On February 24, 2004, SoCalGas and SDG&E filed a joint proposal in response to Rulemaking 04-01-025 issued by the California Public Utilities Commission to establish policies and rules to ensure reliable, long-term supplies of natural gas to California. SoCalGas and SDG&E request that the Commission adopt the following policies by June 2004:
- A diverse portfolio approach for the handling of interstate capacity across supply basins and interstate pipelines maximizes opportunities to benefit core customers with enhanced supply reliability and gas price stability.
- Establishing an approved range for diverse interstate capacity holdings will achieve security of supply in a manner that balances Commission oversight and utility flexibility to contract for capacity on terms favorable to core customers.
- Customers benefit through portfolio flexibility that adjusts to changing market conditions by staggering terms and expiration dates for interstate pipeline capacity holdings.
- New gas supply projects and the construction of competitive new interstate capacity will be encouraged through flexibility in the utility's ability to contract for firm interstate capacity.