By Jason Fordney

The California Public Utilities Commission on Thursday denied a request to build a new natural gas pipeline after questioning Southern California Gas about why other major pipelines have been sitting out of service.

The commission rejected an application by San Diego Gas & Electric and SoCalGas to build a $639 million pipeline that would have stretched from Rainbow Station to Miramar, replacing the current Line 1600 built in 1949.

“The CPUC determined that the utilities’ most recent natural gas supply forecast and the CPUC’s reliability standard for gas planning do not demonstrate that there is a need for the proposed pipeline,” the commission said as it approved its proposed decision.

The commission directed SDG&E and SoCalGas to pursue other supply options for smaller amounts and for shorter periods of time than would have been provided by the proposed pipeline near San Diego. It also directed the utilities to ensure the safe continuing operation of Line 1600.

The applicants had said the sole purpose of the line was not to meet any short-term supply deficits but for emergency situations such as unplanned outages on Line 3010 or at the Moreno substation. They had also proposed derating Line 1600 from transmission service to distribution service.

The commission last week asked SoCalGas why it had not restored to service two pipelines, Line 3000 and Line 235-2. Line 3000 went out of service on July 29, 2016, and Line 235-2 ruptured and exploded on Oct. 1, 2017.

“Though such outages are to be expected periodically, the significant volumes associated with these facilities and the fact they have been out for lengthy periods during peak demand periods — nearly two years for one and over eight months for another — are causes for concern,” CPUC Energy Division Director Edward Randolph told SoCalGas President Bret Lane in a June 18 letter. Randolph questioned whether rates should be reduced if the lines are not providing benefits to ratepayers.

The Energy Division also issued a new report that cited the pipeline outages as a main reason it is recommending an increase in the allowed storage level at the Aliso Canyon facility from 24.6 Bcf to 34 Bcf. Comments on the proposal were due Monday.

Last month, the commission allowed SoCalGas to increase gas injections into Aliso Canyon but denied a request to increase the allowable capacity. (See CPUC OKs Temporary Increase in Aliso Canyon Injections.)