ALJ/BDP/avs Mailed 7/22/2005

Decision 05-07-016 July 21, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company to Establish Market Values for and to Sell its Richmond-to-Pittsburg Fuel Oil Pipeline Utilities Code Sections 367(b) and 851. (U 39 M)	Application 00-05-035 (Filed May 15, 2000, amended May 6, 2004 and September 9, 2004)
Application of San Pablo Bay Pipeline Company to Own and Operate the Richmond-to-Pittsburg Fuel Oil Pipeline and Hercules Pump Station as a Common Carrier Pipeline Corporation Pursuant to the Provisions of Public Utilities Code Sections 216 and 228.	Application 00-12-008 (Filed December 12, 2000, amended May 6, 2004 and September 9, 2004)

OPINION GRANTING CONSOLIDATED APPLICATIONS

1. Summary

The Commission grants Pacific Gas and Electric Company (PG&E) authority pursuant to § 851 of the Pub. Util. Code¹ to sell its Richmond-to-Pittsburg Fuel Oil Pipeline (Pipeline Assets), and Hercules Pump Station with its 44.2 acres of land (Pump Station Assets). The Commission also grants San Pablo Bay Pipeline Company (SPBPC) authority to own and operate the Pipeline Assets as a common carrier pipeline corporation under §§ 216 and 228. As part of this sale and transfer, the Commission approves a plan whereby the Hercules Pump Station will be abandoned and removed from utility service, and the 44.2 acres of pump station land will be purchased by Santa Clara Valley Housing Group, Inc. (SCVHG) for likely development after remediation of contamination. Also, as part of the plan, the Commission approves the acquisition of SPBPC by Shell Pipeline Company LP (Shell) under § 854. The purchase price payable by SPBPC to PG&E is $16.7 million. As requested by PG&E, the entire gain on sale of these assets is allocated to ratepayers, through a credit to the depreciation reserve because ratepayers bore the risk of cost recovery.

These proceedings are closed.