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 44TeamCalifornia represents all cities and counties in California, marketing your industry for growth and expansion and building connections to a skilled workforce. Become a TeamCalifornia Member Today • mary@teamca.org 3,400 Food Manufacturing Firms $220 Billion Economic Output1 760,000 Jobs 1 Direct & Indirect 2012 ONE CALL FOR ALL OF CALIFORNIA 916-967-9900 | WWW.TEAMCA.ORG MARY@TEAMCA.ORG IN PARTNERSHIP WITH CALIFORNIA EMPLOYMENT TRAINING PANEL CALIFORNIA FOOD PROCESSORS California League of Food Processors 17 Following discussions between the utility and noncore customers, including CLFP, SoCalGas and the coalition of customers, a settlement was reached that dispenses with SoCalGas’ daily balancing request. Instead, SoCalGas will continue to balance based on existing protocols, but will revise them to meet the current conditions under which Aliso Canyon can be utilized. The term of the settlement commenced immediately upon adoption by the commission and will conclude on November 30, 2016. Settlement discussions continue between the parties regarding winter supply. The Public Utilities Commission Energy Division Director is requiring SoCalGas to develop demand response programs for its service territory for both core (residential) and noncore (industrial) customers this winter. A tariff providing the terms and conditions of the Demand Response programs will be forthcoming. For industrials, it should be noted that the commission gives deference to maintaining residential service and that the A settlement was reached that dispenses with SoCalGas’ daily balancing request following discussions between the utility and noncore customers, including CLFP. demand response programs will be likely fall more heavily on commercial and industrial natural gas users. The nego- tiations with SoCalGas regarding winter reliability measures continues and CLFP is tracking the negotiations. CPUC APPROVES UNREASONABLE INCREASE IN NG TRANSPORT COSTS FOR PG&E RATEPAYERS On July 1, 2016, the California Public Utilities Commission (CPUC) approved Pacific Gas and Electric’s (PG &E) 2015 Gas Transmission & Storage Rate case (GTS), which effectively raised natural gas transportation rates for all PG&E ratepay- ers starting August 1. The noncore industrial transmission rate increase for food processors is approximately 92%. This increase includes a 36-month amortization of the GTS Memorandum Account. However, the decision was silent as to application of the $850 million in San Bruno penalty money. Currently, it is expected that the penalty amounts will be applied beginning in 2017, but the impact on rates is still to be determined. However, going forward the GTS has established the new baseline for revenue recovery. PG&E originally filed its 2015 GTS back in December 2013. At that time PG&E requested nearly $4 billion in revenues under the new proposal between 2015 and 2017 and proposed increasing noncore industrial users rates by 57.9%.