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Friday, September 05, 2008 |
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In 1997, PG&E opened the door to competition and customer choice in California's natural gas industry by negotiating an agreement known as the Gas Accord Settlement with a diverse group of industry players. Under the Gas Accord Settlement, PG&E's services and rates for gas transmission, distribution, and storage are separate or "unbundled". This allows a business to choose the services they need and only pay for what they use.
The new market structure increases the opportunity for all customers to select the gas supplier or marketer of their choice rather than purchasing gas exclusively from PG&E. There are also more gas transportation options. Large industrial customers may now choose from daily, weekly, monthly, seasonal or annual contract terms with firm or as-available transportation services from PG&E.
Estimated Annual Average Cost per Therm (as of 2/98)
|
Provider |
Small Commercial |
Large Commercial |
Light Industrial |
Heavy Industrial |
|
PG&E
Transport & Commodity |
$0.615
|
$0.443
|
$0.3523
|
$0.2853
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PG&E
Transport Only |
$0.371 |
$0.213 |
$0.092 |
$0.025 |
Assumptions
| |
Small Commercial |
Large Commercial |
Light Industrial |
Heavy Industrial |
|
Natural Gas Consumption |
<20,800 therms/month |
> 20,800 therms/month |
> 20,800 therms/month |
> 20,800 therms/month |
|
Core Designation |
Core |
Core |
Non-Core |
Non-Core |
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Distribution/
Transmission1 |
Distribution |
Distribution |
Distribution |
Transmission |
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Customer Charge |
$13.42/month |
$150.72/month |
Varies on usage |
Varies on usage |
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Rate Schedule2 |
G-NR1 |
G-NR2 |
G-NT2,3 |
G-NT2,3 |
Notes:
Notes: 1. Distribution - All Core and Noncore customers served from pipe systems that operate at less than 60 PSI. Transmission - 60 PSI or greater, or more than 3 million therms per year.
2. The costs provided in this estimate assume that transportation on PG&E’s Backbone Transmission System is included in the cost of the natural gas commodity provided by the third party natural gas supplier.
3. For a limited time, natural gas commodity is available form PG&E for non-core customers under Schedule G-CSP-Core Subscription Procurement. This service will be phased out in two years. The cost of this service fluctuates monthly based on a forecast of Southwest and Canadian gas prices. PG&E's forecasted average price for Schedule G-CSP for 1998 is $0.259. In most cases, large industrial end-use gas customers can purchase the gas commodity for less than that from a third-party supplier.
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