CAPITAL WORKPAPERS TO PREPARED DIRECT · PDF fileAccumulated Depreciation Reserve represents weighted average accumulated book depreciation ... ITCC (33,179) (34,470) (36,392) (37,417)

Application of SOUTHERN CALIFORNIA GAS )COMPANY for authority to update its gas and )electric revenue requirement and base rates )effective January 1, 2016 (U 904-G) )
Application No. 14-11-___Exhibit No: (SCG-26-CWP)
CAPITAL WORKPAPERS TO
PREPARED DIRECT TESTIMONY
OF GARRY G. YEE
ON BEHALF OF SOUTHERN CALIFORNIA GAS COMPANY
BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
NOVEMBER 2014
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SOUTHERN CALIFORNIA GAS COMPANY TY2016 GRC - Exhibit Number SCG-26-WP
Table of Contents
I. Rate Base Description...1 II. Rate Base...4
a. Weighted Average Rate Base.................5 b. Plant Balances....6 c. Accumulated Depreciation Reserve.......8 d. Capital Expenditure Projects Description Log.10 e. Direct Capital Expenditures..................................16 f. Fully Loaded Capital Expenditures.....35
III. Plant & Reserve Balance57 a. Utility Summary Balance...57 b. Intangible Balance..61 c. Underground Storage Balance..68 d. Transmission Balance..96 e. Distribution..130 f. General Plant..161 g. Cushion Gas.354
IV. Miscellaneous Support361 a. Construction-Work-In-Progress....361 b. Gas Plant-in-Service...365 c. Accumulated Depreciation376 d. Work In Progress (non-interest bearing).381 e. Materials & Supplies..383 f. Customer Advances For Construction...386
V. Shared Assets....390 VI. Allowance for Funds Used During Construction...409

Rate Base Description
SCG/RATEBASE/Exh No:SCG-26-WP/Witness: G. Yee Page 1 of 498

Rate Base Description
Summarization The purpose of this schedule is to illustrate the components of rate base and provide support for
recorded year 2013, estimated years 2014 and 2015, and Test Year 2016. Rate base is computed
on a weighted average basis. The primary components of weighted-average rate base are Plant-
in-Service, Non-Interest Bearing Construction Work-in-Progress, Materials and Supplies, and
Working Cash. This gross rate base is then reduced by Customer Advances for Construction
(CAC), Deferred Revenue (ITCC), Accumulated Depreciation Reserve, and Accumulated
Deferred Taxes (Plant and CIAC) to achieve a final weighted-average depreciated rate base.
Plant Balance
Plant-in-Service represents gross fixed assets used in utility operations with an expected
economic and physical life greater than one year from the date of service.
Accumulated Depreciation
Accumulated Depreciation Reserve represents weighted average accumulated book depreciation
reserve which includes a summation of depreciation accrual charges adjusted for plant
retirements, net salvage, and other adjustments or transfers as prescribed by the FERC Uniform
System of Accounts.

Construction Work-in-Progress (Non-Interest Bearing)
Construction-Work-in-Progress (Non-Interest Bearing) represents smaller project costs of plant
in construction not subject to the computation of allowance for funds used during construction
(AFUDC). The non-interest bearing work-in-progress amount represents projects completed and
placed in service within 30 days of construction or purchase (i.e. capital tools).
Material and Supplies
Materials and supplies are costs of purchased materials primarily used as current inventory for
construction, operation, maintenance, merchandising, jobbing, and contract work.
Working Cash
Working cash represents operational cash requirements contributed by our investors resulting
from evaluation of balance sheet items and lead-lag study. Working cash is included in rate base
to compensate our investors for the funds advanced by them. These funds are used to pay
operating expenses in advance of receiving customer revenues and for working funds for day-to-
day operational requirements.
Customer Advances for Construction (CAC)
Customer Advances for Construction (CAC) represents refundable cash advances received from
customers who have requested the installation of new business mains and services. These cash
advances are subject to refund when new customers and appliances are added to these lines as
mandated by the CPUC and described in SoCalGas Tariff Rules 20 and 21.

