The California Public Utilities Commission has approved "Gas Accord," a settlement that enhances competition by restructuring the way natural gas is bought, sold and transported (Decision 97-08-055, Docket A.92-12-043).
"This is a landmark step to further deregulate the natural gas industry here in California," said Jack Jenkins-Stark, PG&E senior v.p. "These changes parallel those in the electric industry."
The collaborative settlement unbundles rates for transporting natural gas on PG&E's system.
Signed by PG&E and about 25 gas industry participants and regulatory agencies, the agreement resolves issues concerning the utility's October 1991 decision to build Line 401. The line is the intrastate portion of a natural gas pipeline from Alberta, Canada to Kern River Station near Bakersfield, Calif. PG&E will pay about $300 million to settle lawsuits by potential competitors.