2. Background

In Decision (D.) 10-10-001, the Commission granted Central Valley Gas Storage, LLC (Central Valley) a certificate of public convenience and necessity (CPCN) for the construction and operation of an underground natural gas storage facility in Colusa County, including a 14.7-mile pipeline to connect with Pacific Gas and Electric Company's (PG&E) natural gas transmission system (Central Valley Project). This included the adoption of a settlement agreement between PG&E and Central Valley in which Central Valley agreed to pay all costs to connect with PG&E's gas transmission system. The CPCN was subject to certain conditions, including the requirement that Central Valley provide specified reports to Commission Staff and maintain $50 million of general liability insurance per occurrence and in the aggregate. The Commission also authorized Central Valley, a new public utility under Pub. Util. Code §§ 216 and 222, to charge market-based rates. Finally, D.10-10-001 certified the Mitigated Negative Declaration for the Central Valley Project and authorized the issuance of a Notice of Determination for the Project pursuant to the California Environmental Quality Act (CEQA).

On January 25, 2011, Joint Applicants filed the instant application. The application does not seek to transfer Central Valley's CPCN or modify the conditions imposed on Central Valley in D.10-10-001. Rather, it seeks authorization for an indirect change in control of Central Valley as the result of a proposed merger between Nicor Inc. (Nicor) and AGL Resources Inc. (AGLR).

The Division of Ratepayer Advocates (DRA) filed a Motion for Party Status. DRA does not oppose the proposed transfer. However, it states that it seeks to ensure that the application would not modify or change the nature of the settlement adopted by the Commission in D.10-10-001, which granted Central Valley's CPCN.

A duly noticed prehearing conference (PHC) was held on March 24, 2011. At the PHC, Central Valley and DRA were asked to provide supplemental information. This information was filed and served on March 25, 2011 by Central Valley and on March 28, 2011 by DRA. As agreed by the parties, no further briefing was needed.