the California Public Utilities Commission issued its long-awaited order implementing a "new regulatory framework for gas utilities" in California. Under the new framework, gas sales service will be unbundled from transmission service for noncore customers. These large end users will be allowed to select the type of service they desire, and they will have an opportunity to negotiate the rates, terms, and conditions for that service.
The basic structure for the new regulatory program was adopted by the CPUC in December 1986. The commission hoped to have the program in place in a matter of months, but implementation was delayed by a variety of factors. First, numerous petitions for modification resulted in a succession of orders changing various aspects of the program. Then the commission convened a hearing on the details of implementation, a hearing that lasted through most of the summer of 1987. This was followed by extensive briefs, a proposed decision, and further comments.
The commission's December 9, 1987, implementation order will not take full effect until May 1, 1988. By February 1, 1988, the California gas utilities -Southern California Gas Company, Pacific Gas &, Electric Company, and San Diego Gas & Electric Company-had to file new tariffs with the CPUC setting forth the rates, terms, and conditions for unbundled service. These rates will be "ceiling" or "default" rates. During the next three months, each of the utilities' noncore customers will be allowed to negotiate for lower rates and for tailor-made service. If negotiations are successful, they will determine the rates that will take effect on May 1, 1988. Otherwise, "default" rates will become effective.