Frequently Asked Questions

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Last Update 7/8/2008

What’s the process to enroll?

SoCalGas will begin sending out informational packets beginning in 2008. Customers wishing to participate will be provided with the necessary contracts and log on ID to participate in the online bidding process. Additionally, customers may acquire rights after the Open Season by purchasing Interruptible rights or available firm rights through the SoCalGas EBB in the Secondary Market.

What are the rates?

Rate Firm or Interruptible Term Rate Structure Reservation Rate (per Dth/Day) Volumetric Rate (per Dth)
G-RPA1 Firm 3 Years* 100% Reservation $0.05  
G-RPA2** Firm 3 to 20 Years 100% Reservation Cost Based at Each Receipt Point  
G-RPAN Short Term Firm Up to 3 Years 100% Reservation Market based up to $0.05  
G-RPAI Interruptible Up to 3 years 100% Volumetric   Market based up to $0.05
G-OSDI Interruptible Up to 3 years 100% Volumetric   $0.05
G-OSDF Firm Up to 3 years TBD in Open Season   Cost to be determined in open season

*Terms are available for up to 20 years during Steps 3A and 3B open
** Customer taking service under G-RPA2 will also pay the G-RPA1 rate.

Will I use the Envoy EBB to nominate and trade my rights?

Yes.

How can I view the tariffs and associated rates?

Prior to implementation, the approved tariff rates can be found at --

http://www.socalgas.com/regulatory/sifaroff/docs/FAR%20_Schedules_Exemplary_revised.pdf.

Thereafter, the tariffs and associated rates can be viewed at --

http://www.socalgas.com/regulatory/tariffs/tariffs_rates.shtml

What does FAR OFF stand for?

Firm Access Rights and Off System Delivery.

Can I sell my receipt point rights if I don’t need them any more?

Customers who hold firm receipt point access rights may release all or a portion of those rights to any creditworthy party in the secondary market through SoCalGas’ EBB.

Are there any fees for trading my rights? 

No, there is not a charge for trading transactions.

What’s my contract term obligation?

Most contracts will be up to a 3 year period with the exception of some G-RPA2 contracts with terms up to 20 years.

What does “citygate” mean?

Citygate is the aggregation and deaggregation of natural gas. It is a virtual delivery point that helps facilitate delivery of gas to an end-user, storage account, or for off-system deliveries from multiple receipt points.  It should also create a convenient pricing point for customers to buy and sell gas if they so desire.

Will my bill increase?

No, if you’re a noncore transportation customer of SoCalGas your transportation rate for your local transmission service will decrease by 5 cents/Dth.   However, if you acquire firm or interruptible rights you will pay 5 cents/Dth for using those rights.   So the net effect is no change on your total transportation costs for gas. 

If you decide not to acquire rights and purchase your supplies from a marketer you will see a decrease of 5 cents/Dth in your Gas company bill but your marketer may charge you for the rights they are using to deliver you gas.

Do I need rights if I only have a storage account?

Yes, you will need either interruptible or firm receipt point rights if you want to deliver gas into a storage account or use your storage account to deliver gas off-system to PG&E.

Do I have to sign new contracts?

Yes, to participate in the Open Season you will need to sign a Receipt Point Master Agreement. 

How will the open season work?

See the Open Season description.

Can I buy firm and interruptible rights after the initial open season?

Yes, you may be able to acquire additional contract rights after the Open Season from SoCalGas or another party in the secondary market.  You will be able to request these new rights on SoCalGas’ EBB system – Envoy.

Can I exchange my receipt point rights?

Yes, after receipt point capacity is awarded in all steps of the Open Season, SoCalGas will hold a 2-week re-contracting period where capacity holders will be allowed to exchange any part of their capacity from any receipt point on the system to a different point, even in a different zone, to the extent capacity is available at the requested receipt point.  At the end of this 2-week period, SoCalGas will evaluate all requests for exchanges on a non-discriminatory basis and grant requests where receipt point capacity is available.  To the extent more quantities are requested to be moved to a particular Receipt Point or Transmission Zone than the available capacity, the requests will be prorated among the requesting customers. Customers may request that their specific receipt point move request is an all-or-nothing request so that it will be rejected if any prorating is required. 

After the re-contracting period for exchanging receipt point capacity is over, all remaining available capacities will be available to customers on a “first-come, first-serve” basis.  Requests will be submitted online via the SoCalGas EBB system -Envoy®.

How will the nominations and scheduling process change?

A new RPAC will replace the TSA.  A new OSD will replace the OSAP.  Also there will be a city gate pool where the pooler can nominate supplies into the pool from flowing supplies (RPAC), storage or another city gate pool.  The pooler can confirm deliveries from the pool to an end user, storage, another city gate pool or off-system (OSD).

For every nomination cycle, SCG will reduce nominations to the receipt point and zone capacities.

The scheduling priority is as follows:
 

Firm Primary
Firm Alternate Within the Zone
Firm Alternate Outside the Zone
Interruptible
See Rule 30

What’s the difference between firm and interruptible receipt point capacity?

The RPAC will have either firm or IT capacity.  The firm capacity will be specific to a receipt point and will be designated Firm Primary.  This firm capacity may also be used at any other receipt point and will be designated as either Firm Alternate Within the Zone or Firm Alternate Outside the Zone.  The zones are North Desert, South Desert, Wheeler Ridge, Line 85 and Coastal.
An RPAC with IT capacity may be nominated at any receipt point and will be, of course, designated as interruptible. 

See Rule 30

Who’s eligible to participate?

The following parties are eligible to purchase firm, interruptible or off-system rights:

What are the benefits of FAR OFF?

