Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 4412 News & Views Magazine EDITION 1, 2016 ENERGY ISSUES PG&E ONE-TIME BILL CREDIT ADVICE LETTER (PG&E CUSTOMERS ONLY) Due to final decisions approved by the California Public Utilities Commission (CPUC) in the three investigations pending against PG&E, CPUC has approved an order, and a subsequent Energy Division resolution, requiring PG&E to provide a one-time $400 million bill credit to all its end-use natural gas customers. Per the approved resolution, non- core customers’share of the disallowance is to be allocated among individual customers using their average annual gas consumption associated with their February 2015 through January 2016 billing cycles. PG&E is authorized to issue checks in lieu of a bill credit for its noncore customers and the customers of Core Transport Agents, if the apportioned amount is over $30, in order to avoid billing complications. The CPUC order requires that the checks are to be issued no later than the period of PG&E’s June 2016 billing cycle. PG&E 2015 GAS TRANSMISSION & STORAGE RATE CASE The latest PG&E forecasts on noncore natural gas transportation fees reflect a significant jump and are scheduled to go into effect in July 2016. The numbers on the most recent PG&E forecast reflect what PG&E rates would have been had the GTS Rate case been approved by May 2016. However, please note that PG&E cannot unilaterally put rates into effect until after the Commission approves the Final Decision, and the rates reflected in the forecasts are based on what they requested in their original filing. To date, there has been no Proposed Decision (PD) issued in this proceeding. While it remains highly unlikely that PG&E will get everything they’ve asked for, until a PD comes out there is no way to tell what the commission is contemplating. Because the commission’s procedural rules require ample time for parties to respond, it will be at least two months at minimum, before the new rates will go into effect following the release of the PD. Additional factors, such as how to deal with the memorandum account and how to apply the PG&E penalties, could further delay the implementation of the rates. The nominally good news is that if the commission isn’t able to reach a final decision by June or July, rate increases likely won’t go into effect until October or later. Most believe that while PG&E will get an increase, it is doubtful that they will get the full amount they are seeking. However, currently most parties familiar with rate case proceedings indicate that noncore industrial customers, such as food processors, could see an increase in transportation rates of around 35%, at minimum. ALISO CANYON – SUMMER CURTAILMENT POTENTIAL (SOCALGAS CUSTOMERS ONLY) On March 1, 2016, the Southern California Gas Company (SoCalGas) filed a motion with the California Public Utilities Commission requesting an interim order “temporarily” establishing a +/-5 percent daily balancing requirement for all noncore industrial natural gas. Food processors and other noncore natural gas users faced penalties for noncompliance of 150% of the highest reported price of the border points comprising the Daily SoCal Border Index. SoCalGas contended this new restriction and penalty structure was necessary to“enhance reliability and protect against curtailments this summer and next winter”that could arise from the severe limitations on Aliso Canyon operations. Following discussions between the utility and noncore customers (Customer Coalition), including CLFP, SoCalGas and the Customer Coalition entered into a settlement that dispenses with SoCalGas’daily balancing request. Instead, SoCalGas will continue to balance based on existing protocols but will revise them in order to meet the current conditions under which Aliso Canyon can be utilized. The term of the settlement will commence immediately upon adoption by the commission and will conclude on November 30, 2016, unless the settlement is superseded by another commission decision or Aliso Canyon resumes an agreed upon minimum operation. Aliso Canyon