July 1, 2015 Advice Letter: 4814-G. Advice Letter 4814-G is effective as of June 29, 2015 with corresponding Tariffs effective as of July 1, 2015.

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STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3298 July 1, 2015 Advice Letter: 4814-G Southern California Gas Company Attention: Sid Newsom 555 West Fifth Street, GT14D6 Los Angeles, CA 90013-1011 SUBJECT: Revision to Schedule No. G-BTS Pursuant to D.11-04-032 Dear Mr. Newsom: Advice Letter 4814-G is effective as of June 29, 2015 with corresponding Tariffs effective as of July 1, 2015. Sincerely, Edward Randolph Director, Energy Division

Ronald van der Leeden Director Regulatory Affairs 555 W. Fifth Street, GT14D6 Los Angeles, CA 90013-1011 Tel: 213.244.2009 Fax: 213.244.4957 RvanderLeeden@semprautilities.com May 29, 2015 Advice No. 4814 (U 904 G) Public Utilities Commission of the State of California Subject: Revision to Schedule No. G-BTS Pursuant to Decision (D.) 11-04-032 Southern California Gas Company (SoCalGas) hereby submits for approval by the California Public Utilities Commission (Commission) revision to its tariff Schedule No. G-BTS (Backbone Transportation Service), applicable throughout its service territory, as shown on Attachment A. Purpose This filing is made in compliance with Ordering Paragraph (OP) No. 12 of D.11-04-032, to revise Schedule No. G-BTS to decrease the In-Kind Energy Charge from 0.158% to 0.146%, effective July 1, 2015. Background In OP 12 of D.11-04-032, the Commission directed San Diego Gas & Electric Company and SoCalGas to: [E]stablish an in-kind fuel factor, initially set at 0.22% of the total volume of natural gas to be delivered at the receipt point and updated quarterly based on the fuel factor determined from the prior quarter data.

Advice No. 4814-2 - May 29, 2015 To comply with D.11-04-032, SoCalGas filed Advice No. (AL) 4240 to revise Schedule No. G-BTS to incorporate the In-Kind Energy Charge of 0.22% effective October 1, 2011. 1 AL 4240 was approved by the Energy Division on July 1, 2011. On November 30, 2011, SoCalGas filed AL 4304 to revise Schedule G-BTS to decrease the In-Kind Energy Charge from 0.22% (effective during the fourth quarter 2011) to 0.174% for the first quarter 2012. Ideally, SoCalGas would have liked to use its fourth quarter 2011 operations data to determine the In-Kind Energy Charge for the first quarter 2012. However, due to a time lag of approximately 25 days in obtaining operations data and at least 30 days needed to obtain Commission approval, SoCalGas used the most recent three-month operations data available (August 1, 2011, through October 31, 2011) to calculate the In-Kind Energy Charge for the first quarter 2012. In AL 4304 SoCalGas also proposed using the same methodology for future quarterly updates (i.e., use November 1, 2011, through January 31, 2012, operations data to calculate In-Kind Energy Charge for the second quarter 2012). AL 4304 was approved by the Energy Division on December 28, 2011, with the revision to Schedule No. G-BTS made effective January 1, 2012. All of SoCalGas subsequent ALs to update the In- Kind Energy Charge have used this same methodology. Requested New In-Kind Energy Charge and Change to Calculation In order to reduce volatility from quarter to quarter in the calculation, SoCalGas proposes that, beginning July 1, 2015, we limit the adjustment factor for cumulative over/underdeliveries to 25% of the lagged quarterly actual amount. Any amounts over this 25% figure would be included in the following quarter s adjustment. The proposed 25% limit would create more rate stability and would prevent large overcollections followed by large undercollections. For example, if SoCalGas were to use the full cumulative overcollection fuel amount (392,370 mcf) in the adjustment this quarter, the resulting fuel factor would be.017%, an amount approximately 1/10 of our normal In-Kind Energy Charge. Such a low charge would basically guarantee a large undercollection next quarter, which in turn would require a large adjustment the other way for the following quarter. The current 392,370 mcf overcollection is significantly larger than what has been previously observed. Extensive maintenance on the compressor-intensive North Desert System led to an unusually low actual in-kind fuel rate. Over the last 14 filings, the median absolute value of the cumulative over/undercollection of fuel has been 102,000 mcf as shown on Attachment C. The proposed 25% limit would keep future fuel adjustments close to this median figure. The backup calculations for this proposed In-Kind Energy Charge of 0.146% are shown on Attachment B. 1 The term In-Kind Energy Charge used in SoCalGas Schedule No. G-BTS is synonymous with the term in-kind fuel factor used in D.11-04-032.

