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Southern California Gas Company
Elvia Lima Ortiz Director -Utility Accounting Southern California Gas Company [In SoCalGas,- gel s, A Street Mail Loc. GT15B2 Los Angeles, CA 90013 Tel: (213) 231-1015 ELOrtiz2@socalgas.com March 20, 2024 Finance Department City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Dear Sir or Madam: Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 524 of $578,217.91 for calendar year 2023. Also enclosed is a statement showing the municipal surcharge due of $93,168.17 for calendar year 2023. Please note that franchise fee calculations can fluctuate from year to year based on energy price and customer usages. Please refer to the franchise agreement for additional detail on how franchise fees are calculated. The total amount due of $671,386.08 will be paid by Electronic Funds Transfer to be initiated on April 15, 2024, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Jpmorgan Chase Bank, Na ABA Number: 322271627 Account ending in: xxxxx7835 If the banking information above is incorrect or has changed, please contact AP_Inquiry_SCG@semprautilities.com. Any changes in banking information must be received on or before close of business on Friday, April 5, 2024. For franchise statement questions, please contact Geoffrey Danker, Franchise, Fees & Policy Manager, at gdanker@socalgas.com or (213) 244-3363. For issues related to permitting or SoCalGas' operations in the public rights -of -way, please contact your local Public Affairs Manager. Sincerely, Enclosures cc: Revenue Manager Page 2 SOUTHERN CALIFORNIA GAS COMPANY STATEMENT FOR THE CALENDAR YEAR 2023 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. 524 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ............. $ Investment in Distributing Agencies in: Public and Private Rights of Way ................. $ Public Highways only .......................... $ Percent of Distributing Agencies to Total for: Public and Private Rights of Way ................. Public Highways only .......................... Total Gross Receipts from Operations for Period: Gross Receipts ............................... $ Less: Uncollectible Bills ....................... $ Total Receipts .............................. $ Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (46.63539% x $7,088,933,412) ................. $ Public Highways only (9.02092% x $7,088,933,412) ................. $ B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .................. Mileage in Highways ............................ Percent of Mileage in Highways to Total Mileage ..... 22,986,154,534 10,719,681,862 2,073,563,601 46.63539% 9.02092% 7,128,957,935 (40,024,523) 7,088,933,412 3,305,951,744 639,487,012 105,796.9664 mi. 63,322.2410 mi. 59.85261 % Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (59.85261 % x $3,305,951,744) ................. $ 1,978,698,404 Public Highways only (100% x $639,487,012) ...................... $ 639,487,012 Total .................................... $ 2,618,185,416 Total Mileage in Highways as above ................ 63,322.2410 mi. Mileage in Highways of this Franchise 347.7406 mi. Percent of Mileage of this Franchise to Total Mileage in Highways ................................ 0.54916% C. Gross Receipts applicable to this Franchise (0.54916% x $2,618,185,416) ................... $ 14,378,027 D. Amount due based on 2% of the above applicable Gross Receipts ...................................... $ 287,560.54 Page 3 Newport Beach SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings .................................... $ 57,967,814.58 Less: Uncollectible Bills ............................ $ (146,023.84) Gross Receipts ................................ $ 57,821,790.74 Amount due based on (1 %) of the above Gross Receipts .. $ 578,217.91 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section B in the sum of $578,217.91. Page 4 SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2023 MUNICIPAL SURCHARGE DUE TO THE CITY OF NEWPORT BEACH MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6350 et seq. Total Municipal Surcharge collected ..................... $ 93,168.17 Municipal Surcharge Bad Debts ........................ $ .00 --------------------- Net amount due ..................................... $ 93,168.17 Page 5 CERTIFICATION I, the undersigned, say: I am the Director, Utility Accounting, for Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verity that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 29.2024, at Los Angeles, California. r Elvia Lima Ortiz Director, Utility Accounting Southern California Gas Company If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Regulatory Accounts 555 W. 5th Street GT1562 Los Angeles, CA 90013 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of ) Southern California Gas Company ) Regarding Year Seven (2000 -2001) ) Under Its Experimental Gas Cost ) Incentive Mechanism and Related ) Gas Supply Matters ) (U 904 G) ) RECEIVED '01 ,AL -2 A 9 :42 OFFICE OF THE CITY CLERK CITY OF NEWPORT BEACH Application 01 -06 -_ APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY DAVID B. FOLLETT JUDITH L. YOUNG Attorneys for SOUTHERN CALIFORNIA GAS COMPANY 555 West Fifth Street, 14TH Floor Los Angeles, California 90013 -1011 Telephone: (213) 244 -2955 Facsimile: (213) 629 -9620 June 15, 2001 E -mail: ilyoOpgL s(� emnra.com R'ECEIV ro1 JN 28 CITY CLEP OFFICE F NEWPORT BEACiT"R REQUEST On June 15, 2001, Southern California Gas Company (SoCalGas) filed Application No. 01 -06 -027 with the California Public Utilities Commission (Commission). This application reports SoCalGas' gas supply and storage operations for "Year Seven" (April 1, 2000 through March 31, 2001) and requests approval to recover in rates shareholder incentives of $106.1 million earned under its Gas Cost Incentive Mechanism (GCIM) program. Under the GCIM, the actual cost SoCalGas pays for gas to meet the needs of its core customers is measured against a Commission approved benchmark for the prevailing market price of gas. If SoCalGas is able to purchase gas below the GCIM benchmark, cus- tomers and shareholders share the savings. The Year Seven cost sav- ings of $223.6 million are calculated as the difference between the actual cost of gas of $2,187.5 million and the GCIM benchmark of $2,411.1 million. SoCalGas is seeking approval of a shareholder award of $106.1 million from these cost savings. If the Commission approves SoCalGas' shareholder award, SoCalGas' ratepayers will retain a net benefit of $117.5 million in lower costs from the GCIM. Notwithstanding this request, SoCalGas has offered to reduce the shareholder portion to $30.8 million If the Commission approves SoCalGas' settlement filing in Application No. 00-06.023. If the Commission approves SoCalGas' settlement filing, SoCalGas' ratepayers will retain a net benefit of $142.8 million in lower costs from the GCIM: For more information, please contact J. Suwara at SoCalGas. WHAT THIS MEANS TO YOU If the Commission approves the settlement and grants the $30.8 mil- lion settlement, based on the average monthly gas procurement costs for the 2000-2001 winter season, a residential customer's monthly winter bill for 70 therms of gas usage would increase by 67 cents, from $72.35 to $73.02. Based on a 12 -month period, a resi- dential customer's average monthly bill would increase by 44 cents. If the Commission does not approve the settlement and grants the $106.1 million full award, based on the average monthly gas procure- ment costs for the 2000-2001 winter season, a residential cus- tomer's monthly winter bill for 70 therms of gas usage would increase by $2.32, from $72.35 to $74.67. Based on a 12-month peri- od, a residential customer's average monthly bill would increase by $1.52. Depending on Commission action on SoCalGas` requests, the pro- posed impact to each Customer class would be allocated as shown below: $30.8 Million $106.1 Million Settlement Full Award Customer Class Million %increase $Million %increase Residential 23.9 2.3% 82.2 8.00/0 Commercial /Industrial 7.2 3.6% 25.0 12.4% Core Subscription 0.3 N/A 1.0 N/A TOTAL $31.4* 2.1% 108.2* 7.4% *The actual number approved by the Commission will include fees paid to cities and local government. The impact on each customer and Customer Class could vary depend- ing on individual usage and the Commission's final decision. WHAT YOU CAN DO You may view a copy of the application at the address listed below or obtain a copy of the application and related exhibits by writing to: J. Suwara, Southern California Gas Company, 555 West Fifth Street, 14th Floor, Los Angeles, CA 90013-1011. You may also view a copy of the application at the following address: Public Utilities Commission, 320 West Fourth Street, Room 500, Los Angeles, CA 90013. Before acting on our application, the Commission may hold formal evidentiary hearings. If hearings are held, they will be open to the public and devoted to analyzing the need for the requested rate increase. At these hearings, the Commission will receive testimony from interested parties who may offer proposals that differ from those requested by SoCalGas. After considering all proposals, the Commission will issue a decision. If you would like to participate in the hearings and need assistance, you may write to the Commission's Public Advisor's Office at the above address or at the following e- mail address :, public.advisor.la @cpuc.ca.gov. The Commission welcomes your comments. You may write to the Commission at the address above. Any letters received from you will be circulated to each Commissioner and will become part of the for- mal correspondence file in this application. In your letter, state that you are writing in regard to Application No. 01-06-027. Please indi- cate if you would like a response to your letter. Otherwise, none will be sent. 9 z00i southern California Gas company. All copyright and [ranemarir rights reserved. 17-0106 TABLE OF CONTENTS I. SUMMARY.... Page .................................................... I III. PURPOSE OF APPLICATION ..................................................................................... 6 A. Shareholder Earnings for GCIM Activities ....................................................... 6 B. Modifications to the GCIM ................................................................................ 7 IV- ADDITIONAL INFORMATION .................................................................................. 8 A. Incorporation and Latest Proxy Statement ........................... ..............................8 B. Legal Name ........................................................................................................ 8 C. Correspondence and Communication_ ................................. .............................. 9 D. Present and Proposed Rates and Summaries of Revenue Changes .......................................................................................... 9 E. Balance Sheet and Income Statement ................................................................ 9 F. General Description of Property and Equipment ................. ..............................9 G. Service Territory .............................................................................................. 10 H. Original Cost of Property and Depreciation Reserve Applicable Thereto ............................................................................. 10 I. Statement of Election of Method Computing Depreciation Deduction for Federal Income Tax ................ .............................10 J. Compliance with Public Utilities Code Section 1822 ........ .............................11 K. Statutory Authority .......................................................................................... I I L. Statement Pursuant to Rule 23(1) .................................................................... I I M. Notice and Service of Application... ..................................... ........................... I I V. RULE 6(a)(1) and 6(e) REQUIREMENTS ................................................................. 12 A. Proposed Categorization .................................................................................. 12 B. Need for Hearings ............................................................................................ 12 - I - EXHIBITS: A. - Present and Proposed Rates and Summary of Revenue Changes B. - Balance Sheet, Income Statement, and Statement of Retained Income C. - Cities and Counties in Service Territory D. - Annual Report on the GCIM — April 1, 2000 through March 31, 2001 E. - Agreement in Principle Among SoCalGas, ORA, and TURN on the GCIM F. - Certificate of Service and Service List - 11 - BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of ) Southern California Gas Company ) Regarding Year Seven (2000 -2001) ) Under Its Experimental Gas Cost ) Incentive Mechanism and Related ) Gas Supply Matters ) (U 904 G) ) Application 01 -06 -_ APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY Southern California Gas Company ( "SoCalGas ") hereby submits its seventh annual application ( "Application ") under the Gas Cost Incentive Mechanism ( "GCIM" ), which, was established by the California Public Utilities Commission ( "Commission ") in Decision (D.) 94 -03 -076, modified and extended in D.97 -06 -061, and extended on an annual basis beginning with Year Six in D.98 -12 -057. Pursuant to these decisions and SoCalGas' Tariff Preliminary Statement Part VIII, Gas Cost Incentive Mechanism, SoCalGas is required to file an application and report by June 15 of each year to address the reasonableness of its operations in light of Commission rules and to provide information regarding the results of the GCIM for the previous April 1 through March 31 period ( "GCIM Year "). I. SUMMARY By this Application, SoCalGas (1) provides its report on gas supply and storage operations for the twelve months ending March 31, 2001 ( "Year Seven ") to the Commission and (2) submits its request for Commission approval of a shareholder award in the amount of $106.1 million for SoCalGas' GCIM performance for that period, in accordance with D.94 -03- 076, as modified, and D.97 -06 -061, as supplemented by D.98 -12 -057. Notwithstanding this request, SoCalGas notes that the Commission will address in Phase 2 of Application (A.) 00 -06 -023 the issue of whether the GCIM should now be continued with or without modification. In A.00 -06 -023, SoCalGas, the Office of Ratepayer Advocates ( "ORA "), and The Utility Reform Network ( "TURN ") have agreed in principle on certain modifications to the GCIM that would, if approved by the Commission, also apply retroactively to Year Seven to reduce the shareholder award to $30.8 million. A copy of such Agreement in Principle is appended hereto under Tab E. SoCalGas has provided to the parties in A.00 -06 -023 a Notice of Settlement Conference to be held on June 21, 2001, in anticipation that a settlement substantially reflecting the Agreement in Principle will be submitted by joint motion for approval by the Commission. If such settlement in A.00 -06 -023 is approved, SoCalGas' request for the shareholder award in this Application will either be amended or withdrawn. In the event the Commission does not approve such settlement upon its submission in A.00 -06 -023, however, SoCalGas will then pursue its request in this Application for the shareholder award in the amount of $106.1 million under the now- existing mechanism in accordance with D.94 -03 -076, as modified, and D.97 -06 -061, as supplemented by D.98 -12 -057: H. HISTORY OF THE GCIM A. Establishment of the GCIM: On March 16, 1994, the Commission approved SoCalGas' A.93 -10 -034 for a change in the way the Commission oversees the reasonableness of gas purchases and gas storage decisions made by SoCalGas on behalf of core sales customers (D.94 -03 -076). The Commission initially established a three -year experimental GCIM program beginning April 1, 1994. As stated in D.94 -03 -076, the GCIM program then consisted of two separate elements, one that measures performance for gas procurement efforts and the other that measures performance for efficient gas storage operations for the core class. The GCIM, as proposed, affected approximately 75 percent of SoCalGas' total gas purchases at the time. -2- The GCIM establishes a benchmark against which to measure the price SoCalGas pays for core and core subscription gas supply. The benchmark is based on a combination of monthly gas price indices published in Natural Gas Intelligence, Inside FERC, and Natural Gas Week and a New York Mercantile Exchange ( "NYMEX ") component for gas futures. The GCIM proposal included a "tolerance band" to allow SoCalGas to meet objectives related to service reliability and supply security. The approved tolerance band was initially established at four and one -half percent during the first year of the GCIM' and four percent for the subsequent two years. In establishing the GCIM in D.94 -03 -076, the Commission ordered the Commission Advisory and Compliance Division ( "CACD ") to conduct an evaluation of the GCIM by August 1, 1996 to provide the Commission with guidance regarding the success or failure of the program prior to its three -year completion. The Division of Ratepayer Advocates ( "DRA ") was tasked with auditing SoCalGas' annual reports on the GCIM'. B. GCIM Year One: Consistent with D.94 -03 -076, SoCalGas filed its first annual report on June 22, 1995 (A,95 -06 -043), covering Year One and proposing six changes to the GCIM. DRA conducted its audit of SoCalGas' report and opposed two of the changes. SoCalGas settled with DRA in agreeing on four of the six proposed changes, and was granted its requested shareholder award. C. GCIM Year Two: On June 17; 1996, SoCalGas filed A.96 -06 -029 reporting on its gas supply and storage operations during Year Two. August 1, 1996 passed without the CACD or its successor, the Energy Division, submitting the evaluation report ordered in D.94 -03 -076. On February 13, 1997, SoCalGas and ORA filed a "Joint Motion for Order Adopting Stipulation and Agreement, Suspending Procedural Schedule, Waiving Oral Hearings, Limited Consolidation of Indicated Docket, and for Other Relief." Among other -3- things, the Stipulation and Agreement resolved all issues related to the Year Two application, proposed to replace the four percent tolerance band with a tolerance band of two percent above and one -half percent below the benchmark, and provided for revisions to, and extension of, the GCIM program on an annual basis beyond the original expiration date of March 31, 1997. On June 11, 1997, the Commission issued D.97 -06 -061, which adopted the joint recommendation of ORA and SoCalGas with one modification. The sole modification was to limit the current extension to a two -year term ending March 31, 1999 "in order for the Commission to revisit this program, if it chooses, as part of its Gas Strategy" (D.97 -06 -061, mimeo, at page 7). D. GCIM Year Three: On June 16, 1997, SoCalGas filed its Year Three report. That filing was reviewed and accepted without modification by ORA on December 5, 1997, and approved, without hearings,, by the Commission in D.98 -06 -024, issued June 4, 1998. E. GCIM Year Four: On June 15, 1998, SoCalGas filed its Year Four report. That filing was also reviewed and accepted without modification by ORA and approved by the Commission, without hearings, in D. 98 -12 -057 issued December 17, 1998. D.98 -12 -057 was the last Commission decision to affirmatively rule on the issue of whether or not to extend the GCIM. Conclusion of Law 3 found that "it is in the public interest to extend SoCalGas' GCIM on an annual basis for 12 -month cycles beginning in Year 6, the period April 1, 1999 through March 31, 2000:" Accordingly, the Commission stated in Ordering Paragraph 2 of D.98 -12 -057 that: "SoCalGas' GCIM is extended on an annual basis for 12 -month cycles, beginning in Year6, the period April 1, 1999 through March 31, 2000, unh ss the mechanism is modified or discontinued by order of the Commission (emphasis: added)." -4- F. GCIM Year Five: On June 15, 1999, SoCalGas filed its Year Five report in A.99 -06 -027. That filing was reviewed and approved without modification by ORA and was approved, without hearings, on June 8, 2000, in D.00 -06 -039. In its decision on Year Five, the Commission did not order modifications to or termination of the GCIM but did order the Energy Division to conduct an evaluation of the GCIM before the Commission would consider modifications to the GCIM, including whether to extend or terminate the mechanism. The Commission further went on to state in D.00 -06 -039 that it was not then modifying the GCIM and that there was to be ng change to the GCIM until after the Commission had the opportunity to consider the Energy Division's report: "However, our decision to re -order the independent staff report discussed in D.94 -03 -076 should not be taken as a prejudgment of the SoCalGas GCIM or any of its facets. Thus, no change in the program or in its timing is warranted prior to issuance of the report and our consideration of it," (mimeo at 6 -7.) G. GCIM Year Six: On June 15, 2000, SoCalGas filed its Year Six report in A.00 -06 -023. On October 30, 2000, ORA issued its Monitoring and Evaluation Report on SoCalGas' application; which "verified that the Commission approved sharing mechanism results in a $14.4 million benefit to ratepayers and a shareholder award of $9.8 million" (at p. 1 -2). In its report, ORA supported the continuation of the GCIM into Year Seven and recommended the continuation of the GCIM program into Year Eight with two refinements to the mechanism (see p. 1 -3). On January 4, 2001, the Energy Division issued its evaluation report on SoCalGas' GCIM pursuant to D.00 -06 -039, wherein the Energy Division found "that the GCIM has achieved the Commission's goals for the GCIM." The Energy Division further recommended that the GCIM be continued, as "the GCIM is superior to various alternatives, such as traditional reasonableness reviews, elimination of SoCalGas from the gas procurement function, or inclusion of gas procurement costs in an overall performance -based ratemaking mechanism" (at p. 1). On May 3, -5- 2001, in D.01 -05 -002, the Commission approved, without hearings, SoCalGas' GCIM award for its Year Six performance and opened Phase 2 of A.00 -06 -023 to address whether the GCIM should be extended with or without modification. H. GCIM Year Seven: SoCalGas conducted and concluded its gas acquisition activities during the twelve -month cycle of April 1, 2000 through March 31, 2001 under the GCIM that has been in place since D.97 -06 -061 and that was extended on an annual basis by D.98 -12 -057, all pursuant to SoCalGas' Tariff Preliminary Statement Section VIII. SoCalGas therefore files its annual report and requests its shareholder incentive award for GCIM Year Seven, as set forth in this Application. III. PURPOSE OR APPLICATION A. Shareholder Earnings for GCIM Activities: With this Application, SoCalGas provides its description of the results of Year Seven of operations under the GCIM programY In Year Seven, SoCalGas was able to purchase gas at $223.6 million below the GCIM benchmark, which is based on market indices, while meeting its customer reliability obligations. The actual cost of all purchases by SoCalGas subject to the GCIM was $2.1875 billion, while the benchmark cost was $2.4111 billion. Pursuant to the GCIM established in D.97 -06 -061, the savings from purchases below the benchmark lower tolerance band ($212.2 million are to be shared equally between SoCalGas and its customers. Therefore, pursuant to D.98 -12 -057, SoCalGas' request in this Application is for a shareholder award of 50 percent of the savings, or $106.1 million. Notwithstanding this request, SoCalGas notes that the Commission will address in Phase 2 of A.00 -06 -023 the issue of whether the GCIM should now be continued with or without modification. In A.00 -06 -023, SoCalGas, ORA, and TURN have agreed in principle on certain A more detailed description of the GCIM results for Year Seven is included in the Annual Report on the GCIM for April 1, 2000 through March 31; 2001, appended to this Application under Tab D. M modifications to the GCIM that would, if approved by the Commission, also apply retroactively to Year Seven to reduce the shareholder award to $30.8 million. SOCa1Gas has provided to the parties in A.00 -06 -023 a Notice of Settlement Conference to be held on June 21, 2001, in anticipation that a settlement substantially reflecting the Agreement in Principle appended under Tab E hereto will be submitted by joint motion for approval by the Commission. If such settlement in A.00 -06 -023 is approved, SoCalGas' request for the shareholder award in this Application will either be amended or withdrawn. In the event the Commission does not approve such settlement upon its submission in A.00 -06 -023, however, SoCalGas will then pursue its request in this Application for the shareholder award in the amount of $106.1 million under the now - existing mechanism in accordance with D.94 -03 -076, as modified, and D.97 -06- 061, as supplemented by D.98 -12 -057. B. Modifications to the GCIM: As stated above, modifications to the GCIM are being considered in Phase 2 of A.00 -06 -023. Nevertheless, it is incumbent for the Commission to realize that, through the GCIM, the efficiency of regulation has increased by reducing the burden of regulatory oversight and providing a structure that enables SoCalGas' management to focus on securing low cost gas for its core customers. The GCIM allows SoCalGas to communicate frequently and effectively with the ORA on all important gas acquisition issues. Moreover, in its Evaluation Report on SoCalGas' GCIM conducted in accordance with D.00 -06 -039, the Energy Division found that: "1) SoCalGas is taking innovative measures to minimize gas costs under the GCIM. 2) SoCalGas has purchased gas near or below the market benchmark prices under the GCIM. 3) The GCIM has streamlined the regulatory process and has resulted in lower regulatory costs for the Commission and SoCalGas. -7- 4) The GCIM flexibly allows SoCalGas to stay focused on, minimizing costs with a known overall target and minimal micromanagement or hindsight, and allows appropriate risk- taking." As stated above, SoCalGas will be requesting in A.00 -06 -023 that the Commission adopt a settlement to be submitted under joint motion that reflects modifications to the GCIM agreed upon in principle by SoCalGas, ORA, and TURN. If the Commission approves the settlement to be submitted in A.00 -06 -023, the modifications to the GCIM would apply to SoCalGas' shareholder award for Year Seven to reduce such award to $30.8 million. In both A.00 -06 -023 and this Application, SoCalGas requests that the Commission approve the extension of the GCIM on an annual basis into Year Eight and beyond, until such time as the Commission approves, after giving the parties notice and an opportunity to be heard, a request for modification to or termination of the GCIM. IV. ADDITIONAL INFORMATION A. Incorporation and Latest Proxy Statement: SoCalGas is a corporation organized under the laws of the State of California. It is a gas corporation subject to the jurisdiction of this Commission, engaged in the business of providing public utility gas service in southern and central California. A certified copy of SoCalGas' Articles of Incorporation, as last amended, was filed with the Commission on October 1, 1998, in A.98 -10 -012, and SoCalGas hereby references said copy as though set forth at length herein. A copy of SoCalGas' most recent Proxy Statement sent to stockholders of Sempra Energy, the parent company of SoCalGas, was filed with the Commission on May 1, 2001, in A.01 -05 -017, and is incorporated herein by this reference. B. Legal Name: The exact name of the Applicant is Southern California Gas Company. Applicant's principal place of business is located at 555 West Fifth Street, Los Angeles, California 90013-1011. Its attorney in this matter is Judith L. Young. C. Correspondence and Communication: Correspondence regarding this Application should be addressed to: J. Suwara Case Administrator for Southern California Gas Company 555 West Fifth Street, 14`h Floor Los Angeles, California 90013- 1011 Phone: (213) 244 -3504 Fax: (213) 244 -8820 E -mail: jsuwara @sempra.com With a copy to: Judith L. Young Attorney for Southern California Gas Company 555 West Fifth Street, 14" Floor Los Angeles, California 90013-1011 Fax: (213) 629 -9620 E -mail: jlyoung @sempra.com D. Present, and Proposed Rates and Summaries of Revenue Changes: Tables showing present and proposed rates and a summary of revenue changes under a shareholder award of $106.1 million and under a shareholder award of $30.8 million are attached hereto under Tab A. E. Balance Sheet and Income Statement: A balance sheet, income statement; and statement of retained income, as of December 31, 2000, are attached hereto under Tab B. F. General Description of Property and Equipment: SoCalGas is an investor - owned public utility engaged in the business of transmission, distribution, storage and sale of natural gas in central and southern California subject to the jurisdiction of the Public Utilities Commission of the State of California. As of December 31, 2000, SoCalGas owned approximately 2,846 miles of gas transmission pipeline and 45,251 miles of gas distribution main pipeline and five underground storage fields with a -9- working inventory capacity of approximately 115 billion cubic feet of natural gas (including 11.7 Bcf in its Montebello storage field, which is pending Commission authorization to abandon and eventually sell). G. Service Territory: SoCalGas' service territory is located in '12 counties in central and southern California, consisting of the counties of Fresno, Imperial, Kem, Kings, Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, Tulare, and Ventura and includes territory in approximately 215 incorporated municipalities. H. Original Cost of Property and Depreciation Reserve Applicable Thereto: The balance sheet attached hereto under Tab B shows SoCalGas' utility plant at original cost, less accumulated depreciation, as of December 31, 2000. 1. Statement of Election of Method Computing Depreciation Deduction for Federal Income Tax: The depreciation deduction for the computation of federal income taxes is determined as follows for property placed in service prior to 1981. The amounts are generally based on class lives, using the straight -line, whole life method for property acquired before 1954, and the double - declining balance and 150 percent - declining balance methods for property acquired subsequent to 1953. Class lives used are based on the lower limits (shorter lives) available under the Asset Depreciation Range System for eligible properties placed in service after December 31, 1970. The Accelerated Cost Recovery System of depreciation and normalized accounting as legislated by the Economic Recovery Tax Act of 1981 are utilized for property placed in service subsequent to 1980. The Tax Reform Act of 1986 adopted the Modified Accelerated Cost Recovery System for property placed in service after 1986. As applicable for certain property placed in service in 1993 or thereafter, tax depreciation is determined in accordance with the Revenue Reconciliation Act of 1993. 10- J. Compliance with Public Utilities Code Section 1822: In compliance with Public Utilities Code Section 1822, equations and assumptions built into computer models on which the material attached hereto is based have been or will be provided to the Commission staff and are available to interested parties upon request. K. Statutory Authority: This Application is made pursuant to Sections 451, 454, 491,'701, 728, and 729 of the California Public Utilities Code, the Commission's Rules of Practice and Procedure, and D.94 -03 -076, as modified. L. Statement Pursuant to Rule 23(1): The increase sought in this Application reflects Commission- authorized shareholder incentives. It does not merely reflect and pass through to customers only increased costs to SoCalGas for the services or commodities that it furnishes. M. Notice and Service of Application: SoCalGas' evidence in support of this Application is being- served on all parties on the service list for A.00 -06 -023, as well as on the assigned Administrative Law Judge in A.00 -06 -023, as indicated in the Certificate of Service behind Tab F. Within ten days of the filing of this Application, SoCalGas will mail notice to the State of California and to cities and counties in its service territory as listed under Tab C. Also within ten days, SoCalGas will post in its offices and publish in newspapers of general circulation in each county in its service territory notice of this Application. In addition, SoCalGas will provide notice of this Application to its customers along with the regular bill for charges transmitted to such customers, in compliance with Public Utilities Code Section 454. - 11 - V. RULE 6(a)(1) AND 6(e) REQUIREMENTS Pursuant to Rule 6(a)(1), this section of the Application states "the proposed category for the proceeding; the need for hearing, the issues to be considered, and a proposed schedule." A. Proposed Categorization: This Application requests approval of a monetary award as a result of the operation of SoCalGas' GCIM during Year Seven, April 1, 2000 through March 31, 2001. SoCalGas therefore proposes that this matter be categorized as a "ratesetting proceeding. B. Need for Hearings: In the past annual proceedings regarding SoCalGas' shareholder award under the GCIM, no hearings were necessary. If the Commission adopts the above - referenced settlement after it is submitted in A.00 -06 -023 under joint motion, testimony and hearings on this Application will not be necessary, inasmuch as the modifications therein would apply to the shareholder award for Year Seven. Even if such settlement is not approved, however, testimony and hearings on this Application will still not be necessary, because the amount of the shareholder award under the GCIM for Year Seven would be calculated based on the formula established in D.97 -06 -061. C. issues to be Considered: The principal issues to be considered in this Application are whether the Commission approves: 1) SoCalGas' calculation of its shareholder award under the GCIM for Year Seven; and 2) The reasonableness of SoCalGas' acquisition operations during Year Seven within the context of the GCIM. -12- D. Proposed Schedule: SoCalGas proposes the following schedule in accordance with Rule 6(e), in anticipation that a settlement reflecting the Agreement in Principle will be submitted in A.00- 06- 023'under joint motion: SoCalGas Year Seven Report June 15, 2001 Protests to Application July 19, 2001 Preheating Conference August 13; 2001 ORA Report October 31, 2001 (Decision in A.00 -06 -023) (December 2001) Proposed Decision January 2002 Commission Decision February 2002 In the event the Commission does not approve the settlement to be submitted in A.00 -06 -023 and determines that both testimony and hearings on this Application are necessary, SoCalGas proposes the following schedule: SoCalGas Year Seven Report June 15, 2001 Protests to ,Application July 19, 2001 Prehearing Conference August 14, 2001 ORA Report October 31, 2001 (Decision in A.00 -06 -023) (December 2001) SoCalGas Testimony January 25, 2002 Intervenor Testimony February 12, 2002 Rebuttal Testimony March 5, 2002 -13- Hearings Opening Briefs Reply Briefs Proposed Decision Commission Decision VI. READY DATE. March 18 - 22, 2002 April 15, 2002 May 6, 2002 June 2002 July 2002 SoCalGas is ready now to proceed with this Application at the Commission's earliest convenience. VII. CONCLUSION WHEREFORE, SoCalGas requests: A finding by the Commission that SoCalGas' operations, and in particular, its operations subject to the GCIM, were consistent with Commission standards then in effect for the twelve months ending March 31, 2001; and 2. That the Commission approve the extension of the GCIM on an annual basis into Year Eight and beyond, until such time as the Commission approves, after giving the parties notice and an opportunity to be heard, a request for modification to or termination of the GCIM; and 3. In the event the settlement submitted under joint motion in A.00 -06 -023 is approved in full, that the Commission approve a shareholder award in the amount of $30.8 million associated with Year Seven of operations for SoCalGas' GCIM program pursuant to such settlement; or 4. In the event the settlement submitted under joint motion in A.00 -06 -023 is not approved in full, that the Commission approve a shareholder award in -14- the amount of $106.1 million associated with Year Seven of operations for SoCalGas' GCIM program earned under the mechanism in place for Year Seven pursuant to D.97 -06 -061 and D.98 -12 -057; and 5. Such other additional relief as the Commission may find proper. Dated at Los Angeles, California, this 15 °i day of June 2001. Q 11J X. a. Jl e ! / DAVID B. FOLLETT JUDITH L. YOUNG Attorneys for Southern California Gas Company 555 West Fifth Street, 14' Floor Los Angeles, California 90013 -1011 Telephone: (213) 244 -2955 Facsimile: (213) 629 -9620 e -mail: jlyoung @sempra.com Respectfully submitted, SOUTHERN CALIFORNIA GAS COMPANY By: ����/ — Anne Smith Vice President -15- VERIFICATION I am an officer of Applicant, Southern California Gas Company, and am authorized to make this verification on its behalf The statements in the foregoing Application are true to my own knowledge, except as to matters which are therein stated on information and belief, and as to those matters I believe them to be true. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this 15th day of June 2001, at Los Angeles, California. By: OZ Anne Smith Vice President Southern California Gas Company SOUTHERN CALIFORNIA GAS COMPANY SUMMARY OF PRESENT AND PROPOSED RATES GCIM Year 7 Application ($106.1 Million) UNBUNDLED STORAGE Proposed Annual Reservation Current Rates Injection. $ /Dthd 20.169 20.169 - .Rates.. Reflecting $ /Dthd 11.584 11.584 - 0.00% Effective 2001 GCIM Increase /Decrease 0.214 - Class of'Service Variable Charges 1/01/2001 Application Rate % Injection. $ /Dth (a) (b) (c)= :(b )-(a). (d)=(c) /(a) CORE - TRANSPORTATION COMPONENT 0.0177 0.0177 - 0.00% BROKERAGE FEES Residential Core C /th Average Residential 0.20100 - 0.00% Noncore C /th 0.26600 Customer Charge $ /month $5.00 $5.00 - 0.00% Baseline C /th 24.505 27.816' '3.310 13.51% Non - Baseline. C /th 42.494 45.804 3.310 7.79% Average Residential Rate a /th 41.154 44.464 3.310 8.04% Non - Residential. Core Commercial & Industrial Combined C/I Combined C/I Customer Charge $ /month $10.00/15.00 $10.00/15.00 N/A N/A Tier (0-100 S, 250 W) C /th 39.012 42.322 3.310 8.48% Tier 11 (Tier 1- 4167) C /th 22:451 25.761 3.310 14.74% Tier III ( >4167) C /th 9.478 12.788 3.310 34.92.% Gas Air Conditioning Customer Charge $ /month $150.00 $150.00 - 0.00% Volumetric Rate C /th 8.021 11.331 '3.310 41.27% Gas.. Engine Customer Charge $ /month $50.00 $50.00 - 0.00% Volumetric Rate C /th 18.057 21.367 3.310 18.33% NONCORE - Average Transmission Rate Retail ' Industrial C /th 4.393 4.393 - 0.00% Electric: Generation. lJ C /th 2.600 2.600 - 0.00% Wholesale Long Beach C /th 2.058 2.058 - 0.00% SDG &E C /th 1.383 1.383 - 0.00% Vernon C /th 1.596 1.596 - 0.00% CORE SUBSCRIPTION GCIM C /th 0.000 3310 '3.310 N/A UNBUNDLED STORAGE Annual Reservation Injection. $ /Dthd 20.169 20.169 - 0.00% Withdrawal $ /Dthd 11.584 11.584 - 0.00% Inventory $ /Dth 0:214 0.214 - 0.00% Variable Charges Injection. $ /Dth 0.0127 0.0127 - 0.00% Withdrawal $ /Dth 0.0177 0.0177 - 0.00% BROKERAGE FEES Core C /th 0.20100 0.20100 - 0.00% Noncore C /th 0.26600 0:26600 - 0.00% lr Includes Common. EG Adjustment Change of 0.000 C/ therm. 2_/ Table reflects GCIM as a Transportation Rate increase for exemplary purposes only. Actual increase applied to Procurement Rate which is not displayed in this table. 3-/ Rates shown assume 12 month GCIM. collection period. Gdmtbls.xls 06 /142001 GCIM YEAR 7 APPLICATION ($106.1 MILLION) SUMMARY OF TRANSPORTATION REVENUE CHANGES SOUTHERN CALIFORNIA GAS COMPANY COREPROCUREMENT: RESIDENTIAL LARGE MASTER METERED CORE COMMERCIAL &.INDUSTRIAL GAS A/C GAS ENGINE TOTAL CORE PROCUREMENT BCAP REVENUES AT RATES IN EFFECT REVENUES AT PROPOSED .INCREASE (A) (B) (C=B -.A) (D=C /A) 1,022,279 1,104,503 82,224 8.043 8,332 9,568 1,237 14.843 189,493 212,668 23,174 11230 114 149 35 30.875 RESIDENTIAL loins 10,255 - - LARGE MASTER METERED 83 83 - - CORE COMMERCIAL & INDUSTRIAL 34,109 34,109 - - GAS A/C '15 15 - - GAS ENGINE 163 163 TOTAL CORE TRANSPORTATION 44;625 44,625 - - TOTAL CORE. 1,267,993 1,375,167 107,174 8452 NONCORE: COMMERCIAL & INDUSTRIAL 64,002 64,002 - ELECTRIC GENERATION 1_/ 76,550 76,550 - - NONCORE SUBTOTAL 140,553 140,553 - WHOLESALE LONG BEACH 1,602 1;602 - - SAN DIEGO GAS & ELECTRIC 19,998 19,998 - - SOUTHWEST 1,711 1,711 - - VERNON 824 824 - TOTALWHO",ESALE 24,134 24,134 - INTERNATIONAL DGN 648 648 CORE SUBSCRIPTION GCIM 0 1,037 1,037 N/A UNBUNDLED STORAGE 21,000 21,000 - - UNALLOC. COSTS TO NSBA (per J. R.) 11,878 11,878 - NET CARE REVENUES 2,050 2,050 - SYSTEM TOTAL 1,468,256 1,576,467 108,211 7.370 TOTAL CARE REVENUES TOTAL PPP REVENUES. FOR REVENUES 1_J Includes Common EG Adjustment Change of$OOOM. 8;567 8;567 0 0 22,777 22,777 G..M.As W l4aWl SOUTHERN CALIFORNIA GAS COMPANY SUMMARY OF PRESENT AND PROPOSED RATES GCIM Year 7 Application ($30.8 Million) Class of Service CORE- TRANSPORTATION COMPONENT Residential Average Residential. Customer Charge Baseline Non - Baseline. Average Residential. Rate Non - Residential Core Commercial &industrial CustomerCharge Tier l (0-100 S, 250 M Tier If (Tier 14167) Tier IR ( >4167) Gas Air Conditioning Customer Charge Volumetric Rate Gas Engine Customer Charge Volumetric Rate NONCORE - Average Transmission Rate Retail Industrial Electric Generation 1-/ Wholesale Long Beach SDG &E Vernon CORE SUBSCRIPTION GCIM. UNBUNDLED STORAGE Annual Reservation Injection Withdrawal Inventory Variable Charges Injection Withdrawal $ /month C /th C /th C /th $ /month C /th $ /month C /th C /th C /th C /th C /th C /th C /th' Combined C/I $10.00/15.00 39.012 22.451 9.478 $150.00 8.021 $50.00 18.057 4.393 2.600 2.058 1:383 1.596 0.000 Combined C/I $10.00/15.00 N/A Proposed 0.962 23.413 0.962 Current Rates $150.00 - 8.983 Rates: Reflecting - 19.019 0.962 Effective 2001 GCIM Increase /Decrease - 1/01/2001 Application Rate % 1.596 (a) (b) (c)- (b)-(a) (d)= (c) /(a) $ /month ..$5.00 .$5.00 - 0.00% qth 24.505 25467 0.962 3.92% C /th 42.494 43.456 0.962 226 %: C /th 41.154: 42.116 0.962 2.340/ $ /month C /th C /th C /th $ /month C /th $ /month C /th C /th C /th C /th C /th C /th C /th' Combined C/I $10.00/15.00 39.012 22.451 9.478 $150.00 8.021 $50.00 18.057 4.393 2.600 2.058 1:383 1.596 0.000 Combined C/I $10.00/15.00 N/A 39.974 0.962 23.413 0.962 10.440 0.962 $150.00 - 8.983 0.962 $50.00 - 19.019 0.962 4.393 - 2.600 - 2.058 - 1.383 - 1.596 - 0.962 0.962 N/A 247% 4.28% 10.15% 0.00% 11.99% 0.00% 5.33% 0.00% t tt•. 0.00% 0.00% 0.00% N/A $ /Dthd' 20.169 20.169 - 0.00% $ /Dthd 11.584 11:584 - 0.00% $ /Dth 0.214 0.214 - 0.00% $ /Dth 0.0127 0.0127 - 0.00% $ /Dth 0.0177 0.0177 - 0.00% BROKERAGE FEES Core C /th 0.20100 0.20100 - Noncore t /th 0.26600 026600 1J Includes Common EG Adjustment Change. of 0.000 9 /therm. 2_/ Table reflects GCIM as a Transportation Rate increase for exemplary purposes only. Actual: increase applied to Procurement Rate which is not displayed in this table. 3-1 Rates shown assume 12 month GCIM collection period. 0.00% 0.00% GamtblsAs 06/14/2001 GCIM YEAR 7 APPLICATION ($30.8 MILLION) SUMMARY OF TRANSPORTATION REVENUE CHANGES SOUTHERN CALIFORNIA GAS COMPANY RESIDENTIAL BCAP 10,255 - LARGE MASTER METERED 83 83 - - REVENUES REVENUES 34,109 - - GAS A/C 15 AT RATES AT 163 163 TOTAL CORE TRANSPORTATION IN EFFECT PROPOSED INCREASE 1/01/2001 RATES. (DECREASE) CHANGE (M$) (M$) (M$) (%) (A) (B) (C =B-A) (D =C/A) COREPROCUREMENT: RESIDENTIAL 1,022,279 1,046,172 23,892 2.337 LARGE MASTER METERED 8,332 8,691 359 41313. CORE COMMERCIAL &.INDUSTRIAL 189,493 196,227 6,734 3.554 GAS A/C 114 124 10 8.971 GAS ENGINE 3,150 3,296 147 4.654 RESIDENTIAL 10,255 10,255 - LARGE MASTER METERED 83 83 - - CORE COMMERCIAL & INDUSTRIAL 34,109 34,109 - - GAS A/C 15 15 - GAS ENGINE 163 163 TOTAL CORE TRANSPORTATION 44,625 44,625 TOTAL CORE 1,267,993 1,299,135 31,142 2.456 NONCORE: COMMERCIAL& INDUSTRIAL 64,002 ELECTRIC GENERATION 1-/ 76,550 WHOLESALE 0 301 301 N/A LONG BEACH 1,602 1,602 - - SAN DIEGO GAS & ELECTRIC 19;998 19,998 - - SOUTHWEST 1,711. 