April 19, 2018 Advice Letter 5260-G

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1 SAE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UILIIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA April 19, 2018 Advice Letter 5260-G Ronald van der Leeden irector, Regulatory Affairs Southern California Gas 555 W. Fifth Street, G146 Los Angeles, CA SUBJEC: FEBRUARY 2018 BUY-BACK RAES ear Mr. van der Leeden: Advice Letter 5260-G is effective as of February 28, Sincerely, Edward Randolph irector, Energy ivision

2 Ronald van der Leeden irector Regulatory Affairs 555 W. Fifth Street, G146 Los Angeles, CA el: Fax: February 28, 2018 Advice No (U 904 G) Public Utilities Commission of the State of California Subject: February 2018 Buy-Back Rates Southern California Gas Company (SoCalGas) hereby submits for filing revisions to its tariff schedules, applicable throughout its service territory, as shown on Attachment A. Purpose his routine monthly filing updates the Buy-Back Rates in Schedule No. G-IMB for February Background As authorized in Schedule No. G-IMB - ransportation Imbalance Service, the Buy-Back Rates are established effective the last day of each month. he Buy-Back Rates will be the lower of 1) the lowest incremental cost of gas purchased by the Utility during the month the imbalance was incurred; or 2) 50% of the applicable Adjusted Core Procurement Charge, G-CPA, set forth in Schedule No. G-CP, during the month such excess imbalance was incurred. Information uring the month of February, 50% of the Adjusted Core Procurement Charge, G-CPA, is lower than the lowest incremental cost of gas. herefore, the Buy-Back Rates for February 2018 are being revised accordingly. he work paper showing details of the calculation of these rates is incorporated herein as Attachment B.

3 Advice No February 28, 2018 he new rates are reflected in the attached Schedule No. G-IMB tariff sheets. Pursuant to Resolution G-3316, the February 2018 Standby Procurement Charges will be filed by a separate Advice Letter at least one day prior to March 25, Protest Anyone may protest this Advice Letter to the California Public Utilities Commission. he protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. he protest must be made in writing and must be received within 20 days of the date of this Advice Letter, which is March 20, here is no restriction on who may file a protest. he address for mailing or delivering a protest to the Commission is: CPUC Energy ivision Attention: ariff Unit 505 Van Ness Avenue San Francisco, CA A copy of the protest should also be sent via to the attention of the Energy ivision ariff Unit (EariffUnit@cpuc.ca.gov). A copy of the protest should also be sent via both and facsimile to the address shown below on the same date it is mailed or delivered to the Commission. Effective ate Attn: Ray B. Ortiz ariff Manager - G West Fifth Street Los Angeles, CA Facsimile No.: (213) ROrtiz@semprautilities.com SoCalGas believes this Advice Letter is subject to Energy ivision disposition and should be classified as ier 1 (effective pending disposition) pursuant to General Order (GO) 96-B and therefore respectfully requests that the tariff sheets filed herein be made effective February 28, 2018, to coincide with SoCalGas Adjusted Core Procurement Charge filing in Advice No. 5249, dated January 31, 2018.

4 Advice No February 28, 2018 Notice A copy of this Advice Letter is being sent to SoCalGas GO 96-B service list. Address change requests to the GO 96-B service list should be directed by electronic mail to ariffs@socalgas.com or call Attachments Ronald van der Leeden irector Regulatory Affairs

5 CALIFORNIA PUBLIC UILIIES COMMISSION AVICE LEER FILING SUMMARY ENERGY UILIY MUS BE COMPLEE BY UILIY (Attach additional pages as needed) Company name/cpuc Utility No. SOUHERN CALIFORNIA GAS COMPANY (U 9O4G) Utility type: Contact Person: Ray B. Ortiz ELC GAS Phone #: (213) PLC HEA WAER EXPLANAION OF UILIY YPE ELC = Electric GAS = Gas PLC = Pipeline HEA = Heat WAER = Water Advice Letter (AL) #: 5260 Subject of AL: February 2018 Buy-Back Rates (ate Filed/ Received Stamp by CPUC) Keywords (choose from CPUC listing): Preliminary Statement, Core, Compliance AL filing type: Monthly Quarterly Annual One-ime Other If AL filed in compliance with a Commission order, indicate relevant ecision/resolution #: and , et al. oes AL replace a withdrawn or rejected AL? If so, identify the prior AL No. N/A Summarize differences between the AL and the prior withdrawn or rejected AL 1 : N/A oes AL request confidential treatment? If so, provide explanation: No Resolution Required? Yes No ier esignation: Requested effective date: 2/28/18 No. of tariff sheets: 6 Estimated system annual revenue effect: (%): N/A Estimated system average rate effect (%): N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). ariff schedules affected: Preliminary Statement, Part II; Schedule G-IMB, and OC s Service affected and changes proposed 1 : N/A Pending advice letters that revise the same tariff sheets: 5224, 5236, 5239, 5246, and 5248 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy ivision Southern California Gas Company Attention: ariff Unit Attention: Ray B. Ortiz 505 Van Ness Ave., 555 West 5 th Street, G146 San Francisco, CA Los Angeles, CA EariffUnit@cpuc.ca.gov ROrtiz@semprautilities.com ariffs@socalgas.com 1 iscuss in AL if more space is needed.

