such as, pipe manufacturer, installation date, pipe specification, pipe class, diameter, longitudinal seam type, yield strength, wall thickness, pressure tested, pressure test medium, pressure test date, etc., for each pipeline segment identified by engineering stations; Calculate hoop stress in terms of % SMYS for each existing segment identified by engineering stations and compare it to the
Capacity to handle an audit of the proposed scope in the allotted time; and Independence from SDG&E and SoCalGas. Applicants shall enter into a contract with the winning bidder at their expense. Applicants shall file a Tier 1 Advice Letter with the executed contract and audit budget to the Commission’s Energy Division no later than five business days after the contract is executed. SoCalGas and SDG&E shall serve as fiscal managers of the contract with the auditor. SED staff shall have complete responsibility for overseeing the audit, and shall consult with the Commission’s Utility Audit Finance and Compliance Branch as necessary to fulfill their responsibility. SED staff shall give direction to the auditor on an as-needed basis and determine the role of participants with respect to review of the draft findings of the auditor and review of the auditor’s final report before it is filed with the Commission. Based on feedback from parties and SED, the independent auditor shall perform the following tasks including but not limited to: (ORA Opening Brief at 6-8 references some of these items.) Review and verify all relevant pipeline attribute data, bellhole examination, maps, purchase orders, construction data and etc. using 49 CFR, Part 192 regulation requirements as a validation criteria; Review and verify attribute data such as, pipe manufacturer, installation date, pipe specification, pipe class, diameter, longitudinal seam type, yield strength, wall thickness, pressure tested, pressure test medium, pressure test date, etc., for each pipeline segment identified by engineering stations; Calculate hoop stress in terms of % SMYS for each existing segment identified by engineering stations and compare it to the
213696791.docx