Rate Base

SOUTHERN CALIFORNIA GAS COMPANY
Recorded TestLine Year YearNo. Account Description 2013 2014 2015 2016
Fixed Capital1 Plant In Service 10,201,480 10,705,781 11,304,581 11,988,2982 Work-In-Progress (non-interest bearing) 4,728 10,310 11,354 13,1863 Total Fixed Capital 10,206,208 10,716,091 11,315,935 12,001,485
Working Capital4 Materials & Supplies 25,585 25,717 24,731 25,1415 Working Cash 0 0 0 87,2676 Total Working Capital 25,585 25,717 24,731 112,408
Other7 Customer Advances For Construction (101,316) (101,593) (101,911) (102,345)8 Deferred Revenue - ITCC (33,179) (34,470) (36,392) (37,417)9 Total Other (134,496) (136,063) (138,303) (139,762)
Deductions For Reserves10 Accumulated Depreciation Reserve 5,889,916 6,162,181 6,449,589 6,733,06611 Accumulated Deferred Taxes - Plant 974,483 1,007,521 1,018,484 1,035,45812 Accumulated Deferred Taxes - CIAC (112,055) (119,413) (125,776) (130,640)13 Accumulated Deferred Investment Tax Credits 0 0 0 014 Total Deductions For Reserves 6,752,343 7,050,289 7,342,297 7,637,884
15 Weighted Average Depreciated Rate Base 3,344,955 3,555,455 3,860,067 4,336,247
Weighted Average Depreciated Rate Base(Thousands of Dollars)
Estimated Year
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Plant Balances

Recorded TestLine Year YearNo. End of Month 2013 2014 2015 2016
(a) (b) (c) (d)
1 Prior December 9,976,801 10,489,859 11,057,849 11,705,8592 January 10,011,659 10,520,428 11,095,106 11,742,5253 February 10,034,840 10,552,262 11,126,193 11,776,5194 March 10,058,743 10,607,450 11,187,248 11,842,4615 April 10,098,635 10,645,271 11,223,011 11,886,6856 May 10,116,246 10,685,167 11,266,293 11,936,5567 June 10,130,335 10,679,806 11,250,683 11,940,4648 July 10,279,176 10,714,044 11,290,748 11,980,4939 August 10,305,059 10,741,060 11,326,935 12,012,718
10 September 10,339,038 10,792,523 11,454,550 12,100,82311 October 10,375,622 10,857,831 11,504,258 12,202,67312 November 10,435,072 10,899,671 11,548,097 12,294,08213 December 10,489,859 11,057,849 11,705,859 12,581,30314 13 Months Total 132,651,087 139,243,220 147,036,829 156,003,16015 Less one-half
opening andclosing balances 10,233,330 10,773,854 11,381,854 12,143,581
16 Remainder 122,417,757 128,469,366 135,654,975 143,859,579
17 Weighted AverageBalance (1) 10,201,480 10,705,781 11,304,581 11,988,298
(1) Remainder divided by twelve
Estimated Year
SOUTHERN CALIFORNIA GAS COMPANYPlant Balances
(Thousands of Dollars)

Accumulated Depreciation
Reserve

Recorded TestLine Year YearNo. End of Month 2013 2014 2015 2016
(a) (b) (c) (d)
1 Prior December 5,756,897 6,026,050 6,303,604 6,601,1262 January 5,785,922 6,053,938 6,333,175 6,628,4943 February 5,815,742 6,082,768 6,363,821 6,656,9784 March 5,843,327 6,109,991 6,392,786 6,683,6825 April 5,872,509 6,137,573 6,422,652 6,711,2836 May 5,875,293 6,164,982 6,452,307 6,738,6327 June 5,864,019 6,134,954 6,421,567 6,703,8468 July 5,891,259 6,163,695 6,452,240 6,732,6639 August 5,918,936 6,191,720 6,482,142 6,760,571
10 September 5,945,817 6,218,579 6,509,808 6,786,17311 October 5,974,056 6,247,096 6,540,518 6,814,54412 November 6,000,631 6,276,053 6,571,683 6,843,65613 December 6,026,050 6,303,604 6,601,126 6,871,41614 13 Months Total 76,570,461 80,111,004 83,847,430 87,533,06515 Less one-half
opening andclosing balances 5,891,474 6,164,827 6,452,365 6,736,271
16 Remainder 70,678,987 73,946,177 77,395,065 80,796,793
17 Weighted AverageBalance (1) 5,889,916 6,162,181 6,449,589 6,733,066
(1) Remainder divided by twelve
Estimated Year
SOUTHERN CALIFORNIA GAS COMPANYAccumulated Depreciation
(Thousands of Dollars)
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Documents

CAPITAL WORKPAPERS TO PREPARED DIRECT · PDF fileAccumulated Depreciation Reserve represents weighted average accumulated book depreciation ... ITCC (33,179) (34,470) (36,392) (37,417)