The CPUC approved the ZGlobal analysis and denied SDGE and SoCal Gas proposed gas pipeline. The proposed new 47-mile long, 36-inch diameter natural gas transmission Line (3602 Pipeline) from Rainbow Station to Miramar. The ALJ Kersten issued the proposed decision REJECTING the SoCal Gas/SDG&E application to construct Line 3602.
SoCal Gas/SDG&E projected that the fully loaded and escalated cost of Line 3602 would have been $528.5 million. The increase in the SDG&E/SoCal Gas transmission revenue requirement in the first year of operation of the pipeline would have been $85.9 million. Over the life of the pipeline, the pipeline would have SoCal Gas/SDG&E cost ratepayers $1,987.8 million (this include IID ratepayers). This project had received support from the CAISO due to reliability concerns should the one existing pipeline become unavailable. It was also being pushed due to Aliso canyon. ZGlobal’s work involved proving that, with optimizing scheduling, and S line upgrade in IID, and gas or power supply from Mexico the SDG&E system could potentially survive without adding new gas supply line.
The PD recognizes SCGC’s alternatives to Line 3602 including reconductoring IID’s S line and notes the S Line settlement between IID and the CAISO.