Subject: Core Pricing Flexibility and Noncore Competitive Load Growth Opportunities Programs

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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 April 29, 2016 Advice No. 4961 (U 904 G) Public Utilities Commission of the State of California Subject: Core Pricing Flexibility and Noncore Competitive Load Growth Opportunities Programs Southern California Gas Company (SoCalGas) hereby submits for filing with the California Public Utilities Commission (Commission) its Core Pricing Flexibility and Noncore Competitive Load Growth Opportunities Program information for 2015. This filing is made in compliance with Decision (D.) 97-07-054, SoCalGas Performance Based Regulation, and D.00-04-060, SoCalGas 1999 Biennial Cost Allocation Proceeding. Purpose Consistent with the prior year s filing 1, the purpose of this filing is to report the 2015 results of the Core Pricing Flexibility Program and Noncore Competitive Load Growth Opportunities Program as adopted in D.97-07-054 and D.00-04-060, respectively, for informational purposes only. Core Pricing Flexibility Program In D.97-07-054 and D.98-01-040, the Commission authorized a Core Pricing Flexibility program for SoCalGas as detailed in Section K.2 of Advice No. 2687-A. This program remains unchanged with the approval of the 2013 Triennial Cost Allocation Proceeding (TCAP). Under this arrangement, SoCalGas shareholders are responsible for any reduction in core revenues that may occur due to discounting, and likewise receive the benefit of any resulting gains. The Commission has authorized SoCalGas to adjust its Core Fixed Cost Account to reflect this arrangement. The Core Pricing Flexibility 1 Advice No. 4799 was filed on May 1, 2015.

Advice No. 4961-2 - April 29, 2016 program produced incremental net revenues in the amount of $973,603 for 2015. Noncore Competitive Load Growth Opportunities Program In D.00-04-060, the Commission authorized SoCalGas revenue treatment for new negotiated contracts that are part of a California Red Team economic development effort and contracts where Rule No. 38 shareholder funding has been used. This program remains unchanged with the approval of the 2013 TCAP. Under this arrangement, SoCalGas shareholders are responsible for any reduction in noncore revenues that may occur due to discounting, and likewise receive the benefit of any resulting gains. The Commission has authorized SoCalGas to adjust its Noncore Fixed Cost Account to reflect this arrangement. The Noncore Competitive Load Growth Opportunities program produced incremental net revenues in the amount of $391,342 for 2015. Protests 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 must be received within 20 days of the date of this Advice Letter which is May 19, 2016. 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 Attn: 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 should 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 General Order (GO)

Advice No. 4961-3 - April 29, 2016 96-B. SoCalGas respectfully requests that this filing be approved June 1, 2016, which is more than 30 calendar days after the date filed. Notice A copy of this Advice Letter is being sent to SoCalGas GO 96-B service list and the Commission s service lists in A.10-12-006, SoCalGas 2012 GRC, and A.11-11-002, SoCalGas 2013 TCAP. Address change 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 Ronald 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 Advice Letter (AL) #: 4961 (Date Filed/ Received Stamp by CPUC) Subject of AL: Core Pricing Flexibility and Noncore Competitive Load Growth Opportunities Programs Keywords (choose from CPUC listing): Core, Non-Core, GRC AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D.97-07-054 and D.00-04-060 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: June 1, 2016 No. of tariff sheets: 0 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: None Service affected and changes proposed 1 : N/A Pending advice letters that revise the same tariff sheets: N/A 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.