ALJ/XJV/avs DRAFT Agenda ID #2090

Ratesetting

6/05/2003 H-9

Decision DRAFT DECISION OF ALJ VIETH (Mailed 4/17/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Wild Goose Storage, Inc., for Review under Public Utilities Code Section 851 et seq. of the Transfer of Indirect Control of Wild Goose Storage, Inc., to Encana Corporation or, in the Alternative, Request for Declaratory Order

Application 02-09-006 (Filed September 3, 2002)

O P I N I O N

TABLE OF CONTENTS

OPINION 22

I. Summary 22

II. Background 22

III. The Nature of the Transaction and the Relief Requested 33

A. Overview of the Transaction 33

B. Parties to the Transaction 44

C. Relief Requested 55

IV. Discussion 66

A. Applicability of § 854 66

B. The Public Interest 1111

C. CEQA 1414

D. Failure to Obtain Prior Approval 1515

V. Miscellaneous Procedural Matters 2020

VI. Comments on Draft Decision 2121

VII. Assignment of Proceeding 2121

ORDER 2525

OPINION

I. Summary

We ordered Wild Goose Storage, Inc. (Wild Goose) to file this Application when we issued Decision (D.) 02-07-036, which amended Wild Goose's certificate of public convenience and necessity (CPCN) and authorized Wild Goose to construct and operate an expansion to its existing natural gas storage facility. In today's decision we determine that the holding company merger involving Wild Goose's original, ultimate parent has resulted in an indirect change of control over Wild Goose. Because the merger was finalized in Canada before this Application was filed, we approve the indirect change of control nunc pro tunc, since review of all of the circumstances indicates that, on balance, it is in the public interest to do so. However, as prescribed by §§ 2107 and 2108, we levy a $51,500 penalty against Wild Goose for a continuing violation of § 854(a).¹ We suspend one half of the penalty, or $25,750, after considering mitigating factors which suggest that the unsuspended $25,750 penalty achieves an equitable balance between the objectives of effective deterrence and avoidance of excess penalties.