1,711 - - VERNON 824 824 TOTAL WHOLESALE 24,134 .24,134 INTERNATIONAL DGN 648 648 - CORE SUBSCRIPTION GCIM 0 301 301 N/A UNBUNDLEDSTORAGE 21,000 21,000 - - UNALLOC. COSTS TO NSBA (per J.R.) 11,878 11,878 - - NET CARE REVENUES 2050 2,050 SYSTEM TOTAL 1,468,256 1 ,499,699 31,443 2,142 TOTAL CARE REVENUES TOTAL PPP REVENUES. FOR REVENUES 1-/ Includes Common EG Adjustment Change of $OOOM. 8,567 8,567 0 0 22,777 22,777 Gci.tUS.Ws 06/142001 SOUTHERN CALIFORNIA GAS COMPANY CONSOLIDATED BALANCE SHEET At December 31, 2000 (In Millions of Dollars) ASSETS Utility plant - at original cost $ 6;314 Accumulated depreciation (3,557). Utility plant - net 2,757 Current assets Cash and cash equivalents 205 Accounts receivable - trade 589 Accounts and notes receivable - other 83 Due from affiliates 214 Deferred income taxes 74 Inventories 67 Other 80 Total current assets 1,312 Regulatory assets 12 Investments and other assets 35 Total $ 4,116 SOUTHERN CALIFORNIA GAS COMPANY CONSOLIDATED BALANCE SHEET At December 31, 2000 (In Millions of Dollars) CAPITALIZATION AND LIABILITIES Capitalization Common stock $ 835 Retained earnings 453 Accumulated other comprehensive income (loss) (1) Total common equity 1,287 Preferred stock 22 Long -term debt 821 Total capitalization 2,130 Current liabilities Accounts payable - trade 368 Accounts payable - other 44 Regulatory balancing accounts - net 463 Income taxes payable 90 Interest payable 26 Current portion of long -term debt 120 Other 300 Total current liabilities 1,411 Deferred credits and other liabilities Customer advances for construction 16 Deferred income taxes 314 Deferred investment tax credits 53 Deferred credits and other liabilities 192 Total deferred credits and other liabilities 575 Total $ 4,116 SOUTHERN CALIFORNIA GAS COMPANY STATEMENT OF CONSOLIDATED INCOME For the year ending December 31, 2000 (In Millions of Dollars) Operating Revenues $ 2,854 Operating Expenses Cost of natural gas distributed 1,361 Operating and maintenance 695 Depreciation 263 Income taxes 173 Other taxes and franchise payments 96 Total operating expenses 2,588 Operating Income 266 Other Income Allowance for equity funds used during construction 3 Other income - net 12 Total other income 15 Interest Charges Long -term debt 68 Other 8 Allowance for borrowed funds used during construction (2) Total 74 Net Income $ 207 In compliance with Rule 24, Applicant will mail a notice to the following, stating in general terms its proposed application: State of California To the Attorney General and the Department of General Services. Counties To the County Counsel (or District Attorney if the County has no County Counsel) and the County Clerk in the following counties: Fresno Los Angeles San Luis Obispo Imperial Orange Santa Barbara Kern Riverside Tulare Kings San Bernardino Ventura Municipal Corporations To the City Attorney and the City Clerk of the following municipal corporations Adelanto California City Duarte Agoura Hills Calipatria El Centro Alhambra Calimesa El Monte Anaheim Camarillo El Segundo Arcadia Canyon Lake Exeter Arroyo Grande Carpinteria Farmersville Artesia Carson Fillmore Arvin Cathedral City Fontana Atascadero Cerritos Fountain Valley Avenal Chino Fowler Azusa Chino Hills Fullerton Bakersfiled Claremont Garden Grove Baldwin Park Coachella Gardena Banning Colton Glendale Beaumont Commerce Glendora Bell Compton Grand Terrace Bell Gardens Corcoran Grover Beach Bellflower Corona Guadalupe Beverly Hills Costa Mesa Hanford Big Bear Lake Covina Hawaiian Gardens Blythe Cudahy Hawthorne Bradbury Culver City Hemet Brawley Cypress Hermosa Beach Brea Dana Point Hesperia Buellton Delano Hidden Hills Buena Park Desert Hot Springs Highland Burbank Diamond Bar Holtville Calabasas Dinuba Huntington Beach Calexico Downey Huntington Park 1 Municipal Corporations (Continued) Imperial Morro Bay Sanger Indian Wells Murrieta Santa Ana Indio Needles Santa Barbara Industry Newport Beach Santa Clarita Inglewood Norco Santa Fe Springs Irvine Norwalk Santa Maria Irwindale Ojai Santa Monica Kingsburg Ontario Santa Paula La Canada Flintridge Orange Seal Beach La Habra Orange Cove Selma La Habra Heights Oxnard Shafter La Mirada Palm Desert Sierra Madre La Palma Palm Springs Signal Hill La Puente Palmdale Simi Valley La Quinta Palos Verdes Estates Solvang La Verne Paramount South El Monte Laguna Beach Parlier South Gate Laguna Hills Pasadena South Pasadena Laguna Niguel Paso Robles Stanton Laguna Woods Perris Taft Lake Elsinore Pico Rivera Tehachapi Lake Forest Pismo Beach Temecula Lakewood Placentia Temple City Lancaster Pomona Thousand Oaks Lawndale Port Hueneme Torrance Lemoore Porterville Tulare Lindsay Rancho Cucamonga Tustin Loma Linda Rancho Mirage Twentynine Palms Lomita Rancho Palos Verdes Upland Lompoc Redlands Ventura Long Beach Redondo Beach Vernon Los Alamitos Reedley Victorville Los Angeles Rialto Villa Park Lynwood Riverside Visalia Malibu Rolling Hills Walnut Manhattan Beach Rolling Hills Estates Wasco Maricopa Rosemead West Covina Maywood San Bernardino West Hollywood McFarland San Clemente Westlake Village Mission Viejo San Dimas Westminster Monrovia San Fernando Westmorland Montclair San Gabriel Wbittier Montebello San Jacinto Woodlake Monterey Park San Juan Capistrano Yorba Linda Moorpark San Luis Obispo Yucaipa Moreno Valley San Marino Yucca Valley 2 Southern California Gas Company Annual Report on the GAS COST INCENTIVE MECHANISM April 1, 2000 through March 31, 2001 June 15, 2001 Southern California Gas Company Annual Report on the Gas Cost Incentive Mechanism April 1, 2000 through March 31, 2001 Table of Contents LGCIM Results ....................................:....................:............:.................. ..............:...:...........1 11. Description of Gas Procurement Activities ............................................. ........................::....3 III. GCIM Monitoring and Evaluation, ......... ......... ........................................... ............ .......... 7 IV. Recommendations.....: ...........:..::.......................................................... ..............................8 Appendix A: Supporting Table for GCIM Activity Appendix B: Affilitate Transactions Annual Report Southern California Gas Company Annual Report on the Gas Cost Incentive Mechanism April 1, 2000 through March 31, 2001 I. GCIM Results Gas prices in California reached unprecedented levels during GCIM Year 7 due, in part, to a cold winter. The cold weather in SoCalGas' territory increased core throughput by roughly 16 Bcf between November and March when compared to the BCAP forecast average load. Other factors impacting prices included higher wholesale electricity prices, lower throughput on El Paso Natural Gas Company (El Paso) interstate pipeline system due to the August 18, 2000 rupture, lower hydroelectric generation in the Pacific Northwest, and higher electric generation demand. Despite adverse price conditions, Southern California Gas Company ( "SoCalGas ") acquired gas below the GCIM benchmark in Year 7. The resultant cost savings of $223,571,953 is calculated as the difference between the actual cost of gas of $2,187,533,957 and the GCIM benchmark of $2,411,105,910. A summary of the GCIM activity, benchmark and actual cost information is included in Appendix A. Gas Acquisition has expertise in fundamental analysis, gas trading, gas transportation, risk management, and back office operations. This expertise was developed over the i past six years while operating under the GCIM. As a result, Gas Acquisition was prepared to deal with Year 7's unprecedented market volatility; protecting customers from excessive price risk and lowering gas costs. The GCIM encourages Gas Acquisition to proactively lower gas costs through the use of storage and interstate pipeline capacity as well as the use of various trading and risk management tools, including a winter hedge program in GCIM Year 7. The table below shows performance under the GCIM for the last seven years. GCIM PERFORMANCE Benchmark Gas Commoditv Cost Total ($ Millions) $441 $326 Year Ended March 31 $549 $538 $926 $2,279 1995 1996 1997 1998 1999 2000 2001 Total Net Purchases (Border volumes) $212 Comparison to Benchmark ($ Millions) Million MMBtu/d 0.76 0.66 0.66 0.66 0.75 1.06 1.14 0.813 Million MMBtu 277 243 243 241 275 385 398 2,062 Net Gas Cost $139. 4 Total $(1.1) $6.4 $212 $68 $18.1 $24.2 Total ($ Millions) $445 $322 $530 $542 $520 $902 $2,055 $5,316 Unit Cost $1.61 $1.33 $2.18 $225 $1.89 $2.34 $5.16 $2.58 Benchmark Gas Commoditv Cost Total ($ Millions) $441 $326 $550 $549 $538 $926 $2,279 $5,610 Unit Cost ($/MMBtu) $1.59 $1.35 $227 $2.28 $1.95 $2.40 $5.72 $212 Comparison to Benchmark ($ Millions) Customer Savings $(1:1) $3.2 $10.6 $4.8 $10.4 $14.4 $117.5 $159.7 Shareholder Award' - 2 $106 $20 $7_7 $9.8 $106.1 $139. 4 Total $(1.1) $6.4 $212 $68 $18.1 $24.2 $223.6 $299.1 Years 1- 3 exclude benefits related to Storage Incentive Mechanism ('SIM'), which was eliminated in Year 4. The SIM shareholder awards for Years 1; 2, 3 were $103,364, $67,645, and $171,106 respectively. The table shows that over the last seven years, more than 2 trillion cubic feet of natural gas has been purchased under the GCIM program. Ratepayers have benefited in six of the seven years in terms of purchases below the GCIM benchmark. During the volatile market conditions in GCIM Year 7, SoCalGas' average purchase cost was $5.16 per MMBtu, $0.56 below the benchmark of $5.72 per MMBtu. The 2 benchmark consists of a volume - weighted average of published indices for the California border, Permian and San Juan basins. The average monthly indices for the three regions were $7.73, $4,99 and $4.61 per MMBtu respectively. Although the table displays a shareholder award of $106.1 million for the period ended March 31, 2001, this award will be reduced to $30.8 million if the Commission approves a settlement to be submitted in A.00 -06-023 under a joint motion reflecting an Agreement in Principle reached with the Office of Ratepayer Advocates (ORA) and The Utility Reform Network (TURN) (see Tab E for Agreement in Principle). II. Description of Gas Procurement Activities As in the first six years of the GCIM, Year 7 results show that the program continues to be successful in meeting the following objectives established D.90 -07 -065 and Rulemaking 90-02 -008: • Improve the utility's incentives to operate efficiently and provide predictable long- run incentives; • Reduce the burden of regulatory oversight, both for the regulators and the utility; • Provide a more stable and predictable regulatory environment; • Implement a system that is readily understandable; 3 • Fairly and symmetrically balance risk and reward for the utility, and provide positive as well as negative incentives; • Implement a regulatory structure that allows management to focus primarily on costs and markets, rather than CPUC proceedings; and • Link the interests of utility shareholders with those of utility customers The GCIM provides a regulatory structure that enables SoCalGas' management to focus on securing low cost gas for its core sales and core subscription ( "core ") customers. Drawing on the expertise developed in the last six years in all areas of gas procurement, SoCalGas performed remarkably well under extremely volatile market conditions during GCIM Year 7, achieving a record level of savings for its core customers. During Year 7, Gas Acquisition purchased 398 million MMBtus for its retail core load. SoCalGas Gas Acquisition's procurement activities were conducted to achieve the primary objectives of supply security and service reliability at a low cost. These objectives are fulfilled by: 1. Ensuring that firm long -term contracts (greater than 30 days), together with readily available monthly supplies and core storage levels, are adequate to meet core requirements during the peak demand season (November to March). In GCIM Year 7, Gas Acquisition maintained a gas supply portfolio that was predominately weighted toward long -term supply agreements with 56 % of the overall portfolio committed under long -term gas supply 4 2. 3. contracts. Month - to-month baseload gas purchases accounted for40 %a of the portfolio with the remaining 4% being daily spot gas purchases. Meeting storage injection requirements during the summer injection season (April through October). SoCalGas achieved a total core (retail plus CAT) storage inventory of 68.6 Bcf as of October 31, 2000, as shown in the chart below. Core Storage Inventory at October 31, 2000 (gam Retail Core Purchased Inventory 74.9 Gas Loaned to Non -Core (17.2) Retail Core Physical Gas In Storage 57.7 Loans Returning Prior to 12/31/00 9.2 Core Aggregation Inventory 1.7 Total Core Storage 68.6 Pursuant to Decision 90 -09 -089, loans with repayment before year -end are counted as storage for purposes of meeting the October 31 minimum core target of 65 Bcf (70 Bcf less 5 Bcf lower tolerance). SoCalGas' storage position was a major factor in reducing core gas cost during the colder than normal winter of GCIM Year 7. Optimizing the rights and assets assigned to the retail core including storage inventory, injection and withdrawal rights, and flowing supply through the use of the California Energy Hub (Hub). Transactions and fees were based on existing market conditions and were completed on a non- discriminatory first -come, first- served basis to the extent retail core assets were available. Hub transactions contributed to lower gas costs. 5 4. Hedging price risk and facilitating gas acquisition by trading financial instruments. Hedging physical purchases with financial instruments; such as futures and swaps, was authorized by the CPUC in D.94 -03 -076. To protect its core customers against a significant increase in gas prices during the GCIM Year 7 winter months, Gas Acquisition implemented a Winter Hedge program that resulted in $70 million of cost savings. 5. Making short -term physical trades on behalf of core customers to reduce retail core gas costs by using assets not needed for core reliability. During the winter, limited volumes not needed for immediate reliability were sold at high prices at the California border. These volumes were hedged at significantly lower prices for replacement in later winter months when the volumes were needed. 6. Maximizing SoCalGas' interstate capacity rights to purchase lower- priced basin supplies ratherthan higher - priced California bordersupplies. Gas Acquisition nominated 99 % of the available capacity on the El Paso system and 98% of the available capacity on the Transwestern Pipeline Company ( Transwestern) system. However, primarily due to pipeline capacity reductions of 44 Bcf on El Paso and 4 Bcf on Transwestem, Gas Acquisition had to purchase a net 69 million MMBtus (about 17% of SoCalGas purchases) at the California border to meet core demand. In summary, the GCIM provides an incentive for Gas Acquisition to efficiently use retail core's interstate pipeline and storage rights to deliver reliable, low -cost supplies. Reliability is achieved by constructing a portfolio of natural gas supplies that is diversified by contract type, geographic region, and supplier. Gas Acquisition uses tools available to a typical trading organization, including purchases, sales, loans, parks, wheels, derivatives, exchanges, and transportation contracts. These tools enhance reliability and allow Gas Acquisition to make economic use of assets, when not needed for reliability, to help lower gas costs. 11 Ill. GCIM Monitoring and Evaluation Throughout the GCIM program, SoCalGas has worked closely with the ORA to establish an efficient monitoring and timely reporting system to keep the ORA informed of gas acquisition activities. Pursuant to the provisions of General Order 66 -C and Section 583 of the Public Utilities Code, SoCalGas provides the following to the ORA and Energy Division on a confidential basis: A monthly report, 60 days after the end of each month. This report includes details of: • All gas purchase and sale transactions, including affiliate transactions • All hub and exchange transactions • All financial over- the - counter transactions, • A Capacity Utilization report, and • Calculations of the GCIM benefit. SoCalGas has communicated frequently with the ORA and the Energy Division on all important gas acquisition issues during GCIM Year 7. Finally, SoCalGas operated at all times within the CPUC's Affiliate Transaction Rules and related Remedial Measures. IV. Recommendations SoCalGas concludes from its Year 7 results that the GCIM continues to be a successful program that provides measurable benefits to SoCalGas' customers. All CPUC objectives for incentive regulation were met, as well as SoCalGas' gas acquisition objectives of supply security and service reliability at low cost. SoCalGas therefore makes the following recommendations; 1. The Commission should find that SoCalGas' operations, and in particular, its operations subject to the GCIM, were consistent with Commission standards then in effect for the twelve months ending March 31, 2001; and 2. The Commission should approve the extension of the GCIM on an annual basis into Year and beyond, until such time as the Commission approves, after giving the parties notice and an opportunity to be heard, a request for modification to or termination of the GCIM; and 3. In the event the settlement submitted under joint motion in A.00 -06 -023 is approved in full, the Commission should approve a shareholder award in the amount of $30.8 million associated with Year 7 of operations for SOCaIGas' GCIM program pursuant to such settlement; or 4. In the event the settlement submitted under joint motion in A.00 -06 -023 is not approved in full, the Commission should approve a shareholder award in the amount of $106.1 million associated with Year 7 of operations for SoCalGas' GCIM program earned under the mechanism in place for Year 7 pursuant to D.97 -06 -061 and D.98 -12 -057. s APPENDIX A Supporting 'fable for GCIM Activity SOUTHERN CALIFORNIA GAS COMPANY APPENDIX A GCIM Summary Report GCIM Year Benchmark. Dollars Actual Dollars (OverltUnder Benchmark Upper Tolerance. Dollars • Lower Tolerance Dollars 0.5% Shareholder/ Ratepayer Gain /(Loss) 1 $567,448,362.30 $568,566,019.81 $ (1,117,657.51) $17,089,530.26 NIA $ 2 448,713,458.73 442,313,458.73 6,400,000.00 13,058,694.40 NIA 6,400,000.00 3 680,061,509.12 658, 875, 669.99 21,185,839.13 22,014,553.98 N/A 21,185,839.13 4 672,131,591.15 665,307,357.07 6,824,234.08 10,977,634.41 .2,744,408.60 4,079,825.48 5 649,294,620.31 631.,138,278.30 18,156,342.01 10,761,347.94 2,690,337.00 15,466,005.01 6 1,061,264,614.31 1,037,113,228.11 24,151,38620 18,527,591.62 4,631,897.91 19;519,488.29 7 2,411;105,910.49 2,187,533,957.27 223,571,953.22 45,580,915.01 11,395,228.76 212,176,724.46 $6, 490,020;066.41 $6,190,847,969.28 $ 299,172,097.13 $138,010,267.62 $21,461,872.27 $ 278,827,882.37 Upper Tolerance band of 4% for GCIM Years 1 -'3, and 2% for Years 4 - 6. Note: Benchmark and Actual Dollars are inclusive of all transportation costs for delivery of gas to SoCalGas' system. Southern California Gas Company Affiliate Transactions Annual Report SOUTHERN CALIFORNIA GAS COMPANY Affiliate Transactions Annual Report 2000 Response to Affiliate Transaction Reporting Requirements Section: C. UTILITY PROVISION OF GOODS AND SERVICES TO ITS AFFILIATED ENTITIES Request No. 1 through 8: 1. Using the format of Table 11 -C -1, each utility shall report any goods and/or services that the utility provided to any of its affiliated entities during the period covered by the annual report. All goods and/or services shall be reported regardless of whether or not the utility was reimbursed. 2. For purposes of this section, and section II -D, "Goods" are defined as any tangible item having economic value. Examples of "goods" include office supplies, office computers, and personal automobiles. No item shall qualify as a good if it has: a) a depreciable life, for federal tax purposes, of more than 3- years, except for cars, personal computers, and office machinery/, and b) a value of greater than $20,000. The transfer of an item of tangible property described in (a) or (b) above shall be reported under Section E ( "Transfer of Tangible Asset "). 3. For purposes of this section, "Services" includes any activity of economic value provided by the utility, or a company under contract to the utility, to any affiliated entity. Examples of "services" include, but are not limited to the provision of professional expertise (e.g. legal, consulting, engineering); administrative support, (e.g. data and payroll processing, arranging travel, transportation services, etc.) and general corporate management and support activities (e.g. time spent by corporate executives and employees on affiliated entity issues, investor relations, shareholder services, etc.). 4. The cost of each good and/or service that the utility provided to any of its affiliated entities shall be assigned to an appropriate USOA Account of the utility. 5. Using the format shown, each utility shall create a table (entitled Table 1I -C -1), containing; • A set of columns by listing horizontally across the top each affiliated entity of the utility, excluding, however, any affiliated entities to which the utility provided no goods and/or services during the calendar year. ' See Section 1240, "Classes of Depreciable Property', 1992 U.S. Master Tax Guide (Commerce Clearing House) discussing Internal Revenue Code sections 1'245 and 1250. A set of rows by listing vertically down the left side of Table 11 -C -1 each USOA account (listed in ascending order) for which the utility had incurred a cost (whether or not reimbursed) for providing any good or service to an affiliated entity. • The middle portions of Table II -C -I I corresponding to each horizontal column and vertical row, will be called cells. 6. For each cell in Table II -C -1, the utility shall aggregate all transactions for goods and/or services it provided to each affiliated entity under; a) The appropriate column heading for that affiliated entity; and„ b) The row corresponding to the appropriate USOA account category. 7. The following information shall be reported in the corresponding cells of Table II -C -1; • The total transfer price assigned to this USOA account for any goods or services provided by the utility to the affiliated entity; • The allocated cost, if different from the transfer price, for any goods or services provided by the utility to the affiliated entity; • Allocated costs as percentage of total recorded costs for the USOA account; • The ratio for each USOA account of the actual total recorded expenses versus total expenses authorized in the utility's most recent General Rate Case (expressed as a percentage). 8. At the end of each row, briefly list the applicable cost allocation methodology and transfer pricing method used to determine the corresponding dollar volumes listed under #7 above. Response: Using the format provided for Table H -C -1 (attached), the costs of all goods and services provided by SoCalGas to affiliated entities, during the reported period, have been presented. The costs have been accumulated by USOA account and by affiliated entity. With respect to SOCaIGas' provision of services, the utility has established that "allocated costs" or "fully allocated costs" do not differ from "transfer prices." Therefore, information requested in Item 7 relative to transfer pricing differences is not applicable. Item 8 has been incorporated into Table II -C -3 under Item 9 (I) Costs for goods and.,,i.s were nccerrmhayd in work orders sndbilled monthly to affiliate& (Refer m Ta61e llC -2 for derails) (2) Senators Energy Solutions includes Sempra Energy. Consumer Division, Storms Energy Sales.. and Sempra Energy Facility . Management. (3)'Sempra Energy Intl includes Frontier Energy, Sempra Energy Utility Ventive, TGN and DON (DON includes Distribution de Gas Nnudl A, Medceli & DON & Chihpahpa S. De R.L.de C.V,). (4) Emplaye<Trsn arm . Fees: for Senpie Energy of $97,668 includes ($46,506) of credit related w Year 1999 employee trarefer. adjustments. Page 1 of 1 TABLE II-C-1 SOUTHERN CALIFORNIA: GAS COMPANY Provision of Goods. and Services from the U60ty to the Affiliated Entities For The Year Ended December 31, 2000 USDA ACCOUNT SEMPRA SEMPRA SEMPRA SEMPRA SEMPRA PE SOLIANCE SEMPRA PEOC SEMPRA %OF GRAND ACCT DESCRIPTION ENERGY ENERGY ENERGY ENERGY Comm 'LNG LUC ATLANTIC ENERGY USOA TOTAL SOLUTIONS INT'L RESOURCES GAS CONNECTIONS ACCT (2) (3) 146 Accounts Receivable from Associated Companies: Medical Plan $881,861 We $881,867 Medical Fla. Fm Routes 765.988 We $265,999 Training Costs $34,453 ws $34,453. Incentive Compensation Plan Awards 147,848 $19,179 120,011 $14,602 Na S301,641 184 Clearing Accounts (1) Miacellmmem, Work Orders 17.018.444 654,125 1,016,212 (2,263, $189,149 $2$00 $195,269 $28,732 $5,913 Na $19,098,.581 419 Interest lncomdEkpense 3,881 815 31.430 2,518 1,292 60 699 $145 3.48 %.. $41,339 495 Miscell..c Reve era:. Employ. Transfer F.(4) 97,668 12,650 26.145 43,392 42,880 59,428 0.07% $29,163 Facility Usage Costs 111,684 0.03% $111,684 Total $19,027,,380 $691,769 $1;228,750 $58249 $238,821 $2,50 S185.269 $29,431 $5,913 $5]5]3 $21525216 (I) Costs for goods and.,,i.s were nccerrmhayd in work orders sndbilled monthly to affiliate& (Refer m Ta61e llC -2 for derails) (2) Senators Energy Solutions includes Sempra Energy. Consumer Division, Storms Energy Sales.. and Sempra Energy Facility . Management. (3)'Sempra Energy Intl includes Frontier Energy, Sempra Energy Utility Ventive, TGN and DON (DON includes Distribution de Gas Nnudl A, Medceli & DON & Chihpahpa S. De R.L.de C.V,). (4) Emplaye<Trsn arm . Fees: for Senpie Energy of $97,668 includes ($46,506) of credit related w Year 1999 employee trarefer. adjustments. Page 1 of 1 TABLE II -C-3 SOUTHERN CALIFORNIA GAS COMPANY COSTING METHODOLOGIES USDA ACTIVITY ACCT. DESCRIPTION METHODOLOGY' 146 Account. Receivable from Associated Companies: Medical Plan - Actual Costs. Medical Plan For Retirees - Actual costs Training Costs - Fully Loaded Instructor Costs Incentive Compensation. Plan Awards - Actual costs 184 Clearing Accounts: Miscellaneous. Work Orders - Direct charge assignment, cost driver allocation, and flat percentage allocation based on estimated usage. 419 Interest Income - Interest calculated on delinquent invoices not paid within 30. days. Interest is calculated based on a three -month commercial paper rate. 495 Miscellaneous Revenues: Employee Transfer Fees: Energy Affiliates - Equivalent to 25% of the employee's base annual compensation which includes base wages, salaries, bonuses; commissions, stock options and other non -cash compensation such as; medical and pension benefits. Excludes clerical employees, temporary transfers and rotational assignments'. Non - Energy. Affiliates - Equivalent to 25% of the employee's annual base wages only. Excludes clerical employees; temporary transfers and rotational assignments. Facility Usage Costs - Depreciation and remm on investment for facilities awned by SoCalGas in Sacramento; San Francisco, and Washington D.C. SOUTHERN CALIFORNIA GAS COMPANY Affiliate Transactions Annual Report 2000 Response to Affiliate Transaction Reporting Requirements Section: D. AFFILIATED ENTITIES PROVISION OF GOODS AND SERVICES TO THE UTILITY Request No, 1 -9: 1. Section C required each utility to report goods and or services that it provided to its affiliated entities. This section (Section D), requires the reporting of all goods and/or services that the affiliated entities provided to the utility. 2. Each utility shall report any goods and/or services that were provided to it by any of its affiliated entities during the period covered by the annual report. All goods and/or services shall be reported regardless of whether or not the affiliated entity was reimbursed. 3. For purposes of this section, "Goods" has the same meaning as used in Section C above. 4. For purposes of this section, "Services" includes any activity of economic value provided by the affiliated entity; or any company under contract to the affiliated entity, to the utility. The examples of the types of services listed in #3 of Section H -C above are applicable to this section as well. Purchases of natural gas or electric energy from.any affiliated entity should be reported in this section. 5. The cost of each good and/or service that the affiliated entity provided to the utility shall be assigned by the utility to a appropriate USOA Account of the utility. 6. Using the format shown, each utility shall create a table (entitled Table H -D -1), containing; • A set of columns by listing horizontally across the top of Table- II -C -1 each affiliated entity listed *in Table II -A -If excluding, however, any affiliated entities which provided no goods and/ or services to the utility during the calendar year. • A set of rows b listing vertically down the left side of Table IT-C -1 each USDA account (listed in ascending order) for which the utility had incurred a cost for goods and/or services provided by the affiliated entity. • The middle portions of Table fl-C-1, corresponding to each horizontal column and vertical row; will be called cells. For each cell in Table II -C -1, the utility shall aggregate all transactions for goods and/or services it provided. to each affiliated entity under: 1,) The- appropriate column heading for that affiliated entity; and, 2) The row corresponding to the appropriate USO account category. 8. The following information shall be reported in the corresponding cells of Table II -C -1; • The total transfer price assigned to this USOA account for any goods or services provided by the affiliated entity to the utility; The allocated cost, if different from the transfer price; as calculated by the affiliated entity as the cost for any goods or services provided to the utility; • The fair market value of the goods and service provided, if determined; • Allocated costs as a percentage of total recorded costs for the USOA account; At the end of each row, each Utility shall briefly list the applicable methodology used to determine allocated cost and transfer price as well as any calculations and reviews utilized to determine fair market value. Response: Using the format provided for Table II -D -I (attached), the costs of all goods and services provided to SoCalGas by affiliated entities during the reporting period have been presented. The costs have been accumulated by USOA account and by affiliated entity. SoCalGas has established a policy that for the provision of services, "allocated costs" or fully allocated costs" are not different from "transfer prices." Therefore; information requested in Item 8 relative to transfer pricing differences is not; applicable. Item 9 has been incorporated with the Response to item 10 SOUTHERN CALIFORNIA GAS COMPANY Affiliate Transactions Annual Report 2000 Response to Affiliate Transaction Reporting Requirements Section: D. AFFILIATED ENTITIES PROVISION OF GOODS AND SERVICES TO THE UTILITY Request No'. 10: 10. In addition to the information requested in Table I1-C -1. each utility shall provide, As a separate document, a brief narrative description for any USOA count that had recorded over $10,000 in goods and services provided by an affiliated entity. This narrative description will describe in greater detail the types of goods and services provided, as well as the methodologies used to calculate their transfer price and a summary of all methodologies and calculations used to determine fair market value. Response: USOA Account 107: Construction Work in Progress (CNI*7P1 This account includes the total balance of all work orders related to gas plant construction work in progress. Work orders are cleared from this account as soon as practicable after completion of thejob. USOA Account 163: Stores Expense Undistributed Costs recorded in this account include the actual cost of supervision, labor and expenses incurred in the operation of general storerooms, including purchasing, storage, handling and distribution of materials and supplies. 'Balances in this account are cleared monthly by way of a rate applied to materials and supplies issued from the Company's warehouse. USOA Account 165: Prepayments This account includes payment for undelivered gas and other prepayments of rents, taxes, insurance, interest, and like disbursements made prior to the period to which they apply. USOA Account 184 :. Clearing Accounts Costs recorded in this account include outside legal charges and other professional fees that are tracked in miscellaneous work orders for regulatory accounting purposes (e.g. hazardous substance cost recovery memorandum account). However, a majority of the costs are SoCalGas shared services costs that are transferred: to Sempra Energy. Sempra Energy then includes these costs in their total pool of Sempra Corporate charges, which are allocated to SoCalGas and other affiliates using the multi- factor formula or percentage allocation. The actual costs captured in these work orders are expensed. This account also includes undistributed balances in clearing accounts as of the date of the balance sheet. Balances in the clearing accounts are substantially cleared no later than the end of the calendar year unless items held therein relate to a future period. SOUTHERN CALIFORNIA GAS COMPANY Affiliate Transactions Annual Report 2000 Response to Affiliate Transaction Reporting Requirements Section D. AFFILIATED ENTITIES PROVISION OF GOODS AND SERVICES TO THE UTILITY Request No. 10 (Cont'd): USOA Account 216: Unappropriated Retained` Earnings Costs recorded in this account represent the additional minimum pension liability related to the Sempra Energy Supplemental Employee Retirement Plan (SERF), net of deferred taxes. In conformity with FAS 87, if the additional minimum liability exceeds the total of the unrecognized prior service costs and the unrecognized net transition obligation, the excess is reported as a separate negative component of stockholder's equity, net of related tax benefits from considering the losses as temporary differences under FAS 109. USDA Account 232: Accounts Payable In December 1998, SoCalGas recorded a liability in the amount of $31.7 million to accrue for expenses as a result of the merger between Pacific Enterprises and Enova. The $31.7 million merger expense was reported in 1998 as part of USOA account 930 in Table II -13-1. Charges recorded in account 232 represent a reduction in the liability account as actual invoices were received and paid for by SoCalGas. USOA Account 242: Misc. Current & Accrued Liabilities: This account includes the amount of all other current and accrued liabilities not provided for elsewhere appropriately designated and supported as to show the nature of each liability. USDA Account 282: Accumulated Deferred - Income 'Taxes Costs recorded in this account represent the deferred taxes associated with the additional minimum pension liability pertaining to SERP. See USDA account 216 above. USOA Account 803: Natural Gas Transmission Line Purchases During the reporting period, SoCalGas did not purchase gas from its non - regulated affiliates. As part of its gas acquisition risk management operations, SoCalGas entered into a number of over- the - counter financial swap transactions with Sempra Energy Trading, resulting in a net receipt of $1,557,465 during 2000. This receipt was recorded as a credit to the cost of gas account. All swap transactions were the results of "arms - length transactions through brokerage firms. Neither party had knowledge of the counterparty's identity until after commitment to the broker was made, in accordance with remedial measures. USOA Account 901: Supervision This account includes the actual cost of labor and expenses incurred in the general direction and supervision of customer accounting and collecting activities. SOUTHERN CALIFORNIA GAS COMPANY Affiliate Transactions Annual Resort 2000 Response to Affiliate Transaction Reporting Requirements Section: D. AFFILIATED ENTITIES PROVISION OF GOODS AND SERVICES TO THE UTILITY Request No. 10 (Cont'd): USOA Account 903: Customer Records and Collection Expense Actual computer operations costs as well as miscellaneous costs of providing assistance to customers are recorded in this account. USOA Account 908: Customer Assistance Expenses This account includes the actual cost of labor, materials, and expenses incurred in providing instructions or assistance to customers, the objective of which is to promote safe, efficient, and economical use of the utility's service. USOA Account 923: Outside Services Employed This account includes the fees and expenses of professional consultants and others for general services which are not applicable to a particular operating function or to other accounts. Costs recorded in this account are primarily Sempra Energy shared services costs for labor and other support services that are allocated monthly and billed to SoCalGas and other affiliate using the multi- factor formula or percentage allocation in accordance with the Affiliate Transactions policy. USOA Account 926: Employee Pensions and Benefits This account includes pensions paid to or on behalf of retired employees, accruals to provide for pensions, or payments for the purchase of annuities for this purpose. USOA Account930: Miscellaneous General Expenses This account includes the actual cost of labor and expenses incurred in connection with the general management of the utility not provided for elsewhere. SOUTHERN CALIFORNIA GAS COMPANY Affiliate Transactions Annual Report 2000 Response to Affiliate Transaction Reporting Requirements Section: D. AFFILIATED ENTITIES PROVISION OF GOODS AND SERVICES TO THE UTILITY Request No. 11: 11. For any USOA account classification containing greater than $25,000 in reported transactions, the utility shall provide as an addendum to Table H -D -1 any comparisons performed by the utility of the cost of goods or services provided by the affiliated entities with other providers not affiliated with the utility. Response: During 2000, the utility did not conduct any studies for the purpose of comparing the cost of goods or services provided during the year by affiliated entities with the costs if provided by unaffiliated providers. TABLE II -13-1 SOUTHERN CALIFORNIA GAS COMPANY Provision of Goods and Services from Affiliated Entities to the Utility For the Year Ended December 31, 2000 USOA ACCOUNT SEMPRA SEMPRA % ACCT DESCRIPTION' .ENERGY ENERGY OF TRADING USOA ACCT' TOTAL 107 Construction Work in Progress(CWIP) Work Order Labor Work Order Non -Labor Work Order Overheads & Other Non. Labor Bldg.& Real Estate Procurement &.Logistics 163 Stores Expense Undishltiuted Pureha9ed Material Expense Store Expense 165 Prepayments 184 (Tearing Accounts Misc. Labor Misc, Non Labor Misc. Non Labor & Overhead Telecom meads, .216 Unappropriated Retained Earnings 232 Accounts' Payable. Merger Related Costs 242 Misc. Curren( &Accrued Liabilities 282 Accumulated Deferred Income Taxes -Other Property 426 Donations 803 Natural Gas Transmission -Line Purchases. Swaps 901 Supervision Information Technology Page 4 of 2, $2,678,340 9,184,1 19 11,974;995 925,565 124;746 226,105 804,661 4,260;771 1;346,690 169;446 4,461,552 855,012 (4;378,175) (213,688) (1,214,662) (1,617,516) (100) Na Na Na Na Na Na Na Na Nu Na Na Nx Na Na Na Na Na ($1,557,465) -0.11 1,383;693 27.21% $2,678,340 9,184,119 11,974375 925,565 124;746 226,105 804,661 4,260;771 1,346;690 169,446 4,461,552 855,012 (4,378,175) (213,688) (1,214,662) (1,617,516) (100) (1;557,465) 1,383,693' TABLE II -D -1 SOUTHERN CALIFORNIA GAS COMPANY Provision of Goods and Services from Affiliated Entities to the Utility For the Year Ended December 31, 2000 USOA ACCOUNT SEMPRA SEMPRA % ACCT DESCRIPTION ENERGY ENERGY OF TRADING USOA ACCT'. TOTAL 903 Customer Records & Collection Expenses Inr0rncoon Technology 11,270,571 15.36% 11'270,571 908 Customer Assistance Expenses 4;184 0.01% 4,164 unicaons Cnm ti m 923 OutsideScrviccs EmPIm'ed 14,753,596 12;18% 14,753,596 General Counsel 7,189,931 5.93% 7,189,931 Extemai Affairs 4,286,452 3.54% 4,286,452 Commm�ications 2,059,824 1.70. 2,059,824 Administra&i Services .5,983326 4.94% 5,983,726 Bldg. &Real Estate 2,879,453 2.38% 2,879.453. Environmemal &Safety Procurement &Logistics. 2,622,723 2:16% 2,622,723 ORice.Services 31628.216 2.99% 3,628.216 In1ognati6n Technology 94,351;305: 28.35% 34,353;305 ORrte orthe Chairman 1;942.1!5 - 1600. 1.942;325. Accounting &Finance 19,4I4p91 16 Of06 19:434,091 IhprR;Jtil5 iti. 16:59R,453) Human Resources Uirvltw.At -17 }'c 127192.069) 'Miser Expenses IM ?0,141 11.590: 16.470.191 beprecietion 14,124.21b 1.1.66° 14.126.260 Shared Services 926 Employee Pensions & Reneflts 1,985,036 3:10% 1.985,036 Human Resources H 930 General Expenses 43,949 0.42% 43,949 Misc. Expenses $165314;644 ($1,557,465) $163,757,179 TOTAL • At the time Ihis mport was compiled, the 2000 FERC report had not yet bcen completed. Tire pemenUges referenced herein am. estimates: Page 2 of 2 AGREEMENT IN PRINCIPLE AMONG SOCALGAS, ORA, AND TURN ON TILE GCIM This Agreement in Principle has been entered into by Southern California Gas Company ( "SoCalGas "), the Office of Ratepayer Advocates ( "ORA "), and The Utility Reform Network ( "TURN "). This Agreement in Principle addresses modifications to SoCalGas' Gas Cost Incentive Mechanism ( "GCIM ") for Year 7 and beyond, except as otherwise specified. SoCalGas, ORA, and TURN will offer this Agreement in Principle to the other parties in Application (A.) 00 -06 -023 at a noticed Settlement Conference before signing any stipulation or settlement to be submitted to the California Public Utilities Commission ( "Commission ") for approval. Starting in Year 8, eliminate NYMEX Program. ➢ Additional interstate transportation will be flowed through as a ratepayer cost as long as total transportation does not exceed transportation necessary for retail core load. Any transportation acquired in excess of that required for retail core load in a given month is subject to review in connection with the GCIM audit on an annual basis. Additionally, the 10 % Border guideline is eliminated. SoCalGas will maximize its utilization of firm interstate capacity, and its purchases from the basin and mainline receipt points. Capacity utilization is deemed reasonable if SoCalGas nominates at least 95% of its unreleased rights in a given month. In determining transportation necessary for retail core load, consideration will be given to performance of the interstate pipeline capacity including cuts and pipeline maintenance. All commitments for capacity will be communicated to the ORA and TURN. No commitments in excess of two years will be made without consultation with the ORA and TURN. All related transportation costs associated with the additional core capacity will be treated similar to other gas commodity charges and included in the Purchased Gas Account. The fixed costs would be recoverable from customers, and basin purchases would be measured in the GCIM similar to other basin purchases. ➢ Non- SoCalGas Receipt Points as a Result of the El Paso Reallocation. These transactions will be separately tracked and the value of interstate capacity dedicated to the core associated with the sale of gas at these receipt points will flow entirely to SoCalGas' core ratepayers. In recognition of these new El Paso Natural Gas Company ( "El Paso ") receipt points (i.e., PG &E- Topock, Mojave - Topock) allocated to SoCalGas, the GCIM benchmark will be adjusted to include the new points. Similar to the current monthly border benchmark, the new points will be indexed to mutually agreed upon publication(s) and will be volume weighted by actual purchases and sales. If an index is not available for a delivery point, a mutually agreed upon substitute index (i.e., % of another SoCalGas border index) will be utilized. Portfolio Combination. If the Commission approves the consolidation of the SoCalGas and San Diego Gas & Electric Company ( "SDG &E ") procurement groups, all purchases for SDG &E will be included in SoCalGas' GCIM sharing band structure. Additionally, any charges for pipeline reservation and storage incurred by SDG &E at the time of the combination will be treated in the same manner as SoCalGas' for GCIM purposes. SoCalGas will file an advice letter in order to implement the appropriate amendments to the GCIM required by the consolidation. Sharing Bands. Gas markets have been relatively stable for six of the last seven years and should stabilize again.. However, in recognition of the potential impact of volatile markets on the current GCIM award formula, the following changes to the sharing bands will be made. The sharing bands above the benchmark will remain unchanged, with no sharing up to 2 % above the benchmark and 50150 sharing between ratepayers and shareholders if more than 2% above the benchmark. The mechanism will include a contingency for operational emergencies (e.g., earthquakes, pipeline failures, and other force majeure events). If such emergencies result in costs above the benchmark, then ratepayers would 2 absorb these costs. An alternative daily benchmark could be used to measure these purchases.. • The sharing bands below the benchmark, as a percent of annual gas commodity benchmark, will be as follows: Sharing Band Ratepayer Shareholder 1 0.0%-l.00% 100% 0 % 2 1.00 % - 5.00 % 75 % 25 % 3 5.00% & 90% 10% Above ■ The shareholder award will be capped at 1.5% o of the actual annual gas commodity price. "Mark -to- Market" Accounting. All GCIM reporting will be done on a "flow month" basis with all activity associated with a particular production month accounted for in that month. Consideration of mark -to- market accounting will be revisited in future years. Annual, GCIM and GCIM shareholder benefit. Beginning in GCIM Year 9, SoCalGas will include the shareholder benefits of the GCIM from the most recent monthly report in SoCalGas' core monthly gas pricing advice letters submitted to the Energy Division, with copies to ORA. SoCalGas will maintain an interest- bearing tracking account associated with the recovery of shareholder benefits. On June 15 of each year, SoCalGas will file its annual GCIM application to the Commission describing in detail the results of the GCIM over the past year. ORA will conduct its annual audit and issue its monitoring and evaluation report by October 15 of each year. Any agreed -upon adjustments in the shareholder incentive award for the past year will be reflected in SoCalGas' next core monthly gas pricing advice letter or as mutually agreed upon by SoCalGas and ORA. If SoCalGas and ORA cannot resolve their differences, if any, concerning recommended adjustments in ORA's monitoring and evaluation report, then the matter will be set for hearing. There will be a reconsideration of the need for an application process in future years. 3, Storage: SoCalGas is required to meet appropriate storage inventory targets. The core November 1 storage inventory target is 70.0 Bcf of physical gas supply in storage inventory with an accepted variance of + 5 / - 10 Bcf. If the November 1 target is not met, however, purchases must be made to insure that at least 60 Bcf of actual physical gas is reached prior to December 1. The January, February and March minimum month -end targets (equivalent to peak day minimums necessary for serving the core) must be met. For GCIM Year 8, it is recognized that the winter storage targets may not be met because of high electric generation demand. For Year 8, if SoCalGas' system receipts are near capacity (approximately 3.4 Bcf /d average during April- October), the November 1 core physical storage must equal at least 80% of SoCalGas total system storage. Under these conditions, SoCalGas will operate under the objective of maintaining physical inventory of 55 Bcf for the core, with the caveat that under extreme (hot) weather conditions that SoCalGas may not achieve this goal. If system receipts average below 3.4 Bcf /d, the targets above apply. Any deviations from these storage targets should be explained in SoCalGas' annual GCIM filing. The above targets and objectives are not intended to describe or limit the core's rights on the SoCalGas system but instead will be adjusted from time to time as may be necessary or appropriate. ➢ Approval of Agreement in Principle. SoCalGas shall append this Agreement in Principle as an exhibit to SoCalGas' Application for GCIM Year '7 to be filed on June 15, 2001. This Agreement in Principle shall then be offered to the parties in A.00 -06 -023 on or before June 21, 2001, for consideration at a Settlement Conference to be convened on June 21, 2001. SoCalGas, ORA, and TURN, together with any other parties that agree to join this Agreement in Principle, shall execute a formal stipulation based thereon and submit, under a joint, motion, the stipulation to the Commission for approval in A.00 -06 -023. By entering into this Agreement in Principle, no party shall waive its rights to advocate a different position in either A.00- 06 -023 or in SoCalGas' Application for GCIM Year 7 in the event the Commission does not approve this Agreement in Principle, or any resulting stipulation, in full. El SERVICE LIST - A.00 -06 -023 ALJ Glen Walker California Public Utilities Commission ALJ Division, Room 5106 505 Van Ness Avenue San Francisco, CA 94102 -3214 Joyce Alfton California Public Utilities Commission Decision- Making Support Branch Area 4 -A 505 Van Ness Avenue San Francisco, CA 94102 -3214 Patrick L. Gileau California Public Utilities Commission Room 5000 505 Van Ness Avenue San Francisco, CA 94102 -3214 Norman A. Pedersen, Esq. Jones, Day, Reavis & Pogue 555 W. Fifth Street, Suite 4600 Los Angeles, CA 90013 -1025 Gloria M. Ing, Esq. Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Maria E. Stevens California • Public Utilities Commission Executive Division 320 West 4 "' Street, Suite 500 Los Angeles, CA 90013 Robert M. Pocta California Public Utilities Commission Market Development Branch Room 4101 505 Van Ness Avenue San Francisco, CA 94102 -3214 Marcel Hawiger, . Esq. The Utility Reform Network 711 Van Ness Avenue, Suite 350 San Francisco, CA 94102 Commissioner Richard A. Bilas California Public Utilities Commission 505 Van Ness Avenue, Room 5218 San Francisco, CA 94102 -3214 Brian K. Cherry Pacific Gas & Electric Company 77 Beale Street San Francisco, CA 94105 Edward W. O'Neill, Esq. Davis, Wright, Tremaine, LLP One Embarcadero Center, Suite 600 San Francisco, CA 94111 -3834 Keith R. McCrea, Sutherland, Asbill & Brennan LLP 1275 Pennsylvania Avenue Washington, DC 20004 -.2415 C: \My Docw nts \Service Lists \GCIM -Phase2.doc June A. Suwara Case Administrator Southern California Gas Company 555 W. Fifth Street, GT -14136 Los Angeles, CA 90013 -1011 EMPLOYEE OWlVED- CUSTOMER DRIVEN RECEIVED & Company am 11111111111711111 CA LICENSE 0099753 610 WEST ASH STREET SAN DIEGO, CA 92101 -3350 TELEPHONE 619 - 231 -1010 Yl "„ 30 A 8 29 OC 7Y aF P"'T January 19, 2001 wPORT BEACH Ms. LaVonne Harkless CITY OF NEWPORT BEACH CITY CLERK'S OFFICE 3300 Newport Blvd. Newport Beach, CA 92663 Re: Bond No. B2878913 $1,000 (as Franchise Bond for Southern California Gas Company Dear Ms. Harkless; Enclosed, please find a rider for the above referenced bond. The Surety Company of Southern California Gas ',oml2a n has changed from Reliance Insurance Comaanv to Travelers Casualtv and Surety Company of America effective immediately due to the purchase of the Surety division of Reliance Insurance Company by the Travelers. The Travelers Group has an AM BEST rating of A +. Consequently, the enclosed rider changes the Surety Company on the above referenced bond from Reliance to Travelers and changes the bond number from Reliance bond number B2878913 to Travelers bond number 103509115. This rider should be attached to the original bond. If you should have any questions, please feel free to give me a call at (619) 525 -2703. Sincerely, Minna Huovila Account Representative enclosure m i TravelersInsurance e er Amembofat*ro p SURETY BOND RIDER TO: CITY OF NEWPORT BEACH 3300 NEWPORT BLVD. NEWPORT BEACH, CALIFORNIA 92663 RE: Bond Principal: SOUTHERN CALIFORNIA GAS COMPANY CIO SEMPRA ENERGY CORP. Obligee: CITY OF NEWPORT BEACH Surety Co: Reliance Insurance Company Surety Bond Number: B2878913 Bond Amount: $1,000.00 Type of Bond: Misc. Indemnity The purpose of this Rider is to: [XI CHANGE BOND NUMBER Upon execution of this Surety Bond Endorsement by all parties hereto, surety bond number B2878913 is changed to 054 S 103509115 BCM . [XI CHANGE SURETY COMPANY Effective December 01, 2000, Travelers Casualty and Surety Company of Americaf`Travelers ") replaces Reliance Insurance CompanyC'Reliance") as surety on the above referenced bond and, accordingly, agrees to be bound by the terms of the above - referenced bond and to perform all of Reliance's obligations thereunder as if the above- referenced bond had originally been issued,by Travelers. The termination of liability under the Reliance bond is a condition precedent to the change of surety. Upon execution of this Surety Bond Endorsement by all parties hereto, Reliance shall have no further obligation or liability under the above - referenced bond. ❑ CONTINUATION CERTIFICATE This certificate extends the life of the bond,to . It is executed upon the express condition that the surety's liability under said bond, together with this and all previous continuation certificates, shall not be cumulative and shall in no event exceed the amount specifically set forth in said bond or any existing certificate changing the amount of said bond. Signed, sealed and dated November 25, 2000. Travelers Casualty and Surety Company of America a Joseph P. Kiernan, Executive V. Pres. Reliance Insurance Company George W. Thompson, Attorney -in -Fact S -53530 6100 Travelers Casualty and Surety Company of America, Hartford, Co edict 06183 Travelers Casualty and Surety Company, Hartford, Connecticut 06183 Farmington Casualty Company, Hanford Crn ec icW 06183 • 0 NOTICE OF PROPOSED SOCALGAS RATE INCREASE ; APPLICATION NO. 00-05-002 On May 1, 2000, Southern California Gas Company (SoCalGas) filed an appliwioi<uith #he' 1 ;29 California Public Utilities Commission (CPUC) requesting an increase in gas rates to pay for shareholder incentives related to SoCalGas' performance of its Demand-&4 Mapagemeot 1,; L , ,,;; (DSM) programs in 1995 and 1997, Low- Income Energy Efficiency (LIFE) prt grams itr 1 998 B, C i i and 1999, and 1999 Energy Efficiency (EE) programs. These programs are CPUC- authorized activities directed at assisting consumers to use energy more efficiently. The shareholder incentive award is based upon formulas, approved by the CPUC, that determine shareholder awards and penalties depending upon SoCalGas' performance of DSM, LIEF, and EE programs in promoting energy savings. If approved, the $4,787,000 award SoCalGas is now requesting will result in an overall increase in gas rates of $4,787,000 beginning January 1, 2001. If the CPUC approves the proposed gas rate increase, the impact on rates by customer class would be as follows: Proposed Gas Rate Increase Customer Class Proposed Percentage Proposed Rate Percentage Rate Revenue Revenue Increase Increase Increase ($000) Increase (cents /therm) GAS CORE' Residential 3,491 0.22% 0.135 0.22 % CommerciaUIndustrial 969 0.27% 0.135 0.27% Transportation 327 0.39% - - NONCOREZ Commercial/Industrial - - - - Cogeneration - - - UEG - - - - Total Gas 4,787 0.21% SoCalGas requests that the proposed gas rate and revenue requirement increase become effective on January 1, 2001, or as soon thereafter as possible. WHAT THESE CHANGES WILL MEAN TO RESIDENTIAL CUSTOMERS If the gas rate increase requested is approved by the CPUC as of January 1, 2001, the monthly winter bill of a residential customer consuming 70 therms of gas per month will increase about $0.09. ' Core Customers are customers that generally use than 20,800 therms of gas per month. 2 Noncore Customers are customers that generally use more than 20,800 therms of gas Per month. 0 THE CPUC MAY HOLD EVIDENTIARY HEARINGS The CPUC may hold evidentiary hearings on this application. At the hearings, SoCalGas, the CPUC's independent Office of Ratepayer Advocates (ORA) and other interested parties give testimony. Parties may offer proposals to the CPUC that differ from those SoCalGas presents. After considering all evidence presented, the CPUC will issue a decision on this application. The actual rates approved by the CPUC may be different from those originally requested by SoCalGas. EVIDENTIARY HEARINGS ARE OPEN TO'THE PUBLIC If you wish to participate in the evidentiary hearings and need advice on how to do so; if you would like to receive information on the location and schedule of the evidentiary hearings; or if you would like to submit written comments, please write to the CPUC's Public Advisor at the following address: Public Advisor, California Public Utilities Commission 320 West 0 Street, Suite 500, Los Angeles, CA 90013 email: public.advisor.la @cpuc.ca.gov Mention that you are writing about Application No. 00 -05 -002. The Public Advisor will give your letter to the Commissioners, ORA staff and the Administrative Law Judge assigned to the case. Your letter will become part of the formal correspondence file. If you have a question or need further information, please state in your letter that you would like a response; otherwise, no reply will be sent. 114114U111141 For further information about this application, or to request a copy of the application and attachments, you may write to: Joy C. Yamagata, Regulatory Case Manager, Sempra Energy, 101 Ash Street, San Diego, California 92101 -3107. You may also view a copy of the application at SoCalGas' headquarters located at: 555 West Fifth Street, Los Angeles, CA 90013 - 1011. The application may also be inspected at the CPUC offices located in Los Angeles at 320 West 4's Street, Suite 500, Los Angeles, CA 90013, and in San Francisco at 505 Vaal Ness Avenue, San Francisco, CA 94102. EMPLOYEE OWNED- CUSTOMER DRIVEN 610 WEST ASH STREET SAN DIEGO, CA 92101 -3350 TELEPHONE' -619- 231 -1010 January 6, 2000 Ms. LaVonne Harkless CITY OF NEWPORT BEACH CITY CLERK'S OFFICE 3300 Newport Boulevard Newport Beach, CA 92663 Re: Bond No. B2878913 ,labes Our"ham & rampany IIIIIIIIIIIIIIIIAW CA LICENSE 0099753 $1,000 Gas Franchise Bond for Southern California Gas Company Reliance Insurance Company Dear LaVonne: We are the bond agent representing Southern California Gas Company. This letter is to inform you that their surety company has changed from Safeco Insurance Company of America to Reliance Insurance Company effective immediately. Consequently, we are replacing the bond you are currently holding on behalf Southern California Gas Company and issued by Safeco Insurance Company of America (Bond No. 5590890) with a new bond issued by Reliance Insurance Company (Bond No. B2878913). Please accept this bond as a replacement for the current bond. In addition, we are asking that you return the Safeco bond to my attention as quickly as possible as Safeco is requiring that the bond be returned to them in order to confirm that they are released from future liability. If you are unable to return the Safeco bond, please complete and sign the attached form and return it to our office in the enclosed envelope within ten (10) working days. If you should have any questions, or if releasing the Safeco bond is a problem, please call either myself at (619) 525 -2703 or Debra Niemeyer at (619) 525 -2705. Sincerely, J_inna Huovila Account Representative enclosure _ ^ 4 This Bond Replaces Previous Bond No. 5590890 FRANCHISE BOND KNOW ALL MEN BY THESE PRESENTS: Bond No. B2878913 Premium $50.00 Effective DECEMBER 1, 1999 That we, SOUTHERN CALIFORNIA GAS COMPANY, a corporation duly organized and existing under and by virtue of the laws of the State of California and having its principal place of business In the City of Los Angeles, County of Los Angeles, State of California, as princlpaland RELIANCE INSURANCE COMPANY a corporation Created, organized and existing under and by virtue of the laws of the State of PENNSYLVANIA, as surety, are held and firmly bound unto the City of NEWPORT BEACH , State of California, In the penal sum of one Thousand Dollars ($1,000.00), lawful money of the United States of America, for the payment of which well and truly to be made we bind ourselves, our successors and assigns, jointly and severally, firmly by these presents: WHEREAS, the above abounden Principal, SOUTHERN CALIFORNIA GAS COMPANY, has been awarded a franchise for an indefinite term, pursuant to the provisions of the Franchise Act of 1937 of the State of California, approved June 29, 1937, Chapter 650, Statutes of 1937, by Ordinance No. 524 of said City, dated 08/02/43 for the right, privilege and franchise to lay and use pipes and appurtenances for the transmission and distribution of gas for any and all purposes under, along, across or upon the public streets, ways, alleys, and places, as the same now or may hereafter exist within said City, the terms and conditions of said franchise being fully set forth in said Ordinance, and WHEREAS the said Principal, as Grantee of said franchise, is required by said City to file a bond in the sum of One Thousand Dollars ($1,000.00) for the faithful performance of the terms and conditions thereof, NOW, THEREFORE, if the said Principal, SOUTHERN CALIFORNIA GAS COMPANY, shall well and truly observe, fulfill and perform each and every term and • 0 condition of said franchise, then this obligation to be void, otherwise to remain in full force and effect. IN WITNESS WHEREOF, SOUTHERN CALIFORNIA GAS COMPANY and RELIANCE INSURANCE COMPANY ..have- hereunto caused their names to be subscribed and their corporate seals affixed by their respective officers thereunto duly authorized thiS 28TH day Of `DECEMBER , 1999. . SOUTHERN CALIFORNIA GAS COMPANY By u ,� James. Trent, Asst. Controller ( SEAL) ByL iA W Randa Trapp, Asst.. Secretary RELIANCE INSURANCE COMPANY C) ( SEAL) By l t �A%k Q DEBRA J. NIEM �E�5, ATTORNEY -IN -PART State of California County of San Diego ) On December 28. 1999 before me, Minna Huovila, Notary Public, personally appeared Debra J. Niemeyer, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person(s), or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. MINNA HUOYILA u COMM. #1238291 n NOTARY PUSUO- CAUFORNIA U ® y COMM OS COUNTY Expires OCTOBER 17.2003 I MINNA HUOYILA u COMM. #1238291 n NOTARY PUSUO- CAUFORNIA U ® y COMM OS COUNTY Expires OCTOBER 17.2003 RELIANCE SURETY COMPANY UNITED PACIFIC INSURANCE COMPANY INSURANCE COMPANY RELIANCE NATIONAL INDEMNITY COMPANY ADMINISTRATIVE OFFICE, PHILADELPHIA, PENNSYLVANIA POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, that RELIANCE SURETY COMPANY is a corporation duly organized under the laws of the State of Delaware, and that RELIANCE INSURANCE COMPANY and UNITED PACIFIC INSURANCE COMPANY, are corporations duly organized under the laws of the Commonwealth of Pennsylvania and that RELIANCE NATIONAL INDEMNITY COMPANY is a corporation duly organized under the laws of the State of Wisconsin (herein collectively called 'the Companies ") and that the Companies by virtue of signature and seals do hereby make, constitute and appoint Jack G. Lupien, Debra J. Niemeyer, Dale G. Harshaw, Tara Bacon, of San Diego, California their true and lawful Attomey(s) -in -fact, to make, execute, seal and deliver for and on their behalf, and as their act and deed any and all bonds and undertakings of suretyship and to bind the Companies thereby as fully and to the same extent as if such bonds and undertakings and other writings obligatory in the nature thereof were signed by an Executive Officer of the Companies and sealed and attested by one other of such officers, and hereby ratifies and confirms all that their said Attor- ney(s)-in-Fact may do in pursuance hereof. This Power of Attorney is granted under and by the authority of Article VII of the By -Laws of RELIANCE SURETY COMPANY, RELIANCE INSURANCE COMPANY, UNITED PACIFIC INSURANCE COMPANY, and RELIANCE NATIONAL INDEMNITY COMPANY which provisions are now in full force and effect, reading as follows: ARTICLE VII - EXECUTION OF BONDS AND UNDERTAKINGS 1. The Board of Dirmsms. the President, the Chairman of Me Board, any Senior Vice President any Vim President or Assistant Via Presidem or other offerer designated by the Board of Direnms shill have power said authority in ho appoint Avmayfx}io-Fnt ard m mesmi. Nem totem. on behalf of the Company, bolls aid uM.uktir'. recogniaances, mnhxcts of Indemnity and other writings obligatory in the emote Memel, and (b) an remove any such Atmrmy(s)Fin -FaW1 a arty time and revoke Me power ell to dmity given to them. 2. Atmrnay(a) -io-Fa. sM1ill have power aid authority, subject m the urea Bad limiatiom of Ne Power of ARProey issued m Nem, an execu¢ and deliver on behalf of the Company, bonds and undertakings. rcogniaarres, contracts of indemnity and other writings abligamry in the nature therm/ The corronre seal is not rrccessary for the validity of any bolls and uMereealamp remgmea tame, concocts of indemnity and other writings obligatory in he more thereof. I Ame ney(s)- w-Faet shall have powso and authority to exome affidavits required to be avached in bands, rcognimmes, comacb of indemnity in other maditimal es obligatory undertakings and May shall also have pow. aid authwhy m cenify the financial summend of the Company and to eopies of the By -laws of the Company or any merle or section dom—L This Power of Attorney is signed aid sealed by rauimile mdv aid by authority of Me following neolmion incrust by the Executive and Finnme Committer of me Boards of Diunore of Reform, Wmame Company, United Pacific Joint. Company and Reliance National Indemnity Company by Unanimous Comem dated as of Feb iary 26, 1994 and by tlu Executive and Financial Committee of the Board of Diremoss of Reliarxa Sorely Company by Unanimous Consent dazed a of March 31, 1991. 'Resolved dam the signatures, of such Mmsmrs and ofi.rs and the seal of Me Comparry may he affixed to any such Pow. of Attorney or nay .nifimu s reining thereto by facsimile. and any such P. of Attorney or .rtifou bearing such facsimil, sigmtsoa or faesimile seal shall he valid and billing upon he Company and any such Power so executed and .rutted by facsimila sigmrmes and facsimile sal shell be valid and binding upon the Company, in the Poor, with lespeo many bond or undmad ing to which it is touched.' IN WITNESS WHEREOF, the Companies have caused these presents to be signed and their corporate seals to be hereto affixed, this August 16, 1999. RELIANCE SURETY COMPANY N RELIANCE INSURANCE COMPANY 0(40(8 e_ q�opPOg1'1� UNITED PACIFIC INSURANCE COMPANY m 8 8888 < RELIANCE NATIONAL INDEMNITY COMPANY u 1959 0 1r. ws.3bcOK"hPya W STATE OF Washington } COUNTY OF King ) SS. On this, August 16, 1999, before me, Laura L. Santos, personally appeared Mark W. Alsup , who acknowledged himself to be the Vice President of the Reliance Surety Company, Reliance Insurance Company, United Pacific Insurance Company, and Reliance National Indemnity Company and that as such, being authorized to do so, executed the foregoing instrument for the purpose therein contained by signing the name of the corporation by himself as its duly authorized officer. Notary Pulbk In witness whereof, I hereunto set my hand and official seal. Stets of MfeYinglon Laura L. Santos � -State Pubflc In and for a State WAppoi nBnentExpfel;W -6501 Residing at Puyallup I, Robyn Layng, Assistant Secretary of RELIANCE SURETY COMPANY, RELIANCE INSURANCE COMPANY, UNITED PACIFIC INSURANCE COMP- ANY, and RELIANCE NATIONAL INDEMNITY COMPANY do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which is still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 28TH day of DECEMBER year of 1999 tr ¢ mPw"4 q „n Baia »von Cpl iNOp =�OQ,POggl °9 S 4 Qa`Oq,POgy eo =��PPOg7mH i Ste - 9sa 0 '? M` gNS • ig3s oHya Istant Secretary a 'tree '>.,wa••' b b The Gas Compact October 14, 1996 Ms. Wanda Raggio City Clerk City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658 -8915 Dear Ms. Pam "" a5-1 0 Orange Coast Region n Southern California Gas Company ,ararrngAae.e,: cos 3314 Anah,im. CA 92503 -9334 Today, Pacific Enterprises and Enova Corporation announced a strategic business combination of our two companies. Pacific Enterprises is the parent company of Southern California Gas Company, and Enova is the parent company of San Diego Gas & Electric. This merger of equals is a timely and natural outgrowth of the restructuring of the California energy industry, including the recent enactment of state legislation endorsed by the California Public Utilities Commission and the state legislature. This merger is also designed to create a stronger combined enterprise than either Pacific enterprises or Enova Corporation can realize on our own. At the same time, it will enhance competition in the rapidly evolving energy marketplace and create cost savings for the utility customers of both companies. Pacific Enterprises brings to the merger its considerable gas procurement, transmission, distribution; and marketing skills, as well as experience in the restructured natural gas industry. Enova provides skills and the expertise of a visionary electric generation, transmission, and distribution company that is at the forefront of electric industry restructuring. By combining, the new energy Company will be positioned to meet the needs of 5.9 million customers with a broad portfolio of energy related products and services. The Company will nave a new name, which will be announced before the transaction is completed. The corporate headquarters of the new Company will be located in San Diego. The headquarters of Southern California Gas Company will remain in Los Angeles, and the headquarters of San Diego Gas & Electric will remain in San Diego. The safety; service, and reliability of San Diego Gas & Electric Company and Southern California Gas Company, together with our commitments to diversity and the communities we serve, will remain. Both companies are also committed to maintaining a strong presence in their service territories, and the merger will not reduce the level of charitable contributions or community support. Page 2 of 2 0 0 The merger of Pacific Enterprises and Enova will not result in any significant change in the field operations for either Southern California Gas Company or San Diego Gas & Electric Company. The inc:eased synergies and substantial cost savings from the combination, approximately $1.2 billion over 10 years, will be derived mainly from management and administrative efficiencies at the respective companies. Both companies are committed to minimizing the impact of the merger on employees. We estimate that 1,000 of the 11,740 positions in the combined companies will be eliminated, primarily support activities. Special voluntary separation programs will be offered to targeted affected groups at the appropriate time. A targeted voluntary early retirement option also is being studied. Attrition will also reduce the impact of the workforce reductions on employees. The senior management of the new Company will be led by Richard D. Farman, President and Chief Operating C:cer of Pacific Enterprises, who will become Chairman and Chief Executive Officer. ::..ephen L. Baum, President and Chief Executive Officer of Enova, will become Vice - Chairman, President and Chief Operating Officer of the new Company. Warren 1. Mitchell, President of Southern California Gas Company, will become head of the new company's regulated operations, and Donald B. Felsinger, President and Chief Executive Officer of San Diego Gas & Electric Company, will become head of the unregulated operations. Thomas Page, Chairman of Enova, will retire on December 31, 1997, and Willis B. Wood, Jr., Chairman and Chief Executive Officer of Pacific Enterprises, will retire upon completion of the transaction. The Board of Directors of the new Company A ill include an equal number of outside directors of both Pacific Ente arises and Enova, =r�gether with Messieurs Farman and Baum. The transaction is expected to close by December 31, 1997, subject to approvals by the shareholders of both Pacific Enterprises and Enova, and by appropriate regulatory agencies. Hopefully, this description of the transaction is helpful to you, and we urge your support as it proceeds through the approval process. We will keep you apprised of future developments. In the meantime, please do not hesitate to contact us should you have additional questions. Very truly yours, Judy Woolen District Manager The Gas Compa E. John Amatlor Dismct- dlLnager ow,ge Coastp D,,,ton January 12, 1994 Kevin Murphy southum Califamie City Manager, City of Newport Beach Gas Company 3300 Newport Blvd. M35 W. FwtSwet Newpory Beach Ca. 92663 Saw D 2 -4 Santa Ana, CA. 92703 -9304 Dear Kevin, re! 714 554-0178 You have requested Southern California Gas Company ( "SoCalGas ") to provide you with information concerning transportation customers, pursuant to the provisions of the Public Utilities Code Section 63546), part of the new Municipal Public Lands Use Surcharge Act as adopted earlier this year in SB 278 (Beverly). We are prepared to transmit this information to you upon receipt of the original copy of this letter, executed by you, to confirm your agreement with the confidentiality provisions set forth in this letter. All customer information is the confidential and proprietary, trade secret information of SoCalGas. For that reason, it is to be kept confidential by the City and not disclosed to third parties without the prior written consent of SoCalGas or as required by law. We recognize that the City is subject to the disclosure requirements of the California Public Records Act, Government Code 6250 et al. The requested confidentiality agreement is not inconsistent with that Act, however, as the Act only requires a governmental agency to disclose, upon request, "public Records" and exempts certain public records'from disclosure.. None of the customer information requested is a public record. Public Utilities Code 6354(f) expressly provides that transportation customer information is not a public record. In addition, Government Code 6254.7(d) expressly provides that trade secrets are not public records, and Government Code 6254(i) and (k) provide exemptions for information provided in confidence in connection with the collection of local taxes and information for which a privilege is established by the Evidence Code. (Section 1060 of the Evidence Code establishes a privilege for trade secret information.) Accordingly in addition to requiring the transportation customer information to be kept confidential, we request the City confirm that the information will be maintained as exempt from disclosure under the Public Records Act. In the event City is served with any action to obtain disclosure of the information, City shall, at its own cost, oppose such disclosure and provide immediate notice to SoCalGas of such action, by telephone, and shall provide written notice to SOCaIGas, of such action (with a copy of the petition), within four business days, via overnight mail or delivery via overnight courier. Such notice shall be sent to this address, to the attention of the Law Department/Litigation Section. The City's execution of this letter will also confirm that the information is being sought in order to collect the new surcharge and/or enforce the City s Utility Uses Tax ordinance and that the City agrees to use the information for no other purpose without the prior written consent of SoCalGas. City's obligations (including any other agent for the City receiving the information) to keep this information confidential may be specifically enforced and any breach or threatened breach may be enjoined, as the damages to SoCalGas are not compensable by monetary damages. In the event any action is brought to enforce City's obligations, the prevailing party shall be entitled to attorney's fees (whether or not of salaried employees employed by such party) and costs. A copy of this letter should be executed by City and any other agent to whom City wishes to disclose the information, to confirm agreement with the foregoing terms and conditions. The original, or certified copy of this letter executed by the City, should be returned to me. Sincerely, �CL�-Q John Amador District Manager AGi LA Title E. JOHN AMADOR District Manager Wanda Andersen, City Clerk City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92663 Dear Ms, Andersen: ;x; t,. SOUTHERN CALIFORNIA gQS COMPANY ORANGE COUNTY DIVISION • P.O. BOX 1319, SANTA ANA, CALIFORNIA 92701 February 27, 1991 A Just a note to let you know that as of February 25, 1991, the location of my office has changed to: 3835 West First Street Suite D 2 -4 Santa Ana, CA 92703 My phone number will remain the same (714) 547 -4510. Thank you. sincerely, E. John Amador District Manager EJA :pa �<i so L9 CITY OF NEWPORT BEACH 1iD Ms. Pamela Jacobs Alexander & Alexander 3550 Wilshire Boulevard Los Angeles, CA 90010 Dear Ms. Jacobs: Office of City Manager (714) 644 -3002 May 18, 1990 The City of Newport Beach is in receipt of your Bond No. 5590850 pursuant to the franchise granted by the City by Ordinance 524. This bond is accepted in lieu of all previous bonds. Sincerely, Kenneth I Delino ExecutiveUU Assistant , KJD :mb cc: City Manager City Clerk City Hall • 3300 Newport Boulevard • P.O. Box 1768 • Newport Beach, California -92658 -8915 \7 SOUTHERN CALIFORNIA g A COMPANY GENERAL OFFICES: 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA 90017 CARLA L. BRANDY Risk Management and MAILING ADORES&. P. O. BOX 60980 TERMINAL ANNEX LOS ANGELES, CALIFORNIA 9006""0 Emironmenlal Insurance Coordnator �— is n y�aL°°R May 1, 1990 ( R en.t MAY 1 0 19900- 1 c;;y Mznager Reach City of Newport Beach 3300 Newport Beach Boulevard Newport Beach,, CA 92658 Attention: City Manager Gentlemen: Enclosed please find Bond No. 5590850 which has been issued in favor of the city of Newport Beach. This bond replaces Bond No. 59113238 currently on file supporting our Franchise No. 524. We request that you accept this new bond, effective December 31, 1989 . as replacement for the previously issued bond. We also ask that you send a letter acknowledging acceptance of the new bond and release of liabilities of the old bond effective that date to the following: Ms. Pamela Jacobs Alexander & Alexander 3550 Wilshire Boulevard Los Angeles, CA 90010 If there are any questions, please let us know. Thank you., Si %n)ceerrely, MW This Bond Replaces Previous Bond NO. Sq, i 42,15 FRANCHISE BOND KNOW ALL MEN BY THESE PRESENTS: • Bond No, 5590890 Premium $100.00 Effective 12/1/89 That we, SOUTHERN CALIFORNIA GAS COMPANY, a corporation 'duly organ; ed and existing under and by virtue of the laws of the State of California and having its principal place of business in the City of Los Angeles, County of Los Angeles, State of California, as principal and Safeco Insurance Company of America, a corporation created, organized and existing under and by virtue of the laws of the State of'WashinRton, as surety, are held and firmly bound unto the City of Newport Beach., State of California, in the penal sum of one Thousand Dollars ($1,000.00), lawful money of the United States of America, for the payment of which well and truly to be made we bind ourselves, our successors and assigns, jointly and severally, firmly by these presents: WHEREAS, the above abounden Principal, SOUTHERN CALIFORNIA GAS COMPANY, has been awarded a franchise for an indefinite term, pursuant to the provisions of the Franchise Act of 1937 of the State of California, approved June 29, 1937, Chapter 650, Statutes of 1937, by Ordinance No. 524 ,,f said City, dated _ -, for the right, privilege and franchise to lay and use pipes and appurtenances for the transmission and distribution of gas for any and all purposes under, along, across or upon the public streets, ways, alleys, and places, as the same now or may hereafter exist within said City, the terms and conditions of said franchise being fully set forth in said Ordinance, and WHEREAS the said Principal, as Grantee of said franchise, is required by said City to file a bond in the sum of One Thousand Dollars ($1,000.00) for the faithful performance of the terms and conditions thereof, NOW, THEREFORE, if the said Principal, SOUTHERN. CALIFORNIA GAS COMPANY, shall well and truly observe, fulfill and perform each and every term and -i- I 0 E condition of said franchise, then this obligation to be void, otherwise to remain in full force and effect. IN WITNESS WHEREOF, SOUTHERN CALIFORNIA GAS COMPANY and Safeco Insurance Company of America, have hereunto caused their names to be subscribed and their corporate seals affixed by their respective officers thereunto duly authorized this 13th day of October SOUTHERN CALIFORNIA GAS COMPANY By E = Senior Vice PreslUent ( SEAL) By Secretary & Assistant Treasurer ( SEAL ) STATE OF CALIFORNIA COUNTY OF LOS ANGELES SAFECO INSURANCE COMPANY OF AMERICA &L ^AK Attorney -in -fact Pamela L. Jacobs On this 13th day of October, 1989, before me personally appeared PAMELA L. JACOBS' personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to this instrument as the Attorney -in -Fact of SAFECO INSURANCE COMPANY OF AMERICA, and acknowledged to me that she subscribed the name of the said company thereto as Surety and her own name as Attorney -in- Fact. mnrli nummrrmnnnppp mm�mm.mn..... ugrmmwvnmuAll / �\ OFFICIAL SEAL E3 EVELYN DENIHAN � j. N�Tf Y ^LI CALIFORNIA sue- lLrwJ t� %f P` I CI r'AL OFFICE IN LOp ANG -LES COUNTY My Commisslon nxnwnmm�I ..................... _.._Expires. Oct 23, 1990 a CORPORATE ACKNOWLEDGMENT State of CALIFORNIA l On this the 5th day of April 1990 before me, Countyof LOS ANGELES }Ss. Vera Thompson Bailey )) the undersigned Notary Public, personally appeared Frederick E. John OFFICIAL SEAL VERA THOMPSON BAILEY Notary Public- Calitornia LOS ANGELES COUNTY e ••�.••• My Comm. EKp. Dec. 2t. 1990 Xg personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) who executed the within instrument as niorytf'' Vice President oron behalf of the corporation therein "4mpo, anakacknowledged_L me that the corporation executed it. my hand Signature L N0.202 ATTENTION NOTARY: Although the infomtation requested below is OPTIONAL, it could prevent fraudulent attachment of this certificate to arioffre document. THIS CERTIRCATE Title or Type of Document Franchise Bond #5590890 MUST BE ATTACHED 3 April 5, 1990 Number of Pages Date of Document TO THE DOCUMENT DESCRIBED AT RIGHT: Signer(s) Other Than Named Above Virginia A. Robinson, Secretary 7100 -010 O NATIONAL NOTA ASSOC$ATION•8235RermielA .•P.0.8o,1180•C )oga Perk,CA 91300-1181 CORPORATE ACKNOWLEDGMENT State of CALIFORNIA l On this the l6thdayof April 19— 0, before me, County of LOS ANGELES ISS. Vera Thompson Bailey the undersigned Notary Public, personally appeared Virginia A. Robinson {personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) who executed the within instrument as Sec d Asst. Treasurer or on behalf of the corporation therein OFFICIAL SEAL VERA THOMPSON BAILEY n a acknowled o me that the corporation executed it. Notary Pubtfc- Callfomia ESS my hand a fd c' seal. yijlz LOS ANGELES COUNTY // I ` MY Cenxtl. �. Dec. 21, 1990 C// Notary's Signature ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could prevent fraudulent attachment of this Certificate to another doc mAnt . Title of Document Franchise Bond #5590890 THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: e or yl— o Number of Pages Signer(s) Other Than Named Date of Document Apr i 1 16, 1990 Frederick E. John, Senior VP M. 7100 -010 ® -1- POWER GENERAL INSURANCE COMPANY OF AMERICA AMERICA OF ATTORNEY GENERAL INSURANCE COMPANY OFAMERICA HOME OFFICE SAFECO PLA7A SAFECO SEATTLE, WASHINGTON 98185. 0. KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA,each a Washington corporation, does each hereby appoint ------------ - - - - -- PAMELA L. JACOBS, Los Angeles, California------------------ - - - - -- its true and lawful attorney(s) -in -fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective companyfhereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents 4th day of August ,1980 CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. — FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge ..of surety operations, shall each have authority to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business ... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile .. thereof; may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE, COMPANY OF AMERICA. adopted July 28; 1970. "On any certificate executed by the :Secretary or an assistant secretary of the Company setting out; (i) The provisions of Article 'V, Section 13 of the By -Laws, and (ii) A.copy of the power -of- attorney appointment, executed pursuant thereto, and (iii) Certifying that said power -of- attorney appointment is in full force and effect, the signature of the certifying officer may be by facsimile, . and the seal of the Company may be a facsimile thereof." I,. Boh A. Dickey,. Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE. COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this 13th day of October , 19 89 . 5.9)4(3I U 3'86 PRINTED IN U,5 A iAgero Item No. F9 (a CITY OF NEWPORT BEACH • cqc Fo 'r OFFICE OF THE MAYOR April 9, 1990 CITY 6Y THE CiiY OF NEWPORT BEACH Mayor Ruthelyn Plummer APR 9 IM Mayor Pro Tem .Phil Sansone Council Members Z. John C. Cox, Jr. Evelyn R. Hart Donald A. Strauss Clarence J. Turner Jean H. Watt Public Advisor's Office California Public Utilities Commission State Office Building, Room 5109 107 South Broadway Los Angeles, CA 90012 0 Gentlemen; The City Council of the City of Newport Beach has directed me to write this letter in opposition to the Southern California Gas Company's application No. 90 -03 -018. This application of SoCalGas requests authorization to increase their revenues by over $200 million annually beginning October 1, 1990. The City of Newport Beach thinks this request is excessive. Additionally, the City Council believes that the low income rate payer should not be increased. The low rate payers are normally older people and others on low and moderate incomes and, therefore, cannot afford an increase on something that they must use, such as natural gas. Sincerely, Ruthelyn Plummer Mayor /kcf City Hall • 3300 Newport Boulevard • P.O. Box 1768 • Newport Beach, California 92658 -8915 0 NOTICE TO CUSTOMERS OF FILING OF_APPLICATION No. 90 -03 -018 What the Application is r� s s Southern California Gas Company (SoCalGas) has filed Application No. 90 -03 -018 with the California Public Utilities Commission (Commission) requesting authorization to increase total revenues collected by $205 million annually beginning October 1, 1990. What It .Means If the full amount of the increase is approved, SoCalGas proposes that the impact on each customer group will be as follows•. The proposed rate increase is the result of recorded undercollections in authorized balancing accounts, increases in core gas costs and adjustment in the allocation of costs of service. By this application SoCalGas seeks to establish a new surcharge for the Low- Income Ratepayer Assistance Program. SoCalGas proposes that the residential monthly customer charge be increased from $3.10 to $5.00. Revenues produced by this increase in excess of the increases in revenue requirements from the residential class would contribute to the reduction in the non- baseline rate by about 2.6 cents per therm. ®Before acting hold hearings to receive Ratepayers Advocates of parties.. on our application the Commission will testimony of SoCalGas, Division of the Commission and other interested Revenue Increase Increase Customer'Groun (Decrease) % (Decrease) $ Million • Residential 208.0 12.8 Commercial- Industrial (Core) 73.1 11.6 Commercial - Industrial (Non -Core) (56.6) (20.7) Wholesale (19.5) (17.1) Total Increase $205.0 7.6 The proposed rate increase is the result of recorded undercollections in authorized balancing accounts, increases in core gas costs and adjustment in the allocation of costs of service. By this application SoCalGas seeks to establish a new surcharge for the Low- Income Ratepayer Assistance Program. SoCalGas proposes that the residential monthly customer charge be increased from $3.10 to $5.00. Revenues produced by this increase in excess of the increases in revenue requirements from the residential class would contribute to the reduction in the non- baseline rate by about 2.6 cents per therm. ®Before acting hold hearings to receive Ratepayers Advocates of parties.. on our application the Commission will testimony of SoCalGas, Division of the Commission and other interested I � - 2 - What You Can Do Parties at these hearings may offer proposals that differ from those offered by SoCalGas. In addition, during the course of the proceeding, updated information may be introduced which could significantly change the final outcome. To receive any additional or updated information, write to SoCalGas. After considering all the evidence, the Commission will issue a decision. The actual rates adopted by the Commission may differ significantly from those requested and may result in either an increase or decrease in the rates of the various customer groups. If you wish to participate in the hearings and need advice, write to the Public Advisor's office. You may also write to the Public Advisor's office to obtain copies of the proposal prepared by the Division of Ratepayer Advocates or to submit - written comments. The address is: Public Advisor's Office California Public Utilities Commission State Office Building, Room 5109 107 South Broadway Los Angeles CA 90012 State that you are writing about Application No. 90 -03 -018. You may inspect a copy of the application at local business offices or at our headquarters. You may copy of the application and related exhibits by writinq Regulatory Affairs Southern California Gas Company P. O. Box 3249 Los Angeles CA 90051 Attention: Mr. G. G. Hannah 3 -a3 -�o MS Ta CI , zciirt ®n I:7 4J:dL7. iX�r. n f'i4r: !rs Dir. [� P:+'s. Oir cs t;t�sr any of our obtain a to: TED CARDWELL Manager of Taxes Finance Department City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Sir: 0 \I SOUTHERN CALIFORNIA gC1S COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA 90017 MAILING ADDRESS: BOX. 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 31., 1986 e, .� , �1 Enclosed are the certified franchise statements of Southern California Gas Company showing the amount due for the calendar year 1985. A check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. Very truly yours., TW: gde Enclosure FRANCHISE STATEMENT' OF SOUTHERN CALIFORNIA GAS COMPANY The ordinance for which this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (20) of the gross annual receipts of grantee arising from the use, operation or possession 'of'said franchise; provided, however, that such payment shall in no event be less than one percent (10) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B, respectively. I . • • STATEMENT FOR THE PERIOD JAN. 1 THRU NOV. 30, 1985 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF Newport Beach BY ORDINANCE NO. 524. SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or pos- session of the franchise computed in accordance with the decisions of the Supreme :Court of the State of California in the cases of County of Tulare VS. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company of California, 42 Cal. 2d 129. A. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties ... .................$2,533,212,560 Investment in Distributing Agencies in: Public and Private Rights of Way ...... .................$1,175,136,364 Public Highways Only .................................... $ 292,408,174 Percent of Distributing Agencies to Total for: Public and Private Rights of Way 46.38917% Public Highways only .... ............................... 11.54298% Total Gross Receipts from Operations for Period: Gross Revenue ......................... .................$4,378,732,344 Less Uncollectible Bills .$ 12,645,367 .............................. Total ..................... . .................$4,366,086,977 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (46.38917% x $4,366,086, 977) ........... .................$2,025,391,510 Public Highways only (11.54298 % x $4,366, 086, 977 ) ...........................$ 503,976,547 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System .......................... 38,829.6896 mi. Mileage in Highways ........ ............................... 33,336.6579 mi. Percent of Mileage in Highways to Total Mileage ........ 85.85353% Gross Receipts applicable to Mileage in Highways for: Public and Private Rights of Way (85.85353% x $2,025,391,510) ............................ $1,738,870,108 Public Highways only (100.00000% x $ 503, 976, 547) ........................... $ 503,976,547 Total ............................ .................$2,242,846,655 Total Mileage in Highways as above ......................... 33,336.6579 mi. Mileage in Highways of this Franchise ...................:.. 167.1421 mi. Percent of Mileage of this Franchise to Total Mileage in Highways .. ............................... .50138% C. Gross Receipts applicable to this Franchise (.50138% x $2,242,846, 655) ..............................$ 11,245,185 D. Amount due based on 2% of the above applicable Gross Receipts ............ ..............................$ 224,903.70 SECTION B Computation of payment of one percent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ......................................... $ 17,970,556. Leas Uncollectible Bills ............................... $ 47,159. Gross Receipts ..................................... $ 17,923,397. Amount due based on 10% of the above Gross Receipts ...... $ 179,233.97. AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $ 224,903.70. 0 CERTIFICATION' I, the undersigned, say: 0 I am an officer, to wit, Treasurer of Southern California Gas Company_ I am duly authorized to prepare and file the foregoing statement on its behalf ;,and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 31; 1986, at Los Angeles, California. Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Manager of Taxes Box 3249, Terminal Annex Los Angeles, California 90051 ! • FRANCHISE STATEMENT OF SOUTHERN CALIFORNIA GAS COMPANY The Ordinance for which this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (20) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one percent (1%) of the gross, annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B, respectively. STATEMENT FOR THE MONTH OF DECEMBER, 1985 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF Newport Beach BY ORDINANCE NO,. 524. SECTION A Computation of payment equivalent to two percent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or pos- session of the franchise computed in accordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of'Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern counties Gas Company of California, 42 Cal. 2d 129. A. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties s... .... .............$3,058,958,998 Investment in Distributing Agencies in: Public and Private Rights of Way ......... ..............$1,320,895,693 Public Highways Only.. . ... .............$ 311,782,432 Percent of Distributing Agencies to Total for: Public and Private Rights of Way 43.18122% Public Highways only ................................... 10.19244% Total Gross Receipts from Operations for Period: Gross Revenue ...... .....$ 447,192,900 Less Uncollectible Bills ....... .............$ 803,850 Total ............... ..............................$ 446,389,050 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (43.18122% x $ 446,389,050)......... ......... ....$; 192,756,238 Public Highways only (10.19244 % x $ 446, 389, 050 ) ...........................$ 45,497,936 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System 40,043.8015 mi. Mileage in Highways ....................................... 33,655.5787 mi. Percent of Mileage in Highways to Total Mileage ........ 84.04691% Gross Receipts applicable to Mileage in Highways for: Public and Private Rights of Way (84.04691% x $ 192,756,238).. ......... ................$ Public Highways only (100.00000% x $ 45, 497, 936) ........................... $ Total ............... ..............................$ Total Mileage in Highways as above...... .... Mileage in Highways of this Franchise .... Percent of Mileage of this Franchise to Total Mileage in Highways, ............. .. . ........... C. Gross Receipts applicable to this Franchise (.49664% x $ 207,503,598) ............... ...........$ D. Amount due based on 2% of the above applicable Gross Receipts.. ..... . .$ 162,005,662 45,497,936 207,503,598 33,655.5787 mi. 167.1483 mi. .49664% 1,030,546 20,610.92 SECTION B is Computation of payment of one percent (lo) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ........... ..............................$ 2,331,413. Less Uncollectible Bills . ..............................$ 2,132. Gross Receipts ....... ..............................$ 2,329,281. Amount due based on 1; of the above Gross Receipts ...... $ 23,292.81. AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section B in the sum of $ 23,292.81. CERTIFICATION I, the undersigned, say: 11 I am an officer, to wit, Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf;and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 31, 1986, at Los Angeles, California. Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Manager of Taxes Box 3249, Terminal Annex Los Angeles, California 90051 SOUTHERN CALIFORNIA gas COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA 90017 TED CARDWELL Manager of Taxes MAILING ADDRESS: BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 BY THE CITY COUNCIL CITY OF NEWPORT BEACH S CITY OFFg APR 091984 March 30, 19$4 NEWPCS 7 3EA CH, APR 21984® � '*GEIVED ciTY cank City Clerk City 'Hall Newport Beach, CA 92663 Dear Sir: Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1983. A check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. Very truly yours, Tw : i a SMTTO Enclosure. ma or Bldg. Bit. a GenSery Bit. GP8'&RBit. o Pianning Bit. o Police Chief ri P.W. Bit �7 Otner )q 12 I Ll STATEMENT FOR THE CALENDAR YEAR 1983 PURSUANT TO THE FRANCHISE GRANTED BY City of Newport Beach 1ty ORDINANCE NO. 524 SECTION A Computation of payment equivalent to two percent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company of California. 42 Cal. 2d 129. A. Gross. Receipts applicable to Distributing Agencies In Highways of which this Franchise is a part Total Investment in Physical Properties ....................... $2,076,681,973 Investment in Distributing Agencies in: Public and Private Rights of Way ......................... $ 988,897,884 Public Highways Onl y .... ............................... $ 235,029,622 Percent of Distributing, Agencies to Total for: Public and Private Rights of Way ........ . ................. 47.61913% Public Highways only .... ............................... 11.31755% Total Gross Receipts from Operations for Period: Gross Revenues .......... ............................... $4,495,476,126 Less Uncollectible Bills ... ............................... $ 13,233,070 Total .................. ............................... $4,482,243,056' Gross Receipts applicable to Distributing, Agencies in: Public and Private Rights of Way (47,61913% x $4,482,243,056 ) ...............••••.•••• $2,134,405,148 Public Highways only (11.31755% x $4,482,243 ,056) ........................ $ 507,280,099 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System ......................... 37,774.9732 mi. Mileage in Highways ..... ............................... 32,549.2068 mi. Percent of Mileage in Highways to Total Mileage ........ 86.16606% Gross Receipts applicable to Mileage in Highways for: Public and Private Rights of Way (86.16606% x $2, 134, 405, 148)......• ................. $1,839,132,820 Public Highways only (100.00000% x $507,280,099 ) ........................ $ 507,280,099 Total ................ ............................... $2,346,412,919 Total Mileage in Highways as above .......................... 32.,549.2068 mi. Mileage in Highways of this Franchise ........................ 165.9645 mi. Percent of Mileage of this Franchise to Total Mileage in Highways .. ............................... .50989% C. Gross Receipts applicable to this Franchise ( .50989% x $2,346,412,919 ) , $ 11,964,125 D. Amount due based on 2% of the above applicable Gross Receipts ..................... ....................$239,282.50 xe4 -zs ►4 0- i r <: AP8 2 1984 4 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY The Ordinance forwhich this Franchise Statement is filed was granted pursuant to the terms of the Franchise Act of 1937 and provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two percent (2 %) of the gross annual receipts of grantee arising, from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one percent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The calculation of fees prescribed by these two methods of payment is set forth on the following pages as Sections A and B, respectively. is. s SECTION B 0 Computation of payment of one percent (I %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings .... ........ ........ ........ ........ .. $18,947,529 Less Uncollectible Bills ................. . ................. $ 63,201 Gross Receipts ........ ............................... $18,884,328 Amount due based on 1% of the above Gross Receipts ....... , .. $188,843.28 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section A in the sum of $ 239,282.50 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf, and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 30 , 19--8-4—, at Los Angeles, California. s �eL.cg -�✓ asurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Manager of Taxes Box 3249, Terminal Anne Los Angeles, California 90051 H. E. GOODENOW Secretary and Treasurer City Clerk City Hall Newport 'Beach, CA 92663 Dear Sir: y2 SOUTHERN! CALIFORNIA 9CIS COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 889:2491 Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 28, 1980 Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1979. A check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. JEJ :dk Enclosure truly yours, r J. .3 r� 0 4 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY 0 0 SECTION B Computation of payment of one percent (I %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings .... :------ . ....... ....... .............. ......._..... ........,_...._.._............$ %205,804 Less Uncollectible Bills ... .. .......... .. .. ....... _____._._ ___ __$ 17,102 Gross Receipts..__..- .- ... _. .. ................. ..........----------- _- _------------ 9,188,702 Amount due based on 1 % of the above Gross Receipts ....... $ 91,887.02 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above; namely, the amount due under Section— —in the sum of $ 118 5tf8.30 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 28 , 19 80 , at Los Angeles, California. Secretary and Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury /Tax Box 3249, Terminal Annex Los Angeles, Califomia 90051 284.2M By the COY WUNCAL CITY 01 Kfw" ' MACH RESOLUTION NO - g916 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH STATING ITS OPPOSITION TO THE REQUEST BY THE SOUTHERN CALIFORNIA GAS COMPANY FOR A RATE INCREASE WHEREAS, the Southern California Gas Company on March 7, 1980 asked the California Public Utilities Commission for a $383,000,000.00 rate increase; and WHEREAS, it is the opinion of the City Council of the City of Newport Beach that the rate increase will add to inflation at an inappropriate time; and WHEREAS, the City Council of the City of Newport Beach urges that such a large rate increase not be permitted; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that it opposes the proposed rate increase by the Southern California Gas Company presently pending before the California Public Utilities Commission. ADOPTED this i-1 % -day of pre , 1980. yor ATTEST: City Clerk BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of SOUTHERN CALIFORNIA GAS COMPANY to Increase Revenues to Offset Changed Gas Costs Under Its Purchased Gas °Adjustment Procedures Resulting from Adjustments in the Price of Natural Gas Purchased from TRANSWESTERN PIPELINE COMPANY, and EL PASO NATURAL GAS COMPANY. NOTICE OF FILING OF APPLICATION AND ADVICE LETTER i E �(j Application No. 59296 Advice Letter No. 1195 Southern California Gas Company (SoCal) hereby gives notice that Application No. 59296 and Advice Letter No. 1195 were filed as separate documents with the California Public Utilities Commission on November 23, 1979, requesting authority to increase rates in the amount of $269,146,000 over a 12 -month period beginning January 1, 1980. The increase is necessary to offset a projected gas cost increase to SoCal resulting from cost increase requests currently pending before the Federal Energy Regulatory Commission (FERC) by two of SoCal's interstate suppliers, Transwestern Pipeline Company and El Paso Natural Gas Company. s M 0 The increase requested by the Application and the Advice Letter will represent an increase of approximately 10.4% over SoCal's current rates and charges. The Application and Advice Letter also include issues relating to rate design which are relevant to the proposed rate increase. SoCal has filed both an Application and an Advice Letter because of procedural and public notice considerations_ The relief requested in the two documents is not intended to be cumulative; it is intended rather to be in the alternative. If permanent relief is granted under either document, the remaining one will be withdrawn. The revenue increase referred to herein is not presently reflected in SoCal's rates, and it will not increase SoCal's earnings above the level previously authorized by the Commission. This increase has solely to do with offsetting increased costs to Socal. -2- 0 0 A copy of the Application, the Advice Letter, and related exhibits may be examined at any of the following loca- tions: A. California. Public Utilities Commission State Office Building 107 South Broadway Los Angeles, California 90012 B. California Public Utilities Commission State Office Building 350 McAllister Street San Francisco, California 94102 C. Mr. A. S Robles, Division Manager Southern California Gas Company 810 South Flower Street, First Floor Los Angeles, California 90017 D. Mr. C. T. Schweitzer, Division Manager Southern California Gas Company 101 South Floral Street Visalia, California 93277 E. Mr. S. Wayne Lynch, Division Manager Southern California Gas Company 570 West Fourth Street San Bernardino, California 92417 F. Mr. L. P. Derrick, Division Manager Southern California Gas Company 3700 Central Avenue Riverside, California 92506 G. Mr. N. R. Wyckoff, Division Manager Southern California Gas Company 1919 South State College Boulevard Anaheim, California 92803 H. Mr. Joseph Staller, Division Manager Southern California Gas Company 130 South Patterson Avenue Santa Barbara, California 93111 SOUTHERN CALIFORNIA GAS COMPANY Robert B. Keeler Attorney 0 0 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of SOUTHERN ) CALIFORNIA GAS COMPANY to Increase Revenues to ) Offset Changed Gas Costs Under Its approved ) Purchased Gas Adjustment Procedures Resulting ) from Adjustments in the Price of Natural Gas ) Purchased from TRANSWESTERN PIPELINE COMPANY, } EL PASO NATURAL GAS COMPANY and PACIFIC ) INTERSTATE TRANSMISSION COMPANY; and to Adjust ) Revenues Under the Supply Adjustment Mechanism ) to Reflect Greater Than Anticipated Collection ) of Revenue Due to Increases in Natural Gas ) Supplied. ) NOTICE OF FILING OF APPLICATION AND ADVICE LETTER SG " ?fx )9i9�' CITY OF NEWIV RT KACH, CALIF. Application No. 59146 Advice Letter No. 1184 f� Southern California Gas Company (SoCal) hereby gives t. u) i } notice that Application No. 59146 and Advice Letter No. 1184 were filed as separate documents with the California Public Utilities Commission on September 17, 1979, requesting authority under the Commission- approved Consolidated Adjustment Mechanism (CAM) to increase rates in the net amount of $289,085,000 over a 12 -month period beginning October 17, 1979. The net increase includes an amount necessary, first, to offset a projected gas cost increase under the Commission -- approved Purchased Gas Date Adjustment procedure (PGA) resulting from cost increase GG'ftS rtitiJ: requests currently pending before the Federal Energy Regula- tory Commission (FERC) by SoCal's interstate suppliers, and ❑. 0 Oulu 0 © Councilmen 0 second, an amount sufficient to eliminate the balance in the PGA Balancing Account. The net increase also includes a rate reduction under the Supply Adjustment Mechanism (SAM) to reflect an overcollection in the SAM Balancing Account resulting from a past gas margin over and above that authorized in the latest General Rate case, as well as a projected overcollec- tion of gas margin for the coming 12 -month period. The net increase requested by the Application and the Advice Letter will represent an increase of approximately 16.88 over SoCal's current rates and charges. The Application and Advice Letter also include issues relating to rate design which are relevant to the proposed rate increase. SoCal has filed both an Application and an Advice Letter because of procedural and public notice considerations. The relief requested in the two documents is not intended to be cumulative; it is intended rather to be in the alternative. If permanent relief is granted under either document, the remaining one will be withdrawn. The revenue increase referred to herein is not presently reflected in SoCal's rates, and it will not increase SoCal's earnings above the level previously authorized by the Commission. This increase has solely to do with offsetting increased costs to SoCal. - 2 - Y A copy of the Application, the Advice Letter, and related exhibits may be examined at any of the following loca- tions: A. California Public Utilities Commission State Office Building 107 South Broadway Los Angeles, California 9`0012 B. California Public Utilities Commission State Office Building 350 McAllister Street San Francisco, California 94102 C. Mr. E. M. Quibell, Division Manager Southern California Gas Company 810 South Flower Street, First Floor Los Angeles, California 90017 D. Mr. C. T. Schweitzer, Division Manager Southern California Gas Company 101 South Flower Street Visalia, California 93277 E. Mr. S. Wayne Lynch, Division Manager Southern California Gas Company 570 West Fourth Street San Bernardino, California 92417 F. Mr. Bob Wright, Division Manager Southern California Gas Company 3700 Central Avenue Riverside, California 92506 G. Mr. N. R. Wyckoff, Division Manager Southern California Gas Company 1919 South State College Boulevard Anaheim, California 92803 Ii. Mr. Joseph Staller, Division Manager Southern California. Gas Company 130 South Patterson Avenue Santa Barbara, California 93111 SOUTHERN CALIFORNIA GAS COMPANY By Robert B. Keeler Attorney H. E. GOODENOW Secretary and Treasurer City Clerk City Hall Newport Beach, CA Dear Sir: ® � SOLITHEPN CALIFORNIA GQS A COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 689 -2491 92663 Mading Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 30, 1979 Enclosed is the certified franchise statement of Southern Calif'arn:ia Gas Company snowing the amount due for the calendar year 1978. A check covering payment thereof will he forwarded to you within the time period specified under the terms of the franchise. JEJdk Enclosure truly yours, l�\ t 1 i FA FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY 0 SECTION B 40 Computation of payment of one percent (I%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings. - -. ,809,092 Less Uncollectible Bills -------------------------------------------------------------------------- $ 9,730 Gross Receipts .............. .............. ....... ....... ....... .------------------------------ $5,799,362 Amount due based on 1 14 of the above Gross Receipts - - -.- . -- _-- .- .,$67, 993.62 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section_ A —in the sum of $ _%877.76 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the some is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 29 , 19 79 , at Los Angeles, California. Secretary and Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury /Tax Box 3249, Terminal Annex Los Angeles, California 90051 184 -2M it a -r _ - -3 0 &.I OF THE STATE OF CALIFORNIA r the Matter of the Application of SOUTHERN CALIFORNIA GAS COMPANY to Increase Revenues to Offset Changed Gas Costs Under Its Approved PGA Procedures Resulting from Adjustments in the Price of Natural Gas Purchased from TRANSWESTERN PIPELINE COMPANY, EL PASO NATURAL GAS COMPANY AND PACIFIC INTERSTATE TRANSMISSION COMPANY: to Adjust Revenues Under the Supply Adjustment Mechanism to Reflect Greater Than Anticipated Collection of Revenues Due to Increases in Natural Gas Supplies; to Adjust Revenue Requirements as a Result of the Operation of the Tax Change Adjustment Clause; to Revise Section H of its Preliminary Statement; and to Implement an Air Conditioning Lifeline Allowance. -1 Application No. 58724 NOTICE OF FILING OF APPLICATION // " 4 ;/ Southern California Gas Company (SoCal) hereby gives notice that an application was filed with the California Public Utilities Commission on March 2, 1979, requesting authority to increase its rates by an amount sufficient to offset changed gas costs under its approved Purchased Gas Adjustment (PGA) procedures that will result from increases in the cost of natural gas purchased by SoCal and its affiliate, Pacific - 2 - Lighting Service Company (PLS), from E1 Paso Natural Gas Company (E1 Paso), Transwestern Pipeline Company ( Transwestern) Pacific•Interstate Transmission Company (PacInterstate)., and California sources during the period April 1, 1979 through March 31, 1980. SoCal also seeks authority to concurrently increase its rates in an amount sufficient to offset the effect of past adjustments in the costs of natural gas purchased from E1 Paso, PacInterstate, Transwestern and California sources, which have become effective subsequent to June 1, 1977, and to eliminate the balance in the Purchased Gas Adjustment Balancing Account. SoCal also requests authority to use the Supply Adjustment Mechanism (SAM) to reduce its rates by the amount in its Supply Adjustment Account which reflects a past collection of revenues resulting in a gas margin over and above that authorized in the latest general rate case. In addition, SoCal requests authority to reduce its rates to reflect a projected overcollection of gas, margin during the coming 12 -month period, above the margin adopted for the Test Year 1979 in Decision No. 89710. SoCal also requests authority to increase its rates to recover revenue deficiencies under the Tax Change Adjustment Clause (TCAC). - 3 - The combined offsetting rate increase requested by Southern California Gas Company will amount to '$398,737,000 for the twelve months ending March 31, 1980 or about 23% over current rates and charges. Further, SoCal requests authority to revise Section H of its Preliminary Statement, to implement an Air Conditioning Lifeline Allowance and to modify its PGA, SAM, TCAC and Gas Exploration and Development Adjustment procedures. This application also proposes a revision in the existing rate design of SoCal. The changes in costs to SoCal referred to above are not presently reflected in SoCal's rates and the increase requested is not designed to increase SoCal's earnings above the level previously authorized by the Commission. Any party interested in the above application and related exhibits will be furnished with a copy thereof upon written request made to: Jonel C. Hill, Vice President Regulatory Affairs Southern California, Gas Company P. O. Box 3429, Terminal Annex Los Angeles, California 90051 SOUTHERN CALIFORNIA GAS Leslie E. Loaaugn, Its Attorney OUTH ERN CALIFORNIA lu COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 689 -2491 H. E. GOODENOW Secretary and Treasurer Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA. 90051 April 15, 1975 City Clerk City Hall Newport Beach -, California 92663 Dear Sir: Enclosed is our check for $49,661.70 which is the franchise payment due from gg4uthern California Gas (Aampany for the calendar year 1974. A certified franchise statement was filed on March 31, 1975. I i PS:dk Enclosure Ver.vwtruly yours, H. Goodenow �SA. h C. c CITY OF NEWPORT BEACH RECEIPT NEWPORT BEACH, CALIFORNIA 92660 No. 58132 19 AD DATE -1L/ RECEIVE[) FROM FOR: ... . � 19 J4- ... 6 ACCOUNT NO, AMOUNT DEPARTMENT BY C. c s • Southern California Edison Company P. O. BOX .111 HUNTINGTON BEACH, CALIFORNIA 91648 R. P. BURBANK MANAGER, NEWPORT BEACH May 3, 1974 Mp,Y ? 1674 The Honorable City Council City of Newport Beach 3300 W. Newport Blvd. Newport Beach, Ca. 92660 Gentlemen: My Company, Southern California Edison, is reorganizing their field forces to be better able to handle problems created by the energy crisis. As a part of this reorganization I have been asked to take over a management assignment in the Anaheim Buena Park area effective May 13, 1974. The new assignment will be challenging, but nevertheless I re- gret having to leave Newport Beach. I would like to express my appreciation to all members of the Council for the friendship and patience with my presentations during my brief tenure in Newport Beach. It has been a pleasure working with cooperative and helpful City personnel. RPB :imr Sincerely, 2 �/ o ert P. Burbank, Manager Newport Beach is • ® A� ,southern California Edison Company. P. O. EIOX 1300 2244 WALNUT GROVE AVENUE ROSEMEAD.. CALIFORNIA 91770 D. R. MCCARTNY TELEPHONE MANAGER OR INSURANCE 213 - 572 -1082 May 14, 1973 City of Newport Beach Orange County City Hall,3`300 Newport B1vd.92660 Attention: City Clerk Subject: 4§ypVWMWw Bond Gentlemen: We presently have on file with the City, Franchise Bond No. 126368 required by Ordinance No. 566 The bond is due for renewal on 11/24/77 At the time of renewal, we intend to replace the above bond with a new bond, provided by a different surety company, which will require return of the old bond for cancellation. The surety company will seek exoneration of the above bond in a form approved by the obligee (city) for obligations which relate to the "faithful performance of the terms and conditions" of the franchise. The penal amount and terms and conditions of the new bond will remain the same. This is to advise that no action is currently being taken concerning the existing bond, and the replacement will be furnished in advance of the above renewal date. Sincerely, "lei Daniel R. McCarthy Manager of Insurance DRM:ejl Y /jn ��✓` •4� z z ;. y February 1, 1972 Mr. William Co Pton Manger Mewport Beach /Corona del Mar Southern California Edison Coany 2071 San Joaquin Hills Drive hewnort Beach. California 12660 Derr Bill`: Your cooperation and assistance white working in Newport Beach has "peer: appreciated. Ue regret to hear that you are moving from this district. We look forward to meet- ing your successor and offering him our full cooperation. The best of luck in your new assignment. Very truly yours, E. F TH €FH :pg 13.37' MOVE G�i' i •JJ'i 6).: )` JAi _v 72� LiT'r OF N IPO 7 EACH, I am writing to thank each of you, and -the City Staff, for all the cooperation and consideration shown me since I have been the Newport Beach City /Area Manager for the Southern California Edison Company. My duties in Newport Beach afforded me the opportunity to work on your Underground Coordinating Committee for the past two years. Although progress has been slow, I feel the best plans have been adopted. Effective January 31, 1972, I will be reassigned to the West Orange County Area of Seal Beach /Westminster, assuming similar responsibilities. My association with the City of Newport Beach has been a very rewarding experience, and I wish the Council and Staff the very best in coning years. Sincerely, H. W. "Bill" Compton, Manager Newport Beach /Corona del Mar HWC :imr Southern California Edison Company HUNTINGTON BEACH. CALIFORNIA 94869 January 26, 1972 Otte.: UP10 g €!di TO: e_ ,.rpey vu"I.g Dkeetoq r, u Other x The Honorable City Council El City of Newport Beach 3300 Newport Boulevard Newport Beach, Ca. 92660 Attention: Mayor E. F. Hirth Gentlemen 13.37' MOVE G�i' i •JJ'i 6).: )` JAi _v 72� LiT'r OF N IPO 7 EACH, I am writing to thank each of you, and -the City Staff, for all the cooperation and consideration shown me since I have been the Newport Beach City /Area Manager for the Southern California Edison Company. My duties in Newport Beach afforded me the opportunity to work on your Underground Coordinating Committee for the past two years. Although progress has been slow, I feel the best plans have been adopted. Effective January 31, 1972, I will be reassigned to the West Orange County Area of Seal Beach /Westminster, assuming similar responsibilities. My association with the City of Newport Beach has been a very rewarding experience, and I wish the Council and Staff the very best in coning years. Sincerely, H. W. "Bill" Compton, Manager Newport Beach /Corona del Mar HWC :imr • 0 [CONFORMED] Plan and Agreement of Merger BETWEEN SOUTHERN CALIFORNIA GAS COMPANY SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA DATED AS OF FEBRUARY 10, 1970 0 Plan and Agreement of Merger Between Southern California Gas Company and Southern Counties Gas Company of California TABLE OF CONTENTS ARTICLE TCPIC PACE ARTICLE I Agreements to Merge ................... ............................... 1 ARTICLE II Representations and Warranties of Southern Counties Gas Company ofCalifornia ............................... .... ............................... 4 ARTICLE III Representations and Warranties of Southern California Gas Company-------------------- - - - - -- 6 ARTICLE IV Conditions of the Obligations of Southern California Gas Company _ ........................ 8 ARTICLE V Conditions of the Obligations of Southern Counties Gas Company ofCalifornia .................................................................. 10 ARTICLE VI Miscellaneous. .......... ............_....__.. ..................._........... 13 PLAN AND AGREEMENT OF MERGER Plan and Agreement of Merger dated as of the 10th day of February, 1970 by and between SOUTHERN CALIFORNIA GAs C031PANY (hereinafter sometimes called "Southern California" or the "Surviving Corporation, ") and SOUTHERN CouN=s GAs CAMFANY OF CALxFoRNL1 (hereinafter sometimes called "Southern Counties "). WHEREAS, Southern California is a corporation duly organized and existing under the laws of the State of California; and WHEREAS, Southern Counties is a corporation also duly organized and existing under the laws of the State of California; and WHEREAS, the Boards of Directors of Southern California and of Southern Counties deem it advisable for the benefit of Southern California and Southern Counties, their stockholders, customers and employees and the interest of the public that Southern Counties be merged into Southern California, and have approved this Plan and Agreement of Merger (hereinafter sometimes called "Agreement of Merger" or "Agreement ") ; Now, THEREFORE, Southern California and Southern Counties hereby agree that Southern Counties shall be merged into Southern California pursuant to the General Corporation Law of the State of California, and that the terms and conditions of the merger and the mode of carrying them into effect and the manner and basis of con- verting the shares of Southern California and of Southern Counties into shares of the Surviving Corporation are and shall be as hereinafter set forth. ARTICLE 1 AGREEMENTS TO MERGE 1.01 On the Effective Date of the Merger (which for the purposes of this Agreement of Merger means the date upon which this Plan and Agreement of Merger is filed in the office of the California Secretary of State), Southern Counties shall be merged into Southern California, which shall be the Surviving Corporation and a corporation organized and existing under the laws of the State of California. 1.02 On the Effective Date of the Merger the separate corporate existence of Southern Counties shall cease, and Southern California as • • the Surviving Corporation, shall succeed, without other transfer, to all the purposes, powers, franchises, rights, immunities and properties of Southern Counties and shall be subject to all the debts and liabilities of Southern Counties in the same manner as if Southern California had itself 'incurred them; Southern California shall continue to be vested with all the purposes, powers, franchises, rights, immunities and properties of Southern California and to be subject to all the debts and liabilities of Southern California; and Southern California, as a part of said merger, shall assume the due and punctual payment of the prin- cipal of and interest upon all of the bonds and the performance and observance of all of the covenants and conditions of Southern Counties' First Mortgage Indenture. 1.03 The Articles of Incorporation of Southern California, as amended and in effect on the Effective Date of the Merger, shall continue in full force and effect until altered or amended as provided therein or as provided by law. 1.04. The By- laws of Southern California, as amended and in effect on the Effective Date of the Merger, shall continue in full force and effect until altered, amended or repealed as provided therein or as provided by law. 1.05 The Board of Directors of Southern California shall consist of five, persons until changed by amendment of the Articles of Incor- poration or By -laws of Southern California. Effective on the Effective Date of the Merger, the Directors of Southern California, each of whom shall hold office until his successor is elected and qualified or he is removed as provided by law, shall be as follows: W. Morton. Jacobs Bruce A. McCandless Harvey A. Proctor F. Marion Banks Guy W. Wadsworth, Jr. If, on the Effective Date of the Merger a vacancy shall exist on the Board of Directors of Southern California, such vacancy may be filled in the manner provided by the By -laws of Southern California. 1.06 The shares of Common Stock of Southern California out- standing on the Effective Date of the Merger shall not be converted as a result of the merger but shall remain outstanding as shares of Common Stock of Southern California. 0 1.07 The shares of Preferred 'Stock and the shares of Preferred Stock, Series A, of Southern California outstanding on the Effective Date of the Merger shall not be converted as a result of the merger but shall remain outstanding as shares of Preferred Stock and shares of Preferred Stock, Series A, respectively, of Southern California. 1.08 Forthwith on the Effective Date of the Merger the shares Of Common Stock of Southern Counties then outstanding (other than such shares, if any, held by Southern Counties in its Treasury) shall be converted into shares of Common Stock of Southern California on the basis of 3.25 shares of Common Stock of Southern California for each share of Common Stock of Southern Counties. Each holder of shares of Common Stock of Southern Counties shall, upon surrender of his certificate or certificates representing such shares, be entitled to receive in exchange therefor a certificate representing the number of shares of Common Stock of Southern California into which such shares of Common Stock of Southern Counties have been converted. Until so surrendered, each outstanding certificate which, prior to the Effective Date of the Merger, represented shares of Common Stock of Southern Counties, shall be deemed for all corporate purposes to evidence the ownership of shares of Common Stock of Southern California into which such shares of Common Stock of Southern Counties shall have been so converted. Any shares of Common Stock of Southern Counties held in its Treasury on the Effective Date of the Merger shall be cancelled. 1.09 Southern Counties shall from time to time, as and when requested by Southern California, execute and deliver all such docu- ments -and instruments and take all such actions as Southern California may deem reasonably necessary or desirable in order to vest in or confirm to Southern California title to the possession of the rights, properties, assets and business of Southern Counties, and otherwise to carry out the full intent and purpose of this Agreement. 1.10 Southern California shall pay all expenses of the merger. It is expressly agreed, however, that in the event this Agreement of Merger is terminated or abandoned for any reason, each of the corporations shall pay all expenses incurred by it to the date of such termination or abandonment in connection with the merger provided for in this Agreement of Merger. 1.11 Southern California will endeavor to achieve the following objectives after the Effective Date of the Merger: ® 0 (a) to make available to the employees of Southern Coun- ties who continue in the service Of the Surviving Corporation benefits under Southern California's retirement, pension, group life insurance, medical, sick pay and other employee benefit plans on a basis not less favorable to the employees of Southern Counties than the benefits being provided on the Effective Date of the Merger under such plans to employees of Southern California; and (b) to recognize the experience, seniority, and qualifica- tions of all employees on a non- discriminatory basis, whether they have, prior to the Effective Date of the Merger, been employed by Southern Counties or by Southern California. It is recognized that the implementation of these objectives may in part be dependent upon collective bargaining with unions representing employees presently in the service of Southern California and of South- ern Counties and from such bargaining with a union or unions which may become the representative of the employees of the surviving corporation. 1.12 Each of Southern California and Southern Counties agrees to exercise due diligence in making, filing and processing all necessary applications for regulatory approvals, whether jointly or separately, to cooperate with the other party in the assembly and preparation of inf or- mation required for the preparation of applications and presentation of showings, to present this Agreement of Merger to a vote of its shareholders at meetings duly and regularly called in accordance with the laws of the State of California and its By -laws, and to do any and all things which each respective party deems necessary or advisable to carry out the terms of this Agreement of Merger as expeditiously as is feasible. ARTICLE II REPRESENTATIONS AND WARRANTIES OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA.. Southern Counties represents and warrants as follows: 2.01 Southern Counties is a corporation duly organized and exist- ing and in good standing under the laws of the State of California. 2.02 The authorized capitalization of Southern Counties consists of 1,500,000 shares of Common Stock and 100,000 shares of 'Preferred Stock. 1,200,000 shares of Common Stock of Southern Counties are duly 4 and validly issued and outstanding, fully paid and nonassessable; no shares of Preferred Stock of Southern Counties are issued or out- standing. Southern Counties does not have outstanding any option, call or commitment or other agreement to buy or sell any shares of its capital stock of any class. 2.03 Southern Counties does not own any shares of capital stock of any other corporation. 2.04 Since December 31, 1969, there has been no materially adverse change in the business, financial or other condition of Southern Counties other than changes referred to in or contemplated by this Agreement. 2.05 Southern Counties has good and marketable title to all its properties and assets free and clear of all mortgages, liens, and encum- brances except (i) the lien of a First Mortgage Indenture dated January 1, 1941, between Southern Counties on the one hand and American Trust Company (which was subsequently merged into Wells Fargo Bank, now named Wells Fargo Bank, National Association) as Trustee on the other hand, which Indenture secures a presently out- standing principal indebtedness of Southern Counties in the amount of $108,941,000, (ii) current taxes and assessments not in default, (iii) zoning regulations and miscellaneous liens arising in the ordinary course of business, and (iv) restrictions, covenants, easements, rights, licenses and minor imperfections of title, all of which do not in the aggregate materially impair the financial condition or the operations of Southern Counties. 2.0E Southern Counties has duly paid all local, state, Federal and foreign taxes or installments thereof, including corporate franchise taxes, required to be paid except those due but not delinquent. Southern Counties' Federal income tax returns for all years to and including the year ended December 31, 1965, have been audited and all additional . taxes and penalties have been assessed. 2.07 Except for claims fully covered by insurance, and its rate applications pending before the California Public Utilities Commission, Southern Counties is not engaged in nor is it threatened with any legal action, governmental investigation or other proceedings which if Southern Counties were unsuccessful therein, would have a material adverse effect on the financial condition or operations of Southern Counties taken as a whole. 2.08 The Board of Directors of Southern Counties has duly authorized the execution and delivery of this Agreement and, subject • • to appropriate action by the stockholders of Southern Counties pur- suant to the laws of California, Southern Counties has all necessary corporate power and authority to enter into this Agreement and to perform the obligations to be performed by it hereunder. 2.09 The making of this Agreement and the consummation of the merger contemplated hereby will not conflict with any provision contained in Southern Counties' Articles of Incorporation or By -laws or result in a breach of any provision of or constitute a default under any agreement or instrument to which Southern Counties is a party or by which it is bound. 2.10 There are no proceedings pending or known to be contemp- lated by any governmental body for the condemnation of any sub- stantial portion of the transmission or distribution facilities of South- ern Counties. ARTICLE III REPRESENTATIONS AND WARRANTIES 01 SOUTHERN CALIFORNIA GAS COMPANY Southern California represents and warrants as follows: 3.01 Southern California is a corporation duly organized and existing and in good standing under the laws of the State of California. 3.02 The authorized capitalization of Southern California con- sists of 160,000 shares of Preferred Stock of the par value of $25 each, 840,000 shares of Preferred Stock, Series A, of the par value of $25 each, and 12,000,000 shares of Common Stock of the par value of $25 each. Of the authorized Preferred Stock, 79,011 shares are validly issued and outstanding, fully paid and nonassessable; of the authorized Preferred Stock, Series A, 783,032 shares are validly issued and outstanding, fully paid and nonassessable; and of the authorized Common Stock, 6,000,000 shares are validly issued and outstanding, fully paid and nonassessable. Southern California does not have outstanding any option, call or commitment or other agreement to buy or sell any shares of its capital stock of any class. 3.03 Southern California does not owls any shares of capital stock of any other corporation. 3.04 Since December 31., 1969, there has been no materially ad- verse change in the business, financial or other condition of Southern California, other than changes referred to in or contemplated by this Agreement. 3.05 Southern California has good and marketable title to all its properties and assets free and clear of all mortgages, liens and encumbrances except (i) the lien of a First Mortgage Indenture dated October 1, 1940, between Southern California on the one hand and American Trust Company (which was subsequently merged into Wells Fargo Bank, now named Wells Fargo Bank, National Association) as Trustee on the other hand, which Indenture secures a presently outstanding principal indebtedness of Southern California in the amount of $204,603,000, (ii) current taxes and assessments not in default, (iii) zoning regulations and miscellaneous liens arising in the ordinary course of business, and (iv) restrictions, covenants, easements, rights, licenses and minor' imperfections of title, all of which do not in the aggregate materially impair the financial condition or the operations of Southern California. 3.06 Southern California has duly paid all local, state, Federal and foreign taxes or installments thereof, including corporate franchise taxes, required to be paid except those due but not delinquent. Southern California's Federal income tat returns for all years to and including the year ended December 31, 1965, have been audited and all additional taxes and penalties have been assessed. 3.07 Except for claims fully covered by insurance, and its rate applications pending before the California Public Utilities Commission, Southern California is not engaged in nor is it threatened with any legal action, governmental investigation or other proceedings which if Southern California were unsuccessful therein, would have a material adverse effect on the financial condition or operations of Southern California taken as a whole. 3.08 The Board of Directors of Southern California has duly authorized the execution and delivery of this Agreement and, subject to appropriate action by the stockholders of Southern California pur- suant to the laws of California, Southern California has all necessary corporate power' and authority to enter into this Agreement and to perform the obligations to be performed by it hereunder. 3.09 The making of this Agreement and the consummation of the merger contemplated hereby will not conflict with any provision contained in Southern California's Articles of Incorporation or By- laws or result in a breach of any provision of or constitute a default under any agreement or instrument to which Southern California is a party or by which it is bound. • 3.10 There are no proceedings pending or known to be contem- plated by any governmental body for the condemnation of any substan- tial portion of the transmission or distribution facilities of Southern California. ARTICLE IV CONDITIONS OF THF, OBLIGATIONS OF SOUTHERN CALIFORNIA GAS COMPANY The obligations of Southern California to perform this Agreement are subject to each and all of the following conditions, any one or more of which may, however, be waived in whole or in part by South- ern California pursuant to 'written notice to that effect given to South- ern Counties: 4.01 Southern Counties shall have performed each and all of its obligations imposed upon it by this Agreement, none of the repre- sentations and warranties contained in Article 11 hereof shall have proven false in any material respect, and all of the representations and warranties contained in Article II 'shall be true and correct in all material respects at and as of the Effective Date of the Merger except - ing as contemplated by this Agreement. 4.02 Between the date hereof and the Effective Date of the Merger there shall have been no material adverse change in the busi- ness, financial or other condition of Southern Counties other than changes referred to in or contemplated by this Agreement, and South- ern Counties shall not have suffered any fire or other casualty not fully covered by insurance. 4.03 This Agreement of Merger and the merger contemplated hereby shall have been approved by the holders of not less than two- thirds of the outstanding shares of each class of capital stock of Southern California and of Southern Counties. 4.04 All regulatory approvals, authorizations and consents neces- sary to the consummation of the merger provided for herein (including the Order of the California Public Utilities Commission and any approv- als, authorizations or consents requisite to the fully effective transfer to the Surviving Corporation of all franchises, certificates, licenses and permits of Southern Counties) shall have been obtained and shall be satisfactory in form and substance to Southern California and to its counsel. 4.05 Southern Counties shall have received a ruling by the In- ternal Revenue Service satisfactory in form and substance to counsel for Southern Counties to the effect that for Federal income tax pur- poses (i) the merger contemplated by this Agreement will constitute a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1954, (ii) no gain or loss will be recognized to South- ern California or to Southern Counties by reason of said merger, (iii) no gain or loss will be recognized to the stockholders of Southern Counties upon the exchange of outstanding shares of Common Stock of Southern Counties for shares of Common Stock of the Surviving Corporation pursuant to such merger, and (iv) no gain or loss will be recognized to any Preferred or Common stockholders of Southern California as a result of the merger, except to the extent that any such stockholder receives cash upon the perfection of dissenter's rights in accordance with the provisions of Sections 4300 et seq. of the Cali- fornia Corporations Code. 4.06 The execution and delivery of this Agreement does not violate or contravene the Articles of Incorporation or the By -laws of Southern Counties or the terms and conditions of any agreement or commitment on the part of Southern Counties. 4.07 On the Effective Date of the Merger there shall be delivered to Southern California the legal opinion bearing that date of Gibson,, Dunn & Crutcher, as legal counsel to Southern California, to the effect that at and as of the Effective Date of the Merger: (a) Southern Counties is validly organized, existing and in good standing under the laws of the State of California, and has the authorized capital stock and the outstanding shares thereof as set forth in Section 2.02 hereof. (b) Southern Counties has the corporate power to make, execute and deliver this Agreement of Merger and to carry out all its obligations hereunder, and this Agreement has been duly authorized and is a legal, valid and binding obligation in accordance with its terms. (c) All corporate proceedings necessary to authorize the consummation by Southern Counties of all the transactions contemplated by this Agreement of Merger have been duly taken. (d) The Order of the California Public Utilities Commis- sion approving the merger contemplated hereby has been issued and is satisfactory in form and substance to said counsel. • 0 (e) Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will result in a breach of, or constitute a default under the Articles of Incorporation or By -laws of Southern Counties or any agreement or instrument to which Southern Counties is a party of which such counsel has knowledge. (f) Registration under the Securities Act of 1933 of the shares of Common Stock of Southern California to be issued to the Common stockholders of Southern Counties is not required because the transaction of issuance and sale thereof constitutes and will constitute a transaction by an issuer not involving any public offering and the transaction is therefore exempt in accordance with Section 4(2) of that Act. (g) The shares of Common Stock of Southern California issued in consummation of the merger will be duly and validly issued, fully paid and nonassessable. 4.08 Southern Counties shall have delivered to Southern Cali- fornia the certificate of its president or a vice president that all the conditions set forth in this Article IV shall have been fulfilled. FARkyw1 I CiONDITIONS OF THE OBLIGATIONS OF SOUTHERN CiOUNTIES GAS COMPANY OF CALIFORNIA The obligations of Southern Counties to perform this Agreement are subject to each and all of the following conditions, any one or more of which may, however, be waived in whole or in part by Southern Counties pursuant to written notice to that effect given to Southern California: 5.01 Southern California shall have performed each and all of its obligations imposed upon it by this Agreement, none of the representa- tions and warranties contained in Article III hereof shall have proven false in any material respect, and all of the representations and war- ranties contained in Article III shall be true and correct in all material respects at and as of the Effective Date of the Merger excepting as contemplated by this Agreement. 5.02 Between the date hereof and the Effective Date of the Merger there shall have been no material adverse change in the business, 10 financial or other condition of Southern California other than changes referred to in or contemplated b_ y this Agreement, and Southern California. shall not have suffered any fire or other casualty not fully covered by insurance. 5.03 This Agreement of Merger and the merger contemplated hereby shall have been approved by the holders of not less than two - thirds of the outstanding shares of each class of capital stock of Southern California and of Southern Counties. 