Miscellaneous Overhead Costs: SoCalGas included corporate liability costs and employee incentive pay in its recorded expenses but has not justified why they are appropriate uses of allowance proceeds. These costs benefit employees and the company itself, and do not benefit ratepayers. As a result, SoCalGas is prohibited from recovering from GHG allowance proceeds the $190,073.51 it seeks and has classified as Incentive Pay and Property Liability and Property Damage Insurance. Recalculation of Rates and the California Climate Credit: As noted above, the Commission has determined that SoCalGas has inappropriately included a total of $1,210,498.32 that it seeks in Outreach and Administrative costs as detailed in Table D of AL 5293-G-A. As a result, while the methodology SoCalGas used to calculate the 2018 California Climate Credit is correct, the underlying numbers need to be corrected. To address this error, SoCalGas is directed to file within 30 days a Tier 2 Advice Letter that recalculates the 2018 California Climate Credit using the Administrative and Outreach costs deemed reasonable in this Resolution. D.18-03-017 specified that if disposition of the Tier 2 Advice Letter filings set forth in Section 7 of D.18-03-017 necessitates a delay in distribution of the 2018 California Climate Credit, the 2018 California Climate Credit shall be distributed in the month after final disposition of the advice letters. It also specified that if such a scenario necessitated the delay of inclusion of GHG costs into rates, GHG costs should be included in rates beginning the month after final disposition of the advice letters, as well as that 2018 GHG costs should be amortized over eighteen months. As the advice letter SoCalGas is ordered to file in this Resolution is to bring it into compliance with D.18-03-017, SoCalGas shall plan to distribute the 2018 California Climate Credit in the month after its new advice letter is approved, shall plan to include GHG costs into rates beginning the month after its new advice letter is approved, and shall also plan to amortize 2018 GHG costs over eighteen months. COMMENTS
Miscellaneous Overhead Costs: SoCalGas included corporate liability costs and employee incentive pay in its recorded expenses but has not justified why they are appropriate uses of allowance proceeds. These costs benefit employees and the company itself, and do not benefit ratepayers. As a result, SoCalGas is prohibited from recovering from GHG allowance proceeds the $190,073.51 it seeks and has classified as Incentive Pay and Property Liability and Property Damage Insurance. Recalculation of Rates and the California Climate Credit: As noted above, the Commission has determined that SoCalGas has inappropriately included a total of $1,210,498.32 that it seeks in Outreach and Administrative costs as detailed in Table D of AL 5293-G-A. As a result, while the methodology SoCalGas used to calculate the 2018 California Climate Credit is correct, the underlying numbers need to be corrected. To address this error, SoCalGas is directed to file within 30 days a Tier 2 Advice Letter that recalculates the 2018 California Climate Credit using the Administrative and Outreach costs deemed reasonable in this Resolution. D.18-03-017 specified that if disposition of the Tier 2 Advice Letter filings set forth in Section 7 of D.18-03-017 necessitates a delay in distribution of the 2018 California Climate Credit, the 2018 California Climate Credit shall be distributed in the month after final disposition of the advice letters. It also specified that if such a scenario necessitated the delay of inclusion of GHG costs into rates, GHG costs should be included in rates beginning the month after final disposition of the advice letters, as well as that 2018 GHG costs should be amortized over eighteen months. As the advice letter SoCalGas is ordered to file in this Resolution is to bring it into compliance with D.18-03-017, SoCalGas shall plan to distribute the 2018 California Climate Credit in the month after its new advice letter is approved, shall plan to include GHG costs into rates beginning the month after its new advice letter is approved, and shall also plan to amortize 2018 GHG costs over eighteen months. COMMENTS
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