Cost Summary O&M. Capital

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1 Company SCG Replacement Miles Abandon Miles Total SCG Region Orange Coast Line Name 42661/42662 (Distribution) Diameter (in.) 8, 12 Cost Summary Hydrotest O&M Replacement Labor $ Labor $ 123,214 Non Labor $ Non Labor $ 546,865 Overheads $ Overheads* $ 143,249 Total Hydrotest $ Total Replace $ 813,327 * For capital, includes AFUDC and Property Tax if applicable Overview Map of Capital Project Description: Line / 42662, located in La Habra, involved the abandonment of Line (approximately 150ft. of 12inch pipe originally installed in 1947), and replacement of Line (approximately 120ft. of 4inch and 75ft. of 12inch pipe installed in 1947 and 1953) with approximately 165ft. of 8inch pipe. These two lines served a District Regulation Station located off of Transmission Line Line included of Category 4 criteria miles and Line included of Category 4 criteria miles. Upon further inspection and analysis of the Line, it was determined that only needed to be replaced and could be abandoned. Line was replaced because it was determined, using engineering judgment and operational experience, that the costs, burdens and risks associated with taking a line out of service to pressure test were higher than those of replacing the segment with new pipe. In addition to the associated risk of hydrotesting an over 60 year old pipeline, hydrotesting would result in service disruptions and a longer construction timeframe, both of which would impact customers and the community. The replacement of and the abandonment of commenced in October 2013 and ended in December WPIII1

2 Replacement and Abandonment Segments Project Name Segment/ Section Name T/R/A Station Start Station Stop CAT 4 Criteria Miles Acclerated Miles Miles Total Miles Diameter Action N/A R Replace N/A A Abandon WPIII2

3 COST SUMMARY LINE NUMBER: 42661/42662 ABANDON LENGTH (MILES): LOCATION (CITY): La Habra REPLACEMENT LENGTH (MILES): SCG PROJECT #: 42661/42662 EX. PIPE DIAMETER (IN): 8, 12 SCG REGION: Orange Coast PROJECT SCOPE & COMMENTS SCOPE: The project included the abandonment of Line (approximately 150ft. of 12inch pipe originally installed in 1947), and replacement of Line (approximately 120ft. of 4inch and 75ft. of 12inch pipe installed in 1947 and 1953) with approximately 165ft. of 8inch pipe. Line included of Category 4 criteria miles and Line included of Category 4 criteria miles. HYDROTEST (O&M) REPLACEMENT (CAPITAL) COMMENTS: LABOR $ 123,214 EMPLOYEE EXPENSES $ 1,458 MATERIAL GAS $ MATERIAL OTHER $ 20,365 MATERIAL PIPE & FITTINGS $ 12,552 MATERIAL VALVES $ 475 MATERIAL WATER $ PERMITS & RIGHT OF WAY $ 24,300 SRV CONSTRUCTION $ 377,226 SRV ENGINEERING $ SRV ENVIRONMENTAL $ 46,387 SRV SURVEY $ 19,002 SRV OTHER $ 45,101 PROPERTY TAX $ 1,182 AFUDC $ 8,146 OVERHEADS $ 133,920 TOTAL $ 813,327 WPIII3

4 Company SCG Replacement Miles Hydrotest Miles Total SCG Region Storage Line Name Playa del Rey (Phases 1&2) Diameter (in.) 12.75, 16, 26 Cost Summary Hydrotest O&M Replacement Labor $ 100,527 Labor $ Non Labor $ 484,725 Non Labor $ Overheads $ 97,785 Overheads* $ Total Hydrotest $ 683,036 Total Replace $ * For capital, includes AFUDC and Property Tax if applicable Capital Project Description: Playa del Rey storage field testing involved hydrotesting various diameter pipe, from 8.625inch to 26inch installed primarily in Due to the complexity of the pipeline system within the storage field, the hydrotests were divided into different tests. The hydrotest cost associated with Post1961 pipe without sufficient record of a pressure test is not included. The testing of Playa del Rey Storage Facility Phases 1 and 2 commenced in March 2013 and ended in April WPIII7

