EXHIBIT 10.8
Amendment to Restated Contract.
This Amendment is entered into as of the 26th day of March, 1993, by and between
San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company
(SoCalGas), to amend the Restated Long-Term Natural Gas Service Contract between
the parties dated September 1, 1990 ("Restated Contract"). All definitions set
forth in the Restated Contract are incorporated by reference herein as if set
forth in full.
NOW THEREFORE, in consideration of the promises and mutual understandings set
forth below, the parties agree as follows:
1. Firm Interstate Pipeline Capacity
(a) Notwithstanding any provision in the Restated Contract, SDG&E's
reservation of interstate pipeline capacity from SoCalGas under the Restated
Contract shall be reduced from 300 MMcf/d (310,500 Dth/d) to 90 MMcf/d (93,150
Dth/d), which is consistent with California Public Utilities Commission (CPUC)
Decision No. D.91 025, as supplemented by D.92-07-025 and Resolution No. G-3023.
The 93,150 Dth/d shall consist of 67,275 Dth/d on the El Paso interstate
pipeline system, and 25,875 Dth/d on the Transwestern pipeline system. This
reservation of interstate capacity is for SDG&E's core load usage. The
interstate capacity for both interstate gas pipelines will be assigned to SDG&E
via Pre-Arranged Deal, and, subject to acceptance by such interstate pipelines,
the assignments shall be made effective upon the date of full implementation of
the CPUC's capacity brokering rules in accordance with Resolution No. G-3023.
In the event of partial implementation of capacity brokering, the 25,875 Dth/d
of interstate capacity on the Transwestern pipeline will be assigned to SDG&E
upon the implementation date of such partial implementation in accordance with
D.92-07-025 and Resolution No. G-3045.
(b) Notwithstanding any provision in the Restated Contract, as of the
implementation date of the CPUC's Capacity Brokering rules (currently
contemplated to occur on August 1, 1993), Transwestern and El Paso interstate
demand charges shall, consistent with D.9111-025 and D.92-07-025, be removed
from the rates charged to SDG&E under the Restated Contract. In the event of a
partial implementation of Capacity Brokering, only the Transwestern pipeline
demand charges shall be removed from SDG&E's rates on the date of such partial
implementation. Upon such partial implementation, the El Paso demand charges
shall be removed thereafter from the rates charged to SDG&E immediately upon
full implementation of Capacity Brokering.
2. Rate Changes
To accommodate changes to rates in the future resulting from CPUC actions,
Section 3.1.6 of the Restated Contract is amended as follows:
(a) Demand Charge and Volumetric charges in Sections 3.1.1 and 3.1.2 shall
be adjusted one (1) time during each Contract Year starting from the base
established by CPUC Decision D.90-01-015, consistent with any subsequent CPUC
Cost Allocation Proceeding or other CPUC decisions. SoCalGas shall be entitled
to select the date of adjustment for any Contract Year, which date shall in no
event be prior to effective date(s) of the Cost Allocation Proceeding or other
CPUC decision(s) on which it is based. Subsequent Cost Allocation Proceedings
or other CPUC decision(s) during such Contract Year, issued after the date
selected by SoCalGas for the next Contract Year, shall become effective as of
the date selected by SoCalGas for the next Contract Year immediately following.
Adjustments or refunds deferred from a contract year to the next immediately
following Contract Year shall be subject to interest from the effective date of
the CPUC Decision applicable thereto. Such interest, whether payable by SDG&E
(for any increase) or SoCalGas (for any decrease), shall be calculated at the
interest rate applicable to SoCalGas' balancing accounts under section F of the
SoCalGas Tariff Preliminary Statement, or its successor. Thus, for example, the
difference in authorized rates computed from a CPUC CAP (Cost Allocation
Proceeding) decision which is effective on October 1 of a Contract Year, but not
translated to a rate change under this Contract until the following January 1,
shall also reflect three (3) months interest thereon.
(b) Amended Appendix B is attached hereto and incorporated herein to
demonstrate how such adjustments to the rates will be made. As of March 16,
1990, the Amended Appendix B supersedes and replaces the previous Appendix B.
A new Appendix B shall be agreed upon and automatically incorporated by
reference herein as of the effective date therefor established under Section
3.1.6(a).
(c) Demand Charge and Volumetric charges in Sections 3.1.1 and 3.1.2 may
also be adjusted, as mutually agreed between SoCalGas and SDG&E more than once
each year to coincide with the timing of implementation of the CPUC CAP or other
CPUC decisions.
3. Continuation of Restated Contract
Except as set forth in this Amendment, the Restated Contract shall continue in
full force and effect.
NOW THEREFORE, the authorized representatives of the parties have executed two
(2) duplicate copies of this Amendment as of the date first set forth above.
SAN DIEGO GAS & ELECTRIC COMPANY SOUTHERN CALIFORNIA GAS COMPANY
By _____________________________ By _____________________________
Edwin A. Guile Eric . Nelson
Title Senior VP, Energy Supply Title: Manager of Major Markets