Southern California Gas Company: Gas Allowances
What are SCG Gas Allowances and Refunds?
Allowances – Represent your future energy usage, and this amount can be used to offset the cost of your project.
Refunds – If your allowances are met, you may be eligible for certain gas and electric service costs.
What are the SCG Currently-Authorized Allowances?
SoCalGas provides two payment options to assist with the budget for business or residential customers. As part of the billing for your project, you may be required to pay in advance before any construction work begins. The main difference between the 2 options is how much you would have to pay in advance as well as the potential for refunds later in the project.
- 10-year refundable payment option: Full advanced payment with refund potential
- 50% discount payment option: Partial advanced payment with NO refund potential.
What is CPUC’s Decision Regarding Eliminating Gas Line Extension Allowances, Refunds, and Discounts for Residential New Construction Builders?
On Sept 15, 2022 California Public Utilities Commission (CPUC) decided to eliminate natural gas line subsidies for new natural gas hookups in a crucial step towards achieving carbon neutrality. Starting July 1, 2023, Residential New Construction Builders who submit an application to install new natural gas line service to their projects may do so but will have to pay for the full cost of installing a main and/or service line to the project.
How Does This Effect Your Current and Future Projects?
In order to take advantage of the 10-year refundable payment option or 50% discount option, any new gas service needs to be submitted by June 30, 2023. The 2 payment options will be eliminated effective July 1, 2023.
What the Developer Can Do?
Hire Murow DC to assist with coordinating any new gas service for your projects. With our constant contact with SCG and knowledge of their process, we will work to get a planner assigned and a request for new service in by June 30, 2023, to qualify for any allowances (the gas company will honor all request made by that date). Our relationship with SCG helps keep any recent/future changes in their procedures on your radar to ensure that we can assist with coordinating all the potential benefits for your project.
MUROW|DC (“MDC”) is a full-service land development consulting company, with a Dry Utility Division that specializes in providing our clients with a dedicated service to ensure timely completion of any and all Dry Utility components of their project. With our vast knowledge of power distribution, design, and agency-specific standards, we are able to provide real-time design scenarios to assist our clients with time sensitive tasks to help avoid costly delays in the process.
Written By: Tyler Raynard, Assistant Project Manager
Comments or Questions? Please feel free to contact Tyler at [email protected]