5 Hydrotest Segments Project Name Segment/ Section Name T/R Station Start Station Stop CAT 4 Criteria feet (ft.) Accelerated Feet (ft.) Feet (ft.) Total Feet (ft.) Diameter Action PDR Phase 1 PC291 T Test PDR Phase 1 PC291 T Test PDR Phase 1 PC291A T Test PDR Phase 1 PC291A T Test PDR Phase 1 PC2A T Test PDR Phase 1 PC1 T Test PDR Phase 1 PC1A T Test PDR Phase 1 PC1B T Test PDR Phase 1 PC1C T Test PDR Phase 1 PC2 T Test PDR Phase 1 PC2 T Test PDR Phase 1 PC2B T Test PDR Phase 1 PC2C T Test PDR Phase 1 PC27 T Test PDR Phase 1 PC28 T Test PDR Phase 1 PC2CST1 T Test PDR Phase 2 PC23 T Test Hydrotested Segments for Post1961 Pipe Project Name Segment/ Section Name T/R Station Start Station Stop CAT 4 Criteria feet (ft.) Accelerated Feet (ft.) Feet (ft.) Total Feet (ft.) Diameter Action PDR Phase 1 PC291 T Test PDR Phase 1 PC291 T Test PDR Phase 1 PC291 T Test PDR Phase 1 PC291A T Test PDR Phase 1 PC291A T Test PDR Phase 1 PF302 T Test PDR Phase 1 PF357 T Test PDR Phase 1 PF410 T Test PDR Phase 1 PC290A T Test PDR Phase 1 PC292 T Test PDR Phase 1 PC2A T Test PDR Phase 1 PC2A T Test PDR Phase 2 PC23 T Test PDR Phase 2 PC23 T Test PDR Phase 2 PC23A T Test PDR Phase 2 PGR20A1 T Test PDR Phase 2 PC26 T Test PDR Phase 2 PC26 T Test PDR Phase 2 PC26B T Test PDR Phase 2 PC26B T Test PDR Phase 2 PC27 T Test PDR Phase 2 PC27 T Test PDR Phase 2 PC26A T Test PDR Phase 2 PC26ST1 T Test PDR Phase 2 PC26C T Test WPIII8

6 Map of Phase 1 & 2 Phase 1&2 Project Description: The Phase 1 hydrotest included a total of 695ft. of piping within the Playa del Rey storage field facility. The project included 536 ft. of 1955 piping, 60 ft. of post61 incidential piping that has sufficient record of a pressure test, and 99 ft. of post61 piping without sufficient record of a pressure test and is not included for recovery. The Phase 1 hydrotest began in the southwestern section of the field near Compressor C6 and ended at the flange connections associated with valves 28 and 29 near the 60inch and 72inch diameter scrubber vessels. The hydrotesting of Phase 1 at Playa del Rey commenced on March 18, 2013 and ended in April The Phase 2 hydrotest included 185ft. of piping within the Playa del Rey storage field facility. The project included 4ft. of 1955 piping, 81 ft. of post61 incidential piping that has sufficient record of a pressure test, and 100 ft. of post61 piping that does not have sufficient record of a pressure test and is not included for recovery. The Phase 2 hydrotest began in the northeastern section of the storage field near valve 22 and ended at the flange connection to valve 28. The 72inch diameter vessel was included in the hydrotest. The testing of Phase 2 at Playa del Rey commenced on March 28, 2013 and ended in April WPIII9

7 PSEP Pipeline Test/Replace Decision Tree Purpose This form is to document how CAT4 pipeline mileage is routed through the decision tree and provide justification for each of the decision node outcomes. Pipeline: Category 4 Criteria PDR Phase 1&2 Is pipeline operated in Class 3 or 4 location or HCA and not have documented pressure carrying capacity of 1.25*MAOP? Is the sum of the pipeline criteria miles more than 1000 ft. in length? A B Can pipeline be taken out of service with manageable customer impact? C Is pipeline piggable? Phase 1A Is pipeline piggable? D E Complete Direct Examination or Replacement and Abandon 1 Replacement and Abandon 2 Complete TFI Inspection 3 Pressure Test (Note 1) 4 TFI Inspection Pressture Test 5 Criteria Criteria Accelerated Phase 1B Install new line and pressure test existing line 6 Accelerated Note 1: If pipe is Pre1946 it will be abandoned and/or replaced. Is pipeline Pre1946 and NonPiggable? F Has pipeline been pressure tested to 1.25*MAOP? G Does pipeline MAOP comply with GO112? Phase 1B H Replace 7 Phase 2 Post 8/26 Application Filing No further action 8 9 WPIII10

8 COST SUMMARY LINE NUMBER: Playa Del Rey HYDROTEST LENGTH (MILES): LOCATION (CITY): Playa Del Rey REPLACEMENT LENGTH (MILES): SCG PROJECT #: Playa Del Rey Phase 1 & 2 EX. PIPE DIAMETER (IN): 12.75, 16, 26 SCG REGION: Storage PROJECT SCOPE & COMMENTS SCOPE: The testing of the storage field involved miles of various diameter pipe, from inch to 26inch. Due to the complexity of the pipeline system within the storage field, the hydrotests were divided into different tests. The hydrotest cost associated with Post 61 pipe without sufficient record of a pressure test is not included. HYDROTEST (O&M) REPLACEMENT (CAPITAL) COMMENTS: LABOR $ 100,527 $ EMPLOYEE EXPENSES $ 434 $ MATERIAL GAS $ $ MATERIAL OTHER $ 8,531 $ MATERIAL PIPE & FITTINGS $ $ MATERIAL VALVES $ 797 $ MATERIAL WATER $ $ PERMITS & RIGHT OF WAY $ 1,871 $ SRV CONSTRUCTION $ 322,854 $ SRV ENGINEERING $ 57,135 $ SRV ENVIRONMENTAL $ 11,829 $ SRV SURVEY $ $ SRV OTHER $ 81,273 $ PROPERTY TAX $ $ AFUDC $ $ OVERHEADS $ 97,785 $ TOTAL $ 683,036 $ WPIII11

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