Decision 00-05-048 May 18, 2000

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Lodi Gas Storage, LLC for Certificate of Public Convenience and Necessity for Construction and Operation of Gas Storage Facilities.

Application 98-11-012 (Filed November 5, 1998)

(See Attachment A for a List of Appearances.)

OPINION ON LODI GAS STORAGE'S APPLICATION FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
TO CONSTRUCT AND OPERATE A GAS STORAGE FACILITY

1. Summary

By this application, Lodi Gas Storage, LLC (LGS, or applicant) seeks a certificate of public convenience and necessity (CPCN) to develop, construct, and operate an underground natural gas storage facility and ancillary pipeline and to provide firm and interruptible storage services at market-based rates.

This decision certifies the Environmental Impact Report (EIR) for LGS' project. It also grants LGS' application after weighing the statewide need for competitive gas storage in California as well as the factors set forth in Pub. Util. Code § 1002, and the outcome of the EIR. This decision conditions the CPCN primarily on the conditions and mitigation set forth in the EIR. The decision also requires LGS to obtain adequate liability insurance and a surety or performance bond and certain permits prior to construction.

As a result of our granting this application, LGS will become a public utility with respect to the project authorized by the CPCN and as a public utility, will have eminent domain power pursuant to Pub. Util. Code § 613. However, LGS will have to comply with Pub. Util. Code § 625 before it can exercise the power of eminent domain. Because the eminent domain issue was of great concern to many interested parties and community members, we also elaborate on LGS' future obligations with respect to § 625.