Discussion
Public Utilities Code Section 854(a)2 and Section 8513 require Commission authorization before a company may "merge, acquire, or control...any public utility organized and doing business in this state...." The purpose of these and related sections is to enable the Commission, before any transfer of public utility authority is consummated, to review the situation and to take such action, as a condition of the transfer, as the public interest may require. (San Jose Water Co. (1916) 10 CRC 56.)
UNOCAP asserts that its tariffs will not be affected by this transaction except to be reissued in the name ConocoPhillips Pipe Line Company. Further, UNOCAP facilities will continue to be operated in accordance with its Commission-approved tariffs as the Joint Application requests no changes in terms and conditions of service or rates.
2 854. (a) Section 854(a) provides in relevant part: No person or corporation, whether or not organized under the laws of this state, shall merge, acquire, or control either directly or indirectly any public utility organized and doing business in this state without first securing authorization to do so from the commission. (In part.)
3 851. Section 851 provides in relevant part: No public utility other than a common carrier by railroad railroad subject to Part I of the Interstate Commerce Act (Title 49, U.S.C.) shall sell, lease, assign, mortgage, or otherwise dispose of or encumber the whole or any part of its railroad, street railroad, line, plant, system, or other property necessary or useful in the performance of its duties to the public, or any franchise or permit or any right thereunder, nor by any means whatsoever, directly or indirectly, merge or consolidate its railroad, street railroad, line, plant, system, or other property, or franchises or permits or any part thereof, with any other public utility, without first having secured from the commission an order authorizing it so to do. (In part.)
