SOCALGAS INTERCONNECTION PROCESS TY KORENWINDER, PROJECT MANAGER - MARKET DEVELOPMENT ALFONSO REYNA, PROJECT MANAGER – CONSTRUCTION ORG. PAUL SIMONOFF, PROJECT MANAGER – CONSTRUCTION ORG. March 5, 2020 The enclosed is provided for information purposes only. The Utility has made reasonable efforts to ensure all information is correct and consistent with the applicable Tariffs. To the extent there is any conflict with the Tariffs, the Tariffs shall govern in all cases. In addition, neither the Utility ’s publication nor verbal representations thereof constitutes any statement, recommendation, endorsement, approval or guaranty (either express or implied) of any product or service. Moreover, the Utility shall not be responsible for errors or omissions in this publication, for claims or damages relating to the use thereof, even if it has been advised of the possibility of such damages.
Rule 39 Access Process » Three step study process - Designed to provide interconnector the ability to cheaply and quickly evaluate potential interconnection locations and volumes before proceeding with more time consuming and costly studies to determine the feasibility and viability of their different project options. » Pro forma agreements - Standardized agreements addressing confidentiality, interconnect capacity studies and preliminary and detailed engineering studies to enable proceeding with procurement and construction. » Preestablished scopes of work - Standardized scopes, terms and conditions facilitate expediting the contracting process 2
Rule 39 Contracting Sequence » Consulting Service Agreement contains Exhibits covering confidentiality, the interconnect capacity study and preliminary and detailed engineering studies as well as options to evaluate gas quality deviations and procure long lead materials ▪ Exhibit A - Interconnect Capacity Study determines the Utility’s downstream capability to take natural gas away from the interconnection point and the associated Utility facility enhancement costs ▪ Exhibit A1 - Preliminary Engineering Study (PES) provides cost estimates for land acquisition, site development, right-of-way, metering, gas quality, permitting, regulatory, environmental, unusual construction costs, and operating and maintenance costs including DES cost and time estimates ▪ Exhibit A2 - Detailed Engineering Study (DES) (1) describes all costs of construction, (2) develops complete engineering construction drawings, and (3) prepares all construction and environmental permit applications and right-of- way acquisition requirements or ▪ Exhibit A3 – Detailed Engineering Study with Long Lead Material Procurement expands upon DES work to include long lead material procurement as an alternative to Exhibit A2 DES ▪ Exhibit B – Confidentiality Agreement (CA) defines terms and conditions of confidential information 3
Rule 39 Contracting Sequence » Interconnection Agreement (CPIA) provides operating terms and conditions for interconnection and exhibits for initial and subsequent Utility facilities engineering, procurement and construction » Interconnect Collectible System Upgrade Agreement (ICSUA or CPICSUA ) is exhibit to the interconnection agreement providing terms and conditions for engineering, procuring and constructing the point of receipt, interconnecting pipeline and small takeaway system upgrades » Operating Balancing Agreement (OBA or CPOBA) provides terms and conditions for the scheduling and balancing of deliveries 4
Rule 39 Contracting Sequence Step 1 Consulting Service Agreement – Exhibit A, Exhibit B (Confidentiality Agreement) Capacity Study - $2-5,000+, 45 Days Step 2 Consulting Service Agreement – Exhibit A1 Preliminary Engineering Study - $65,000+, 80 Days Step 3 Consulting Service Agreement – Exhibit A2 Detailed Engineering Study - $325,000+, 150 Days Alternate Step 3 Consulting Service Agreement – Exhibit A3 Detailed Engineering Study w/ Long Lead Materials procurement - $1,025,000+, 150 Days Interconnection Agreements and Construction Interconnection, Operational Balancing and Interconnector Collectible System Upgrade Agreements Construction of point of receipt, pipeline lateral, Btu district, etc. procurement and construction $2,000,000-$3,000,000+ (Point of Receipt Only), 140 days+ Depends on location, permitting, material availability, etc. (Days are business days, estimates are additive) 5
SoCalGas Rule 39 Interconnection Capacity Study Interconnection Capacity Study - determines SoCalGas’ takeaway capability to accept interconnector gas (and estimated cost to expand if necessary) Keep in mind: • Details are important (e.g. – precise project location and volumes) • Adjacent line to project doesn’t guarantee injection acceptance Nearest SoCalGas pipeline that has the takeaway capacity The Capacity Study provides: to accept supply 1) approximate pipeline extension length, Biogas Producer pipeline diameter and very high level cost Location = X to install Biomethane Volume = Y 2) location of the pipeline having take away capacity 6
SoCalGas Rule 39 Interconnection Engineering Studies Preliminary Engineering Study (PES) – preliminary study which includes cost estimate for Gas Quality Monitoring and Measurement Facilities (Point of Receipt) Nearest SoCalGas pipeline that has the takeaway capacity Biogas Producer to accept supply Pipeline extension length and a Point of Receipt with more refined cost estimate estimated cost Detailed Engineering Study (DES) - develop complete engineering construction drawings, prepare all permit applications, and provide a cost estimate of materials and construction 7
Point of Receipt (POR) The Point of Receipt 1. Monitors gas quality to ensure it meets SoCalGas Rule 30 Gas Quality Specifications (e.g. CO 2 , O 2 , total inerts, heating value, H 2 S) 2. Prevents non-compliant gas from entering the utility pipeline network should the monitored Rule 30 parameters not be met 3. Meters and odorizes the volume of RNG put into the utility pipeline network 8
Pipeline Extension • Pipeline extension is the pipe installed from the outlet of the Point of Receipt to the nearest utility pipeline having the capacity to accept the interconnector volume of RNG • Majority of the pipelines in streets are distribution lines with limited takeaway capability to accept interconnector gas during summer months (particularly in the early a.m. hours) • This may result in high pipeline extension costs because the nearest pipeline having the capacity could be miles away Nearest SoCalGas Nearest SoCalGas pipeline to Point of Receipt pipeline that has the (e.g. 500 feet away) takeaway capacity but doesn’t have the to accept supply (e.g. – 1.4 miles capacity away) Pipeline Extension Point of Receipt 9
Long Lead Items • Filter Separator • Shelters (Electrical & Analyzer) • Control Valves • Monitor Control Valve • Orifice Meter • Gas Chromatograph (NGC) • Oxygen Analyzer • Odorization Dual Pump • Odorization Tank (YZ) • Level Gauge / Transmitter • SCADA Pack • UPS/Battery • Flow Computer 10
Keys to Ensure a Smooth Process ▪ Involve SoCalGas as early as possible, generally at least 18-24 months in advance of desired in service date ▪ Combining PES and DES can help expedite process ▪ Provide funding for long lead items as early as possible. May want to fund long lead materials with DES ▪ Recommend reviewing various Rule 39 Agreements (available on socalgas.com) early on in the process and understanding gas scheduling/balancing requirements ▪ Be ready to fund invoices for various Rule 39 Agreements ▪ Review SoCalGas easement language early in the design process ▪ Provide SoCalGas with environmental document early for review 11
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