5.04 All regulatory approvals, authorizations and consents nec- essary to the consummation of the merger provided for herein (includ- ing the Order of the California Public Utilities Commission and any approvals, authorizations or consents requisite to the fully effective transfer to the Surviving Corporation of all franchises, certificates, licenses and permits of Southern Counties) shall have been obtained. 5.05 Southern Counties shall have received a ruling by the In- ternal Revenue Service satisfactory in form and substance to counsel for Southern California to the effect that for Federal income tag pur- poses (i) the merger contemplated by this Agreement will constitute a reorganization within the meaning of Section 368'(a) of the Internal Revenue Code of 1954, (ii) no gain or loss will be recognized to South- ern California or to Southern Counties by reason of said merger, (iii) no gain or loss will be recognized to the stockholders of Southern Counties upon the exchange of outstanding shares of Common Stock of Southern Counties for shares of Common Stock of the Surviving Corporation pursuant to such merger, and (iv) no gain or loss will be recognized to any Preferred or Common stockholders of Southern Cali- fornia as a result of the merger, except to the extent that any such stockholder receives cash upon the perfection of dissenter's rights in accordance with the provisions of Sections 4300 et seq. of the California Corporations Code. 5.06 The execution and delivery of this Agreement does not vio- late or contravene the Articles of Incorporation or the By -laws of Southern California or the terms and conditions of any agreement or commitment on the part of Southern California. 5.07 On the effective Date of the Merger there shall be delivered to Southern Counties the legal opinion bearing that date, of Gibson, Dunn & Crntcher, as legal counsel to Southern Counties, to the effect that at and as of the Effective Date of the Merger: 11 (a) Southern California is validly organized, existing and in good standing under the laws of the State of California, and has the authorized capital stock and the outstanding shares thereof as set forth in Section 3.02 hereof. (b) Southern California has the corporate power to make, execute and deliver this Agreement of Merger and to carry out all its obligations hereunder and this Agreement has been duly authorized and is a legal, valid and binding obligation in ac- cordance with its terms. (c) All corporate proceedings necessary to authorize the consummation by Southern California of all the transactions contemplated by this Agreement of Merger have been duly taken. (d) The Order of the California Public Utilities Commis- sion approving the merger contemplated hereby has been issued and is satisfactory in form and substance to said counsel. (e) Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will result in a breach of, or constitute a default under the Articles of Incorporation or By -laws of Southern California or any agreement or instrument to which Southern California is a party of which such counsel has knowledge. (f) Registration under the Securities Act of 1933 of the shares of Common Stock of Southern California to be issued to the Common stockholders of Southern Counties is not required because the transaction of issuance and sale thereof constitutes and will constitute a transaction by an issuer not involving any public offering and the transaction is therefore exempt in accordance with Section 4(2) of that Act. (g) The shares of Common Stock of Southern California issued in consummation of the merger will be duly and validly issued, fully paid and nonassessable. 5.09 Southern California shall have delivered to Southern Counties the certificate of its president or a vice president that all the conditions set forth in this Article V shall have been fulfilled. 12 ARTICLE VI MISCELLANEOUS 6.01 Anything herein or elsewhere to the contrary notwithstand- ing this Agreement of Merger may be terminated and the merger abandoned at any time prior to the Effective Date of the Merger (whether before or after the approval of this Agreement of Merger by the shareholders of one or both of Southern California and Southern Counties or by the California Public Utilities Commission or any other regulatory body) (i) by the mutual consent of the Boards of Directors of both Southern California and Southern Counties, or (ii) by the Board of Directors of either Southern California or Southern Counties if the merger shall not have become effective on or before December 31, 1970. In the event of the termination of this Agreement of Merger as above provided, this Agreement shall be of no further force or effect whatsoever and there shall be no liability on the part of either Southern California or Southern Counties or on the part of the Boards of Direc- tors or shareholders of either of them. 6.02 Each of the parties hereto agrees to consult with the other party and to exchange in reasonable detail all information and docu- ments having any material relationship to the carrying out of the terms of this Agreement of Merger or to the protection of the rights of the other party hereto during the period prior to the Effective Date of the Merger. 6.03 Southern California agrees that, on the Effective Date of the Merger, it will execute and deliver to the Trustee of Southern Counties' First Mortgage Indenture such instruments, certificates and documents as may be required by said First Mortgage Indenture or as may be reasonably required by the Trustee thereunder. 6.04 Any notice, request, instruction or other document deemed by either Southern California or Southern Counties to be necessary or desirable to be given to the other party shall be in writing and shall be mailed by registered mail or certified mail, postage prepaid, with return receipt requested addressed as follows: If to Southern California: Southern California Gas Company 810 South Flower Street Los Angeles, California 90017 Attention: Mr. W. Morton Jacobs 13 i • If to Southern Counties: Southern Counties Gas Company of California 720 West Eighth Street Los Angeles, California 90017 Attention Mr. Bruce A. McCandless The addresses to which notices may be sent can be changed from time to time by a notice mailed as aforesaid. 6.05 All expenses incident to the merger contemplated hereby shall be paid by the Surviving Corporation provided, however, that in the event the merger contemplated hereby shall not be consummated for any reason, Southern California and Southern Counties shall each bear the expenses incurred by it. 6.06 For the convenience of the parties and to facilitate the filing and recording of this Agreement of Merger, any number of counter- parts may be executed, and each such executed counterpart shall be deemed to be an original instrument. The captions of the Articles of this Agreement are inserted for convenience only and are not to be considered in connection with any construction of this Agreement or any part thereof. 14 0 L l IN WITNr•.ss Vliriccor Southern California Gas Company and Southern Counties Gas Company of California have caused this flan and Agreement. of Alerger to be siaiied in their respective corporate names by their respective officers duly authorized thereunto, and their corporate seals to be hereunto affixed, all as of the day and year first above written: SOUT11MU\ CALIFORNIA GAS COMPANY i By President By Jec?etary SOUTHERN COUNTIES GAS COMPANY OF CiALIFORNIA 7 C By President By G �✓ Secretary Certified to be a true cony of the original Plan and Agreement of Merger dated as of Febniary 10, 1970. Secretary SOUTHERN CALIFORNIA GAS COMPANY 15 E 6J IN WITNESS WHEREOF Southern California Gas Company and Southern Counties Gas Company Of California have caused this Plan and Agreement of Merger to be signed in their respective corporate names by their respective officers duly authorized thereunto, and their corporate seals to be hereunto affixed, all as of the day and year first above written. SOUTHERN CALIFORNIA GAS COMPANY By /s/ W. M. JACOBS President SEAL By /s/ H. E. GOODENOW Secretary SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA By /s/ BRUCE A. McCANDLESS President' SEAL. By /s/ L. D. KYSAR Secretary 15 STATE OF CALIFORNIA COUNTY OF Los ANGELES ss. On this 9th day of March, 1970, before me, Arleen Thompson, a Notary Public of the State of California, duly commissioned and sworn, personally appeared Bruce A. McCandless, known to me to be the Presi- dent, and L. D. Kysar, known to me to be the Secretary, of Southern Counties Gas Company of California, one of the corporations named in and which executed the foregoing instrument known to me to be the persons who executed the within instrument on behalf of said Corpo- ration, and acknowledged to me that said Corporation executed the same, and acknowledged to me that said Corporation executed the within instrument pursuant to its by -laws or a resolution of its board of directors. IN WrrNEss WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. SEAL /s/ Arleen Thompson Notary Public of the State of California My Commission expires: October 15, 1971 Arleen Thompson, Notary Public In and for the County of Los Angeles, State of California .16 • • STATE OF CALIFORNIA 2 COUNTY OF Los ANGELES ( SS. On this 9th day of March, 1970, before me, Florence B. Frost, a Notary Public of the State of California, duly commissioned and sworn, personally .appeared W. M. Jacobs, known to me to be the President, and H. E. Goodenow, known to me to be the Secretary, of Southern California Gas Company, one of the corporations named in and which executed the foregoing instrument ]mown to me to be the persons who executed the within instrument on behalf of said Corpora- tion, and acknowledged to me that said Corporation executed the same, and acknowledged to me that said Corporation executed the within in- strument pursuant to its by -laws or a resolution of is board of directors. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. /s/ Florence B. Frost SEAL Notary Public of the State of California Florence B. Frost My Commission expires: July 15, 1971 17 • • N lb ORDINANCE NO. 524 An ORDINANCE OF THE CITY OF NEWPORT BEACH, GRANT- ING TO SOUTHERN COUNTIES GAS COMPANY OF CALIFOR- NIA A CORPORATION, THE RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE PIES AND APPURTENANCES FOR TRANSMITTING AND DIS- TRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS, WAYS', ALLEYS AND PLACES; AS THE SAME NOW OR MAY HERE- AFTER EXIST, WITHIN SAID MUNICIPALITY. The City Council a" the City of Newport Beach does ordain as follows: SECTION ONE Whenever in this ordinance the words a phrases hereinafter in This section defined are used. they shall have t`e respective meanings assigned to them in the following .definitions (unless, in the given instance; -the context wherein they are used shall clearly import a different meaning); (a) The word .'Grantee" shall mean the corporation to which the franchise contem- plated in this ordinance is granted and its lawful suc- cessorsor assigns; (b) The word "City" shall .mean. the City of Newport Beach, a municipal corpora- tion of the State of California, in its present incorporated form or in any later reorgan- ized, consolidated or reincor- porated form.; (c) The word "streets" Shall mean. the public streets, ways; alleys and places as the same now or may hereafter exist within said City; (d) The word "Engineer' shall mean the City.Engineer of the City; (e) The word "Gas" shall mean natural or manufacs tured gas, or a. mixture of na- tural and manufactured gas; (f) The phrase. "Pipes and Appurtenances" shall mean pipe, pipeline. main, service trap, vent, vault; manhole, meter, g a u g e, regulator, valve, conduit, appl ence, at- tachment, appurtenance and any other property .located or to be ]mated in, upon, along, across, under or over the treats of the City, and used or useful in the trauAmitting aMJ, or distribution of gas. (g) The phrase 'lay and use" shall mean to lay; con - stroot, erect. install, operate, maintain, use; repair, replace, or remove. SECTION TWO That the right, privilege and franchise, Subject to each and all of the terms and conditions con- tained in this ordinance, and pur- suant to the Provisions of the "Franchise Act of - 1937;" be and the same is hereby granted to Southern Counties Gas Company Of California, -a corporation organ - Ized and existing under and by virtue of the laws of the State of California, herein referred to as the "Grantee," to lay and use pipes and appurtenances for transmlt- ting and distributing gas for any 4. and all purposes, under, along, across or upon the streets, of the City, . for an indeterminate term or period from and after the ef- fective date hereof, that is to say, this franchise shall endure in full force and effect until the same Shall, with the consent of the Railroad Commission of the State of California, be voluntarily Sur- rendered or abandoned by its possessor, or until the State of California or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall' condemn and take under the power of eminent domain, all property actually used and useful ` in the exercise of this franchise. and situate within the territorial limits of the State, muncipal or public corporation purchasing or condemning each property, or un- til this franchise shall be forfeited for non - compliance with its terms by the possessor thereof. SECTION THREE The Grantee shall pay to the City at the time§ hereinafter' specified, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2°,'0:) of the gross annual receipts of grantee .arising from the use, operation or p= ssession of said franchise; provided, however, that such payment shall in no event be less than one per cent. 0%:) of the gross annual receipts' of the grantee derived from the sale . of gas within the limits of the City under this franchise. The grantee of this franchi e shall file with the Clerk of the City within three (3) months after the expiratton of the calen- dar year, or fractional calendar year, following the date of the grant of this franchise, and within three (3).. months after the ex- piration of each and every cal- endar year thereafter, a duly veri- fied statement showing in detail the 'total gross receipts of the grantee, its Successors or assigns, during the preceding calendar year; or such fractional calendar year, from the sale of the utility service within the City for which . this franchise is granted. It shall be the duty of the grantee to pay to the Citv within fifteen. (15) days after the time for filing such statement, in lawful money of the United States, the Specified per- centage of its gross . receipts for the calendar year, or Such frac- tional calendar year, covered by such statement. .Any neglect, emission or refusal by said gran- tee to file Such verified statement, or to pay slid percentage, at the times or in the manner herein - be,`..ore provided, shall be grounds for the declaration of a .forfeiture of this .franchise and of all rights thereunder. SF.C: ii ION FOUR This grant is made in lieu of all other franchises, rights, or privileges owned by the grantee, or by any successor of the grantee to any rights under this franchise, for transmitting and distributing gas within the limits of the City; as Said limits now or may here- after exist; and the acceptance of the franchise hereby granted shall operate as an abandonment of all Such franchises, rights and privi- leges within the limits of this City, as such :limits now or may hereafter exist, in lieu of which this franchise Is granted. SECTION FIVE The franchise granted here- under shall not become effective until written acceptance thereof shall have been .filed by the grantee thereof with the Clerk of the City. When so filed, such so- reptance shall constitute a con- tinuing agreement of the grantee that if and when the City shall thereafter annex or consolidate with, additional territory, any and all franchise tights and privileges owned by the grantee therein, ex- cept the franchise derived under the aforesaid Constitutional pry vision, shall likewise be deemed to be abandoned within . the limits of such territory, SECTICN SIX T're franchise .granted hereon- der shall not in any way or to any extent impair or affect the right cf the City to acquire .. the property of the grantee hereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained saall be construed to contract away or to modify or abridge, either for a term or in perpetuity, the Cityya right of eminent domain in respect' to the grantee or any public util- ity.. Nor shall this franchise ever be given any value before any court or other public authority in any proceeding' of any character in excess of the cost to the gran - tee of the necessary publication and any other sum paid by It to the City therefor at the time of the acquisition thereof. SECTION SEVEN The grantee of this franchise . shall file a bond. running to the City, with at least two good and sufficient.. sureties, to be approved by the legislative body thereof, in a penal '.sum of $1,000.00, coude -. tioned that the grantee shall well and truly observe, fulfill and per- form each and every term and condition, of this franchise, and that in case of any breach of condition of said bond, the wWe amount of the penal sum therein named shall be talien and deemed to be liquidated :damages and shall. be recoverable from the principal and sureties upon said bond. Said bond shall be filed with the legis- lative body of the City within five (5) days after the date of the granting of this franchise; and In casa said bond shall not be so filed, or shall not receive the approval of the legislative body, this fran- chise shall be forfeited and any money paid to the City in connec- tion therewith shall likewise be forfeited. SECTION EIGHT The grantee of this franchise shall �(a) construct, install and main- tain all pipes and appurtenances in accordance with and in c03- formity with all of the ordinances, rules: and .regulations heretofore or hereafter adopted by thelegis- Iative, body of this City in the exercise of its police powers and not in conflict with the paramount authority of the State of CSlifor- nia, and, as to State highways. subject to the provisions of gen- eral laws relating to the location and maintenance of such facill- ties;, (b) pay to the City,. on .demand, the cost of all repairs to pubills property made necessary by any operations of the grants@ under 0 this franchise; (c) indemnify and hold 'harm- less the City and its officers from any and all liability for damages :proximately resulting from any operations under this franchise; (d) remove or relocate, without expense to the City, any facili- ties installed, used and maintained under this franchise if and when made: necessary by any lawful change of grade, alignment or width of any public .street, way, alley or place, including the con- struction of any subway or via- duct by the City; and (e) file with the legislative body of the City within thirty (30) days after any sale.. transfer, assign- ment or lease of this franchise, or any part thereof,,. or of any of the rights or privileges granted thereby, written evidence of the same, certified thereto by the grantee or its duly authorized of- ficers. SECTION NINE The Engineer shall have power to give tte grantee such direc- tions for the location of any pipes and appurtenances as may be rea- sonably necessary to avoid sewers, water pipes, conduits or other structures lawfully in or under the streets; and before the work' of constructing any ,pipes and ap- purtenances is commenced, the grantee sluall file with said En- a:reer plans showing the location thereof, which shall be subject to the approval of said Engineer l such approval not to be unreason- ably withhold): and all such con - s.tnucti:n shall be subject to the inspection of said Engineer and done to *is reasonable satisfac- tion- All .street coverings or open- hugs of traps, vaults, and man- holes shall at all times be inept flush with the surface of the streets; provided, however, that vents for underground traps, vaults and manholes may extend above the surface of the streets when said vents are located in parkways, between the curb and the property line. Where it is necessary to lay any underground pipes through. under or across any ,portion of a paved or macadamized street, the same, where practicable and economical- ly reasonable shall be done by a tunnel or bore, so as not to dis- turb t`.e fa.:ndation of such paved or ma^_ada-nized street; and in the event that the same cannot be so done, such work shall be done under a permit to be granted... by the Engineer upon application therefor. SECTION TEN if any portion of any street shall be damaged by reason of de- fects in any of the 'pipes and ap- purtenances maintained or cos -: structed under this grant, or by reason of any other cause arising from the operation or existence of any pipes and appurtenances con- structed or maintained under this grant.. said grantee shall, at its own cost and expense; immediate- ly repair any such damage and restore such street, or portion of street, to as good a condition as existed before such defect or other cause of damage occurred, ouch . work to be done under the direc- tion of the Engineer, and to his reasonable satisfaction. SECTION EL11VEN (a) If the grantee of this fran- chise shall fail, neglect or refuse D to comply with any of the pro- visions or conditions hereof, and .shall not, within ten (10) days after written demand for compii- ance, begin the work of oomph. ance, or after such beginning sban not prosecute the 'same with due diligence to completion, then the City, by its legislative body, may declare this franchise forfeited. (b) The City may sue 'm its own name for the forfeiture Of this franchise, in the event of non- compliance by fhe grantee, its successors or aasigns,. with any of the conditions thereof. SECTION TWELSE The grantee of this franchise shall pay to the City a sun of money sufficient to reimburse it for all publication expenses in- curved by it in connection with the granting of this franchise; such payment to be made within thirty (31j) days after the City shall furnish such grantee With a written statement of such ex- polises. SECTION THIRTEEN Within ten. (10) days after the passage and publication of this ordinance, the grantee shall 'file . with the City Clerk a written ac- ceptance of the franchise hereby granted, and an agreement to comply with the terms and condi- tions hereof. SECTION FOURTEEN This ordinance shall be printed i and published once to NEWPORT 13ALBOA NEWS - TIMES, a news- paper printed, .published and cir culated in the city of Newport Beach; and shall take effect and be in force .. thirty days after Its passage. The above and foregoing or- dinance was introduced at a regular meeting of the City Coun, oil of the City of Newport Beach held on the 5th day of July, 1943, and was finally passed -and adopt- ed on the 2nd day of August, 1943, by said City Council, at a regular meeting thereo$. by the following vote, to -wit: AYES; COUNCILMEN: Allen, Kirk, Isbell, Reed Hall. NOES, COUNCILMEN: None. ABSENT, COUNCILMEN: None. The foregoing ordinance is signed and approved by me this 2nd day of August, 1943. CLYAN H. HALL. Mayor. ATTEST: :FRANK L. RINEHART, . City Clerk Pub.: Aug. 5, 1943. AFFIDAVIT OF PUBLICAT ON ........ City ._of. Newport ,Beachr Newport Beach, California In the matter of g?' arating . ... o .... Qo_. .... ;Qounties_. Gas Co of Callfornia, a Corp., ties .r- fight- r .... privilege. ... and... f.ran c?li.se....to. and use pipes and appurtenances f( -transmittartg.. an-d --- dis�trtbuting ... gas i STATE OF CALIFORNIA, t sa COUNTY OF ORANGE s I, ...:,:....$.t.. A. .... Mja!er being first duty sworn depose and say: That at all tier hereinafter mentioned he was a citizen of the United Stat over the age of eighteen years, and a resident of said count and was at and during all said times the printer and pt lisher of the Newport News„ a newspaper of general cin lation printed, published and circulated in the City Newport Beach, County of Orange, State of Californ that said Newport News is adjudged and decreed to be newspaper of general circulation, Decree No. A -107 havi been issued in the Superior Court of Orange County, S, tember 23, 1927; that said Newport News is and was at times herein mentioned a newspaper of general circulate as that term is defined by Section 4460 and the subsequ, sections of the .Political Code, and, as provided by said s tion, is published for the dissemination of local and to graphic news and intelligence of a general character, havi a bona fide subscription list of paying subscribers, and is i devoted to the interests; or published for the entertainmi or instruction of a particular class, profession, trade, call! race or denomination, or for the entertainment and instr tion of.. any number of such classes, professions, trad callings, races, or denominations; that at all times s newspaper had been established, printed and published the City of Newport Beach, County and State, at regu intervals for more than one year preceding the first pul cation of the. ...... Ord.1- nan.O.e ... 1d4.e.....5..4 herein mentioned; that said ..... Ordinance:- _----- _____, was set in type not smaller than eight point, and v preceded by words printed in blackface type not sins) than eight point, describing and expressing in general ten the purport and character of the notice intended to given; that the ..Ord nance ..:No., .... 5?4 .......... ....... copy of which is printed on reverse side, is a printed co and was printed, published and circulated in said ne: paper....... PRP ............. times, commencing on the ..... 5th.. day of .............. A. u: s: t.............................. 193.'�1:1., and end on the...... ... 5.�h ......... day of .......... Al:?6'us:t ................... 1k both days inclusive, and as.. often during said times as newspaper was regularly issued, ............... ...... AU:us t....5,............. ..................................... ................_.... »-- ----- -- -- --- --....A. D., 19� and in each and every issue, edition and number thei printed published d circuated on each of said days. ......... r...... �':......... Subscribed. and Sworn to before me th.� ............................ _ ............................ 211 d,,........................._.._. ............................... day of- ....... seP.teCtber --------- 1937...... �- ... 7 otary Public in and for the C ty oY Orange State of Ctunotn.a- AFFIDAVIT OF PUBLICATION' Ordinance No. 524 I H. E. GOODENOW Secretary and Treasurer ALIFORNIA aS COMPANY SOUTHERN C gp 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 6119 -2491 Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 9X051 March 31, 1978 City Clerk City Hall Newport Beach, California 92663 Dear Sir: Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1977. A check covering payment thereof will be foxwarded.to you within the time period specified under the terms of the franchise.. JEJ:dk Enclosure Oat?. 4L. -!-1 - M yqi M hag& A tdrhey ("1 Ti 1 Dn�ctaf r��l "�sr �..v bii @clef Doun-11 men 0 G truly yours, NZ,� t I 40 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY 00 44 STATEMENT FOR THE CALENDAR YEAR 1977 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF Newport Beaeh _BY ORDINANCE NO. 524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided; however, that such payment shall in no event be less than one pet cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent (2 %b) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California, 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties .............................................. $1,419,523,199 Investment in Distributing Agencies ......... .......................................... $ 863,240.,760 Per Cent of Distributing Agencies to Total ... ............................. 60.81202% Total Gross Receipts from Operation for Period`. Gross Revenues ........... :.__...$1,322,403,014 Less Uncollectible Bills _ . .................................................... $ 2,,655,429 Tota l......::................... .......... _........ ......................._ ...... ........ $1,319,747,585 Portion applicable to Distributing Agencies (60.81202% x $1,319,747,585) ....... ..............................$ 802,565,165 Mileage of Main in Pipeline System Total Mileage in Distributing System ......................... _.................... . Mileagein Highways _- .._ ... __ ...... _. ... ....... ......... ............................... Per Cent of Mileage in Highways to Total Mileage ............ _--- _ Gross Receipts applicable to Mileage in Highways (87.23489% x $802,565,165) _ ................ __,._.__$ Total Mileage in Highways as above .................... ............................... Mileage in Highways of this Franchise. ................... . ..... . - . __ - Per Cent of mileage of this Franchise to Total mileage in Highways..._ .................................... 34,205.9466 mi. 29,839.5189 mi. 87.23489% 700,116,839 29,839.5189 mi. 164.1330 mi. .55005% Gross Receipts applicable to this Franchise ( .55005'/ x $700,116,839) _- _____ ..........$3,850,992.67 Amount due based on 2% of the applicable Gross Receipts... ° - -.. ___..._$ 77,019.85' s w 00 SECTION B L] Computation of payment of one per cent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Bill ings----------------------------------------------- ------------------------------- ----- -$6,116 � 745 Less Uncollectible Bil ls----------------------------- --------------- --------- -- ----- -- --.$ 10,080 Gross Receipts-- --- -- -- ---------------------------------- ---------------------- --------- $6,106,665 Amount due based on 1% of the above Gross Receipts ---- --- ------- . •-, ........ ..............._....,- ,- ........ ....... .$61,066.65 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section— A in the Sum of $ 77, 019.85 CERTIFICATION I, the undersigned; say: I am an officer, to wit, Secretary and Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under ppenalty of perjury that the foregoing is true and correct. Executed on March 28 , 1978—, at Los Angeles, California. �y. Secretary and Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles; California 90051 :a< -z. - � N 9 H. E. GOODENOW Secretary and Treasurer A SOUTHERN CALIFOONIA COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES:, CALIFORNIA • Phone 669-2491 Mailing Address BOX 3249 TERMINAL, ANNEX,: LOS ANGELES.. CALIFORNIA 96651 April 15, 1977 City Clerk City of Newport Beach Newport Beach, California 92663 Dear Sir; Enclosed is our check for $63,458.21 which is the franchise payment due from Southern California Gas Company for the calendar year 1976. A certified franchise state- ment was filed on March 31, 1977. Very truly yours, MK -dk Enclosure •i H. E. GOODENOW Secretary and Trreeas�urreer Y'" e/zWL /�YC�GiC�Y" GIOUTHERN4 'CAU` 0,Pr 1A gas COMPANY '.810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phade 689 -2491 Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051' March 31, 1976 City Clerk City Hall Newport Beach, California 92663 P. Dear Sir: Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1975. Our check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. Ver truly yours, H. enow MK:dk Enclosure Da`e `'� q T Q Councilmen "try -. �r 7 is W FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY 40 00 STATEMENT FOR THE CALENDAR YEAR 1975 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF Newport Beach _BY ORDINANCE NO.- 524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of the ,grantee derived from the sale of gas within the emits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent. (2 %) of the gross receipts . of the.. grantee for the above period arising from the use, operation or possession of the franchise computed in ac- co-dance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of'.Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California, 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies.. in Highways of which this Franchise is a part. Total Investment in Physical Properties...... ... .......- .... .....$ 1,254, 518,827.70 Investment in Distributing Agencies ......... ._......__..___........$ 8015325,,635.65 Per Cent of Distributing Agencies to Total,_ .... ..........._._................. 63.87514 % Total Gross Receipts from Operation for Period- Gross Revenues ........... _ ... .......... _..__ .......................... ........... $ 947,,809,089.21 Less Uncoll ectibl e Bills -------- .............................. .........._...._._..._...$ 3,143,137.17 Total._. _ --------------- ._.- _ ..... ..... ........_. -- --- - - -..$ 944,66S,952.04 Portion .applicable to Distributing Agencies (63.87514% of $944,665 „952.04) ................ ..........$ 603,,406,699.40 Mileaae of Main in Pipeline System Total Mileage in Distributing System . -- __ . .. -. - - -_ 33,252.4870mi. Mileage in Highways ........................... .......................................... ........ 29,082 .4821mi. Per Cent of Mileage in Highways to Total' Mileage._.._ ._ ..... _ - Gross Receipts applicable to Mileage in Highways (87.45957% of $603,406,699.40) .............................. .... _$ Total Mileage in Highways as above . ........ .. . Mileage in Highways of this Franchise ............. ...._.._.............. ....._.. Per Cent of mileage of this Franchise to Total mileage in Highways... __ .... . ........ Gross Receipts applicable to this Franchise (.56124% of $527,736,904.65) __._.......... - $ Amount due based on 2 % of the applicable Gross Receipts: ......... ........ _ . $ 87.45957 % 527,736,904.65 29,082.4821mi. 163.2234 mi. .56124 % 2,961,870.60 59,237.41 c } SECTION B to Computation of payment of one per cent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the. City. Gross Billings .................... ...... ..............................$5,640,322.39 Less Uncollectible Bills .......................................................................... $ 9,819.62 Gross Receipts .................... ............................... $5,630,502.77 Amount due based on 1% of the above Gross Receipts ....................................................................................... $ 56,305.03 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section - -A in the Sum of $ 59 2 237.41 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) underppenalty of perjury that the foregoing is true and correct. Executed on March 29 , 19 76 , at Los Angeles, California. Secretary and Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY 284 -2L Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles, California 90051 t 40 00 •0 SOUTHERN CALIFORNIA g a6S I COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA I Phone 6B9 -2491 H. E. GOODENOW Secretary and Treasurer Mailing Address BOX. 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 31, 1975 City Clerk City Hall Newport Beach, California 92663 Dear Sir: Enclosed is the certified franchise statement of Southera,Califo -rnia Gas- Campany showing the amount due for the calendar year 1974. Our check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. Very truly yours, H. E Goodenow,..,.._ PS cdk Enclosure Date J ,).. ; _,:_ NINE TO: F—] Mayor j r , -,ay r t r dL Ot ,or, iSj' FJ aer � _ ..... 0 © Ccgres Tien YL -i •, 3.. 00 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY 00 06 STATEMENT FOR THE CALENDAR YEAR 1974 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF __ NewDort Beach _BY ORDINANCE NO. 524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise, provided, however, that such payment shall in no, event be less than one per cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs, Southern Coun- ties Gas Company of California, 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties .,.......$1,217,576,619.07 Investment in Distrroutina Agencies- __ ______...$ 783, 988,790.11 Per Cent of ;Distributing Agencies to Total,. ___ .................. 64.38928 % Total Gross Receipts front Operation for Period: Gross Revenues .... $ 784,368,949.14 Less UncollectibleBiils .... ................................ . _- ... -.$ 2,584045.34 Total._.:, _.._ ........... ...... ....... _$' 781,784,503.80 Portion applicable to Distributing Agencies (64.38928% of $781,784,503.80) .... ....... ................... :$ 503,385,413.15 Mileage of Main in Pipeline System Total Mileage in Distributing System. _ ___. _ , 32,857.1651mi. Mileage in Highways ........ ........ :. .......... __...... .............. ....... 28,772.2347 mi. Per Cent of Mileage in Highways to Total Mileage___ _.____ 87.S6761% Gross Receipts applicable to Mileage in Highways (87.567610/. of $503,385,,413.15) ............... .......... _._$ 440,802,575.38 Total Mileage in Highways as above..... - ........._: ......_. 28,772.2347 mi. Mileage in Highways of this Franchise . .... ......... 162.0767 mi. Per Cent of inileage of this Franchise to Total mileage in Highways .....__ ..._,... ...... _ - _ . 56331 % Gross Receipts applicable to this Franchise (.56331% of $440,802,575.38) -,.. - -$ 25483,,084.99 Amount due based on 2 % of the applicable Gross Receipts- .... ..: ......:. _. $ 49,661.70 !0 SECTION B 0® Computation of payment of one per cent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ......................__.... ...... ...- -..... .........$4,251,880.57 Less Uncollectible Bills ............................................ ..............................$ 7,011.84 Gross Receipts ..................... $ 42244,868.73 Amount due based on l% of the above Gross Receipts -------- ................................................................................ .$ 421448.69 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section_ A —in the Sum of $_49 2 661.70 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 31 , 197-5—, at Los Angeles; California. Secretary and Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles; California 90051 284 -2L *0 • s• r as Op 'P N9' 810 SOUTH FLOWER STREET LOS ANGELES, CALIFORNIA • Phone 689 -2491 H. E. GOODENOW Secretary and Treasurer Mailing. Address BOX 3249 TERMINAL ANNEX, . LOS ANGELES, . CALIFORNIA.. 90051 April 15, 1974 APR 2 u izi'4 City Clerk City of Newport Beach Newport Beach, California 92663 Dear Sir: Enclosed is our check for W .851.00 which is the franchise payment due from Southern California Gas Company for the calendar year 1973. A certified franchise statement was filed on March 29, 1974. V e truly yours, r v H. Goodenow JEJ:eo Enclosure M APR 1 � line U tOPIES SENT TO: t 'VcnkF mreeroa a•r'.ie UireetoF ��. 6 -4-A - 76245 GENERAL FUND ACCOUNT SOUTHERN CALIFORNIA QS COMPANY BOX 3749 TERMINAL ANNEX L05 ANGELES; CALIFORNIA 90051 BANK OF AMERICA MAAJWhUFICE LLES, CALIFORNIA DATE CH CK NUMBER APB: 15 1974 *4- 0123 -09 AMOUNT $44,851,00 unnuuauuunuumwunnlnnunnuulr ,frr „nunnnulrinilmiminnunnnum I�,illl IIII,1f Iflf,Il,l,rll,flll1Y I111tr11f1111f11rIiI1fII11f 111111i1f11111Yffflll ,ltlfll,,,llllrllf,l,llfi Treasurer PAY City of Newport Reach TO THE ORDER OF / 1:1 2 201t10005L: 06003,110 6 2 3 111' SOUTHERN CALIFORNIA GAS COMPANY—GENERAL FUND ACCOUNT Franchise payment for the year 1973 116-IA mw $44,851,00 163 1220 H. E. GOODENOW Secretary and Treasurer BID SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 689-2491 Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 March 29, 1974 City Clerk City Hall Newport Beach, California 92663 Dear Sir: Enclosed is the certified franchise statement of Southern California Gas Company showing the amount due for the calendar year 1973. Our check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. JEJ:eo Enclosure Ve ry t ,.ruly yours, H. E( �Goodenow Date 2 1974 COPIES SENT TO: 11 M-'I.' gager te'y I. i J;( Works Director U, actor Utliar 1 V"4'Z Cesuildimens lb ) 0 0 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY �w t',✓ 3, 0 • STATEMENT FOR THE CALENDAR YEAR 1973 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF Newport Beach -BY ORDINANCE NO. 0524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937; provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California, 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties ....... .............$1,178,867,947.04 Investment in Distributing Agencies.... ... - ...... _ .........$ 759,270,629.5$ Per Cent of Distributing Agencies to Total ......................................... . 64.4067`6% Total Gross Receipts from Operation for Period: Gross Revenues ------- ...... ........ _..._. -. ---- - - - - -$ 718,346,2,59.37 Less Uncol lectibl e Bills. ...... ............ ....... ....... -.$ 2,383,142:71 Total...._......._......... _ ...................................... _ -.$ 71S,963,116.66 Portion applicable to Distributing Agencies (64.40676% of $715,963,116.66) --- - - - - -- $ 461,128,646.24 Mileage of Main in Pipeline. System Total Mileage in Distributing System ......................... ......................... 32,352.4583 mi. Mileage in Highways ---- ..--- ........... - _...._ .................. _....._......._..__-- --- 28,366.1564 mi. Per Cent of Mileage in Highways to Total Mileage .... ................. 87.67852% Gross Receipts applicable to Mileage in Highways (87.67852% of $461,128,646.24) ...... -..... _- .......... 404,310,772.32 Total Mileage in Highways as above. ......................................... ._...... 28, 366.1564 mi. Mileage in Highways of this Franchise Per Cent of mileage of this Franchise to Total mileage in Highways Gross Receipts applicable to this Franchise .55466% of '$404,310,772,.32) ......... $ Amount due based on 2% of the applicable Gross. Receipts - -- -_ -- -- -- ------ ....._._....._. - - -_ __._..$ v 1S7.3353 mi. .S5466 21242,550.13 44,851.00 SECTION B Computation of payment of one per cent 0 %), of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings .:.............. Less Uncollectible Bills ................. ------------------------------- $ 3,932,290.29 ---- -------- ---- -$ 7,615.00 Gross Receipts. --....` .................. ...............- -------- - - ----- --- --$ 3,924,675.29 Amount due based on 1% of the above Gross ' Receipts ----------- ----------------------------------------------- ........................ $ 39,246.75 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section_ A in the Sum of $44, 8 51.00 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Treasurer of Southern California Gas Company, I am duly authorized to prepare and file the foregoing statement on its behalf; a_ nd I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 29 , 1974, at Los Angeles, California. Secretary and Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles, California 90051 i/ 7" 3 9 K S CITY OF NEWPORT BEACH RECEIPT a. NEWPORT BEACH. CALIFORNIA 92660 No v (t t t� 7'DAT , 7RECEIVED FROM i3/` -w —aiC. 2 /,� ..a �'J �`3 J O /� 1- tf - - -- "- "- /Y7v 1 P ACCOUNT NO. gMOUNT (` DEPARTMENT sy • • SOUTHERN CALIFORNIA :gt] COMPANY 810. SOUTH FLOWER STREET LOS ANGELES, CALIFORNIA • Phone 689 -2491 H. E. GOODENOW Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90051 April 16, 1973 City Clerk Newport Beach, California 92663 Dear Sir: Enclosed is our check for $43,303.81 which is the franchise payment due from Southern California Gas Company for the calendar year 1972. A certified franchise statement was filed on March 30; 1973. JEJ:eo Enclosure Very truly yours, H. oo enow 810 SOUTH FLOWER STREET LOS ANGELES, CALIFORNIA Phone 6892491 H. E. GOODENOW - Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX. LOS ANGELES, CALIFORNIA 90051 April 16, 1973 City Clerk Newport Beach, California 92663 Dear Sir: Enclosed is our check for $43,303.81 which is the franchise payment due from ,S"thern California. Gas ..Company for the calendar year 1972. A certified franchise statement was filed on March 30; 1973. JEJ :eo Enclosure Very truly yours, H. oo enow �y v S 53401 GENERAL FUND ACCOUNT SOUTHERN CALIFORNIA �`Q /5 COMPANY BOX 3149 TERMINAL ANNEX LOB ANGELES; CALIFORNIA 90051 unimronin�wnnnninmuuuuuninniuioummGnnnuinmimwnnuniinin City of Newport Beach - Treasurer PAY TO THE ORDER OF 116 &20 SECURITY PACIFIC NATIONAL BANK 16 -3 HEAD OFFICE 1440 LOS ANGELES;, CALIFORNIA DATE CHECK NUMBER APR 16 1973 *4- olo9 -09 AMOUNT $43,303.81. 1 t1 ✓ 1 1:1220-00031:001- 030 L i 4ll' _MENT OF THIS CHECK ACKNOWLEDGES' PAYMENT IN FULL OF ITEMS SHOWN ON ATTACHED STATEMENT SOUTHERN CALIFORNIA GAS COMPANY — GENERAL FUND ACCOUNT Franchise payment for the year 1972 $43,303.81 es dii dkk t x - - - - - - - - - - - - - - - - - - — — — — — — — — — — — — — — — — — — — — — RECEIPT CITY OF NEWPORT BEACH NEWPORT BEACH. CALIFORNIA 92660 No. 40551 f 3 RECEIVED FF�)M FOR: o /97t ACCOUNT NO. AMOUNT 'DEPARTMENT n. o B ry Y ----- ----------- ------ ------- SOUTHERN CALIFORNIAN COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 689 -2491 H. E. GOODENOW Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 April 14, 1972 1d .2"r City Clerk Newport Beach, California 92663 Dear Sir: Enclosed is our check for $40,674.53 which is the franchise payment due for the calendar year 1971. Our certified franchise statement was filed on March 31, 1972, Very truly yours, H. E. Goodenow JJ:eo Enclosure Date APR 1 '7 1972 ............ I ..................... . COPIES SENT TO: ❑ n�a,er ❑ Ai alter ❑ Artorney ❑ Publir- WorAe Director ❑ 1'Jun., ir:u DE 'enWr ❑ Other Gouuetlmem El �Y'1/ I A SOUTHERN CALIFORNIA gCIS COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone 669 -2491 H. E. GOODENOW Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 City Clerk Newport Beach, California 92663 Dear Sir: March 31, 1972 r ? Enclosed is certified franchise statement showing the amount due for the calendar year 1971. Our check covering payment will be forwarded to you within 15 days of the filing of this statement in accordance with the terms of the franchise. JJ:eo Enclosure Very truly yours, H. E. Goo enow Date API? 3 1972 .. ..............:.............;ems CONIES SEOT TO: Mauor ❑ itnn.r:'er L-,1 ro:noy ��FI "' "" r "- Welk, Director r�l ae omg D1'�a,, or �`, Olher V..lht LLlt:rl.' i /iGyC.c0iy Councilmen; - ry r' "�. 0 Ll FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY 0 0 STATEMENT FOR THE CALENDAR YEAR 1971 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF Newport Beach _BY ORDINANCE NO. 524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent . to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent (2%) of the ,gross receipts of the grantee for the above period arising from the use; operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al.. 188 CaL 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California. 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties .___ ... -- ............................ $1,09S,229,200.36 Investment in Distributing Agencies.. - _ ........... .....$ 694,659,136.05 Per Cent of Distributing Agencies to Total .... __- - . ........ ......_. 63.42591% Total Gross Receipts from Operation for Period: Gross Revenues.____._ - .... ,__.,..$ 683,704,682.15 Less Uncollectible. Bills ... ..__............. ----- .. ........................... ........1 1,994,930.63 Total ... .... _ _,.- ......................... ......... _......$ 681,709,751.52 Portion applicable to Distributing Agencies (63.42591% of $681,709,751.52) .._..._. ......... .........$: 432,380,613.46 Mileage of Main in Pipeline System Total Mileage in Distributing System .......... ............. ......... ...._.......... 31,263.7302mi, Mileage in Highways - - -- - - - -- __,. _ .