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Commitments And Contingencies (Tables)
6 Months Ended
Jun. 30, 2015
Impact Of The Penalty Decision

 

 

 

 

 

 

 

Anticipated

 

 

 

 

Six Months

 

Cumulative

 

Future

 

 

 

Ended

 

Charges

 

Financial

 

Total

(in millions)

June 30, 2015

 

June 30, 2015

 

Impact

 

Amount

Fine payable to the state (1)

$

100

 

$

300

 

$

- 

 

$

300

Customer bill credit

 

400

 

 

400

 

 

- 

 

 

400

Charge for disallowed capital (2)

 

128

 

 

128

 

 

561

 

 

689

Disallowed revenue for pipeline safety

 

 

 

 

 

 

 

 

 

 

 

  expenses (3)

 

- 

 

 

- 

 

 

161

 

 

161

CPUC estimated cost of other remedies (4)

 

- 

 

 

20

 

 

30

 

 

50

Total Penalty Decision fines and remedies

 

 

 

 

 

 

 

 

 

 

 

  recorded

$

628

 

$

848

 

$

752

 

$

1,600

 

 

 

 

 

 

 

 

 

 

 

 

(1) In March 2015, the Utility increased its accrual from $200 million at December 31, 2014 to $300 million.

(2) The Penalty Decision prohibits the Utility from recovering certain expenses and capital spending associated with pipeline safety-related projects and programs that the CPUC will identify in the final decision to be issued in the Utility’s 2015 GT&S rate case. The Utility estimates that approximately $75 million and $128 million of capital spending (which include less than $1 million for remedy related capital costs) in the three months and six months ended June 30, 2015, respectively, are probable of disallowance, subject to adjustment based on the final 2015 GT&S rate case decision.

(3) These costs are being expensed as incurred. Future GT&S revenues will be reduced for these unrecovered expenses.

(4) In the Penalty Decision, the CPUC estimates that the Utility would incur $50 million to comply with the other remedies in the Penalty Decision, including $30 million to reimburse the CPUC for the costs of future audits.  Remedial costs are expensed as incurred.  Other than the refund of CPUC audit costs, the majority of the remedies have been completed or are underway and the associated costs have already been incurred.

Schedule Of Environmental Remediation Liability

 

Balance at

(in millions)

June 30, 2015

 

December 31, 2014

Topock natural gas compressor station (1)

$

297 

 

$ 

291 

Hinkley natural gas compressor station (1)

 

149 

 

 

158 

Former manufactured gas plant sites owned by the Utility or third parties

 

263 

 

 

257 

Utility-owned generation facilities (other than fossil fuel-fired),

  other facilities, and third-party disposal sites

 

153 

 

 

150 

Fossil fuel-fired generation facilities and sites

 

96 

 

 

98 

Total environmental remediation liability

$

958 

 

$ 

954 

 

 

 

 

 

 

(1) See “Natural Gas Compressor Station Sites” below.