8. Discussion

We conclude that approving these consolidated applications is in the public interest. As it stands today, PG&E owns the Pipeline Assets and Pump Station Assets. PG&E's ratepayers continue to fund ongoing maintenance activities and have the normal liabilities associated with owning these assets, including the potential future liabilities associated with decommissioning. Ratepayers continue to incur these costs and maintain these liabilities even though the assets are no longer required by PG&E to deliver electricity to ratepayers. Once the application is approved, however, PG&E's ratepayers will be relieved of these ongoing costs and future liabilities as specified in the Purchase and Sale Agreement filed with the Amended Application.

These direct benefits are precisely the same type of benefits that the Commission has relied upon when approving similar applications for the sale of assets no longer utilized by PG&E. The most relevant example occurred in connection with PG&E's sale of the El Dorado Hydroelectric Project to El Dorado Irrigation District after the hydroelectric project had been rendered inoperable after severe storms.¹¹ In concluding that the sale of those assets was in the public interest, the Commission expressly cited the benefits to PG&E's ratepayers of avoiding liability for future decommissioning costs and avoiding other liabilities and obligations associated with the continued ownership of an asset which was not necessary for PG&E to perform its core functions.¹²

We believe the benefits to the public interest, however, extend even further if the application now before us is approved as it creates the potential opportunity for currently wasted assets to be utilized. As stated above, it is anticipated that SCVHG proposes to remediate the pump station site. The land, which is in limited supply in the Bay Area, could be cleaned up, directly improving the environment, and become available for industrial, commercial and/or residential development. This would create new construction jobs, new long-term jobs with any commercial establishments that locate on the new site, and possibly new homes for families. Also, SPBPC would have the opportunity to return an idle pipeline to common carrier service, increasing the petroleum pipeline capacity available to any interested customers. Approving the application would also cause the pipeline to be owned by Shell, a financially secure, experienced and competent pipeline operator that already owns another Commission-regulated pipeline corporation - Shell California Pipeline Company, LLC.

Further, existing environmental law and the Commission's ongoing jurisdiction over SPBPC will continue to protect the public interest with respect to future potential activities. Potential remediation and redevelopment of the Pump Station Assets will be subject to future CEQA review, guarding against environmental risks. Any significant improvements required to return the pipeline to commercial operation will similarly be subject to a CEQA evaluation.¹³ Accordingly, we conclude that the Final MND should be adopted by the Commission and the consolidated applications of PG&E and SPBPC should be approved.