Line Extension Contract
Your Line Extension Contract consists of two key components:
- Key 1 - Construction Costs
- Key 2 - Allowances (Credit for Gas Usage)
Key 1 - Construction Costs
Construction cost estimates are broken into the following categories:
- Gas “Main” Pipe
- Gas “Service" Pipe
- “MSA” (Meter)
Each category consists of the following estimated costs:
- Material
- Pipe/Fittings/Meter
- Equipment
- Labor
- Trenching
To generate a cost estimate, your Southern California Gas Company (SoCalGas) field representative will:
- Determine if a “Main” extension is required. If no main pipeline exists, SoCalGas estimates the cost of extending the pipeline from the closest location of an existing main pipeline.
- Estimate “Service” piping requirements.
- Determine “MSA” (Meter) size and the cost to serve your gas appliance needs.
Key 2 - Allowances (Credit for Gas Usage)
The type of gas appliances/equipment you plan to install will help determine the amount of credit that may reduce your construction costs.
The residential natural gas appliance types qualifying for allowance are:
- Water Heating
- Space Heating
- Cooktop and Oven
- Dryer Stub
- Natural Gas Powered Space Cooling
See Rule 20, Section C.2. and C.3. for details
If qualified, commercial allowances are based on the total estimated annual gas usage and verified after 3 years.
See Rule 20, Section C.2. and C.5. for details
How It Works
Example:
Key #1 Construction Costs
SoCalGas estimated your costs at $1,000 for Service and MSA installation
Key #2 Allowances
$800 in qualifying allowances based on appliances/equipment installed
| From example above: | |
| Key #1 Construction Cost | $1,000 |
| Key #2 Allowances | -$800 |
| Your Cost1 | $200 |
1Applicable tax to be added to your cost
Reducing Construction Costs
Having your trench excavated by someone other than SoCalGas may significantly reduce the cost of your overall line extension contract.
Will SoCalGas Request More Money?
If you change the scope of your contracted project, additional monies may be due during or after your project installation. Additional monies may be due if you fail to contact SoCalGas to request your meter set and turn-on per the following reconciliation schedule:
RESIDENTIAL
- If your project required SoCalGas to install both main and service pipe, the meter must be set and turned-on within 6 months of construction completion.
- If your project required SoCalGas to install service only pipe, the meter must be set and turned on within 12 months of construction completion.
COMMERCIAL
- If your project required SoCalGas to install both main and service pipe, the meter must be set and turned-on within 6 months of construction completion.
- If your project required SoCalGas to install service only pipe, the meter must be set and turned on within 12 months of construction completion.
In addition, your annual gas usage versus your contracted equipment estimated usage, will be verified at 36 months to determine if a refund or bill is due. In either case, if your meter is not set and turned-on, allowances will be removed. Your estimated construction costs plus tax will be billed.
More Details - Contact Information
For more information, contact us at NewBusinessProcessTeam@semprautilities.com
See Tariff Rules 20 & 21 for comprehensive information regarding gas installation, allowances and reconciliation.
New construction projects require considerable foresight to ensure your job runs smoothly. Coordinate your new service in a timely manner for best results. It is recommended you apply at least 10 to 12 weeks prior to needing a gas line and meter installed.