__ _ ---- - -. - -- 27, 448.6650 rni. Per Cent of Mileage in Highways to Total Mileage ..................... 87.7971S % Gross Receipts applicable to Mileage in Highways (87.79715% of $432,380,613.46).......... ......... 379,617,855.77 Total Mileage in Highways as above_ ................... ... ......... ................ 27,448.6650 mi. Mileage in Highways of this Franchise. ...... ._........ ....... 147.0505 mi. Per Cent of mileage of this Franchise to Total mileage in Highways _____ __ _ __ _.. _._ 535730/, Gross Receipts applicable to this Franchise ( 53573% of $379,617,855.77) ........... _...$ 2,033,72.6.74 Amount due based on 2% of the applicable Gross Receipts... .... ................... ._. ...... ..... ... 40,674.53 i SECTION B a Computation of payment of one per cent (10/0) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ........:.... Less Uncollectible ...............$3, 319, 346.91 .....$ 10,622.23 GrossReceipts ................. . ......................... .. ....__------------ .- ---- ..:_$3, 308,724.68 Amount due based on 1% of the above Gross Receipts -- .._ ......................... ........ . . . . .. ...... . ..... -....- -- - - - - -$ 33,087.2S AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section —A in the Sum of $ 40,674.53 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Assistant Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the, best of my knowledge and belief. I certify (or declare) under penalty of per)'ury that the foregoing is true and correct. Executed on- -March 30 , 197L ,at Los Angeles, California. Secretary and Assistant Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles, California 90051 284-2K 9 COMPANY it Y r_1 SOUTHERN CALIFORNIA :9L] COMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA • Phone. 669 -2491 H. E. GOODENOW Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX. LOS ANGELES, CALIFORNIA 90051 March 30, 1973 City Clerk Newport Beach, California 92663 Dear Sir: Enclosed is the certified franchise .$tatement of Southern California Gas Company showing the amount due for the calendar year 1972. Our check covering payment thereof will be forwarded to you within the time period specified under the terms of the franchise. JJ:eo Enclosure Very truly yours, H: E. Goodenow App 2 1973 4ate............................. . CGFIrS SENT TO: i 1 atxeor � ..- Air,. ks DireetOs Director YY,.,y.,y..GiIG!V. Couceil=339 f,. City plot ,2 1973-- NEWpt CITY CALIF, wo 0 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY • w STATEMENT FOR THE CALENDAR YEAR 1972 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF Newport Beach _BY ORDINANCE NO. 0524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al.. 188 Cal 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California, 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties .............. ............ ...... ........... $1y134,5041122.89 Investment in Distributing Agencies_ _ ... ............ _..,. -- __$ 723,872,845.93 Per Cent of Distributing Agencies to Total ....... .. . ......... .. __ 63.80522% Total Gross Receipts from Operation for Period: Gross Revenues ... ._.. ....... ......... _ __ ____ . .......... ..$ 715, 314, 440 .48 Less Uncollectible Bills _ _,_ __ __. ___ ............. $ 2,157,669.74 Total...... ......................... -- _.. - - - -- - - - - -- ..... .._ .,.: - -.$ 713,156,770.74 Portion applicable to Distributing Agencies (63.80522% of $713,1S6,770.74) --- - - - - -- --- -- -- $ 45S,0319246.S2 Mileage of Main in Pipeline System Total Mileage in Distributing System..._ .._ ...... ......................... : ...... . 31, 816. 9699 mi. Mileage in Highways. ......_.. ....... - .... .. ___ __,_ 2.7, 923. 5247 mi. Per Cent of Mileage; in Highways to Total Mileage.__ __._._ 87.76299% Gross Receipts applicable to Mileage in Highways (87.76299% of $455,031,246.52)__...... _ _._$ 3993349,027.38 Total Mileage in Highways as above. _,.. __ _ _, -- - . 27, 923. 5247 mi. Mileage in Highways of this Franchise __ __ __.:_._:.._ 151. 3957 mi. Per Cent of mileage of this Franchise to Total mileage in Highways _ _ _ __.__ _ __ .54218% Gross Receipts applicable to this Franchise ( .54218% of $399,349,027.38) . - -- - - - - -.- _ - -$ 2,165,190.56 Amount dire based on 2% of the opplicable Gross Receipts,_ __. $ 43,303.81 ft 0 0 SECTION B Computation of payment of one per cent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings ...................... Less Uncollectible Bills.. Gross Receipts,.......... ..................................................... $ 3,552,240.48 Amount due based on 1% of the above GrossReceipts. --------------------------------------------------- AMOUNT PAYABLE .$ 8,225.31 _,$ 3,544,015.17 35,440.15 The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section— A —. —_in the Sum of $_4_3_,_3_0_3 - 81 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Assistant Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the scone is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 30 _,19_13— at Los Angeles, California. SLL_Q��e Secretary and Assistant Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY 204-2K Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles, California 90051 0 0 6 N.0as SOUTHERN CALIFORNIA ]gtCOMPANY 810 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA. • Phone 689 -2491 H. E. GOODENOW Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 9DO54 April 15, 1971 City Clerk City Hall, Newport Beach, California 92663 Dear Sir: Enclosed is our check for $37,179.19 which is the franchise payment due for the calendar year 1970. Our certified franchise statement was filed on March 31, 1971. CMF:eo Enclosure y yours, enow Date APR 16 rst t ............ ...� COPIES SENT TO: MxSUr 47aynxger A'!broey Pul,lic Wtrk= DireetoR Q 1.12 i i//n��g O rech z, ID 0 L SECURITY PACIFIC NATIONAL. BANK HEAD OFFICE 16.3 S 27789 LU 561 SOUTH SPRING STREET 12" LOS ANGELES, CALIFORNIA 90054 GENERAL FUND ACCOUNT DATE CHECK NUMBER SOUTHERN CALIFORNIA COMPANY *4-oo67-05 BOX 9249 TERMINAL ANNEX APR 15 1971 LOS ANGELES, CALIFORNIA 90054 AMOUNT $373179-19 inbnnnninnnmihmnrunnunnuununaununuminnnmiunxiwnmimuuum PAY TREASURER TO THE CITY OF NEWPORT BEACH ORDER OF L 1:12201,100031:0011-1 030 1,141" Recevied/,F�r. pm ..... I FORS — 2 1'T ACCOUNT NO, 200-11.7-66 CITY OF NEWPORT BEACH "ON. CALIr. AMOUNT 3-7 r-i ill f 7 DEPARTMEN N? 11384 ... I .............. SOUTHERN CALIFORNIA ACOMPANY' 810 SOUTH FLOWER 'STREET I LOS ANGELES... CALIFORNIA • Phone 6892491 H. E. GOODENOW Secretary and Assistant Treasurer Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 City Clerk Newport Beach, California 92663 Dear Sir: March 16, 1971 As you were advised earlier, on August 1, 1970 our two natural gas distributing firms were merged into one company. Enclosed are certified franchise statements for the period January 1 through July 31 (before merger) as well as for the period August 1 through December 31 (after merger) showing the amounts due for the calendar year 1970. A check covering the combined payment will be forwarded to you within 15 days of the filing of these statements in accordance with the terms of the franchise. V .F,w trylyyours, H. TC:G;oo eaow CMF:eo Enclosures Date COPIES SENT T0: 0 'Mnior �Q 'sio-,txger �,j 1•looauy "uhth Works Dlreeteg (ouncib" t A V0 FRANCHISE STATEMENT of SOUTHERN CALIFORNIA GAS COMPANY (For the period August 1, 1970 through December 31, 1970, Inclusive) Ji...ger A!Wroey - _ ' ❑ 1'nfil. Wor4Y {)3reelor /- p 0 7.Ylanninr U' tflor hl ®_' 0 0 0 STATEMENT FOR THE PERIOD AUGUST 1, 1970 THROUGH DECEMBER 31, 1970. INCLUSIVE UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF NBHPORT BFACH _BY ORDINANCE NO. 524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City, in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however; that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent'to two per cent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California, 42 Cal, 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties .............. --------------------- .._......$1,069,673,798.60 Investment in Distributing Agencies ................................................... $ 677,363,524.90 Per Cent of Distributing Agencies to Total ......... ................ ............... 63.32431% Total Gross Receipts from Operation for Period- Gross Revenues ........................................... Less Uncollectible Bills .............................. .......... Portion applicable to Distributing Agencies (63.32431% of $243,016,739.52) ............ Mileage of Main in Pipeline System .................$ .................$ Total Mileage in Distributing System .............................. _,.. - MI Mileagein Highways ........................................................ ................... Per Cent of Mileage in Highways to Total Mileage ..................... Gross Receipts applicable to Mileage in Highways (87.79385% of $ 153, 888 ,673.49).- - - - - -- ............................ Total Mileage in Highways as above - - - ............................ 243,691,370.89 674,631.37 243,016,739.52 153,888,673.49 30,876.7338 mi. 27,107.8722 mi. 87.79385% $ 135,1o4,791.17 27,107.8722 mi. Mileage in Highways of this Franchise ............. ......_ .......................... Per Cent of mileage of this Franchise to Total mileage in Highways- ................. ............................ ... ........ Gross Receipts a plicable to this Franchise ( .53188 of $135,1041791,17) .......................... $ Amount due based on 2% of the applicable GrossReceipts .............................. ............................... -- '- ----- -- -- -- .. ..$ 144.1824 mi. •53188 718,595.36 14,371.91 SECTION B Computation of payment of one per cent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings....,...... Less Uncollectible Bills---------- - - - - -- Gross Amount due based on. I% on the above Gross Receipts' --- --------------- - - - --- ------ --- .. ...................$ 1,000,132:66 _.$ 2,322.75 997,809.91 ------ . - - - -$ 9,97810 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section— A -- �n the Sum of $140371.91 CERTIFICATION I, the undersigned, say: I am an officer, to wit; Secretary and Assistant Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the sane is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 27 , 19-7-1—, at Los Angeles, California. S cretary and Assistant Treasurer of Southern California Gas Company additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles, California 90054 284 -9 ..; c-.- c, ,,_ . _a,- i • • '� FRANCHISE STATEMENT of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA (for that portion of year 1970 before merger with Southern California Gas Company) Date ....1:.:'...:3...'.:'.. `ETi�liil ❑ OIn {ur ❑ 11nqu�er ❑ .r ntrney ❑ Yuplie Worke Uirector - ❑viallaing Uirector, Zltmh El- ' ❑ Councilmon: 0 0 STATEMENT FOR THE PERIOD JANUARY 1, 1970 THROUGH JULY 31, 1970, INCLUSIVE UNDER THE PROVISIONS OF THE FRANCHISE GRANTED BY THE CITY OF laWMRT MACH _BY ORDINANCE NO. 0524 The above Ordinance, granted pursuant to the terms of the Franchise Act of 1937, provides that the Grantee shall pay to the City; in lawful money of the United States, a sum annually which shall be equivalent to two per cent (2 %) of the gross annual receipts of grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of the grantee derived from the sale of gas within the limits of the City under this franchise.. The detail of these two methods of payment is set forth below under sections A and B respectively. SECTION A Computation of payment equivalent to two per cent (2 %) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in ac- cordance with the decisions of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, of al., 188 Cal. 664 and County of Los Angeles vs. Southern Coun- ties Gas Company of California, 42 Cal. 2d 129. Gross Receipts applicable to Distributing Agencies in Highways of which this Franchise is a part. Total Investment in Physical Properties----- _ .................... ......_....._._.$376,325,823.90 Investment in Distributing Agencies ..... ............................... ...............$262,309,340.18 Per Cent of Distributing Agencies to Total .......... ............................... 69,70272% Total Gross Receipts from Operation for Period: Gross Revenues ...................... - - -- ... -- .........$135,44'5,216.16 Less Uncollectible Bills ............................ ---...................................... $ 152, 864.00 Total ...................................... ............................... - $135,292,352.16 Portion a pli able to Distributing Agencies ( 69,7072* of $135:292p352.16) . ................. .. $ 94, 302, 449.41 Mileage of Main in Pipeline System Total Mileage in Distributing S ystem ................... ............................... 11,744.3578 mi. Mileage in Highways ----------------- - ........................................................... 10o369-6080 mi. Per Cent of Mileage in Highways to Total Mileage ..................... 88.29438 Gross Receipts applicable to Mileage in Highways (88.29438% of $94X302:449.41) ............. $ 83, 263, 763.03 Total Mileage in Highways as above_ ------- - -- 101369.6080 mi. Mileage in Highways of this Franchise ................ ............................... 142.0200 mi. Per Cent of mileage of this Franchise to Total mileage in Highways...._ ..................... ......._.-- -- '- ............._ 1-36958% Gross Receipts applicable to this Franchise ( 1,36958% of $83,2632763.03) ....................... ._ ._....$ 1,140,363.85 Amount due based on 2% of the applicable Gross Receipts..... ---- ------- --- --- _. _ .............................. ......._....._..........$ 22007.28 SECTION B L Computation of payment of one per cent (1 %) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the City. Gross Billings......... Less Uncollectible Bills ----- ----- ------ ------------------- ------ - - - - -- - - ----- - --- - -- $ Gross Receipts:.. Amount due based on 1 % on the above Gross Receipts........ 5662936.42 1,962.86 5642973.56 15,649-74 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely; the amount due under Section— A in the Sum of $ 22,0807.28 CERTIFICATION I, the undersigned, say: I am an officer, to wit, Secretary and Assistant Treasurer of Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 27 , 1971--, at Los Angeles, California. Secretary and Assistant Treasurer of Southern California Gas Company If additional information is required, please address inquiries to SOUTHERN CALIFORNIA GAS COMPANY Attention: Treasury and Tax Department Box 3249, Terminal Annex Los Angeles, California 90054 284.3 0 0 i F *A- v 1971 By the CITY COUNCIL �{ 4�F6V THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of SOUTHERN CALIFORNIA GAS COMPANY for Authority to Revise its Tariffs for Natural Gas Service ) to Offset Increases in Expenses ) Caused by Net Increases in the Price) of Natural Gas From its Suppliers. ) Application No. 52358 NOTICE OF FILING OF APPLICATION SOUTHERN CALIFORNIA GAS COMPANY hereby gives notice that it filed an Application with the California Public Utilities Commission on December 18, •1970, for authority to increase its rates for natural gas service, effective March 31, 1971, to off - set increased costs caused by an increase in the price of gas purchased from one of its suppliers, E1 Paso Natural Gas Company. Southern California Gas Company also asks that it be permitted to apply certain gas cost reductions against the E1 Paso price increase.. The total amount of additional annual gross revenue sought is approximately $13,036,000, based on a 1970 test year. As shown in the Application, the increase would be spread among the various classes of service as follows: Requested Offset Increase Amount Cents M$ Per Percent Class of Service Mcf Firm Natural Gas 5,090 1.86 1.8 General Service 2,694 1.86 1.8 Firm Industrial 230 1.8`6 2.8' Subtotal 8,014 Gas Engine 68 1.27 2.3 ".' .. Regular Interruptible 2,384 1.27 2.9 Steam-Electric and r?- Cement Plant 1,265 .42 1. Wholesale 1,305 1.27 3. Total 13,0:36 1.27 1.9 ` 2 A copy of the Application and related exhibits will be furnished by Applicant upon written request. Such requests should be addressed to: John C. Abram, Vice President System Rates and Earnings Pacific Lighting Service Company P. 0. Box 54790, Terminal Annex Los Angeles, California 90054 This notice is given in accordance with requirements of Rule 24 of the Commission's Rules of Practice and Procedure. Dated at Los Angeles, California this 18th day of December, 1970. SOUTHERN CALIFORNIA GAS COMPANY By 6 ✓s fir)* - RufW W. McKinney It ttorney - 2 - Southern California Gas Company Box 3249 Terminal Asses Loa Angeles, California 90054 Attention: Robert Salter, Attorney November 25, 1970 The merger agreement of Southern California Gas Cotnpanywas presented to the City Council of Newport Beach on August 24, 1970, for its information. The matter has been made a part of our files and no further action is indicated. Laura Lagioo City Clerk SOUTHERN CALIFORNIA 6S COMPANY $10 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA SYSTEM LAW DEPARTMENT Malhng Address BOX 3249 TERMINAL ANNEX, LOS ANGELES CALIFORNIA 90054 689 -3538 August 14, 1970 City Clerk City of Newport Beach City Hall 3300 Newport Boulevard % SS Newport Beach, California Re: Franchise Ordinance No. 524 Dear Sir: On August 1, 1970, the two natural gas distributing companies of the Pacific Lighting System were merged into one company. The name of the merged company is Southern California Gas Company. Prior to the merger, Southern Counties Gas Company of California installed its pipelines within the public streets and paid annual franchise payments to the City pursuant to the above franchise ordinance. Franchise payments will now be made in the name of Southern California Gas Company. Enclosed is a certified copy of the merger agreement. It is being filed with the City within 30 days after the transfer in accordance with the terms of the franchise. Section 1.02 of the merger agreement provides that Southern California Gas Company succeeds to all of Southern Counties' franchises and shall be subject to all of Southern Counties' debts and liabilities. We would appreciate receiving a certified copy of the minutes of the Council or copies of other action taken by the Council relative to this matter. Thank you very much for your assistance. COPIES COPIES SENT TO: ❑} Nuyor II�s lbm eger RS: lc zi 1. n�roer' ❑ ''r rF�. 'A .,k- Director Enc. L .blue Nirea" Uu:hci Cooncilmeg{. Very truly yours, F Attorney 610 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA SYSTEM LAW DEPARTMENT Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 689 -3.538 August 28, 1970 City Clerk City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California Re: Franchise Ordinance No. 524 Dear Sir: Enclosed is a rider naming Southern California Gas Company as the principal on the franchise bond previously filed by Southern Counties Gas Company of California in connection with the above numbered franchise. This rider was made necessary by the merger, previously reported to you, of the two distributing companies on August 1, 1970. RS: lc Enclosure Very truly yours, A rt Sa to& Attorney a UIRT TO: _ �� Si uyui C'� Mumi:er �� ork- Ilireelot q Director rr�I. url�crm U S0'1 sHEFF N' `A IFOR :CIA Gas COMPANY 610 SOUTH FLOWER STREET • LOS ANGELES, CALIFORNIA SYSTEM LAW DEPARTMENT Mailing Address BOX 3249 TERMINAL ANNEX, LOS ANGELES, CALIFORNIA 90054 689 -3.538 August 28, 1970 City Clerk City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California Re: Franchise Ordinance No. 524 Dear Sir: Enclosed is a rider naming Southern California Gas Company as the principal on the franchise bond previously filed by Southern Counties Gas Company of California in connection with the above numbered franchise. This rider was made necessary by the merger, previously reported to you, of the two distributing companies on August 1, 1970. RS: lc Enclosure Very truly yours, A rt Sa to& Attorney a UIRT TO: _ �� Si uyui C'� Mumi:er �� ork- Ilireelot q Director rr�I. url�crm U ' 9 SOUTHERN COUNTIES gGIS COMPANY 1801 SOUTH ATLANTIC BOULEVARD, MONTEREY PARK, CALIF- B1784 R. R. WEST AsSKTArvT Tu 11 EU P.O. BOX 2736. TERMINAL ANNEX. LOS ANGEx CS' 90054 , March 31, 1970 'City of Newport Beach Newport Beech, California Gentlemen: Enclosed is our franchise statement for the year 1969, in accordance with the terms of Franchise Ordinance No. 524 Encl. Very truly yours REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR,, UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. AND PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF. Pursuant to the provisions of 'Section (3) of Ordinance No. 524 of the City of Newport Beach , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of Newport Beach a statement, verified by R. R. West, the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1969, and arising from the use, operation or possession of the aforesaid franchise, area $ 1,914,215.84 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1969, realized from the rendition of service to consumers within the limits of said City of Newport Beach , are: $ 2,3 #5,617.63 (Statement attached) The undersigned has read the statement and knows.the contents thereof and certifies under penalty of perjury that the same is true, correct, Rill and complete to the best of his knowledge and belief. Executed on March 31, 1970 at Los Angeles, California. Assistant Treasurer SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1969 A. Gross Revenue $233,758,243.93 B. Total Investment in Physical Properties 363,785,868.37 C. Gross Revenue per dollar of Investment .642571 D. Amount invested in Transmission, Distribution and Utilization System. This includes main, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains $ 67,8771211.75 Transmission Meter & Regulator Stations 1,049,843.78 Miscellaneous Transmission Equipment 343,803.99 DISTRIBUTION Distribution Mains 123,407,030:26 District Meter & Regulator Stations 1,064,234;72 Services 47,350,121.67 Curb Meters & Regulators 12y225,523.84 Miscellaneous Distribution Equipment 144,245.30 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way 2531462,015.31 E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" 162,867,340.64 F. Total miles of Transmission and Distribution lines on entire system 11,543.51 Miles on Public Franchises 10,178,.05 88-1712% Miles on Rights -of -Way, etc. 1,365.46 11.828 t G. Miles of pipelines in public highways covered by Franchise Ordinance No. 524 within the City of Newport Beach 135.67 Total miles of pipelines in public highways in System 10,178.05 Per cent of the System total of pipelines in public highways within above covered by this Franchise Ordinance. 1.3330 H Total Amount Due 88.17W,'Of $162,,867,340.64 equals $`143,602,088.65 1.33300 of $ 143,602 2 088.65 equals pro rata of revenue of $1,914,215.84 20 of revenue equals 382284.32 I. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shoran in "G" above. 0 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross receipts derived from the sale of gas within the limits of the City of Newport Beach during the calendar year 1 together with payment computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered Sales to consumers Less - Uncollectible accounts 1% of Total equals Total $ 2,348,839.39 3,x.76 $ 2,345,617.63 $ 23,456.18 BOUT El,N COUINTIES :flCOMPANY 1801 SOUTH ATLANTIC BOULEVARD. MONTEREY PARK.CAWF. 91?54 R. R. WEST n555FarvT re EHSV REP P.O. BOX 2736 TERMINAL ANNEX. LOS ANGELES 90054 City of Newport Beach Newport Beach, California Gentlemen: March 31, 1969 Enclosed is our franchise statement for the year 1968, in accordance with the terms of Franchise Ordinance No. 524 Very truly yours Encl. 0 0 REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1968, UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. 24 AND PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF. Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by R. R. West, the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during . the year 1968, and arising from the use, operation or possession of the aforesaid franchise, are: $ 1,720,281.87 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1968, realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: $ 2,058,868.38 (Statement attached) The undersigned has read the statement and knows the contents thereof and certifies under penalty of perjury that the same is true, correct, full and complete to the best of his knowledge and belief. Executed on MAR 31 1959 at Los Angeles, California. Assistant Treasurer SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEKBER 31, 1968 A. Gross Revenue B. Total Investment in Physical Properties C. Gross Revenue per dollar of Investment D. Amount invested in Transmission, Distribution and Utilization System. This includes main, services, vaults, district regulators, etc. TRANSMISSIO ?d Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shoTm in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 9,961.25 87.9867/ Miles on Rights -of -Way, etc. 1,36o.o6 12.01330 .625881 $66,316,305.65 1,014;451.72 313,379.65 117,762,395.73 999,492.08 45;6201863.75 11 ;812,254.35 135,758.19 11,321.31 $219,237,697.86 350,286,669.52 243,974,901.12 1521699,255.09 G. Miles of pipelines in public highways covered by Franchise Ordinance No. 524 within the City of Newport Beach Total miles of pipelines in public highways in System Per cent of the System total of pipelines in public highways within above City covered by this Franchise Ordinance. 127.54 9,961.25 H. Total Amount Due 87.9867% of $152,699,255.09 equals $134,355,035.48 1.2804 % of $134,355,035.48 equals pro rate of revenue of 2% of revenue equals I. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shown in "G" above.. I 1.28o4 $1,720,281.87 34,405.64 0 0 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of Newport Beach during the calendar year 19(4 together with payment computed at 1,% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers Less - Uncollectible accounts Total 1% of Total equals $ 2,o63,24o.21 4,371.83 20,588.68 SOUTHERN COUNTIES gQS COMPANY 1801 SOUTH ATLANTIC BOULEVARD.. MONTEREY PARK. CALIF. 91754 R.. R. Ib EST ... STINI 'ia eaSUa E.? R. O. SoX 2736. TERMINAL ANNEX, LOS ANGELES 90054 March 28, 1968 City of Newport Beach Newport Beach, California. Gentlemen: Enclosed is our franchise statement for the year 1967, in accordance with the terms of Franchise Ordinance No. 524 , together with our check for 31,692.16 Very truly yours,r Encl. 0 S REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1967, UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY TIE CITY OF NWORT BEACH BY ORDINANCE NO. 524 AND PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF. Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of Newport Beach , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of Newport Beach a statement, verified by R. R. West, the Assistant Treasurer of Southern Counties 'Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1967 , and arising from the use, operation or possession of the aforesaid franchise, are: $ 1,584,608.19 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1967 , realized from the rendition of service to consumers within the limits of said City of Newport Beach , are: $ 1.971,490,08 (Statement attached) The undersigned has read the statement and knows the contents thereof and certifies under penalty of perjury that the same is true, correct, full and complete to the best of his knowledge and belief. Executed on r4M 2T 1969 at Los Angeles, California. Assistant Treasurer SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA FRANCHISE .STATEMENT FOR YEAR ENDED DECEMBER 31, 1967 A. Gross Revenue B. Total Investment in Physical Properties C. Gross Revenue per dollar of Investment D. Amount invested in Transmission, Distribution and Utilization System_ This includes mains, services; vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 9,768.69 87.7963° Miles on Rights -of -Way, etc. 1,357.85 12.20370 .6119o1 $ 64,777,742.51 931,883.45 267,671.91 113,092,813.03 943,349.69 44,4o4,189.66 11,404,090.71 128,141.60 11,126.54 $ 206,912,804.56 338,147,743.87 235,949,882.56 144,377,969.11 El -2- G. Miles of pipelines in public highways covered by Franchise Ordinance No. 524 within the City of Newport Beach Total miles of pipelines in public highways in System Per cent of the System total of pipelines in public highways within above City covered by this Franchise Ordinance. 0 122.12 9,768.69 H. Total Amount Due 87.7963% of $144,377,969.11 equals $126,758,514.88 1.2501% of $126,758,514.88 equals pro rate of revenue of 2% of revenue equals I. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shown in "G° above. 1.2501 $1,584,608.19 31,692.16 s r U SOUTHERN coUNTIES GAS COMPANY OF CALIFORNIA. Gross receipts derived from the sale of gas within the limits of the City of Newport Beach during the calendar year 167 together with payment computed at 1%O thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered Sales to consumers $ 1,977,326.09 Less - Uncollectible accounts 5,936.01 Total $1 971,390.08 1% of Total equals $ 19,713.90 SOUTHERN COUNTIES W COMPANY i9OJ SOUTH ATLANTIC BOULEVARD. MONTEREY PARK. CALIF. 917S4. R. R. WEST nss�sigrvi is egsua[a P, O BOX 2336. TERMINAL ANNEX, LOS ANGELES 90054 City of Newport Beach Newport Beach, California Gentlemen: March 29, 1967 Enclosed is our franchise statement for the year 1966, in accordance with the terms of Franchise Ordinance No. 524 , together with our check for $ 29,526:32 Very truly yours, Encl. .46 REPORT OF SOLTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR TIM CALENDAR YEAR 1966 , UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY TIM CITY OF NEWPORT BEACH BY ORDINANCE 110. J A PURSUANT TO THE PROVISIONS OF _ SECTION(33) AND PURSUANT THEREOF. Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by R. R. West, the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1966 , and arising from the use, operation or possession of the aforesaid franchise, are: $ 1,476;316.03 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1966 , realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: $ 1,894,463.99 (Statement attached) The undersigned has read the statement and 'knows the contents thereof and certifies under penalty of perjury that the same is true, correct, full and complete to the best of his knowledge and belief. Executed on MAR - 9 1967 at Los Angeles, California. Assistant Treasurer SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREW, LOS ANGELBS. CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1966 A. Gross Revenue B. Total Investment in Physical Properties C. Gross Revenue per dollar of Investment D. Amount invested in Transmission, Distribution and Utilization System., This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission -Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment Total Investment in Transmission, Distribution and Utilization System occupying both 'public and private Rights -of -Way •597584 E. Amount of Revenue applicable to Transmission and Distribution System occupying, public and private Rights -of -Way on basis of Revenue per dollar of investment shown in °C °' F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 9,571.73 or 87.703 Miles on Rights -of -Way, etc. 1,342.00 or 12.2964% $63,164,636.53 557,351.99 222,614.28 107,886,190.51 1,o3G,499.49' 43,151,449.48 11,100,7$6.15 124,695.72 10,913.73 $ 193,840,017.00 324,372,974.31 227,238,224.15 135,793,926:94 -2- G. Miles of pipelines in public highways covered by Franchise Ordinance No, 524 within the City of Newport Beach 118.65 Total Miles of pipelines in public highways in System 9,571.73 Per cent of the System total of pipelines in public highways within above City covered by this Franchise Ordinance. H. Total Amount Due 87.7036#'o of $135,793,926.94 equals $119,096,162.51 1.2396 �, of $119,096,162.51 equals pro rata of revenue of 2% of revenue equals 1. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shown in "G" above. 1.2396 $11476, 316.0.3 $ 29,526.32 .6 6 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross receipts derived from the sale of gas within the limits of the City of Newport Beach during the calendar year 196b together with payment computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers Less - Uncollectible accounts Total 1% of Total equals $ 1,900,103.34 5,639.35 $ 1,894,463.99 $ 18,944.64 a SOUTHERN COUNTIES g�IS COMPANY 1901 SOUTH ATLANTIC BOULEVARD. MONTEREY PARK, CALIF. 91754 R. R. WEST �+ -inrvr ceeR P.O. BOX 2736. TERMINAL ANNEX. L05 ANGELES 90054 March 25, 1966 City of Newport Beach Newport Beach, California Gentlemen: Enclosed is our franchise statement for the year 19651 in accordance with the terms of Franchise Ordinance No. 524 , together with our check for $ 27,313.39 � w vd Encl. Very truly yoursp, REPORT OF 'SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1965 , UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. 924 AIM PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF. Pursuant to the provisions of Section (3) of Ordinance No. �g4 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by R. R. West, the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1965 , and arising from the use, operation or possession of the aforesaid franchise, are: $ 1,365,669.26 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1965 , realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: $ 1,85o,418.75 (Statement attached) The undersigned has read the statement and knows the contents thereof and certifies under penalty of perjury that the same is true, correct, full and complete to the best of his knowledge and belief. Executed on MAR - 8 1966. _ at Los Angeles, California. Assistant Treasurer A. B. G. D. ,► s SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1965 Gross Revenue Total Investment in Physical Properties Gross Revenues per dollar of Investment Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 9,291.79 or 87.6626,% Miles on Rights -of -Way, etc. 1,307.70 or 12.3374% •586115 $56,894,206.44 295,992.50 2oo,926.47 101,794,449.29 1,075,5o6.89 41, 555,895.06 lo,682,103.4o 12o,67o.0o 10,599.49 $ 178,lo6,524.00 303,876,637.32 212,619,750.05 124,619,624'•80 -2- G. Miles of pipelines in public highways covered by Franchise Ordinance NO-524 within the City of Newport Beach 316.16 Total Miles of pipelines in public highways in System 91291.79 Per cent of the System total of pipelines in public highways within above city covered by this Franchise Ordinance H. Total Amount Due 87.6626% of $1241619„624.80 equals $109,244,803,21_ 1.2501 % of $109,244y803,2 equals pro rata of revenue of 2% of revenue equals I. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shown in "G" above. 1.2501 $1,365,669-28 $ 27,313.39 i 4 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT BEAGE during the calendar year _1265_ together with payment computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers $ 1,8562177.29 Less - Uncollectible accounts Total l% of Total equals 5,758.5+ $ 1,850,418.75 $ 182504.19 COUNCILMEN DONALD 0. SHIPLEY MAYOR ERNEST H. GISLER ROBERT M. LAMBERT JAKE R. STEWART THOMAS H. WELCH PAUL C. JONES CITY CLERK JAMES D. PLUNKETT CITY ATTORNEY BETTY DIEKOFF TREASURER 2 C I T Y 0 OF _ Lff lLI &n e/UG9GGd . .......................................... ...................... ... .....- P.O. BOX 190 CALIFORNIA 92648 City Clerk City of Newport City Hall Newport Beach, Gentlemen: Beach California February 7, 1966 OFFICIALS DOYLE MILLER ADMINISTRATIVE OFFICER BRANDER 0. CASTLE ASSISTANT ADMINISTRATOR JAMES R. WHEELER DIRECTOR OF PUBLIC WORKS FRANK B. ARGUELLO FINANCE DIRECTOR JOHN SELTZER .POLICE CHIEF DELBERTG. HIGGINS FIRE CHIEF VINCENT G. MOORHOUSE LIFEGUARD CHIEF' OLLIN C. CLEVELAND BUILDING DIRECTOR EDWARD R. STANG WATER SUPERINTENDENT The City of Huntington Beach is attempting to establish an up- dated basis for payment pertaining to natural gas pipelines equitable with franchises existing throughout Southern California. We are basically interested in (1) the formula you apply to transmission lines in deriving payment and, (2) the percent of the gross annual receipts that the City receives as payment from distribution companies. If it is possible, we would appreciate a copy of the legal instrument pertaining to the above. We would be grateful for any assistance your office can provide. JC:bwo Th nk you, ��ostello Administrative Analys Y � 'VN Fr r 1966® OF )■._, SOUTHERN COUNTIES GAS COM1L' N OF CALI FOR NIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA J. S. MCERJDE P.O. B.O% 2736, TERMINAL ANNEX, LOS ANGELES 90054 asslsT ANi T. JXE9. City of Newport Beach Newport Beach, California. Gentlemen: March 29, 1965 Enclosed is our franchise statement for the year 1964, together with our check for $ 26,784,14 . This payment reflects the following understanding: The Company has refunded to its customers, in accordance with an order of the Public Utilities Commission, amounts previously included in the Company's gross revenues. In accordance with the notice given you with prior years' franchise statements, the gross receipts shown in the attached statement reflect a deduction of the amounts that have been refunded to customers. The adjusted gross receipts in the statement also include additional amounts still subject to refund to customers under a ruling of the Public Utilities Commission of the State of California. This payment is made with the same understanding that, when this Company is required to make these refunds of money collected from its customers, the Company will take credit for the amount of any overpayment by deducting the amount of that overpayment from future franchise payments. Very truly yours, L vd Encl. J REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 196+ , UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. 524 AND PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF. Pursuant to the :provisions of Section (3) of Ordinance No. 524 of the City of NEWPORT BEACH 1 Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by J. S. McBride, the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1964 , and arising from.the use, operation or possession of the aforesaid franchise, are: $ 1.339,207.05 (Statement attached) (B) Tht total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1964 , realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: $ 1,807a8137 (Statement attached) The undersigned has read the statement and knows the contents thereof and certifies under penalty of perjury that the same is true correct, full and complete. to the best of his knowledge and belief. Executed on MAR 2 4 1965 at Los Angeles, California. Asi&stant Treasurer .I A. Gross Revenue s i SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, C.,LIFORNIA FRANCHISE STATEMENT' FOR YEAR ENDED DECEMBER 31, 1964 B. Total. Investment in Physical Properties C. Gross Revenues per dollar of Investment D. amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way •619972 E. mount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 8,919.12 or 87.4981% Miles on Rights -of -Way, etc. 1,274.38 or 12.5019% $51,067,352.15 336,971.77 203,474.10 95,652,682.90 9:14, 459.05 39,465,013.33 10,156,680.26 115,084.39 10,193.50 $ 175,7431255.00 283,469,463.19 197,911,617.95 1221699,661.60 • s -2- G. Miles of pipelines in public highways covered by Franchise Ordinance No. 524 within the City of Newport Beach 111.26 Total Miles of pipelines in public highways in System 8,919.12 Per cent of the System total of pipelines in public highways within above City covered by this Franchise Ordinance 1.247+ H. Total amount Due 87.4981 of :122,699,661.60 equals $107,359,872.61. 1.2474 n of $107,359,872.61 equals pro rata of revenue of $1,339,207 -05 2','- of revenue equals $26,784.14 I. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shown in "G" above. 1 : Sort'HERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWRT EECg during the calendar year 3,(464 together with payment computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers Less - Uncollectible accounts Total In of Total equals 1A11,118-57 31938.2 1,8tY(,180.37 $ 18io7l.8o SOUTHERN COUNTIES GAS COMPANYOF CALI FOR N iA 720 WEST EIGHTH STREET, LOS ANGELES', CALIFORNIA J. S. M0 BRIDE R.O. SOX 2 73 6. TERMINAL ANNEX. LOS ANGELES 54 M<NAOER OFPCCONN TINC O6PP RTMBNT March 27, 1964 City of Newport Beach Newport Beach, California Gentlemen: Enclosed is our franchise statement for the year 1963 together with our check for $2o,642,27. The Company has refunded to its customers, in accordance with an order of the California Public Utilities Commission, amounts previously included in the Company's gross revenues. The gross receipts shown in the attached statement reflect the exclusion of the amounts refunded to customers, in accordance with the notice given you with prior years' franchise statements. Very truly yours, id Enc. REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1963 , UNDER THE 'PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. 524 AND PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF. STATE OF CALIFORNIA ss. COUNTY OF LOS ANGELES Pursuant to the provisions of Section (3) of ordinance No. 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by J. S. McBride, the .Manager of Accounting Department of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1963 , and arising from the use, operation or possession of the aforesaid franchise, are: $ 1,o32,il3.47 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1963 , realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: $ li-422,338.35 (Statement attached) The undersigned has read the statement and knows the contents • thereof and certifies under penalty of perjury that the same is true, correct, full and complete to the best of his knowledge and belief. Executed on SAAR 2 0 1964 19' at Los Angeles, California. `d A Gross Revenue SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA FRANCHISE FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1963 B. Total Investment in Physical Properties C. Gross Revenues per dollar of Investment D. Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment 514782 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 8,504.21 or 87.13o7% Miles on Rights -of -Way, etc. 1,256.08 or 12.8693% $50,863,552.52 297,941.89 201,398.92 890301,495.13 808,644.28 37,004,824..59 9,779,320.82 1o9, 407.96 9,760.29 $ 1381214,417.00 268,490,984,77 188,366,586.11 96,967,727.93 -2- G. Miles of pipelines in public highways covered by Franchise Ordinance No. 524 within the City of Newport Beach Total Miles of pipelines in public highways in System Per cent of the System total of pipelines in public highways within above City covered by this Franchise Ordinance 103.89 8,504.21 H. Total Amount Due 87.1307% of $96,967,727.93 equals $84,488,660.12 1.2216% of $84,488,660.12 equals pro rata of revenue of 2% of revenue equals L. Amount shown in "H" is payment required under the provisions of the Franchise Ordinance shown in G above. 1.2216 $1,032,v.3.47 $ 2o,642.27 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT BEACH during the calendar year 1 together with tax computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers Less — Uncollectible accounts 1% Tax equals Total $ 1,426,385.03 $ 1,422,139-35 14,223.38 April 17t 1%4 C Tot Public Works Director . Froms City Attorney ij� // Subjects Franchise revenues � „/ . In your memorandum of March 160 1964, you set out the amount � paid to the City by Southern California Edison Companyyand Southern Counties Gas Company pursuant to their franchises in the City and ask for thoughts on exploration of the used for public utility easements innew subdivisionst, C�6 The franchise of the Southern Counties Can Company provides for V'" payment of 2% of the gross annual receipts ariaiaa from the use, operation or possession of the franchise with a m alnum of 1% of e gross annual receipts derived from the sale of gas within the City. The franchise to the Edison Company is comparable except that the minimum payment is 1/2 of 1% of the gross annual receip derived from the sale of electricity within the Cite. Review of the methods by which the utility companies figure the franchise fees suggests that the payment to the City by both companies is arrived at by application of the minimum rather than the fee of the gross annual receipts arising from the use, operation or possession of the franchise. However, any facilities of the utility companies that are not placed in polio street#, we so alleys or p ces will never contribute to the receipts to which the 2% fen applies. In other words,. than 2% fee will never apply to the gross receipts from facilities placed in easements granted directly to utility companies. It would, therefore, appear that,in order to increase the probaw bility of the utility company facilities being placed in such easements contributia to the gross receipts upon which ties 2% franchise fee is applied, the utility easements should be dedi- cated on the tract map in accordance with Section 9254.21. This section requires the subdivides to great easements for public utility, sanitary aswar, and drains ryssposaa an each side of the rear lot liusso..along aide lot s, 8nd in Plautus strips Tat public 'Works Director •�+ April 17, 1964 wherever necessarsyp. The section goes on to say that dedication of easements shall be to the City for the purpose of installing utilities and for other public ppurposes as may be ordered or directed by the City Council. 7t'he dedication is important for the additional reason that any future need for a City sasmuant In the same area would be Or*Ldad an ties mope March 29, 1962 City of Newport Beach Newport Beach, California Gentlemen: Enclosed is our franchise statement for the year 1961, together with our check for 20,067.28 . This payment is made subject to the conditions set forth below. The gross receipts shown in the statement include receipts subject to possible refund to consumers under a,ruling of the Public Utilities Commission of the State of California, and the amount of any such refund will depend on the decision of the Federal Posner Commission in the El Paso Natural Gas Company rate case now pending. This payment, therefore, is made upon and subject to the condition that, if this Company is required to make refunds of money collected from its customers, the Company will be allowed to take credit for the amount of any overpayment as finally determined, by deducting the amount of overpayment when we make future franchise payments. The amount of overpayment included in the statement and check attached is estimated not to exceed approximately $ 2 :900.00. Very truly ;yours, vd Enc. r SOUTHERN COUNTIES GAS COMPANYOFCALI FOR NIA 920 WEST EIGHTH STREET, LOS ANGELES: CALIFORNIA JI B. MC BRIDE P. O. .BOX 2036. TERMINAL ANNEX. LOS ANGELES 'B6 MANAGER. OF p.COUHTING DEPARTMENT March 29, 1962 City of Newport Beach Newport Beach, California Gentlemen: Enclosed is our franchise statement for the year 1961, together with our check for 20,067.28 . This payment is made subject to the conditions set forth below. The gross receipts shown in the statement include receipts subject to possible refund to consumers under a,ruling of the Public Utilities Commission of the State of California, and the amount of any such refund will depend on the decision of the Federal Posner Commission in the El Paso Natural Gas Company rate case now pending. This payment, therefore, is made upon and subject to the condition that, if this Company is required to make refunds of money collected from its customers, the Company will be allowed to take credit for the amount of any overpayment as finally determined, by deducting the amount of overpayment when we make future franchise payments. The amount of overpayment included in the statement and check attached is estimated not to exceed approximately $ 2 :900.00. Very truly ;yours, vd Enc. I REPORT OF BOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CAIERMAR YEAR 1961 , UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CI'T'Y OF NEWPORT BEACH BY ORDINANCE NO. 52 AND PURSUANT TO THE PROVISIONS OF SECTION "3 THEREOF. Pursuant to the provisions of Section (3) of Ordinance No- 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a corporation, herewith, files with the City Clerk of the City of NEWPORT BEACH a statement, verified by the Manager of Accounting Department of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1961 , and arising fn= the use, operation or possession of the aforesaid franchise, are: 1,003,364.22 (Statement attached) (B) The total gross receipts collected or received, or in any 'manner derived by said Southern Counties Gas Company of California during the year 1961 , realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: Dated 1,425,020.43 (Statement attached) SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA By of Accounting Department 0 ST110 u of CALTF ORNIA ) ) sr. County of Los Angeles ) J. S. MBR,M.