Should the Commission Order a Core Procurement Incentive Mechanism (CPIM) for Southwest?
The County recommends that the Commission develop a CPIM for Southwest “modeled on the PG&E CPIM that has been in place since 1998.”62 The County states that such a regulatory regime would encourage the utility “both (1) to purchase a balanced, diversified portfolio of natural gas supplies and (2) to operate its storage capacity in a way that is most beneficial to its core ratepayers.”63 We will not adopt a CPIM for Southwest at this time. Our experience with the development of CPIM programs for PG&E, SDG&E, and SoCalGas indicates that such a regulatory regime requires an extensive record and thorough documentation of how the CPIM will operate. We have an insufficient record in this proceeding to propose and adopt such a program. What other Steps Should Southwest Take Concerning the Procurement of Gas and the Use of Storage? The County and ORA also made a variety of proposals that seek to improve the operation of Southwest’s gas procurement and storage system.