6 Cal. P.U.C. Sheet No. Revised G Revised G Revised G Revised G AACHMEN A Advice No itle of Sheet PRELIMINARY SAEMEN, PAR II, SUMMARY OF RAES AN CHARGES, Sheet 6 PRELIMINARY SAEMEN, PAR II, SUMMARY OF RAES AN CHARGES, Sheet 7 Schedule No. G-IMB, RANSPORAION IMBALANCE SERVICE, Sheet 2 Schedule No. G-IMB, RANSPORAION IMBALANCE SERVICE, Sheet 3 Cancelling Cal. P.U.C. Sheet No. Revised G Revised G Revised G Revised G Revised G ABLE OF CONENS Revised G Revised G ABLE OF CONENS Revised G 1

7 SOUHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEE NO G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEE NO G WHOLESALE PRELIMINARY SAEMEN Sheet 6 PAR II SUMMARY OF RAES AN CHARGES Schedule G-LS (ECOGAS) G-12CA, Class-Average Volumetric Rate Option Volumetric Charge G-12RS, Reservation Rate Option Reservation Rate, per therm per day Usage Charge, per therm Volumetric ransportation Charge for Non-Bypass Customers Volumetric ransportation Charge for Bypass Customers PROCUREMEN CHARGE Schedule G-CP Non-Residential Core Procurement Charge, per therm Non-Residential Cross-Over Rate, per therm Residential Core Procurement Charge, per therm Residential Cross-Over Rate, per therm Adjusted Core Procurement Charge, per therm IMBALANCE SERVICE Standby Procurement Charge Core Retail Standby (SP-CR) ecember January February B* Noncore Retail Standby (SP-NR) ecember January February B* Wholesale Standby (SP-W) ecember January February B* *o be determined (B). Pursuant to Resolution G-3316, the Standby Charges will be filed by a separate advice letter at least one day prior to March 25. (O BE INSERE BY UILIY) ISSUE BY (O BE INSERE BY CAL. PUC) AVICE LEER NO an Skopec AE FILE Feb 28, 2018 ECISION NO & , et al. Vice President EFFECIVE Feb 28, H7 Regulatory Affairs RESOLUION NO.

8 SOUHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEE NO G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEE NO G IMBALANCE SERVICE PRELIMINARY SAEMEN Sheet 7 PAR II SUMMARY OF RAES AN CHARGES Buy-Back Rate Core and Noncore Retail (BR-R) ecember January February Wholesale (BR-W) ecember January February I I SORAGE SERVICE Schedule G-BSS (Basic Storage Service) Reservation Charges Annual Inventory, per decatherm reserved /year Annual Withdrawal, per decatherm/day reserved... $11.584/year aily Injection, per decatherm/day reserved /day In-Kind Energy Charge for quantity delivered for injection during the year Rate, percent reduction % he In-Kind Energy Charge shall be adjusted as necessary on the basis of a three-year rolling average of actual fuel use. Schedule G-AUC (Auction Storage Service) Reservation Charges Annual Inventory, per decatherm reserved... (1) Annual Withdrawal, per decatherm/day reserved... (1) aily Injection, per decatherm/day reserved... (1) (1) Charge shall be equal to the awarded price bid by the customer. (O BE INSERE BY UILIY) ISSUE BY (O BE INSERE BY CAL. PUC) AVICE LEER NO an Skopec AE FILE Feb 28, 2018 ECISION NO & , et al. Vice President EFFECIVE Feb 28, H7 Regulatory Affairs RESOLUION NO.