^, bein.g duly sworn, deposes and says: That he is the Minager of Accounting Department of SOL'lIMN COUNTIES GP.S COP.TA Y OF CALIFORNIA, the corporation mgIdng the fore- going statement; that he has read the statement and knows the contents thereof; and that the same is true of his own Imowledge, except as to the matters which are therein stated upon his infoxznation or belief, and as to those matters that he believes it to be true. r Mana.gcr,6'I,;Yk6couatinr, Department Subscribed and sworn to before me this J � � day: of —a=' w — ' , 19—L-,— - N Lar', _ Iic in .zd ox r the Co.mty of Los Aj. cac,, Stnte of Califomi a A4',p, 07Ir S. DAWSON My Commission &pires April 14, 1964 P C SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGEM STREET., LOS ANGELESp CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1961 A. Gross Revenue B. Total Investment in Physical Properties C. Gross Revenues per dollar of Investment D. Amount invested in Transmission, Distribution and Utilization System. This includes mains, servicesy vaults, district regulators, etc. TRANSMISSION Transmission MaiLa Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way .561788 $45,527,385.67 E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 7,694.74 or 87.3966 Miles on Rights -o£ -Way, ,etc. 11109.65 or 12.6034% 198,768.83 164,873.19 78,669,447.31 695,894.42 32,8242359.95 81923,801.97 91,124.2o 8,804.39 $ 132,969,345.71 236,689,675.60 167,095,655.54 930872,334.13 -2• LI G. Per cent of the System total of pipe lines on public highways within the City of Newport Beach. Miles of pipeline on public highways in City of Newport Beach 94.11 Miles of pipeline on public highways of system 71694.74 H. Total Amount Due 87.3966% of $93,,872,334.13 equals $82,o41,228.37 1.2230% of $82,o41,228.37 equals pro rata of revenue of 2% of revenue equals I Amount shown in "H" is payment required under the provisions of Franchise Ordinance No. 524 1.2230 $1,003,364.22 $ 20,o67.28 0 0 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gars within the limits of the City of NEWPORT BEACH during the calendar year 19 1 together with tax computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers Less — Uncollectible accounts 1% Tax equals Total $1,428,669.54 $1,425,020.43 $ 14,250.20 Received from City Clerk on 3 -30 -61 Southern Counties Gas Company check numbered A -5293, in the amount of $17,553.66, and copies of corres- pondence pertaining 0 FA March 30, 1961 Received from Southern Counties Gas Company a check numbered A5293, in the amount of $17,553.66, being °Ppayment for the year ended December 31, 1960, for the use, operation and possession of the Franchise granted by Ordinance No. 524." MS: em S Margery Sc rou er City Clerk City of Newport Beach SOUTHERN COUNTIES GAS COMPANYOF CALIFORNIA 920 WEST EIGHTH STREET. LOS ANGEL .F.S. CALIFORNIA P.O. BOX 2936. TER.MIN.AL ANNEX, LOS AN ELEB 54 J' S. MC BRIDE MANACAM OF ACCOMNTINO DEPARTMENT March 30, 1961 City of Newport Beach Newport Beach, California Gentlemen: c'+'J�`D Enclosed is our franchise statement for the year 1960, together with our check for $ 17,553.66 . This payment is made subject to the conditions set forth below. The gross receipts shown in the statement include receipts subject to possible refund to consumers under a ruling of the .Public Utilities Commission of the State of California, and the amount of any such refund will depend on the decision of the Federal: Power Conmission in the El Paso Natural Gas Company rate case now pending'. This payment, therefore, is made upon and subject to the condition that, if this Company is required to make refunds of money collected from its customers, the Company will be allowed to taste credit for the amount of any overpayment as finally determined, by deducting the amount of overpayment when we make future franchise payments. The amount of overpayment included in the statement and check attached is estimated not to exceed approximately $ 2,500.00. Very truly yours, s vd EncA RL'PORT OF SOUTHERN COUN'T'IES GAS COMPANY OF CALIIURIIA FOR THE CALENDAR YEAR 1960 , UNDER TIE PROVISIONS OF THE FRANCHISE GRANTED TO IT Y WE CITY OF NEWPORT BEACH BY ORDINANCE NO. 524 AND PURSUAM TO TIIE PROVISIONS OF SECTION (3) THEREOF. Pursuant to the provisions of Section (3) of Ordinance No._ 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a' corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by the DTanager of Accounting Department of Southern Counties 'Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1960 , and arising from the use, operation or possession of the aforesaid franchise, are: 877,683.02 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during, the year 1960 , realized from the rendition of service to consui-ters within the limits of said City of NEWPORT BEACH , are: Dated ^,rl v 1,220,347.16 (Statement attached) SOUTHERT; COU1,11T.T.ES GAS COMPATITY OF CALIFDMIA By T -7< i ^T�r of r^,ecountinz ` Department fV . 0 STA O or r.ALIFOrNIA ) sc. County of Los Angeles J. S. YCBR=, being duly sworn, deposes and says: That he is the tanager of Accounting Department of SOUPHERN COUMMS GAS COKPMIY OF CALIFORTTIA, the corporation malting the fore- going statement; that he has read the statement and lmovs the contents thereof; and that the same is true of his own Imowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. tanager ( >ccounting Department Subscribed and sworn to before me this day of _ y , 19-�j Flotary LUl4ir in and for Yhc Co.u� :ty of Los Angeles, State of California MARJORIE S. T- My Commission Expires April 14, 1964 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 720 WEST EIGHTH STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1960 A. Gross Revenue B. Total Investment in Physical Properties C. Gross Revenues per dollar of Investment .518499 D. Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Mains District Meter &.Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment $42,593,487.34 191,416.29 149,272.98 72,533,024.36 636,488.76 32,032,672.64 8,459,004.6o 76,122.49 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights -of -Way. E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights-of-Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission 'and Distribution lines on entire system 8,387.58 Miles on Public Franchises 7,320.67 or 87.2799% Miles on Rights -of -Way, etc. i,066.91 or 12.7201 $ 113,513,155.23 218,926,677.14 156;671,489.46 81,234,010.63 2 G. Per cent of the System total of pipe lines on public highways within the City of Newport Beach 1.2379 Miles of Pipe line on public highways in City of Newport Beach 9o.62 Miles of pipe line on public highways of system 7,320.67 H. Total Amount Due 87.2799% of $81,234,010.63 equals $'1o,900,963.24 1.2379% of $70,900,963.24 equals pro rata of revenue of $877,683.02 2% of - revenue equals $ 17,553.66 I. Amount shown in °H" is payment required under the provisions of Franchise Ordinance No. 524 E SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT BEACH during the calendar year 19 together with tax . computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 224 Metered sales to consumers Less - Uncollectible accounts Total 1% Tax equals $1,2532909.52 3,562.36 X250, 3+7.16 $ 1-2:503.47_ SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA J. S. MCBRI DE .. General Auditor 510 SOU TN ...- FLOWER STREET • LOS ANGELES, CALIFORNIA P.0. Boz 2733 Terminal Anne%, Los Angaies 54 March 30, 1959 �N, �� City of Newport Beach �� f { Newport Beach, California ?' Gentlemen:' -Enclosed is our franchise`statement for the year 195$, together with 'our. check for $12'i51908 Thin- payment is made, subject to the conditions set forth below. The gross receipts shown in the statement include receipts'W subject to possible refund to consumers under a.ruling of the"°, Public Utilities Commission of .the.State of California, and the' y " amount of any such refund will depend on the decision of the Federal Power Commission in the II Paso Natural Gas Company rate.cass now pending. This _payment, therefore, is made upon and.subject,to, the condition `that ,.If this Company is required to make refunds of money collected`. from its customers, the Company 'will be allows to tak ®.credit for the amount of:any overpayment as finally determined, by deducting the amount of overpayment when we make .future franchise payments. The amount of overpayment included in the statement -and check attached is estimated not to exceed. approximately ffi 1,300 00, . c2j'' , i ' a REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1958 , UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO. r,9j, AND PURSUANT TO THE PROVISIONS OF SECTION 3 THEREOF• Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of HMO= EFACH , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by the General Auditor of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1958 , and arising from the use, operation or possession of the aforesaid franchise, are: $ 625,968.88 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of ' California during the year 1958 , realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , area Dated MAR 2 0 1959 $ 849.904.53 (Statement attached) SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 6,/General Auditor STATE OF CALIFORNIA ) ) SS: COUNTY OF :LOS ANGELES ) and says: 4 J. S. McBRIDE, being by me first duly sworn, deposes That he is General Auditor of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, the corporation making the foregoing statement; that he has read the statement and knows the contents thereof; and that the same is true of his own knowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. Subscribed and sworn to before me this a o'(� day of L lq'. J - �L.t.�S-ybti- Notary Ptblic in and r the Covnty of Los geles, State of California My Commission F;p:res Ap,1 14, 1960 MARJCRI: S. DAWSON SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 SOUM FLOWER STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1958 A. Gross Revenue B. Total Investment in Physical Properties C. Gross Revenues per dollar of Investment .444351 D. Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Maine District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment $36,083,974.12 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights-of-Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights -of -Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system Miles on Public Franchises 6,639.19 or 87.0895% Miles on Rights -of -Way, etc. 984.22 or 12.9105% 133,188.17 135,434.33 59,96o,103.49 573,374.06 27,595,507.39 7.-425 , 599.59 74,005.35 70623.41 $ 80,823,210.43 1812890,519:81 131,981,166.50 58,6451972.20 r. 0 .2. E C. Per cent of the System totel of pipelines on public highways within the City of Newport Beach Miles of Pipe line on public highways in City of Newport Beach 81.37 Miles of pipe line on public highways of system 6,.6394.19 H. Total. Amount Dine 87.0895% of $58,645,972.20 equals $51,074,483.96 1.2256 % of $51.074.48306 equals pro rata of revenue of 2% of revenue equals I. Amount shown in "H" is payment required under the provisions of Franchise Ordinance No. 524 1.2256 $625,968.88 $12,519.38 ♦. w ' SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT REACH during the calendar year 1958 together with tax computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524 Metered sales to consumers Less — Uncollectible accounts 1% Tax equals Total $ 854,031.16 4,126.63 $ 849,904.53 — # 8,499.05 ,y srntssSeaet AF aced uT bra.. �r4rm «tee{ rnwcE xr� Sam Y� SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 S0 UTN F L 0 WE R' STREET• L 0 S ANGELES, CA L F0 R.N IA J. S. MCBRIt1E General Auditor City of Newport Beach Newport Beach, California Gentlemen: Enclosed is our franchise with our check for $ 8,298.83. conditions set forth below. P. 0. Box 2736 Terminal Annex, Los Angeles 54 February 27, 1956 statement for the year 1955, together This payment is made subject to the The gross receipts shown in the statement include receipts subject to possible refund to consumers under a ruling of the Public Utilities Commission of the State of California, and the amount of any such refund will depend on the decision of the Federal Power Commission in the 81 Paso Natural Gas Company rate case now pending. This payment' therefore, is made upon and subject to the condition that, if this Company is required to make refunds of money collected from its customers, the Company will be allowed to take credit for the amount of any overpgyment as finally determined, by deducting the amount of overpaybeut when we make future franchise payments. The amount of overpayment Included in the statement and check attached is estimated act to exceed approximately $ 600.00. RNM:vd. very truly yours, �... 4 REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1955 , UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE N0. 524 A ND PURSUANT TO THE PROVISIONS OF SECTION (3) THEREOF Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California a corporation, herewith files with,the City Clerk of the City of NEWPORT BEACH a statement, verified by the General Auditor of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during nie year 1955, and arising from the use, operation or. possession of the aforesaid franchise., are: $ 4140941.32 (Statement attached) (3) The tots! gross receipts collected or received, or in any manner deri-:ed by =aid southern Counties Gas Company of California during the year 1955, realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: Dated FEB `'4 7 7955 636,918.78 (Statement attached) SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA STATE OF CALIFORNIA COUNTY OF LOS ANGELES and says: a SS J. S. McBRIDE, being by me first duly sworn, deposes That he is General Auditor of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, the corporation making the foregoing state- ment, that he has read the statement and knows the contents thereof; and that the same is true of his own knowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. Subscribed and sworn to beforrg� me thigZ2� day of February, 195 . Note, Public in an f�the ounof Lo Angeles, State ornia 'r' T, r' A.,,il 14. Ih`pY MARJORIE S. DAG'rS01,4 4b SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 SOUTH FLOWER S" -EET, LOS ANGELES, CALIFORNIA FRA_TTCu1SE STATEMENT FOR YEAR ENDED DECEMBER 31, 1955 A. Gross Revenue B. Total Investment in Physical. Properties' C. Gross Revenues per dollar of investment D. Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regu?_ators, etc. Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTION Distribution Maine District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment ♦430220 $20,352,835.08 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights of Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights of Way on basis of Revenue per dollar of investment shown in "C" 82,350,38 98,563.48 45,256,257.05 531,875.16 2o,444,803..52 6,016,202.19 72,981.47 F. Total miles of Transmission and Distribution lines on entire system 6,328.02 Miles on Public Franchises 5,517.85 or 87.1971% Miles on Rights of Way, etc. 810.17 or 12.80290 $ 56,20+1953.01 13006420431.07 92r855868a33 39,9480451.67 -2- C. Per cent of the System total of pipe lines on public highways within the City of Newport Beach 1.1912 Miles of pipe line on public highways in City of Newport Beach 65.73 Miles of pipe line on public.highways of System 51517.85 R. Total Amount Due 87•.1971% of $39,948,451.67 equals $34,833,891.35 1.191 of $34,833,891.35 equals pro rata of revenue of City of Newport Beach $414,941.32 2% of revenue equals $8,298.83 I. Amount shown in "H" is payment required under the provisions of Franchise Ordinance No. 524 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT BEACH during the calendar year 1955together with tax computed at 11, thereon in accordance with Sec- tion 3 of the Franchise Ordinance No. 524 Metered sales to consumers $638,670.42 Less Uncollectible accounts 1,751.64 Total $636,918,78 1% Tax equals $ 6,369.19 SOUTHERN COUNTIES CAS COMPANY OF CALIFORNIA 810 SOUTH FLOWER .STREET - LOS ANGELES, CAL'I F0RNIA P. 0. Box 2736 Terminal Annex, Los Angeles 54 J. Q. ABEL Controller and Treasurer February 25: 1955 City of Newport Beach Newport Beach, California Gentlemen: We are pleased to tender our certified . franchise statement showing our present computation of the amount due for the calendar year 1954. Also enclosed is our check for $7,712.00 covering payment of said amount, sub- ject to the condition set forth below. This conditional payment is based upon gross receipts which include receipts subject to possible refund to consumers under a ruling of the Public Utilities Commission of the State of California, and the amount of any such refund will depend on the decision of the Federal Power Commission in the El Paso Natural Gas Company rate case now pending before the Federal Power Commission. This payment, therefore, is made upon and subject to the condition that, if this Company is required to make refunds of money collected from its customers, you allow us to take credit for the amount of any overpayment, when such amount has been determined, by deducting the amount of overpayment to you when we make later franchise payments. The amount of overpayment in- cluded in the statement and check attached is estimated not to exceed approxi- mately $300.00. Yours very truly, • 'i. Flu -- 0 REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1954 UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO ST BY THE CITY Off' ART BEACH BY ORDINANCE NO. 524 AND PURSUANT TO THE PROVISIONS OF SECTION (3) THEREOF Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of KEMRT BEACH, Southern Counties Gas Company of California, a corporation, herewith 'files with the City Clerk of the City of NEWPORT BEACH a statement, verified by the Controller and Treasurer of Southern Counties Gas Company of California, showing in detail as'follows:, (A) The total gross receipts collected or received or in any manner derived by the Southern Counties Gas Company of California during the year 1954, and arising from the use, operation or possession, of the aforesaid franchise, are: $ 3852599.93 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1954, realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: Dated FEB 2 4 1955 $, 506,637.66 (Statement attached) SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA By^C�U Co tr ler and Treasurer STATE OF CALIFORNIA ) ) SS COUNTY OF LOS ANGELES ) and says: J. Q. ABED being by me first duly sworn, deposes That he is Controller and Treasurer of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, the corporation making the foregoing statement; that he has read the statement and knows the contents thereof; and that the same is true of his own knowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. Subscribed and sworn to before me this _day of February, 195 S` Notary ublic in an for the County of Los Angeles, State of California M6 A. Gross Revenue 0 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 SOUTH FLOWER STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEMENT FOR YEAR ENDED DECEMBER 31, 1954 B. Total Investment in Physical Properties C. Gross Revenues per dollar of investment .431639 D. Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains $18,279,002.94 Transmission Meter & Regulator Stations 66,297.13 Miscellaneous Transmission Equipment 65,759.89 Distribution Mains 40,941,074.04 District Meter & Regulator Stations 518,884.24 Services 181196,002.48 Curb Meters & Regulators 5,767,055.75 Miscellaneous Distribution Equipment 81,798.92 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights of Way E. Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights of Way on basis of Revenue per dollar of investment shown in "C" F. Total miles of Transmission and Distribution lines on entire system 5,894.23 Miles on Public Franchises 5,120.19 or 86.8678% Miles on Rights of Way, etc. 774.04 or 13,1322% $ 5o,8c6,563.14 117,7c6,o18.47 83,915,875.39 36,221,364.54 2 _ G. Per cent of the System total of pipe lines on public highways within the City of Newport Beach 1.2255 Miles of pipe line on public highways in. City of iewport Beach 62.75 Miles of pipe line on public highways Of System 5,120.19 H. Total Amount Due City of Newport Beach 86.8678% of $36,221,364.54 equals $31,464,702.51 1.2255% of $31,464,702.51 equals pro rata of revenue of City of Newport Beach $385,599.93 2% of revenue equals $7,712.40 I. Amount shown in H is payment required under the provisions of Franchise Ordinance No. 524 0 0 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT BEACH during the calendar year 1954 together with tax computed at 1% thereon in accordance with Sec- tion 3 of the Franchise Ordinance No. 524 Metered sales to consumers $508,182.63 Less - Uncollectible accounts 1,544.97 Total 1506,637:66 1% Tax equals $ 5,066.38 46 4 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 910 S0 U T N FLOWER STREET • LOS AN.G ELES, CALIFORNIA P. 0. Box 2736 Terminal Annex, Los Angeles 54 FREDERICK G. DUTTON Assistant Counsel City Council City of Newport City Hall Newport Beach, Gentlemen: Beach California September 10 195+ D3 23 We are enclosing for your information a.copy of the Application recently filed by this Company with the State Public Utilities Commission for a general rate increase for natural, gas service. 9"�e The need for increased rates is due primarily to two factors. First is the higher costs to the Company that have become effective since the last review of rates by the Public Utilities Commission. Second is the need for protecting the Company's financial integrity if it is to attract the new capital essential to grow with Southern California and continue to provide the efficient, economical gas service on which this area has come to depend. We shall be glad to provide in addition to that in the need for rate relief if yo u rmf encl. 1 J( J r t 1` �l you with any information Application on the Company's so desire. Sincerely yours, FREDERICK G, DUTTON FORM Eb2YT614 2-81 STATEMENT OF ACCOUNT DETACH BEFORE DEPOSITING. - 7 I�EETttERENT OF MMtGH PAYEE HAS AGCEFTED, CHECK 'AtTACro, Payment for the year.onded Decouber 31, 1953 for the use, operation, and possession of the franchise granted by Ordinance No. 524 as per statement. $50$99.33 $OUTHERN COUNTIES GAS CO. OF CALIFORNIA r SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 SOU T It FL0W E.R S R E E T •L:0S ANGELES. CALIFORNIA 1. Q. ABEL General Auditor and Assistant Treasurer City of Newport Beach Newport Beach, California Gentlemen: P. 0. Box 2736 Terminal Annex, Los Angeles 54 February 19, 1954 We are pleased to tender our certified franchise statement showing our present computation of the amount due for the calendar year 1953. Also enclosed is our check for $ 5,899.33 covering payment of said amount, sub- ject to the condition set forth 'below. This conditional payment is based upon gross receipts which include receipts subject to possible refund to consumers under a ruling of the Public Utilities Commission of the State of California, and the amount of any such refund will depend on the decision of the Federal Power Commission in the E1 Paso Natural Gas Company rate case now pending before the Federal Power Commission. This payment, therefore, is made upon and subject to the condition that, if this Company is required to make refunds of money collected from its customers, you allow when such amount has be to you when we make la eluded in the statement mately $300.00, OAH:vd us to take credit for the amount of any overpayment, en determined, by deducting the amount of overpayment ter franchise payments. The amount of overpayment in- and check attached is estimated not to exceed approxi- Yours very truly, Qla REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1953, UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE N0. 524 _ AND PURSUANT TO THE PROVISIONS OF SECTION (3) THEREOF Pursuant to the provisions of Section (3) of Ordinance No, 524 of the City of NEWPORT BEACH , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of NEWPORT BEACH a statement, verified by the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received, or in any manner derived by the Southern Counties Gas Company of California during the year 1953 , and arising from the use, operation or possession of the aforesaid franchise, are: 0 294,966.39 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1953 realized from the rendition of service to consumers within the limits of said City of NEWPORT BEACH , are: $1.32.683.12 ('Statement attached) Dated FED 19 1954 . SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA gm 0 0 STATE OF CALIFORNIA ) ) SS COUNTY OF LOS ANGELES ) and says: J. Q. ABED being by me first duly sworn, deposes That he is Assistant Treasures` of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, the corporation making the foregoing statement; that he has read the statement and knows the contents thereof; and that the same is true of his own knowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. Subscribed and sworn to before mg this c day of February, 195 *% J. - Q"' y Pu lic in and for thV County Los Angeles, State of California f SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 SOUTH. FLOWER STREET, LOS ANGELES, CALIFORNIA FRANCHISE STATEWT FOR YEAR ENDED DECEMBER 31, 1953 A Gross Revenue $ 40,313,707.75 B Total Investment in Physical Properties 112,302,998'.78 C Gross Revenues per dollar of investment .358973 D Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, eta.. TRANSMISSION Transmission Mains 17,813,692.71 Transmission Meter & Regulator Stations 55,609.34 Miscellaneous Transmission Equipment 63,670.04 DISTRIBUTION Distribution Dins 38,901,743.99 District Meter & Regulator Stations 484,947.32 Services 17,266,435.55 Curb Meters & Regulators 5,702,948.09 Miscellaneous Distribution Equipment 82,240.55 Total Investment in Transmission, Distribution and Utilization System occupying both public and private Rights of Way 80,371,287.59 E Amount of Revenue applicable to Transmission and Distribution System occupying public and private Rights of Way on basis of Revenue per dollar of investment shown in "C^ 28,851,122.22 F Total miles of Transmission and Distribution lines on entire system 5,722.83 Miles on Public Franchises 4,962.15 or 86.70" Miles on Rights of Way, etc. 76o.68 or 13.2920% 71 _2_ 0 G Per cent of the System total of pipe lines on public highways within the City of Newport Beach 1.1171 Miles of pipe line on public highways in City of Newport Beach 55.43 Miles of pipe line on public highways of System 4,962.15 In territory annexed April 23,_ 1953 Per cent of the System total of pipe lines on public highways within the City of Newport Beach 0062 Miles of pipe line on public highways in City of Newport Beach .31 In territory annexed April 23, 1953 Per cent of the System total of pipe lines on public highways within the City of 'Newport Beach .0583 Miles of pipe line on public highways in City of Newport Beach 2.89 In territory annexed May 12 1953 Per cent of the System total of pipe lines on public highways within the City of Newport Beach .0012 Miles of pipe line on public highways in City of Newport Beach .06 In territory annexed September 10, 1953 Per cent of the System total of pipe lines on public highways within the City of Newport Beach .0546 Miles of pipe line on public highways in City of Newport Beach 2.71 H Total Taxes Due City of Newport Beach 86.7080% of $28,851,122.22 equals $25,016,231.05 1.1172 of $25,016,231.05 equals pro rata of revenue of City of Newport Beach 279,456.32 In territory annexed A ril 23 1953 7 oP 2 , 51, 122.22, equals $25,016,231.05 .0062 of $25,016,231.05 equals pro rata of revenue of City of Newport Beach 1,551.01 812 of $1,551.01 equals 1,034.01 Isi territor annexed A rl 2 1 70 of 2 ,851,122.22 equals $25,016,231.05 •05839 of $25,016,231.05 equals pro rata of revenue of City of Newport Beach 14,584.47 8/12 of $14,584.47 equals 9,722.98 . i. 0 -3- 0 In terrtor annexed May 12, 1953 .70j of 2 ,851,122.22 equals $25,O16,231.05 .0012% of $25,016,231.05 equals pro rata of revenue of City of Newport Beach 300.19 8/12 of $300.19 equals 200.13 In territor annexed Se tember 10 1 70 of 2 51,122.22 equals 25,016,231.05 .0546% of $25,016,231.05 equals pro rata of revenue of City of Newport Beach 13,658.86 4/12 of $13,658.86 equals 4,552.95 Total Taxable Revenue 294,966.39 2% of Revenue equals 5,899.33 I Amount shown in H is payment required under the provisions of Franchise Ordinance No. 524 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of NEWPORT BEACH during the calendar year 1953 together with payment required computed at 1$ thereon in accordance with Section 3 of the Franchise Ordinance No. 524 �. Metered sales to consumers Less - Uncollectible accounts Total 1% equals 434,180.53 1,497.41 $ 4322683.12 9 4.326.83 xrovert 30"hv California Muth Is 1954 s"thsM Counties us Company of C"Grw& P. 0. Box 27369 Terminal Annang Ids Aftelso-540 Calif* contlemoss lo"d Please find r000lpt oevering plovent of $5499-33 a MmOut for year ontift Dan, 319 1953 Per o"UsAwas NO* 5240 Very truly vows$ rum"* officer f City of. Newpo Ecach �O 6D.9 NEWPORT BEACH, CALIF..�,alrlilV 19 RECEIVED FRO _ L AI ? Cb • — $SJ JvY� o LLARS DETAI�eYA 3/ S-2, C. _DYf Fuma $- FINANCE. OFFIC 3 3 /r NB 156 -2500 -4/52 FORM 0-23 -3. TOM 1-52 x4R Payment for the use, operation, by Ordinance No STATEMENT OF ACCOUNT DETACH BEFORE DEPOSITING. IAWL SETTLEMENT OF WHICH PAYEE HAS ACCEPTED CHECK AITACM ERETO. y ended December 31, 1952 for t possession of the franchise gr t an ed 524 as per statement. $5,144.81 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA - BOX 297 FOY STATION LOS ANGELES 17. CALIFORNIA r� y, REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1952, UNDER THE PROVISIONS OF THE"FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE N0. 1 PURSUANT TO THE PROVISIONS OF SECTION (3) THEREOF Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of Newport Beach , Southern Counties Gas Company of California, a corporation, herewith files with the City Clerk of the City of Newport Beach a statement, verified by the Assistant Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts Collected or race. iVed' or in any manner derived by the Southern Counties Gas Company of California during the year 1952 , and arising from the use, operation or possession of the aforesaid franchise, are: $ 257,240,36 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1952 , realized from the rendition of service to consumers within the limits of said City of Newport Beach , are: $ 355,263.05 (Statement attached) Dated Feb. 24, 1953 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA r"101 W.5 ! • STATE OF CALIFORNIA SS COUNTY OF LOS ANGELES and says: J. Q. ABEL, being by me first duly sworn, deposes That he is Assistant Treasurer of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, the corporation making the foregoing statement; that he has read the statement and knows the contents thereof; and,that the same is true of his own knowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. Subscribed and sworn to before me this—�?�'/ day of February, 195_!3 . Not ublic in and for theVCounty of Los Angeles, State of California 0 0 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 810 SOUTH FLOWER STREET, LOS ANGELES, CALIFORNIA FRANCHISE ,STATEMENT FOR YEAR ENDED DECEMBER 31, 1952 A Gross Revenue $34,980,061.64 H Total Investment in Physical Properties 99;430,263.33 C Gross Revenues per dollar of investment .351805 D Amount invested in Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. TRANSMISSION Transmission Mains 161608,156.23 Transmission Meter & Regulator Stations 52,025.65 Miscellaneous Transmission Equipment 59,811.46 DISTRIBUTION Distribution Mains 34,035,194.11 District 'Meter & Regulator Stations 447,784.53 Services 15,114,469.08 Curb Meters & Regulators 5,24ti,S?3.93 Miscellaneous Distribution Equipment 75,1,':) Total Investment in Transmission, Distribution and Utilization. System occupying both public and private Rights of Way 71,638,479.97 E Amount of Revenue applicable to Transmission and Distribution. System cccupying public and private Rights of Way on basis of Revenue per dollar of investment shown in "C" 25,202;,775.45 F Total miles of Transmission and Distribution lines on entire system 5,384.25 Miles on Public Franchises 4,681.10 or 86.94b6% Miles on Rights of Way, etc. 703.15 or 1.3.059`4 > . _ 2 G. Per cent of the System total of pipe lines on public highways within the City of Newport Beach 1.1707 . Miles of pipe line on public highways in City of Newport Beach 54.80 Miles of pipe line on public highways of System 4,681.10 In territory annexed FebruanL1 1922 Per cent of the System total of pipe lines on public highways within the City of Newport Beach 0036 Miles of pipe line on public highways in City of Newport Beach .17 H. Total Taxes due City of Newport Beach 86.9406% of $25,202,775.45 equals $21,911,444.19 1.1707 of $21,911,444.19 equals pro rata of taxable revenue of City of Newport Beach $256,517.28 Oo36% of $21,911,444.19 equals pro rata of taxable revenue of City of Newport Beach 788.81 11/12 of $788.81 equals 723.08 Total Taxable Revenue 257,240.36 2% of total taxable revenue equals 5,144.81 I. Tax shown in R complies with provisions of Franchise Ordinance No. 524 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA Gross Receipts derived from the sale of gas within the limits of the City of Newport BeSteh during the calendar year 1952 together with tax computed at 1% thereon in accordance with Sec- tion 3 of the Franchise Ordinance No. 524 Metered sales to consumers $3869334.93 Less - Uncollectible accounts 1s 071.88 Total $395,263.05 1% Tax equals 4 WITNESSZTH- THAT, W the o as 0awalit. owner(a) of certain p reels of land situate and WHEREAS, the Applicant(s) desireW gas service from the gas distribution system of the Company at the locatiou(s) shown in Exhibit 'W" oti the reverse side of this agreement, which is hereby made a pact hereof by reference; and e WHEREAS, the gas main extension applied for will be installed by the Company in accordancevilb its Rutc-and Regal I ation governing main extensions, filed with and approved by the Public Utilities Commission of the State,of , I , , , f,� , WHEREAS, the Applicant(s) designated in Exhibit "A" hereof has (have) entered into a "D �iln Unit 01 and Main Extension Agreement(s)" with the, Company under which he (they) a ree(s) that natural gas will be usediiait certain an=- re her of dwelling units in which he (they) agir"(s) to have ins SON pipe- connections, upon his {their) respective slitetive press. ises, certain domestic appliances on a date not more than (90) days after the completion of said main extension, for which the Company will install at its own expense a length of main equivalent in cost to the total free extension allowafte shown on the !'Dwelling, Unit, Appliance, aud,Main Extension Agreement(s)", which agrecineut(s) is (are) Mae 4 part beireof by reference; and WHEREAS* since., the length of main extension applied for is approximately #eet in excess of the' length which, the Company will install at its own expense, it will be necessary for the Applicam(s) to advance to the Company, before said.main is installed, an amount of money equal to the estimated cost of such excess main. NOW, THRREFORE,L in consideration thereof and of the mutual promises and agreements herein contained and.-the advance;- by the Applicant(s) to the Company of the sum of $ subject to the terms and Conditions herein contained, receipt of which sum by the Company as hereby acknowledge it is hereb aireed by the- Mtn The Company d agrees to install OOMM of IM Md 4VMt A"!�% 4: gas main(&) in and along said streets, a distance af`M imately- 534 --fw shown on the sleetch attached hereto and made, a, part hereof, the total estimated cost of such main(s) installed being %710 IT ,IS FURTHER UNDERSTOOD AND AGREED, that the sum paid by the licaut(s) to the,Company as stated herein, together with any additions thereto or deductions therefrom as providea-cm i0c"elling Unit A, Kisco, and Main il- Extension Agreement(s)', shall be received by the Company as an advance to cover costs, of said extensions) aidd hall be an advance mithoi# m6irest and-to be; repaid, to the AppLicaurt(s) u and couditimis 44it, _pon the following terms The Company agrees to refund to the Applicant(s) an amount equal to the estimated cost Of P*1eet of wain instated for each bona fide ilomeatic gas customer (over and above lhoso:cistomers for whith,+cjedit 4s heretofore been *hriuj) who is cones nected an"u d by an independent meter from a service,counected: to said main, within ten years from the " 4, completion of the ma%�ezlaion and whose billing 5 for, the first year of service;. as esdinated by the.compitty, is $40.00- or .less. %%* 6he .such dour a Qustomer whose Applicant( &), iqi addit%n to Ste a>sove allowance, as amount egtta2 to t'wo Nttiea thC•amanntby whjeh ouch estimated biHmg for'the &�edtt year o� sepvtce eieeeds $4000. The Company, in - ,accordance with.the'pcovtabns .sat forth ,ht $ute aad Itrgnlatian No. �, ' ' ia. a'"t'so ipgrees:td make refunds to the Applicantfs) for all. cantmercial, gas engine; slid indnatrial business foyer and above ,. those eustEStiera for which credit has heretofore been oivenl which matl hr rt,rinectad•tn and:sniwlied,iw an independent meter from ed to.said main, within ten whose service the Compam t service for cooking and/6 fail(s) to nmke,'*uch an advance, no refunds will be made to the Applicantgs) until' after amequivilent number of additional q0- 'j and/or d/or an equivalent, measure of additional business (computed a refund basis);,shaff hove been *Weil to�tho extension, which additional customers and/or business will not be considered as a troper. basis for malring,way refunds in ' t • AND PROVIDED that the total'amount refunded hereunder shall not exceed the net monitor advanced; AND PRovimb"M�HER, amount not refunded upon the end f ten years fr Tn the date of completion.of the mak extension, shall at "Y the Con 4 remain of ow r iL d shall be made by the Company to the � Applicaut(s) on or about _r� 31 '1 each conpnected as provided for above during the six January I the property January 31 and July y and July I of each year. IT IS FURTHER.. UNDERSTOOD AND AGREED that the terms " customer", "domestic cusianter" or "botia. fide . dowes- tic customer" as used herein, mean a customer who u=s1944 fpF,qp:Vvg And/or water heating and/or reMgeration. It does not or include a customer who uses gas I , space heating #�&,of deposit, in any amount, will he made for a customer i0v who uses gas for "space heating only"; PROVIDED, hirOveZ � * eari a "sAce ng'only" customer, for whowt.'no initial exten - sion allowance or refund has been made, adds one more major gas uses -to tiWoof space hearing, he shall thereiOwr�be.deeraed to be a new,460WIneilastf r0fh6tiif:tfij wimusezZaticed, if any part thereof remains outstanding, shall be- made. .in -accordance with the refirad provisions mentioned above. IXT 19,YURT591K the tto t* sfons to `shfa e4ension and, refunds;, fat additional customers cuape�p_ftt'thereto WTI be Yzi#da on 41: r! 3A Fi y mr- suca. sueseqsesir extessions. Lk(p) for any iksilies,,on account A stomers. AWor business- shall have jWks cimnectw`10 - ith thelir.ovisions 6URufs No. 2k of-any. sah04Um* it of. tho Stita of calatinklai: v7 % The Applicant(s), to considerat he foregoing, hereby graut(s) to the' Cozn a right to lay'and foYever maintain 3[f necessary gas maias,,pipes and cone .m each;and.:aU of the street/ and xroads fu; oros tr t y The obligation of the "Company t'o ay'sai3 mairi(s)is sulSject TO delays'ouccaunt .i�pitt , strilras+td:0.11 other causes beyond its control. The Company shall not be liable for failure to construct said main,(s) if siteh faiinre is duyg.;,q dts inability to secure the necessary frwWIV, tor: ri� ob parry, +aid tmsase s €' "'1ity.to said necessary franc iise'$i`'Y° is of way this agreement shall be null and void and -ill tiidfiey$ ad4Ahced 'p— dkshaht -to the tei 'fAeteof_ not aatecj shalt Ae rgC34' �tio:' the Applicant(s).... - This contract shall at all times be subject to'such changes or modidcatioaia +by't9ie .Public l34tfi s "Qkm tssitdt.e'g' the :state: of California... as said. Commission may. from:+.time to..time,,. direct in the eTgmj" of its jurisdict;on.,. - : i 1 . „ . Neither this contract nor any part thereof, nor any moneys dne or to become due hereunder, shall, be aasigped;aithout the writ- ten consent of the Company indorsed hereon, and in the absence of such consent no such assignment or atteaipte'd assignment''Will be recognized by the Company. - . , - . - ..... .. .. .. All terms and stipulations heretofore made and agreed to by the parties.. in relation to said gas train extension,.are mentioned: in this agreement, and no representations by any agent bi employee shall be i indfng upon rite 06ii,i riy ezeepf� as herein eapAssed. IN WtTKU9 WHIMOV, the parties hereto 1ia've- ciused their'names to be-'hereunto'aifixed the -day "and year first- above written... ._ .. . _.. -... , SOUTHERN COUNTIES GA A Ci�t1POiFN±A. By . Natm stem 'Nttmbka ��r 4 g , ro. M > :.. a ro o m Z O o 15.. °•o�bii n n�gq If a Mop It o . I 1 7 . I Natm stem 'Nttmbka ��r 4 TOtel IftUM Requl" 334' IN se Ss�� /5 us 6a 'o Z / 5T / \. I O. .4PP A/O. 92 75 C -6 /,cif oATE 2 3` 50 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA BC.LE "_ OaawN BT SKETCH SHOWING DIVNHON' CHECK$D BY DWG'. NO:. CHECKEO BY A_ APPROVHO SOUTHERN COUNTIES GAS COr —CY.1- 11.68 —am —loom. AGHPROOF OIETL06N. 4A. �� }J tui . j` , / 0 f I SOUTHERN COUNTIES GAS. COMPANY OF CALIFORNIA ORANGE 191 SOUTH GRAND STREET lei ANAHEIM 114 SOUTH CLAUDINA STREET ORANGE COUNTY DIVISION FULLERTON JUSTIN M. KENNEDY, DIVISION MANAGER 114 EAST WILSHIRE AVENUE 207 WEST SECOND STREET PLACENTIA SANTA ANA.: CALIF. 237 SO, BRADFORD AVENUE March 21, . 1950' City of Newport Beach City Hall Newport Beach, California Gentlemen: We are attaching your copy of Contract for Gas Main Extension in connection with the exten- Bion of our gas mains to serve S/F Corner of Newport Ave. & 15th St., Costa Mesa. This copy is for your records. WMG: dm Enc, . Yours very truly, 1' W. L, H. Geldert Division Supervisor Sales Department NEWPORT BEACH 209 PALM STREET. BALBOA HUNTINGTON BEACH 911 MAIN STREET LAGUNA BEACH 460 SOUTH COAST BLVD.. BREA 229 SOUTH POMONA REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 1950, UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE NO.-524 AND PURSUANT TO THE PROVISI NS OF SECTION (3) THEREOF Pursuant to the provisions of Section (3) of Ordinance No. 524 of the City of NPwnor� Beach , Southern Counties Gas Company of California, a corporation, herewith files with.the City Clerk of the City of Newport Beach a statement, verified by the Treasurer of Southern Counties Gas Company of California, showing in detail as follows: (A) The total gross receipts collected or received, or in any manner derived by the Southern Counties Gas Company of California during the year 1950 and arising from the use, operation or possession of the aforesaid franchise, are: $224 ,060.88 (Statement attached) (B) The total gross receipts collected or received, or in any manner derived by said Southern Counties Gas Company of California during the year 1950 , realized from the rendition of servieeto: consumers within the limits of said City of _ Newport Beach are: 29.779_ (Statement attached,) Dated SOUTHERN COUNTIES GAS CoAubANY OF CALIFORNIA By 7 Treasurer 0 STATE OF CALIFORNIA } ) SS COUNTY OF LOS ANGELES ) 0 G. T. Kelly , being by me first duly sworn, deposes and says: That he is Treasurer of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, the corporation making the foregoing statement; that he has read the statement and knows the contents thereof; and that the same is true of his own knowledge, except as to the matters which are therein stated upon his information or belief, and as to those matters that he believes it to be true. Subscribed and sworn to before me this of G 4 day of February, 1951 Notary Public in and for the County of Los Angeles, State of California hn.. ,•rmm hi :" nip Au;lk :t 27. 