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Energy Efficiency
R. 13-11-005
March 21, 2022

SoCalGas Found in Contempt and Violation of Rules and Commission Decision

The Commission found Southern California Gas Company (“SoCalGas”) in contempt, in violation of Rule 1.1 of the Commission’s Rules of Practice and Procedure and ordering remedies for failure to comply with Commission decision 18-05-041. In addition to ratepayer refunds and disallowances for certain expenditures, the Commission imposed a $9,807,000 penalty on SoCalGas for the violations.

In D. 18-05-041, the Commission prohibited SoCalGas from using ratepayer funds to conduct codes and standards advocacy. The Commission found that SoCalGas violated D. 18-05-041, and therefore Section 2107, by continuing to use ratepayer funds to engage in the prohibited codes and standards advocacy activities after the effective date of D.18-05-041.

The Decision:

  • Directs SoCalGas to refund ratepayer expenditures and associated shareholder incentives;
  • Prohibits SoCalGas from recovering costs of codes and standards activity (such as conducting research or communicating with an agency responsible for establishing building or appliance standards about a proposed building code or appliance standard) from ratepayers unless and until SoCalGas demonstrates sufficient and appropriate policies, practices and procedures to ensure adherence to Commission intent for codes and standards advocacy; and
  • Imposes a financial penalty of $9,807,000 for violations of California Public Utilities Code Sections 2113 and 2107.

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