Advice No. 4814-3 - May 29, 2015 Protest Anyone may protest this advice letter to the Commission. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. The protest must be made in writing and received within 20 days of the date this advice letter was filed with the Commission, which is June 18, 2015. There is no restriction on who may file a protest. The address for mailing or delivering a protest to the Commission is: CPUC Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Copies of the protest should also be sent via e-mail to the attention of the Energy Division Tariff Unit (EDTariffUnit@cpuc.ca.gov). A copy of the protest shall also be sent via both e-mail and facsimile to the address shown below on the same date it is mailed or delivered to the Commission. Effective Date Attn: Sid Newsom Tariff Manager - GT14D6 555 West Fifth Street Los Angeles, CA 90013-1011 Facsimile No. (213) 244-4957 E-Mail: snewsom@semprautilities.com SoCalGas believes that this filing is subject to Energy Division disposition, and should be classified as Tier 2 (effective after staff approval) pursuant to GO 96-B. This filing is consistent with D.11-04-032, and therefore, SoCalGas respectfully requests that this filing be approved on June 29, 2015 which is thirty (31) calendar days after the date filed, but with the tariff to be made effective July 1, 2015 (see the Background section above). If this filing is not approved by Monday, June 29, 2015, SoCalGas respectfully requests the revised tariffs be made effective at least two days after verbal or electronic notification of the approval is communicated to SoCalGas. The requested minimum two-day time lag between the approval date and the effective date is based on the time that is needed to reflect the new In-Kind Energy Charge in Envoy and allow shippers/customers to adjust their gas deliveries and meet nomination deadlines. Notice A copy of this AL is being sent to SoCalGas GO 96-B service list and the Commission s service list in A. 10-03-028, Firm Access Rights Update Proceeding. Address change

Advice No. 4814-4 - May 29, 2015 requests to the GO 96-B should be directed by electronic mail to tariffs@socalgas.com or call 213-244-3387. For changes to all other service lists, please contact the Commission s Process Office at 415-703-2021 or by electronic mail at process_office@cpuc.ca.gov Attachments Ron Van Der Leeden Director Regulatory Affairs

CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No. SOUTHERN CALIFORNIA GAS COMPANY (U 9O4G) Utility type: Contact Person: Sid Newsom ELC GAS Phone #: (213) 244-2846 PLC HEAT WATER E-mail: SNewsom@semprautilities.com EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 4814 Subject of AL: Revision to Schedule No. G-BTS Pursuant to D.11-04-032 (In-Kind Energy Charge) Keywords (choose from CPUC listing): Transportation Rates AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D.11-04-032 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL No Summarize differences between the AL and the prior withdrawn or rejected AL 1 : N/A Does AL request confidential treatment? If so, provide explanation: No. Resolution Required? Yes No Tier Designation: 1 2 3 Requested effective date: AL 6/29/15; Tariffs 7/1/15 No. of tariff sheets: 3 Estimated system annual revenue effect: (%): N/A Estimated system average rate effect (%): N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: G-BTS, TOCs Service affected and changes proposed 1 : N/A Pending advice letters that revise the same tariff sheets: None Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Southern California Gas Company Attention: Tariff Unit Attention: Sid Newsom 505 Van Ness Ave., 555 West 5 th Street, GT14D6 San Francisco, CA 94102 Los Angeles, CA 90013-1011 EDTariffUnit@cpuc.ca.gov SNewsom@semprautilities.com tariffs@socalgas.com 1 Discuss in AL if more space is needed.

Cal. P.U.C. Sheet No. Revised 51570-G ATTACHMENT A Advice No. 4814 Title of Sheet Schedule No. G-BTS, BACKBONE TRANSPORTATION SERVICE, Sheet 4 Cancelling Cal. P.U.C. Sheet No. Revised 51281-G Revised 51571-G TABLE OF CONTENTS Revised 51568-G Revised 51572-G TABLE OF CONTENTS Revised 51569-G 1

SOUTHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEET NO. 51570-G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEET NO. 51281-G Schedule No. G-BTS Sheet 4 BACKBONE TRANSPORTATION SERVICE RATES (Continued) BILLING CALCULATION Monthly Reservation Charge: (Continued) The Monthly Reservation Charge is payable each month regardless of the quantity of gas scheduled during the billing period. The Reservation Charge for each billing period shall be calculated using the applicable reservation rate and the DCQ as specified in Customer s Backbone Transportation Service Contract (BTSC). Monthly Reservation Charge = Applicable Reservation Rate * DCQ * number of days in the billing period (or, if less than one month, number of days in term of contract). Monthly Volumetric Charge: The Monthly Volumetric Charge for each billing period shall be calculated using the applicable volumetric rate multiplied by the scheduled quantities on the Customer s BTSC. Monthly Volumetric Charge = Applicable Volumetric Rate * Quantities of Gas Scheduled during the billing period. In-Kind Energy Charges: Customers transporting gas over the backbone transmission system shall deliver each day for each billing period at the receipt point an additional in-kind quantity of natural gas equal to a percent of the total quantity delivered at the receipt point. The quantity received by the Utility at the receipt point shall equal the quantity delivered by the Utility to the delivery point divided by (1 - x) where x is the decimal equivalent of the backbone transmission system in-kind fuel factor percentage. Rate, percent reduction... 0.146% R Any applicable volumetric charges shall be charged on scheduled volumes net of shrinkage. (Continued) (TO BE INSERTED BY UTILITY) ISSUED BY (TO BE INSERTED BY CAL. PUC) ADVICE LETTER NO. 4814 Lee Schavrien DATE FILED May 29, 2015 DECISION NO. 11-04-032 Senior Vice President EFFECTIVE Jul 1, 2015 4H18 RESOLUTION NO.

SOUTHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEET NO. 51571-G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEET NO. 51568-G TABLE OF CONTENTS G-AMOP G-CP GT-F GT-I (Continued) Residential Advanced Meter Opt-Out Program... 50168-G,50169-G Core Procurement Service... 47480-G,51564-G,51565-G,51566-G,37933-G Firm Intrastate Transportation Service... 51046-G,51047-G,49427-G,49428-G for Distribution Level Customers 49429-G,49430-G,45308-G,47167-G 45310-G,45311-G,45312-G,45313-G Interruptible Intrastate Transportation Service... 51048-G,51049-G,49432-G for Distribution Level Customers 45317-G,47168-G,45319-G,45320-G GT-TLS Intrastate Transportation Service for Transmission Level Customers... 45321-G,51050-G,51051-G,51052-G,51053-G 49434-G,49435-G,49436-G,45329-G,45330-G 45331-G,45332-G,47170-G,45334-G,45335-G 45336-G,45337-G,45338-G,45339-G GT-SWGX Wholesale Natural Gas Service... 51270-G,45341-G G-IMB Transportation Imbalance Service... 45342-G,51541-G,51542-G,51358-G 51421-G,51422-G,51154-G,43325-G,47880-G G-OSD Off-System Delivery Service... 47345-G*,47346-G,48315-G,47348-G G-BTS Backbone Transportation Service... 48084-G,47349-G,51054-G,51570-G 47176-G,49399-G,47178-G,47179-G,47180-G,47181-G 47182-G,47183-G,47184-G,47185-G,50484-G,50485-G,50486-G G-POOL Pooling Service... 47188-G,47189-G,42278-G G-BSS Basic Storage Service... 43337-G,51222-G,45767-G,45768-G 45769-G,45770-G G-AUC Auction Storage Service... 43338-G,32709-G,32710-G,32711-G 32712-G,32713-G,36314-G,32715-G G-LTS Long-Term Storage Service... 32716-G,32717-G,51223-G,45771-G 45772-G,45773-G G-TBS Transaction Based Storage Service... 45355-G,43340-G,51224-G,45775-G 45776-G G-CBS UDC Consolidated Billing Service... 51155-G,34072-G,34073-G,33095-G G-SMT Secondary Market Transactions of Storage Rights... 45359-G,50343-G,45361-G G-TCA Transportation Charge Adjustment... 51055-G GO-BCUS Biogas Conditioning/Upgrade Services... 51156-G,51157-G,51158-G,51159-G 51160-G,51161-G,51162-G,51163-G T (Continued) (TO BE INSERTED BY UTILITY) ISSUED BY (TO BE INSERTED BY CAL. PUC) ADVICE LETTER NO. 4814 Lee Schavrien DATE FILED May 29, 2015 DECISION NO. 11-04-032 Senior Vice President EFFECTIVE Jul 1, 2015 2H7 RESOLUTION NO.