FAR creates firm paths for receipt and delivery, which:

  1. Provides new options and opportunities for customers
  2. Establishes equal access and ability to obtain firm deliveries
  3. Places control over entry into SDG&E/SoCalGas system under CPUC regulation
  4. Stimulates city gate market
  5. Increases gas-on-gas competition
  6. Encourages new long-term supply
  7. Can drive economical new receipt point expansions (i.e. LNG supplies and the recent Kern River Expansion announcement)

Can I designate a third party, such as a marketer, to manage my receipt point rights?

Yes, you may.  End-use customers may opt to designate one and only one nominating agent or trading agent to manage your receipt point contracts provided you submit written authorization for the third party to act on your behalf.

Will SoCalGas charge in-kind fuel at the receipt points?

No.  Fuel costs are already built in to the transmission rates.

Do I have to sign up for receipt point rights?

No, unless you are a storage customer.  If you are an end use customer of SoCalGas, SDG&E, or any SoCalGas wholesale customer, you can talk it over with your gas supplier.

What are the receipt points?

The transmission zones and receipt points are listed below:

Transmission Zone Specific Points of Access (MMcfd)

Southern (1210)

EPN Ehrenberg – 1210
TGN Otay Mesa – 400
NBP Blythe - 1200

Northern (1590)

TW North Needles – 800
TW Topock – 190
EPN Topock – 540
QST North Needles – 120
KR Kramer Junction - 500

Wheeler (765)

KR/MP Wheeler Ridge – 765
PG&E Kern River Station – 520
OEHI Gosford - 150

Line 85 (160)

California Supply

Coastal (150)

California Supply

Other

California Supply

What are the delivery points?

Delivery Points available are --

  1. End-User’s Local Transportation Agreement
  2. Citygate Pool Account
  3. Storage Account
  4. Contracted Marketer or Core Aggregator Transportation Account

How will I know how much firm rights are available at each receipt point?

Up-to-date information will be posted on SoCalGas’s Envoy EBB regarding available firm rights at each receipt point.   Information will include all contracted firm receipt point access capacity and the available unsubscribed receipt point access capacity for sale.  

Can I make nominations to alternate delivery points instead of my primary receipt points?

Customers holding firm receipt point access capacity will be able to nominate natural gas for delivery on an alternate “within-the-zone” firm basis from any specific Receipt Point within an applicable transmission zone.  Customers will also be able to nominate natural gas for delivery on an alternate “outside-the-zone” firm basis from any receipt point on the system.  All such nominations will be scheduled in accordance with Rule No. 30, Transportation of Customer-Owned Gas.

What is off-system delivery?

Off-system delivery is the capability to deliver gas  already on the SoCalGas system to the PG&E delivery point and on to other markets. Initially, SoCalGas will make available physical displacement capacity at the receipt point on an interruptible basis at the applicable G-OSDI rate. (link)

SoCalGas will hold an open season for firm off-system delivery service to the PG&E system that would require new facilities at either the Adelanto/Kramer Junction area or Kern River Station. Firm off-system delivery service will be sold to customers willing to commit to long-term contracts with use-or-pay provisions or reservation charges.

Are there any additional charges for FAR rates? i.e. Franchise fees, Utility users taxes, etc.,

The G-RPA tariff is subject to local Utility User taxes

How soon will FAR rates be adjusted?

Receipt Point Access rates for G-RPA will be adjusted in 2010.

Is SoCalGas going to offer receipt point pooling service?

SoCalGas will not be offering receipt point pooling services only a city-gate pooling service.

Does FAR-OFF affect Core Transportation customers?

Core transportation customers will receive the 5 cent/dth rate decrease in their transportation rate and may see a corresponding increase from their Energy Service Provider since their Energy Service Provider will incur additional costs to transport gas to the city gate . The Energy Service Providers will be provided bidding rights on behalf of their core loads. Core Transportation customers do not have individual bidding rights and do not participate in the Open Season.

Who has priority during the Step 2 bidding rounds?

There are 3 rounds of bidding in Step 2 of the Open Season.   Step 2 allows specific eligible customers the right to bid. All participants in Step 2 are treated equally, with no one customer having priority over another customer..

What happens if more quantity is bid than is available at a specific receipt point?

If bidding quantities at specific receipt points exceed capacity, the bid quantities for that receipt point will be prorated. Base load bids will be evaluated and awarded before  monthly bids are evaluated and awarded.

Can someone bid a higher price?

No, participants do not bid on rate. The rate is set per the G-RPA1 schedule at 5 cents/Dth/day. Participants will bid for receipt point and quantity only in Steps 1 and 2, and receipt point, quantity and term in Step 3.

Will upstream parties be able to access SoCalGas downstream information?

Information on all contracts including quantity, term, rate and owner will be available on the Electronic Bulletin board (EBB).

How long are bidding rights valid?

Bidding rights are valid during the Open Season only.

How will SoCalGas process nominations and confirm to the upstream pipelines under FAR?

After closing each nomination cycle, SoCalGas will validate rights, balance its system, run the capacity allocation and then send one confirmation file to each upstream interconnecting pipeline. SoCalGas will then allocate scheduled volumes when received from pipelines.

For re-contracted capacity, what price will be paid/received for the acquired/offered capacity?

During the recontracting step of the FAR open season, bidders will pay the tariff rate (G-RPA-1) for capacity. Parties will also be able to "recontract" on the EBB system to the extent capacity is available beginning October 1, 2008.

Can award holders of capacity offer monthly Receipt Point capacity or will we be limited to annual capacity bids/offers?

During the Recontracting Step of the Open Season, bidders will be able to recontract capacity for quantity they have been awarded or a lesser amount and for any monthly term as long as it is within the initial 3 year period of October 1, 2008 through September 30, 2011.

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