9 SOUHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEE NO G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEE NO G Schedule No. G-IMB Sheet 2 RANSPORAION IMBALANCE SERVICE RAES Standby Procurement Charge his charge is applied to customer's cumulative negative transportation imbalance (confirmed transportation deliveries less actual usage) exceeding the 8 percent tolerance band. he Standby Procurement Charge is posted at least one day in advance of each corresponding imbalance trading period for noncore/wholesale and core transport agents (CAs). It is calculated at 150% of the highest daily border price index at the Southern California border beginning on the first day of the month that the imbalance is created to five days prior to the start of each corresponding imbalance trading period plus a Brokerage Fee of per therm for noncore retail service and all wholesale service, and per therm for core retail service. he highest daily border price index is an average of the highest prices from "Natural Gas Intelligence s (NGI's) aily Gas Price Index Southern California Border Average" and SNL Energy s aily Indices SoCal Border." Core Retail Service: SP-CR Standby Rate, per therm ecember January February B* Noncore Retail Service: SP-NR Standby Rate, per therm ecember January February B* Wholesale Service: SP-W Standby Rate per therm ecember January February B* *o be determined (B). Pursuant to Resolution G-3316, the Standby Charges will be filed by a separate advice letter at least one day one day prior to March 25. (O BE INSERE BY UILIY) ISSUE BY (O BE INSERE BY CAL. PUC) AVICE LEER NO an Skopec AE FILE Feb 28, 2018 ECISION NO & , et al. Vice President EFFECIVE Feb 28, H7 Regulatory Affairs RESOLUION NO.

10 SOUHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEE NO G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEE NO G Schedule No. G-IMB Sheet 3 RANSPORAION IMBALANCE SERVICE RAES Buy-Back Rate his rate is applied to customer's cumulative positive transportation imbalance (confirmed transportation deliveries less actual usage) exceeding the 8 percent tolerance band. he Buy-Back Rate is established effective the last day of each month and will be the lower of 1) the lowest incremental cost of gas purchased by the Utility during the month the excess imbalance was incurred; or 2) 50% of the applicable Adjusted Core Procurement Charge, G-CPA, set forth in Schedule No. G-CP, during the month such excess imbalance was incurred. Retail Service: BR-R Buy-Back Rate, per therm ecember January February I Wholesale Service: BR-W Buy-Back Rate, per therm ecember January February I If the incremental cost of gas is the basis for the Standby or Buy-Back Rates, the Utility will provide CPUC the necessary work papers for such cost. Such documentation will be provided under confidentiality pursuant to General Order 66-C and Section 583 of the Public Utilities Code. aily Balancing Standby Rates When a Stage 5 Low Operational Flow Order (Low OFO) or Emergency Flow Order (EFO) is declared, quantities not in compliance with the daily imbalance tolerance are purchased at the daily balancing standby rate. When a curtailment is declared, quantities determined by the Utility to be in violation of curtailment are charged (not purchased) at the daily balancing standby rate. here will be no commodity transfer to the curtailed customer in return for receiving this charge. (O BE INSERE BY UILIY) ISSUE BY (O BE INSERE BY CAL. PUC) AVICE LEER NO an Skopec AE FILE Feb 28, 2018 ECISION NO & , et al. Vice President EFFECIVE Feb 28, H7 Regulatory Affairs RESOLUION NO.

