Section 785.7 Of Article 3. Equipment, Practices, And Facilities From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 3.
785.7
. (a) No gas corporation shall charge, directly or indirectly,
a higher rate for the transportation of gas produced in this state
than for the transportation of gas from any other source. No gas
corporation shall require a producer of gas or a customer for whom
any gas transportation service is performed to utilize the
corporation's services or facilities either to deliver gas from the
producer's facility to the corporation's gas plant or to process the
gas to render it compatible with the corporation's gas plant.
(b) If a producer of gas or customer delivers to the gas
corporation for transportation any gas requiring any processing
service, including, but not limited to, dehydration, processing for
extraction of liquids, or other purification, different from, or in
addition to, that performed on other gas in the corporation's gas
plant, in order for that gas to be compatible with the gas plant, the
gas corporation may impose a charge for any such service actually
performed. If the gas corporation constructs new facilities at the
request of the producer or customer exclusively to receive gas by the
gas corporation's gas plant, the gas corporation may impose a charge
for the construction, operation, and maintenance of these
facilities. The amount of the charge for the processing service or
facilities authorized by this subdivision shall be established by the
commission and shall be based on the actual expenses for the
construction, operation, maintenance, labor, materials, and overhead
involved in providing the specific service or facilities.
(c) For purposes of this section, "transportation" means the
movement of gas from the point of receiving by the gas plant of a gas
corporation to the point of delivery to the person or corporation
for whom the transportation service is performed, including any
related gathering or processing of the gas. The point of receiving by
the gas plant is that point in the gas corporation's existing plant
which is nearest the source of the gas and which has receiving
capacity, but does not include any new facility constructed by the
gas corporation at the request of the producer or customer
exclusively to receive that gas. The terms and conditions of
receiving, for these purposes, shall be comparable to the gas
corporation's purchase contracts in the general area of the point of
receiving.
(d) Subdivision (a) does not apply to exchanges of gas between a
gas corporation and a producer of gas.
(e) The commission shall allow the gas corporation to fully
recover all reasonable and prudent costs associated with ownership
and operation of the gas plant used for transportation.