8. Discussion
There has been no opposition to the application. The pipeline transportation services that applicant proposes will afford the airline shippers at Sacramento International Airport a competitive alternative to their existing truck transportation option. Moreover, the CEQA review conducted by the County demonstrates that the jet fuel pipeline transportation will provide an environmentally preferable alternative to other forms of jet fuel supply at the airport.
The ownership, financing and tariff arrangements sought by applicant are reasonable arrangements consistent with applicant's proposed undertaking as a public utility pipeline corporation. Expedited authorization by the Commission will allow applicant to proceed with timely development of the proposed pipeline, which we find will serve the public interest. Applicant asks that public review and comment period be waived pursuant to Pub. Util. Code § 311(g)(2), and we grant that request.
Finally, applicant has shown that market-based rates for an operation like this one, along with related exemptions from filing requirements, are not adverse to the public interest.
Notice of the application was published in the Commission's Daily Calendar on September 3, 1999. Notice of the amended application appeared in the Daily Calendar on June 4, 2002. No protests have been received. In Resolution ALJ 176-3023 dated September 16, 1999, the Commission preliminarily categorized this application as ratesetting, and preliminarily determined that hearings would be necessary. Our order today concludes that hearings will not be necessary.
This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Pub. Util. Code § 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.
1. Applicant is a public utility pipeline corporation subject to the jurisdiction of this Commission.
2. Applicant seeks authorizations to operate a common carrier jet fuel pipeline to serve airlines at Sacramento International Airport.
3. The County of Sacramento has acted as the lead agency under CEQA and the Commission has acted as a responsible agency in reviewing the proposed pipeline project.
4. Applicant proposes to realign it membership structure, capital contributions and indebtedness.
5. Because of the nature of this pipeline operation, applicant seeks authority to negotiate market-based rates.
6. No opposition to the application or the amended application has been filed.
1. Applicant's request for exemptions under Pub. Util. Code §§ 829 and 853(a) should be denied.
2. Applicant's request for authorization of its proposed membership structure, capital contributions and indebtedness appear to be commercially reasonable and should be approved.
3. Applicant is exempt from the Commission's Competitive Bidding Rule under Resolution F-616.
4. Applicant should be authorized to establish market-based rates for its transportation of jet fuel to shippers, because it is unlikely that applicant will be able to exercise market power.
5. Applicant's request for waiver of G.O. 96-A, Sections III, IV, V, VI, VII and IX should be granted to the extent that those provisions are inapplicable to a market-based rate or FERC-style tariff schedule format.
6. As a responsible agency, the Commission has reviewed the final EIR certified by the Sacramento County Board of Supervisors.
7. The application is unopposed, and hearings are not necessary.
IT IS ORDERED that:
1. Wickland Pipelines LLC (applicant) is authorized to construct, own and operate a common carrier jet fuel pipeline to serve customers at Sacramento International Airport, subject to all required regulatory approvals.
2. Applicant is authorized to restructure its membership and to require additional membership capital contributions in a total amount not to exceed $7,381,000 for funding of the project costs through construction, as more fully set forth in the application.
3. Applicant is authorized to issue unsecured or secured promissory notes, in lieu of corresponding amounts of membership capital contributions, in a total amount not to exceed $5,368,000, as more fully set forth in the application.
4. Applicant is authorized to develop rates and terms of service determined through arm's-length negotiations with its shippers, as more fully set forth in the application.
5. Sections IX and X of General Order (G.O.) 96-A, are waived to the extent those provisions require utility contracts be made expressly subject to modification by the Commission.
6. Applicant is exempt from the provisions of Sections II, III, IV, V, VI and VII of G.O. 96-A to the extent those provisions are inapplicable to a market-based, Federal Energy Regulatory Commission-style tariff schedule format, all as set forth in the application.
7. The final Environmental Impact Report certified by the Sacramento County Board of Supervisors, is approved.
8. Before commencing service to customers, applicant shall file with this Commission an advice letter and accompanying tariff schedules that meet the criteria set forth in G.O. 96-A, unless such criteria are waived or exempted pursuant to Ordering Paragraphs 5 and 6.
9. Applicant's request for exemption from Pub. Util. Code §§ 818, 851 and 854 is denied.
10. Resolution ALJ 176-3023 is amended to show that hearings in this matter are not necessary.
11. Since all issues raised in this proceeding have been addressed, the proceeding in Application 99-08-050, as amended on May 20, 2002, is closed.
This order is effective today.
Dated _______________________, at San Francisco, California.