SOUTHERN CALIFORNIA GAS COMPANY Revised CAL. P.U.C. SHEET NO. 51572-G LOS ANGELES, CALIFORNIA CANCELING Revised CAL. P.U.C. SHEET NO. 51569-G TABLE OF CONTENTS The following listed sheets contain all effective Schedules of Rates and Rules affecting service and information relating thereto in effect on the date indicated thereon. GENERAL Cal. P.U.C. Sheet No. Title Page... 40864-G Table of Contents--General and Preliminary Statement... 51572-G,51263-G,51264-G Table of Contents--Service Area Maps and Descriptions... 41970-G Table of Contents--Rate Schedules... 51567-G,51571-G,51501-G Table of Contents--List of Cities and Communities Served... 50356-G Table of Contents--List of Contracts and Deviations... 50356-G Table of Contents--Rules... 51179-G,51388-G Table of Contents--Sample Forms... 51379-G,51181-G,49402-G,51182-G,50598-G T T PRELIMINARY STATEMENT Part I General Service Information... 45597-G,24332-G,24333-G,24334-G,48970-G Part II Summary of Rates and Charges... 51545-G,51546-G,51547-G,51024-G,51025-G,51548-G 51540-G,46431-G,46432-G,50855-G,51549-G,51550-G,51551-G,51030-G Part III Cost Allocation and Revenue Requirement... 51031-G,50447-G,50448-G Part IV Income Tax Component of Contributions and Advances... 51095-G,24354-G Part V Balancing Accounts Description and Listing of Balancing Accounts... 51259-G Purchased Gas Account (PGA)... 49671-G,49672-G Core Fixed Cost Account (CFCA)... 51352-G,51353-G Noncore Fixed Cost Account (NFCA)... 51354-G,51355-G,51356-G Enhanced Oil Recovery Account (EORA)... 49712-G Noncore Storage Balancing Account (NSBA)... 50450-G,50451-G California Alternate Rates for Energy Account (CAREA)... 45882-G,45883-G Hazardous Substance Cost Recovery Account (HSCRA)... 40875-G, 40876-G,40877-G Gas Cost Rewards and Penalties Account (GCRPA)... 40881-G Pension Balancing Account (PBA)... 49309-G,49310-G Post-Retirement Benefits Other Than Pensions Balancing Account (PBOPBA). 49311-G,49312-G Research Development and Demonstration Surcharge Account (RDDGSA)... 40888-G Demand Side Management Balancing Account (DSMBA)... 45194-G,41153-G Direct Assistance Program Balancing Account (DAPBA)... 40890-G Integrated Transmission Balancing Account (ITBA)... 49313-G (Continued) (TO BE INSERTED BY UTILITY) ISSUED BY (TO BE INSERTED BY CAL. PUC) ADVICE LETTER NO. 4814 Lee Schavrien DATE FILED May 29, 2015 DECISION NO. 11-04-032 Senior Vice President EFFECTIVE Jul 1, 2015 1H7 RESOLUTION NO.

Advice Letter 4814 Attachment B - In-Kind Energy Charge Calculation July 1st 2015 through September 30th 2015 Tranmission Compression Official MCS Fuel Usage Receipts * (Mcf) (Mcf) 3 Month Total: 428,780 221,457,336 In-Kind Charge, % = Actual Fuel = 428,780 = 0.194% Total Receipts* 221,457,336 Minus Minus Minus Adjustment ** (Fuel Collections minus Actual Fuel) = 107,195 = 0.048% Total Receipts* 221,457,336 In-Kind Energy Update Charge for 3rd Qtr 2015 = 0.146% * Total Quantity Received by the Utility at all of its Receipt Points. ** minimum of: Cumulative Fuel Over/(under) Collections or 25% of previous quarter's actual fuel

Advice No. 4814 Attachment C Cumulative Under/Over Collections in Previous Filings Effective QTR (Mcf) Absolute Q1-12 24,591 24,591 Q2-12 (96,277) 96,277 Q3-12 (270,690) 270,690 Q4-12 (107,239) 107,239 Q1-13 (17,803) 17,803 Q2-13 48,982 48,982 Q3-13 163,063 163,063 Q4-13 38,664 38,664 Q1-14 (114,043) 114,043 Q2-14 45,080 45,080 Q3-14 187,486 187,486 Q4-14 (167,224) 167,224 Q1-15 (291,323) 291,323 Q2-15 31,979 31,979 Median 101,758 Q3-15 392,370 392,370