1.952 TWO PER CENT FRANCHISE TAX STATEMENT A Gross Revenue B Total Investment in operative property as indicated by the books, exclusive of intangibles C Gross Revenues per dollar of investment D Amount invested in.Collection, Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. COLLECTION SYSTEM Field Collection System Field Measuring Equipment TRANSMISSION Transmission Mains Transmission Meter & Regulator Stations Miscellaneous Transmission Equipment DISTRIBUTIOT Distribution Mains District Meter & Regulator Stations Services Curb Meters & Regulators Miscellaneous Distribution Equipment .362328 96,561.34 2,877.97 13,800,717.12 35,007.54 46,801.45 27,999,044.78 346,660.69 11,392,794.80 3,701,544.99 46,295.25 Total Investment in Collection, Transmission, Distribution and Utilization System occupying both public and private Rights of Way E Amount of Revenue applicable to Collection, Transmission and Distribution System occupying public and private Rights of Way on basis of Revenue per dollar of investment shown in "C" F total miles of Collection, Transmission and Distribution lines on entire system 47922;11 Miles on Public Franchises 4,265,16 or 86.6531% Miles on Rights of Way, etc. 656.95 or 13.3469% $29,192,475.93 80,569,301.82 57,468,305:93 20,822,376.35 - 2 - G. Per cent f the System total of pipe lines on public highways within the City of Newport Beach 1.2377 Miles of pipe line on public highways in City of Newport Beach 52.79 Miles o pipe line on public highways of System 4,265.16 Per cent of the System total of 'pipe lines on public highways within the City of Newport Beach .0023 Miles of pipe line on public highways in City of Newport Beach .10 Per cent of the System total of pipe lines on public highways within the City of Newport Beach .0002 Miles of pipe line on public highways in City of Newport Beach .01 In territory annexed September 13 1950 Per cent of the System total of pipe lines on public highways within the City of Newport 'Beach .0075 Miles of pipe line on public highways in City of Newport Beach .32 r -3- H. Total taxes due City of Newport Beach 86.6531% of $20,822,376.35 equals $18,043,234.60 1.2377% of $18,043,234.60 equals prorate, of taxable revenue of City of Newport Beach $223,321.12 1VIii ta_____ annexed 1 ] 0 _rritory'_ 533 o, 22,37 35 equals 18,043,234.60 $ .0023% of $18,043,234.60 equals prorate, of taxable revenue of City of Newport Beach $414.99 8/12 of $414.99 equals $276.66 In territonr annexed Se tember 1 19 0 bb 531 of 0, 22,37 •35 equals l ,043,234.6o .0002% of $18,043,2 4.60 equals prorate, of taxable revenue of City of Newport Beach $36.09 4/12 of $36.09 equals $12.03 In territo annexed 'Se tember 13 19 0 N- of o, 2,37 .35 equals 1 ,043,234.60 0075% of $18,043,234.60 equals prorate, of taxable revenue of City of Newport Beach $1,353.24 4/12 of $1,353.24 equals $451.08 Total taxable revenue $224,060.89 2% of total taxable revenue equals $4,481.21 I. Tax shown in H complies with provisions of Franchise Ordinance No. 524 7 LI LI SOUTHERN COUNTIMS 'GAS COMFANY OF CALIFORKA Grose Receipts derived from the sale of gas within the limits of the City of Newport Beach during the calendar year 1950 together with tax computed at 1% thereon in accordance with Section 3 of the Franchise Ordinance No. 524. Metered sales to consumers Less - Uncollectible accounts Total 1% 'Tax equals $300,378.02 598.13 $ 2,997.80 lOIIM NEB -IOM i -AO idENT OF ACCOUNT DETACH BEFORE pEPO FOR W iTT Vtllt OF WHICH PAYEE HAS ACCEMO CHECK A"hCH In payment for 2% of the grow receipts for the year ended December 31, 1949 arising Prom the use, operation N and possession of the franchise granted by Ord. #524 $49113.61 - o ; 0 (vo W � W .. O y � z a W W SOUTHERN COUNTIES GAS CO. OF CALIFORNIAs 11 0 REPORT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA FOR THE CALENDAR YEAR 124a, UNDER THE PROVISIONS OF THE FRANCHISE GRANTED TO IT BY THE CITY OF NEWPORT BEACH BY ORDINANCE N0. A- AND PURSUANT TO THE PROVISIONS OF SECTION (3) THEREOF. PURSUANT TO THE PROVISIONS OF SECTION (.3) OF ORDINANCE NO. 524 OF THE CITY OF Newport Beach SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, A CORPORATION, HEREWITH FILES WITH THE CITY CLERK OF THE CITY OF ;Newport Beach A STATEMENT, VERIFIED.. BY A VICE- PRESIDENT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, SHOWING IN DETAIL AS FOLLOWS:. (A) THE TOTAL GROSS RECEIPTS COLLECTED OR RECEIVED, OR IN ANY MANNER DERIVED BY THE SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA DURING THE YEAR 1242) AND ARISING FROM THE U:S.E, OPERATION OR P'OSS'ESSION OF THE AFORESAID FRANCHISE, ARE: $ 205y6aQ.39 __ (STATEMENT ATTACHED) (B) THE TOTAL GROSS RECEIPTS COLLECTED OR RECEIVED, . OR IN ANY MANNER DERIVED BY SAID SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA DURING THE YEAR V49 , REALIZED FROM THE RENDITION OF SERVICE TO CONSUMERS WITHIN THE LIMITS OF SAID CITY OF p NgyRort Beach,, ARE FEB 2 3 1950 DATED 2(9141__, `STATEMENT ATTACHED) SOUTHERN' COUNTIES GAS COMPANY OF CALIFORNIA STATE OF CALIFORNIA ) SS COUNTY OF LOS ANGELES ) 0 NORMAiV R. NC` E= , BEING BY ME FIRST DULY SWORN, DEPOSES AND SAYS: THAT HE IS A VICE PRESIDENT OF SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, THE CORPORATION MAK INO THE FAREGOINO STATEMENT; THAT HE HAS READ THE STATEMENT AND KNOWS THE CONTENTS THEREOF,, AND THAT THE SAME IS TRUE OF HIS OWN KNOWLEDGEf EXCEPT A$ TO THE MATTERS WHICH ARE THEREIN STATED UPON HIS INFORMATION, 09 BELIEF, AND AS TO THOSE E MATTERS THAT HE DEL -IEVES IT TO BE TRUE. SUBSCRIBED AND SWORN TO DEFORE Mt THIS DAY OF FESR.UARY, 19�j NOTARY PUBLIC 114 AND FOR THE COUN.'tY OF LOS ANGELES, STATE OF CALIFORNIA MY GOMJ.i'S'(:'r: TXPr S AUS. I2, 1%2 ANN H.. HUTCHINSOH • w A Gross Revenue $26,244,120.11 B Total Investment in operative property as indicated by the books, exclusive of intangibles 69,941,897.66 C Gross Revenues per dollar of investment .375227 D Amount invested in Collection, Transmission, Distribution and Utilization System. This includes mains, services, vaults, district regulators, etc. COLLECTION SYSTEM Field Collection System 96,778.04 Field Measuring Equipment 2,877.97 Transmission Mains —., 10,792,503.15 Transmission Meter & Regulator Stations 33,504.05 Miscellaneous Transmission Equipment 42,534.19 Distribution Mains 25,304,786.50 District'Meter & Regulator Stations 339,760.20 Services 9,279,032.04 Curb Meters & Regulators 2,741,127.86 Miscellaneous Distribution Equipment 43,809.14 Total Investment in Collection, Transmission Distribution and Utilization System occupying both public and private Rights of Way 48,676,713.14 E Amount of Revenue applicable to Collection, Transmission and Distribution System occupying public and private Rights of Way on basis of Revenue per dollar of investment shown in "C " 18,264,817.04 F Total miles of Collection, Transmission and Distribution lines on entire system 4,650.45 Miles on Public Franchises 4,044.86 or 86.9778% Miles on Rights of Way, etc. 605.59 or 13.0222% 2 _ G Per cent of the System total of pipe lines on public highways within the City of Newport Beach Miles of pipe line on public highways in City of Newport Beach 52.37 Miles of pipe line on public highways of System 4,044.86 H Total Taxes due City of Newport Beach 86.9778% of $18,254,817.04 equals $15 ,886,336.04 1.2947% of $15,886,336.04 equals pro rata of taxable revenue of City of Newport Beach 205,680,39 2% of taxable revenue equals I Tax shown in H complies with provisions of Franchise ordinance No. 524 1.2947 4,113.61. e )�i fin. f�rPS PP • ._ 6� ?z� f= Gross Receipts derived from the stile of gas within the limits of the City of Newport Beach during the calendar, year 1949 together with tax computed at 1; thereon: in accordance with Section 3 of the Franchise Ordinance No. 524. Metered sales to consumers Lees - Uncollectible accounts Total. 1% Tax equals $270,547.11 695.68 69 8 -14 2 698. 1 J, I hereby certify that the attached letter dated August 9, 1943 is an exact copy of the original letter of acceptance of a franchise by the Southern Counties Gas Company of California, a corporation, covered by Ordinance No. 524, and that said original letter o acceptance was A.M. received by me at E:;:*. on , August �, 1943. C y C er o e y o ewpor Beach, California 1 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 2 August 9, 1943 3 4 5 6 To the City 'Council of the City of Newport Beach and Clerk of the City of Newport Beach 7 Newport Beach, California 8 Gentlemen: 9 Southern Counties Gas Company of California 10 hereby files with you its written acceptance of the terms 11 and conditions of Franchise Ordinance No. 524, and the 12 undersigned Southern Counties Gas Company of California 13 hereby agrees to keep and observe each of the conditions 14 and provisions thereof. 15 Yours very truly, 16 SOUTHERN COUNTIES GAS C SP OF CALIFORNIA 17 18 By c.e es iTe`nt 19 Attest 20 GES -jdd Secretary 21 22 23 24' 25 26 27 28 29 30 31 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 97 28 29 30 31 32 1; SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA August 2, 1943 To the City Council of the City of Newport Beach and Clerk of the City of Newport Beach Newport Beach, California Gentlemen: Southern Counties Gas Company of California.. hereby files with you its written acceptance of the terms and conditions of Franchise Ordinance No. 524, and the undersigned Southern Counties Gas Company of California hereby agrees to keep and observe each of the conditions and provisions thereof. GES -jdd Yours very truly, SOUTHERN COUNTIES GAS >COM Attest: SOUrfiI RN COUNTIES GAS COMPANY OF r.AILIPOI"YIA SIXTH. FLOOR 910 SOUTH FLOWER STREET O"ICH OF LOS. ANGELE S,CALIF01 IA LBDOV M. EDWAII G" UAL °""E` March 9, 1943 Board of Trustees City of Newport Beach Newport Beach, California Gentlemen: We enclose herewith our application for a "Gas Fran- chise pursuant to the provisions of the Franchise Act of 1937." The Franchise Act of 1937 was passed by the Legislature of the State of California at the request of California League of Municipalities. The law was drawn by the League in order to give the State a modern franchise law suited to present conditions. Our present franchise granted by the City of Newport Beach on December 14, 1925 as Ordinance No. 254 has but seven years more to run, expiring December 14, 1950. Since the passage of the Franchise Act of 1937, we have been taking out new franchises under that Act, in place of our older franchises granted under the Broughton Act (passed in 1905). We now operate under franchises of the 1937 Act in the following cities on our system: Anaheim - Orange County Fullerton - of of Orange - If of Santa Ana - of it Azusa Los Angeles County Covina - if of of Montebello it of " Chino - San Bernardino County Ontario n of to Arroyo Grande - San Luis Obispo County We believe that it is to our mutual benefit to have a franchise under the new Franchise Act of 1937 to replace the one we now operate under and which will soon expire. Yours very truly, SOUTHERN COUNTIES GAS C MP OF ALIFORNIA By J GES -jdd vVice Tres den encls: i r (To be used where Gas Company does not own a Constitutional Franchise) APPLICATION OF... SOUTHERN COUNTIES GAS - _COMPANY„OF CALIFO • - -- --- • - - - -- (Name of Applicant) FOR A GAS FRANCHISE PURSUANT TO THE PROVISIONS OF THE FRANCHISE ACT OF 1937. To ame of Legislative Body) CITY OF NEWPORT BEACH ---- - - ----------- -------- •--- --------- -- - -- - -- - ----------•----•--------- -- ...---•--- -- •-- -..... ------ -------- -- -- -- (Name of Municipality) California. Gentlemen: The undersigned applicant hereby makes an application, under and pursuant to the provisions of the Franchise Act of 1937, for a franchise, and, in compliance with the provisions of Section 2 thereof, states: (a) The name of the applicant is.. i59uunurll GounLlna iraz uvut�auy ui t,a.Llivr1 - --- -- ...... - The applicant is a corporation organized and existing under and by virtue of the laws of the State of California and engaged as a public utility corporation in transmitting and distributing gas for all pur- poses to consumers in various municipalities and communities in the State of California, including the of (b) The purpose for which the franchise herein applied for is desired is to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the public streets, ways; alleys and places; as the same. now or may hereafter exist within the City of Newport Beach ...................... - .......... .... ......... °- --- - - --- - --- --- - -- ---- ...........----.. ......................................... ............................... (Name of Municipality) The term for which the franchise herein applied for is desired is indeterminate, as defined in Sec- tion 5 of the Franchise Act of 1937. (c) The applicant, if granted the franchise herein applied for, will pay to City of Newport Beach .......................... . .. ..- - -- -...... -•-•> -- . .... __ ------------ ... (Name of Municipality) during the life of such franchise, two per cent (2 %) of the gross annual receipts of applicant arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1 %) of the gross annual receipts of applicant derived from the sale of gas within the limits of the. -.!:Aj y- of 1V t!!Fl? Ddat under said gas .franchise: (Name of Dated this. - --•9th ---------- day of ............... March ................... '......... 1943..::.. Los Angeles, California. i k i FRANCHISE BOND ` Bond No, 113238 1 KNOW ALL MEN BY THESE PRESENTS: 2 That we, SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA, 3 a corporation duly organized and existing under and by virtue of 4 the laws of the State of California and having its principal 5 place of business in the City of Los Angeles, County of Los 6 Angeles, State of California, as principal, and PACIFIC INDEMNITY 7 COMPANY, a corporation created, organized and existing under and 8 by virtue of the laws of the State of California, as surety, are 9 held and firmly bound unto the City of Newport Beach,, County of 10 Orange, State of California, in the penal sum of One Thousand 11 Dollars ($1,000.00), lawful money of the United States of America, 12 for the payment of which well and truly to be made we bind our - 13 selves, our successors and assigns, jointly and severally, firmly 14 by these presents: - 15 1°i'HEREAS, the above abounden Principal, SOUTHERN COUNTIES le GAS COMPANY OF CALIFORNIA, has been awarded a franchise for an 17 indeterminate term, pursuant to the provisions of the Franchise 18 Act of 1937 of the State of California, approved June 29, 1937, 19 Chapter 650, Statutes of 1937, by Ordinance No, 524 of the City 20 of Newport Beach, County of Orange, State of California, dated 21 August 2, 1943, for the right, privilege and franchise to lay and 22 use pipes and appurtenances for the transmission and distribution 23 of gas for any and all purposes under, along, across or upon the 24 public streets, ways, alleys, and places, as the same now or may 25 hereafter exist, within said City of Newport Beach, the terms and 26 conditions of said franchise being fully set forth in said Ordin- 27 ance No. 524 granting the same; and 28 WHEREAS, the said Principal, as Grantee of said franchis 29 is required by said City of Newport Beach to file a bond in the 30 sum of One Thousand Dollars ($1,000.00) for the faithful perform- 31 an.ce of the terms and conditions thereof. 32 NOW,, THEREFORE, if the said Principal, SOUTHERN COUNTIES - 1 s Executed in triplicate TO AMEND BOND TO BE ATTACHED to and form a part of Franchise Bond Bond No 113238 executed by the PACIFIC INDEMNITY COMPANY, effective August 2y 1943 in the amount of One thousand - - - DOLLARS ($ 1'000.00) on behalf of Southern Counties Gas Company of California (Hereinafter called Principal) and in favor of City of Newport Beach IN CONSIDERATION of the premium charged for the attached bond, it is understood and agreed that the said bond shall be and the same is hereby amended, effective as of August 1,, 1970 by changing the name of the Principal on said 'bond FROM: Southern Counties Gas Company of California TO: Southern California Gas Company PROVIDED, HOWEVER, that the attached bond as changed by this Rider shall be subject to all its agree- ments, terms, conditions and limitations except as herein expressly modified, and that the liability under the attached bond and under the attached bond as changed by this Rider shall not be cumulative and shall be limited in the avvrevate to the nennlry n4 tho e..;'l h. —A STATE OF CALIFORNIA, County of .... L:O.`S.....ANGELE'g }s5.. On this 3rd ..............day o£.....- trust.. ................ 19.7-0:., .before me; .. ARLM C.___ JAM .................................... a Notary Public in and for said County and State,: residing therein duly commissioned and sworn, personally appeared ...................... . ............_....... -- .......... ............................... - ..jKAI WEBER...................... .. ..... ° -- known to me to be the duty authorized Attorney -in -Fact of PACIFIC. INDEMNITY COM- PANY, and the same person whose name is 'subscribed to the within instrument and he (she) acknowledged to me that he (she) subscribed his (her) own name, as the Attorney -in -Fact for and on behalf of PACIFIC INDE34NI.TY COMPANY. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and. year. in this Certificate. first above written. mumiwimixomnminniuinninnn FFICInnnnnSEALmnmimmc OffICIAL SEAL = ARLEEN C. JAWNY °� Notary Public - California ° PrinClPdl Office in ° .�.sxe'r'�i. Los Angeles County = °° — °° - - - -- ....... =rmy Commission Expires April 10 1972 , Notary ._.. L ®J A N g :ium u i nnu:,uiumom...... i ua nn�xnnmmnn nwnnnn n- - y Public in. and for ...... . _... County, e of California Form G1000 Rev. F (568) STATE OF CALIFORNIA. SS. county of Loa ,Angeles STATE OF CALIFORNIA, coamyof-_ LOS ANGELES On _day L_AA�' USt --------------- in the year one thousand. nine hundred and --- ------ ....... before me, __..___._..__ATALA M. CART EN ............. a Notary Public in and for said County and State, residing therein, duly commissioned and sworn, personally appeared- ........................... V. A. SHAVER, JR..__ ..... .. to me to be the duly authorized Attomey4n-Fact of PACIFIC INDEMNITY COMPANY, and the same person whose name is subscribed to the within instrument as the Attorney-in-Fact of said Company, and the said ...... C. A. SHAVER, JR. ---------- acknowledged tome that he subscribed the mine of PACIFIC INDEMNITY COMPANY, thereto as surety and his own name as Attorney-in-Fact. IN WITNESS WHEREOF, I have hereunto am my hand and affixed my official seal the day and year in this Certificate first above written, /-) - /7 - Form 0100 Rao. A IM 642 (P.L) Notary Public in and for.L08-A&GELEScomity, State of California. My CommLoion Expires May 28, IM 1 2 411 6 6' 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 go GAS COMPANY OF CALIFORNIA, shall well and truly observe, fulfill and perform each and every term and condition of said franchise, then this obligation to be void, otherwise to remain in full force and effect. IN WITNESS Vu'HEREOF, SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA and PACIFIC INDEIviNITY COMPANY have hereunto caused their names.to be subscribed and their corporate seals affixed by their respective officers thereunto duly authorized this 2nd day of August, 1943. (SEAL) 0RIGINAL (SEAL) M PA Eli - 2 .. ri Fx �� tic, eat � L y,. c} Of VVI an alatma; er�sald be'J* ;the °axamr 6?s'�, is not more -NOW TRERMRX in, cm 0sfo 2 4ai seta e .A9Y i�£icB 09Nt we awauynny nnYSG'" t =�JC u�; RF,r W{CCOV�`i,`: .;. - y SEE3UF Ot)NTTE$ tiAS �OffiPAAPY GF C kaiFORM ' k i t w.r i u u b Swa.. 5, k z �� NY j £ k i t w.r 40 SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA ORANGE 1B1 SOUTH GRAND STREET ANAHEIM 114 SOUTH CLAUDINA STREET FULLERTON 114 EAST WILSHIRE AVENUE PLACENTIA 237 $O. BRADFORD AVENUE 0 ORANGE COUNTY DIVISION JUSTIN M. KENNEDY, DIVISION MANAGER 207 WEST SECOND STREET SANTA ANA. CALIF. March 21,1950 City of Newport Beach City Hall Newport Beach, California Gentlemen: We are attaching your copy of Dwelling Unit, Appliance and Main Extension Agreement, in connec- tion with the extension of our gas mains to serve S/E Corner, Newport Ave. & 15th St., Costa Mesa. This copy is for your records. We wish to advise that we will proceed with the installation of this extension as soon as materials are available. Yours very truly, 1 �y� W. L. H. Ce ldert Division Supervisor Sales Department WLHG:dm Enc. NEWPORT BEACH 209 PALM STREET. BALBOA HUNTINGTON.BEACH all MAIN STREET LAGUNA BEACH 460 'SOUTH COAST BLVD. BREA 229 SOUTH POMONA STATE OF CALIFORNIA, Count 1Qs y Calil.. On' _day ofU r.... _. _ _. _ in the year one thousand nine hundred and ,...." . _... before me_..__ .._...... _,: ... ..... _ .............. a Notary Public in and for the County of....._ lea-Angeles -- �__ - - - -- . -- personally appeared .........__ ...................... ...... _ ... d ....W. -ILAs " .:..... .... .:........ _ ... _ ............ ::_.._ X. known to me to be the persons Whose name • s" . subscribed to the within instrument as the •Attorney -in-fact of the INDEMNITY INSUP ANCE' CO. OF NORTH AMERICA, and acknowledged to me that t�lee subscribed the of the Indemnity Insurance Co'. of North America etl as principal, a �own name s ttorni, s -:n fact. 169- R•-9 -14 -23 SERIAL No._- . - -.4A. PMLAIDELI'HIA soutura Common Gas oompow of Cautornia, a owporstioe, erg Ad"d and sodating, under the laws of the State of.:Calif , am pr ssipal:asdjmDBmTY IBSD 001 OOYFUY OF NORTH FICA; .%, ookjoratiju of I?aannylvo3"s as aretys are held and tii#i 11bund 906 the sity of Newport, in the pnMI sM of �=.O0, ter the payas* of Vddsk to the said aity of �aospgrt Batch, the data prinqIDa hereby binds itself, its"accasars end assigns and the said surety heroW binds itself, its wassessors and assigns. The vondition of the above written bond is sueh tl"rs,. *NEW" 4Cm Board of Tratses of said city of Newport, Beach, hn asopraanoe- with tha AArms of .Ordinaans Aeo 222 passed ;by. itMt. on .the 76 of Me"isbsr 18260 have heretofore stmft off, mold;amd eararded -t , v said 0 os sax-4- ":4f California -a sorts a frimohiee.of't . right ! el6oyrate . for'# 11W. �sanstrusts`ae mtatn and operate gas pipes# scone std for transalsi ion and- -distribution .of \gms for beat, light posar' im otber parr- # +der `nnd aleng all of the public stdentm, aliwye, 3s =B ►; am ix tilil0 planes of and. An said olty of,Nowport 8eash, state .i.vt Ca i and WMM8 the slid Board of Trasteas of tho sa"d 4ty 9f Newport ;; 8sanh in about to grant said franehise by ordluanoo to Gmiklsoutiiors Ceumiee Gas COMPOSW of California; 1tsl# 2RMIWM# if the above bounden Souther# Coukise a" Company of California, its moseeserm ar coigns, shall, wall and truly.observo# fall ll aml perform each aab.orary term and eondttion or as" trsaohisa, then the above mbligatten shall to Enid, bot in ones of sW breaeh of oanditiam of maid ;frahohils or thin.boad, ths,whele am of this bond, fitsok iB0C.00; shall be taken riot; dommoR to be liquidated Usages ,:and may be reoevered from ,tbe, odd priselpal "A I the said mnroty. This bond may be emaoelled -ht any, Use, by the said surety upos giving, thirty dogs written notice to the amid city of Newport Beseho or, too the said pri�ipai.. . IN RMNESS `WERSOa the aadd prise pal and that said surety have mseoottsd this instrument am et the M day of December, 1826: THSBN CO GiS Comm Or C4Y.g'O"a . _. .. , i `. .. BOND. UPOW ALL MEN BY THESE PRESEITS- Southern Counties Gas Company of California, a corporation, organized aid existing under the laws of the state of California, as principal, and Tidelity cni L)Qjosit Com2any of gArIIIInd _, a corporation, of U�roj,oa_ as surety, are held and firmly bound unto the city Of Jewport Beach in the penal sum of $600.00, for the Payment of which to the said city of Aewport Beach, the said principal hereby binds itself, its successors and assigns, and the said surely hereby binds itself, its successors and assigns. The condition of the above written bond is such that, -- WHEIREAS the Board of Trustees of said city of Jew- port,3each have heretofore, to Wit, on the 29th day of jan- uarY, 1924 struck off, sold and awarded to said Southern Counties Ks jonpany of 0alifornia a certain franchise of the right to excavate for, lay, oonstract, maintain and operate gas pipes, mains and conduits for the transmission and distribution of gas for heat, light, oower and other purposes, Under and along all of the public streets, vileys, lanes, highways and public places of and in said oity of New- port Beach, state of California; and WEVEM the said Board of Trustees of the said city of hewport Beach is about to grant said franchise by ordin- ance to said Kathern Counties ?as oompany of Oalifornia; NOW, ME MORE, if the above bounden jouthern Coun- ties Gas Company of California, its successors or assigns, shall well and truly observe, fulfill ond perform each, and every term and condition of said franchise, then the above oblioation shall be void, but in Qase of any breach of condition of said franchise, or thif; boad, the 4hole sum of this bond, viz., 1500.00, Aall be takea and deened to be liquidated damages, and m;ay be recovered from the said principal and the said surety. IN 4ITNESS 7NEREOF the said principal and the said surety have executed this instrument this Q7 day of AWYly, 1523. SOUTHERN 0OUN`TI' 3 G.,IJ STATE OF CALIFORNIA, I County of -s j ss_ On this . ................... �_7.tLh ............... day OL - ------- ----- ja_nu; ry . .. .... ... ....... __t9 ... 2-3before me .............. ....... .................... - .. - - .- -, a Notary Public, in and for the County and State aforesaid, duly commissioned and sworn, Personally appeared......._. _ ............ .- ArAio.,j t'p_ "'t " , t _ . — led COY, hyart s known to me tote the persons ....... ---- -------- . ......... in whose names are subscribed to the foregoing instrument as the Attorney- -Fact and Agent respectively of the Fidelity and Deposit Company of Maryland, and acknowledged to me that they subscribed the name of Fidelity and Deposit Company of Maryland thereto as principal and their own names as Attorney -in -Fact and Agent, respectiv. M i - lo Notary Ytabinc t iwa;;c-pr the State Of cadjurank 02 Ain e le s tonally appeared QV no QV .0 ,majAW, ribed t pary; and ,e that he subscribed the name of the ' � � hand and affixed my official seal the day and year in this certificate first above written. f- 4 imaign �KA yaA400-- 4� - Not pry 2ublie Wand to! the County of Los Angeles, State of California. R CLAIM DEPARTMENT e s SOUTHERN COUNTIES GAS COMPANY OF GALIFO$NIA SIXTH FLOOR 810 SOUTH FLOWER. STREET LOS ANGELES,GAL1FOHNIA REFER TO FILE November 14, 1933. Board of Trustees, Newport Beach, California. Gentlemen: Attention City Clerk This office has just determined that a duplication of bonds exists covering our franchise to operate in Newport Beach and have asked the Fidelity and Deposit Company of Maryland to cancel their Bond #3048814 which was issued January 217, 192Z in error. It appears that while we applied for'this franchise in 1923 it was not acted upon until 1926 but that the above mentioned bond was posted at the time request was oiled. Subsequently, when the franchise to operate was struck off on the 14th day of December 1925, your ordinance #254 called for the posting of a $500 *00 'bond and this company again furnished a bond issued by the Indemnity Insurance Company of North America, bearing #190441, Copies of both bonds are attached for your information, although both original bonds were filed in your office. The Fidelity and Deposit Company of Maryland have agreed to cancel their 'bond and refund to us premiums paid upon receipt of a resolution of the Board of Trustees granting them permission to do sound we therefore respectfully request that such a resolution be passed which will relieve us of the necessity of paying any new premiums on the duplicate bond. Thanking you in advance for your early attention, we are Yours truly, SOUTIMN COUNTIES GAS COMPANY OF CALIFORNIA R. M. Ranyara, InnuiNrce Dept. RMR: LP one. KNOW ALL MEN BY - THESE PRESENTS: Southern Counties Gas Company of California, a corporation, organized and existing under the laws of the State of California, as principal and INDEr, 7ITY INSlr11,N0 . COMPAI: OF NORTH AMERICA, a corporation of Pennsylvania, as surety, are held and firmly 'bound unto the city of Newport Beach in the penal sum of $500.00 for the payment of which to the said city of Newport Beach, the said .principal hereby binds itself, its successors and assigns and the said surety hereby binds itself, its successors and assign's. The condition of the above written bond is :uch that, -® WHEREAS the Board of Trustees of said city of Newport Beach, in accord- ance with the terms of Ordinance No. 254 passed by them on the 14th day of December, 1925, have heretofore struck oft, sold and awarded to said Southern Cauaties Gas Company of California a certain franchise of the right to execavate or, lay, construct, maintain and operate gas pies, mains And conduits for the transmission and distribution of gas for heat, light, power and other purposes under and along all of the public streets, allays, lanes, highways and public places of and in said city of Newport ;leach, state of California; and WHEREAS the said Board of trustees of the said city of Newport Beach is about to grant said franchise by ordinance to said Southern Counties Gas Company of California; NOW, THEREFORE, if the above bounden Southern Counties Gas Company Of California, its successors and assigns, shall well and truly observe, fulfill and perform Each and every term and condition of said franchise, then the above obligation shall be void, but in case of any breach of condition of said franchise, or this bond, the whole sum of this bond, viz., $500.00 shall be taken and deemed to be 'liquidated damages, and may be recovered from the said principal and the said surety. This bond may be cancelled at any time by the said surety upon giving thirty days written notice to the said city of Newport Beach, or to the said principal. IN WITNESS WHEREOF the said principal and the said surety have executed this instrument as of the E:th day of December, 1925. SOUT -.T4NN COL r7IF:+ GAS COMPANY OF CALIFORNIA By President Attest Secretary INDEMNITY INSURANCE COM ANY OF NORTH AMERICA By Attyain -Fact Attest: M4OV` ALL Ii-N BY TI"s M PR'SF,WS: Southern Counties Gus Company of California, a corporation, organized and existing under the laws of the state of California, as principal, and Fidelity and Deposit Company of khr7land, a corporation, of :3altimor,�, `Saryland, as surety are held and firmly bound unto the city of Newport Reach in the penal sum of MOM for the payment of which to the said city of Newport Beach, the said principal hereby binds itself, its successors and assigns and the said surety hereby binds itself; its successors and assigns. The condition of the above written bond is such that: -- nulEtREAS the Board of Trustees of said City of Newport Beach have heretofore, to wit, on the 89th day of January 1923, struck off, sold and awarded to said Southern Counties Gas Company of California a certain franchise of the right to execavate for, lay, construct, maintain and operate gas pipes, mains and con- duits for the transmission and distribution of gas for heat,, light, power and other purposes; under and along all of the public streets, alleys, lanes, highways and public places of and in said city of Newport Beach, state of California; and WHEREAS the said Board of .Trustees of the said city of Newport Beach is about to grant said franchise by :ordinance to said Southern Counties Gas Com- pany of 4alifornia; N(Y"f 7i!: R,70RI;, if the above bounden Southern Counties Gas Company of California, its successors or assigns, shall well and truly obserge, fulfill and perform each and every term and condition of said franchise, then the above obligation shall be void, but in case of any preach of condition of said franchise, or this bond, the whole sum of this bond, viz., $500.00 shall be taken and deemed to be liquidated damages, and may be recovered from the said principal and said surety. IN `?I"_TIM S ',fif3L'R'.OF the said principal and the said surety have executed this instrument this 27 day of January, 1923, STATE OF OAUFORNIA, IS& County of Los Angeles ) SOLP!'tiMN CO Piml.i$; GAS COMPANY OF CALIFORNIA By President Attest: Secretary gy Its attorney in fact On this day of February 1923, before me, a notary public in and for said county and state, aeaiding therein, duly commissioned and sworn, personally appeared known to me to be the and the same persoh whose name is subscribed to the within instrument as the of said company and said duly acknowledted to me that he subscribed the name of the thereto as principal and his own name as IN WITNESS WEEPEOF I have h,.reunto• set my hand and affixed my official seal the day and year in this certificate first above written I� ij { M4OV` ALL Ii-N BY TI"s M PR'SF,WS: Southern Counties Gus Company of California, a corporation, organized and existing under the laws of the state of California, as principal, and Fidelity and Deposit Company of khr7land, a corporation, of :3altimor,�, `Saryland, as surety are held and firmly bound unto the city of Newport Reach in the penal sum of MOM for the payment of which to the said city of Newport Beach, the said principal hereby binds itself, its successors and assigns and the said surety hereby binds itself; its successors and assigns. The condition of the above written bond is such that: -- nulEtREAS the Board of Trustees of said City of Newport Beach have heretofore, to wit, on the 89th day of January 1923, struck off, sold and awarded to said Southern Counties Gas Company of California a certain franchise of the right to execavate for, lay, construct, maintain and operate gas pipes, mains and con- duits for the transmission and distribution of gas for heat,, light, power and other purposes; under and along all of the public streets, alleys, lanes, highways and public places of and in said city of Newport Beach, state of California; and WHEREAS the said Board of .Trustees of the said city of Newport Beach is about to grant said franchise by :ordinance to said Southern Counties Gas Com- pany of 4alifornia; N(Y"f 7i!: R,70RI;, if the above bounden Southern Counties Gas Company of California, its successors or assigns, shall well and truly obserge, fulfill and perform each and every term and condition of said franchise, then the above obligation shall be void, but in case of any preach of condition of said franchise, or this bond, the whole sum of this bond, viz., $500.00 shall be taken and deemed to be liquidated damages, and may be recovered from the said principal and said surety. IN `?I"_TIM S ',fif3L'R'.OF the said principal and the said surety have executed this instrument this 27 day of January, 1923, STATE OF OAUFORNIA, IS& County of Los Angeles ) SOLP!'tiMN CO Piml.i$; GAS COMPANY OF CALIFORNIA By President Attest: Secretary gy Its attorney in fact On this day of February 1923, before me, a notary public in and for said county and state, aeaiding therein, duly commissioned and sworn, personally appeared known to me to be the and the same persoh whose name is subscribed to the within instrument as the of said company and said duly acknowledted to me that he subscribed the name of the thereto as principal and his own name as IN WITNESS WEEPEOF I have h,.reunto• set my hand and affixed my official seal the day and year in this certificate first above written AN ORDINANCE OF THE CITY GRANTING .. .h.�?Ma v.i l£ci 1 GAda... C OUIPANR O �w Zts x:4)1 Y � „y A CORPORATION, THE RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE PIPES AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS, vdAY t ., ALLEYS AND PLACES, AS THE SAME NOW OR MAY HEREAFTER EXIST, WITHIN SAID MUNICIPALITY- Tb&Q4 I. X1_,.„ , „asf the Cite €if. . _ ag z t,. i3 _ ab ..... ,. ..... .—does ordain ap follows;: SECTION ONE VVIlwasm in this ordinance the words or phrases hereinafter in this section definmed are have the respective meanings assigned to thean is the following definitions u Bleft, in tkw Instance. the context wherein they are used shall clearly import a di(ierent meauing) {a) The word "Grantee” shall wean the corporation to which the franchise coutem in ' this ordinance is granted and its lawful'successors or ; s�. (b) The word "City" shall Mean the City vf. .... A" t ....... _ ....::....... , a muaaiclpal corporation of the State of California, in its present incorporated form or in any later reorgaulzett consolidated or reincorporated form, (c) The word "sfa+aets shall anFaat the public streets, ways, alleys and places as the same now or may hereafter exist within said City; (d) The word ".Eawfueer" shall mean the ....... . - -0ql Vf zt?t xeel ................of the City; (a) Tfie word "Gas!' shall mean natural or manufactured gas, or a mixture of natural and manufactured gas, (f) The phrase "Pipes and Appurtenance" shall mean pipe, pipeline, main, service, trap. vent, vault manhole, meter, gauge, regulator, valve, conduit, appliance„ attachment, appurto> news and any other property located or to be located in, upon, along, across, under or overAhe Streets of the City, and used or useful in the transmitting and/or distribution of gas: (8) The phraft "1Ay and nee" shall to lay, construct, erect, install, o use, repak. replaoe, eat SECTION TWO That 'the'ri0t, VHvI .franchise, subleet to each wid all of the terms and coedit " taibed in thta ordieksre, wW pursuant to the Provisions of the "Franchise Act of 1937," be thus' � > siao:_.�R3k'� .. ,..:5► �:�.... ts#°, �:d.�if`cta�a3.a ........ a corporation organised mad ezisting: r and by virtue of the laws of the State of California; herein referred to as the "Grantee ", to lay and use pipes and appurtenances for transmitting aa+ct distributing gas feu'. ' any and all purposes, under, along, across or upon the streets, of the City, for an indeterminate term or period from and after the effective date hereof: that is to say, this franchise shall' endure in full force and ef'eet until the same shall, with the consent of: the Railroad Commission of the State of California, be voluntarily surrenderecl or abandoned by its po"eaww, or until the State of California or some municipal or ublic corporation thereunto duly authoriuA by law shall purchase by voluno tary,agreement or shat condemn and take under the power of eminent domain, all property actuaity wed and useful in the exercise of this franchise, and situate within the territorial limits of thw State, municipal or public corporation purchasing or c(indamning such property, or until eWaelshall be feurfeited t - plaax) s with its by thepossessor thereof. SECTION THREE The'Grouttee shall pay to the City at the times hereinafter specified, in Lawful _ of ,, The gnates, Of th.r franchise shall file with the Clem of the ity within three (3) sauntfm -aft the expiration of the calendar year, or fractional calendar year, following the date of the gratt of this franchise, and within three (3) months after the expiration of each and every, calendar year thereatter, a daily verifted statement showing in detail the tait:al gross receipts of the grantee, its successors or assigns, during the Preceding calendar Year. or such fractional calendar Year. from +a .na P — wwww's!va vs evse :to e maw c' W WV I XXX {t bL vix MM a d "Mo,io tvs pidli iI1SiS z - W M within the limits of the City, as said limits now as may exist, and the seceptsom y, teal shall ciperate as an abandonment of all such franch aat -M thi'l �o City, as limits now or may hereafter exist, in lieu of w ., ri;rant SEC"] ON FIVE The franchise granted hereunder shall not becomt* effective until written xrceptance thereof Aill have bees filed by the grantee thereof with the Clerk of the City. When so ftle'd, such accept- ,seen shaft constitute a continuing agreement of the grantee than if and when the City shall there - after annex or consolidate with, additional territory, any and all franc.)iise rights acrd privileg ow—r*d tie tee thin, exempt the franchise derived under the aforesaid Constitutional pro- ,* ,: be deeMW to be abandoned withi€a: the limits of such territory. . :,:SactwN S'EVFIV grantee of this franchise file a bond, running to the City, with at leaa��tt sad s tar be a by the legislative body thereof, in a penal sum of E.4 �....e `. _ that the grantee shall well and truly observe, fulfill and fterform each and every term and condition of this franchise, and 'that 'in rase of any breach of condition of said bond, the whole amount of the penal sum ' therein nwried shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and sureties upon said bond. Said bond shall be tiled with the legialative body of the City within five (6) days after the date of the granting of this franchise; and in ewe said bond shall not be so Med, tr shall not receive the approval of the legislative body,. this shah be forfeited and any money paid to the City in connection therewith shall like- woes ... SEMON MGH`f' The grantee of this franchise uliall (a) consi.ruct, insull acid nine ntwin all polies and appurteriance- in tA(: a7r?luais with and in conformity with all of that uriflriaiiee, rulees and rvg iziatioaas htr,-.etaifc,n� or h, re nf!!4er adopted by the legislative bawdy of this C itt ir, tl a v^ *,1. se of its Ttulice powi, rs as.d n'it it) e ifi;, I� with the pars- mount allf.�'e(iClt]y' Oaf tlf: z?iYc'a i + a% Y <,f 11ad, atilt, aK ia: ?1eite higgh x j -hubj ! 1 :c� stn prOviiiiona'of general laws relating to the ;,`10ik ,io(j a ztalntavtt�aiev �,if such far °htivs: (b) pay to the City, on denia n4i the ci:pm ,tf all r:liatrn to g uLJm lirt t erti' made necessary by any operations of the grantee n offs, ,,r iii+, fratici i is ; (c) indemnify and hold h »ears]# K the Oty an,+ 'l, ttfiet -A fr „ari ;xs:g aLd all liatility for don- ages proximately resulting from Any r ia,•ra ti .Yes under t -ee,,, franchise, (d) remove or rehacate. wjtiut i rott!ose t„ the €;t>, ant' fx tie ;t,s i,nstallvd cased and main- tained under this franchise of an(l when mu dr nrretisary by any iew fu ,Itwige of grade, alignment or width of any public street, way, alley or ]glace, including the congitruction of ayiy subway or via - duct by the City; and (a)' file with the legislative heady of the Cite within thirty (3I o) stays after airy axle, transfer, assigrawnt or lease of this franchise, or any Part thereof, or of any of the rights or privf% granted by, written evidence of the axme, certified thereto by the grantee or its du y autber- $EC.'T ON NINE The Engineer shall have power to gfive the grantee such directions for the location of any pip� and appurtenances as may be reasonably necessary to avoid sewers; water pipes, conduits or other structures lawfully in or unifier the street8: and before the work of constructing any pipes and appurtenances is commenced; the grantee shall file with said Engineer plans showing the location thereof, which shall be subject to the approval of said Engineer (such approval not to be unreason- ably withheld) ; and all such construction shall he subject to the inspection of said Engineer and done to his reasonable antisf action. All street coverings' or openings of traps, vaults, and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground traps, vaults and manholes may extend above the surface of the street$ when said vents are located in parkways, between the curb and the property line. Where it is necessary to lay any underground pipes through, under or across any portion of a paved or macadamized street, the same, where practicable and economically reasonable shall be done by Wtunnel or bore, so as not to . disturb the foundation of such paved or macadamized street; and in the event that the same cannot be so done, such work shall he dune under a permit to be granted by the Engineer upon application therefor. SE'CTIf1N TEN If any portion of any m's vvt $hull tea damaged by reason of defects in rant of the pipes and appurtenances maintained or cs✓nstrucled under this grant, or by reziaalxn of anp other cause arising from the operation or exiAe♦nee of any pipes and appurtenanees ronxtructed or maintained under this grant, said grantee shall, at its se.rn cost and expense, immedWel. y reTt air io-iie swch damage and restore each street, or portion of stret t, to as gcxui a condition as exist +d lwfrre Slwh defect of other cacise of damage occurred, such work to be done under the direction of the Engineer, and to his reasonable satisfaction. SECTION ELEVEN (a) If the grantee of thi, franchise shall frill, neglect or refuse to comply with any of the ti provisions or conditions hereof, an shall nut, within ten (lu) class after writtsai demand for eom- piiaace, begin the work of cotinplianue, or after such beginning shall not prosecute the saute with due diligence to completion, then the City, by its legislative body, may € ec•lare this franchise forfeited. (b) The City may sue in its own name for the forfeiture of this franchise :, in the event of nOn- crnnpl AMe by the gmnteee, its successors or assigns, with any of the conditions thereto. SECTION TWELVE The grantee of this franchise shall pay to the City a stem of money - sufficient to reimburse It for all publication expenses incurred by It in cenne.>ction with the granting of this franchise; such Payment to be made within thirty ( 301) days after the City shall furn'ieh such granter with a written statement of such expenses, `? .c,IrfON TmiRTEEN Within ten (lb) days aftvi- aw p >az+ =$xe, and ,publication of Haas isruin - -e. ilse, grantee shall Me with the City Clerk a wrltte;ri zx s w wasttre of the franchise heret,s :grr.ntvd. ano an agreement to comply with the terms and eondi *.e =,y hore of, SECTION FOURTEEN The City Clerk shall cent ry Ga the adoption of this ordinance an,l -hall ra;l te, the same to be Published once in the: I hereby certify that the foregoing ordinance was ud ptcd by the of the city on the :........... ..day of. by the following votes: Ayes: City Clerk Ll NOTICE OF INTENTION TO GRANT GAB. FRANCHISE TO WHOM IT MAY CONCERN: Notice is hereby given . by the City Council of the City of New- port Beach that it intends to grant; under and pursuant to the Franchise Act of 1937, to the Southern Counties Gas Company o f Call f or n i a, a torpor anon, a franchise to lay and use pipes and appurtenances . for transmitting and distributing gas for any and all purposes under, along, across or upon the public streets, ways, alleys or places, as the same now or may hereafter exist within the City of Newport .Beach; and that Monday, the 7th day of June, 1943, at four (4) o'clock P. M., at the place where this City Council usually meets, 'bo -wit,. Council Room City Hall, Newport Beach, California, is hereby .fixed as the day, hour and, place when and where any and all persons having any objection to the granting of said franchise may appear before this City Coun- cil and be heard thereon. At any time not later than the hour so set for the hearing of objections, any person interested may make written . protest; stating- objections against the granting of such fran- chise. Such protest must be sign- ed by the protestant and be de- livered to the clerk of this City Council. The term for which said fran- chise is proposed to be granted is indeterminate, as defined in Section 6'. of the Franchise Act of 1937. _ The grantee of said franchise, and its successors and assigns, will, during the life of said fran- chise, pay to the City of New P port . Beach two per cent.. (2 %¢) of the gross annual receipts of the grantee and its successors and as- signs' arising from the use, opera- tion or possession of said fran- chise; provided, however, that such payment' shall in no event' be less than one per cent (1 01b) of r 1 LJ • the gross: annual receipts of the grantee, its successors and as- signs, derived from the sale of gas within the limits of the City of Newport Beach under said gas paid annually from the date of the granting o£ said franchise, and in the event such payment shall not be made said franchise will be forfeited. Dated April .19, 1943. FRANK L. RWMART, ,City Clerk and Ex- officio Clerk of the City Council of the City of New- port Beach, California BE IT FURTHER RESOLVED thet the grantee of said franchise shall .. be required to file a bond running to the City of Newport Beach„ with at least two good and sufficient sureties to be approved by this City Council, in the. penal sum hereby prescribed to be One Thousand Dollars ($1,000.00),. conditioned that such grantee shall well and truly observe;ful- fill and perform each and every term and condition of such fran- chise, and that in case: of any breach of condition of such bond, the whale amount of the penal sum therein named shall be taken end deemed to be .liquidated dam- ages and shall be recoverable . from the principal and sureties -by certify that the above regoing Resolution was nd regularly passed and by the City Council of of Newport Beach at an :d regular meeting there- on the .19th day of April, V the following vote, to- IUNCH MEN: Allen, Reed, Hall. UNCILMEN, None. COUNC'I.LMEN: None. ,CLYAN H. HALL, Mayor. Attest FRANK. L. RINEHART, City Clerk. Published April 22, 1943.