11 SOUHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEE NO G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEE NO G ABLE OF CONENS G-AMOP Residential Advanced Meter Opt-Out Program G,51578-G G-CP Core Procurement Service G,54718-G,54719-G,54696-G,37933-G G-NC Intrastate ransportation Service for istribution Level Customers G,54592-G,53322-G,53323-G,53324-G G,53326-G G-LS Intrastate ransportation Service for ransmission Level Customers G,54593-G,54594-G,54595-G,54596-G G,53332-G,53333-G,53334-G,53335-G G,53337-G,53338-G G-SWGX Wholesale Natural Gas Service G,45341-G G-IMB ransportation Imbalance Service G,54760-G,54761-G,54239-G G,54511-G,53790-G G-OS Off-System elivery Service G*,47346-G,53183-G,47348-G G-BS Backbone ransportation Service G,47349-G,54597-G,54563-G G,49399-G,47178-G,47179-G,53466-G,53467-G G,53469-G,53470-G,47185-G,50484-G,50485-G,50486-G G-POOL Pooling Service G,47189-G,42278-G G-BSS Basic Storage Service G,53740-G,45767-G,45768-G G,45770-G G-AUC Auction Storage Service G,32709-G,32710-G,32711-G G,32713-G,36314-G,32715-G G-LS Long-erm Storage Service G,32717-G,53741-G,45771-G G,45773-G G-BS ransaction Based Storage Service G,43340-G,53742-G,45775-G G,52898-G G-CBS UC Consolidated Billing Service G,34072-G,34073-G,33095-G G-SM Secondary Market ransactions of Storage Rights G,50343-G,45361-G G-CA ransportation Charge Adjustment G G-CCC Greenhouse Gas California Climate Credit G GO-BCUS Biogas Conditioning/Upgrade Services G,51157-G,51158-G,51159-G G,51161-G,51162-G,51163-G (O BE INSERE BY UILIY) ISSUE BY (O BE INSERE BY CAL. PUC) AVICE LEER NO an Skopec AE FILE Feb 28, 2018 ECISION NO & , et al. Vice President EFFECIVE Feb 28, H7 Regulatory Affairs RESOLUION NO.

12 SOUHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEE NO G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEE NO G ABLE OF CONENS he following listed sheets contain all effective Schedules of Rates and Rules affecting service and information relating thereto in effect on the date indicated thereon. GENERAL Cal. P.U.C. Sheet No. itle Page G able of Contents--General and Preliminary Statement G,54637-G,54668-G,54725-G able of Contents--Service Area Maps and escriptions G able of Contents--Rate Schedules G,54762-G,54702-G able of Contents--List of Cities and Communities Served G able of Contents--List of Contracts and eviations G able of Contents--Rules G,54515-G able of Contents--Sample Forms G,53707-G,51537-G,53998-G,54253-G,52292-G PRELIMINARY SAEMEN Part I General Service Information G,24332-G,24333-G,24334-G,48970-G Part II Summary of Rates and Charges G,54705-G,54706-G,54569-G,54570-G,54758-G G,46431-G,46432-G,54550-G,54679-G,54680-G,54681-G,54575-G Part III Cost Allocation and Revenue Requirement G,50447-G,53583-G Part IV Income ax Component of Contributions and Advances G,24354-G Part V Balancing Accounts escription and Listing of Balancing Accounts G,54130-G Purchased Gas Account (PGA) G,53254-G Core Fixed Cost Account (CFCA) G,53434-G,54507-G,53436-G Noncore Fixed Cost Account (NFCA) G,54508-G,54509-G Enhanced Oil Recovery Account (EORA) G Noncore Storage Balancing Account (NSBA) G,52887-G California Alternate Rates for Energy Account (CAREA) G,45883-G Hazardous Substance Cost Recovery Account (HSCRA) G, G,40877-G Gas Cost Rewards and Penalties Account (GCRPA) G Pension Balancing Account (PBA) G,52941-G Post-Retirement Benefits Other han Pensions Balancing Account (PBOPBA) G,52943-G Research evelopment and emonstration Surcharge Account (RGSA) G emand Side Management Balancing Account (SMBA) G,41153-G irect Assistance Program Balancing Account (APBA) G,52584-G Integrated ransmission Balancing Account (IBA) G (O BE INSERE BY UILIY) ISSUE BY (O BE INSERE BY CAL. PUC) AVICE LEER NO an Skopec AE FILE Feb 28, 2018 ECISION NO & , et al. Vice President EFFECIVE Feb 28, H7 Regulatory Affairs RESOLUION NO.

13 AACHMEN B AVICE NO RAE CALCULAION WORKPAPER BASE ON AVICE NO AJUSE CORE PROCUREMEN CHARGE FILING EFFECIVE FEBRUARY 1, 2018 Adjusted Core Procurement Charge: Retail G-CPA: per therm ( WACOG: Franchise and Uncollectibles: or [ % * ] ) Wholesale G-CPA: per therm ( WACOG: Franchise: or [ % * ] ) GIMB Buy-Back Rates BR-R = 50% of Retail G-CPA: 50% * cents/therm = cents/therm BR-W = 50% of Wholesale G-CPA: 50% * cents/therm = cents/therm

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