Pacific Gas & Electric Co. (PG&E) is moving forward with a proposal to transfer jurisdiction over its mainline natural gas transmission facilities and storage system from the California Public Utilities Commission (CPUC) to the Federal Energy Regulatory Commission (FERC).
The natural gas pipelines at issue cross into the southwestern United States as well as Canada. According to Crossborder Services, an energy consulting firm, the proposed change in jurisdiction would significantly affect Canadian gas exporters and others who ship on Pacific Gas Transmission (PGT), as well as southwestern gas producers and those who ship gas to California on El Paso and Transwestern. It would also impact issues such as rolled-in versus incremental rates for PGT and PG&E, the crossover ban on shipments into California, bypass competition in northern California, and future competition for service to southern California and Mexico. Crossborder further characterized the proposal as a competitive response to Mojave Pipeline's northern extension into PG&E's service territory.