Report: California regulators poised to reject SoCalGas pipeline

Dive Brief:

California regulators appear poised to reject Southern California Gas's proposed North-South pipeline, reports Kallanish Energy, amid concerns that other routes would have less environmental impacts and could be less costly.
The $620 million project would cross portions of Bernardino County, including the San Bernardino National Forest, and would terminate in the city of Moreno Valley. Backers argue the pipeline is needed to ensure reliable natural gas supply for power plants.
The California Public Utilities Commission last week delayed a decision on the pipeline, and Kallanish reports that following the meeting regulators indicated they were inclined to vote against the proposal.

Dive Insight:

The Southern California Gas system is largely reliant on a single source of supply along its eastern edge. As more renewables come online in the state, SCE the system may need additional supplies for the gas plants that support the clean generation.

But regulators say SoCalGas has yet to prove the project is needed, and there may be better alternatives.

Last year, the company proposed a 65-mile, 36-inch diameter transmission pipeline beginning at the Adelanto Compressor Station in the city of Adelanto, running south through the Cajon Pass and the San Bernardino National Forest, and ending at the Moreno Pressure Limiting Station in the City of Moreno Valley. The proposal also includes plans for an upgrade to the Adelanto Compressor Station, adding 30,000 horsepower of compression.

The North-South line would give SoCalGas "ready access to supplies and storage in the northern portion of the transmission system," the company said its project information web site. "SoCalGas believes the North-South Project is the most cost-efficient and environmentally sensitive way to diversify supply and ensure reliable service for its customers."

But in April, a CPUC administrative law judge recommended the project be rejected, arguing there are cheaper routes through less-populated areas, and that the utilities had not proven the new pipeline was necessary.

Regulators at the CPUC's May 12 meeting delayed a decision. Kallanish reports, however, that "during a brief discussion with media, commissioners said they were inclined to deny the request."