6. Request for Confidential Treatment
Pursuant to Rule 3.6(e) of the Commission's Rules of Practice and Procedure (Rules),14 NW Natural, NW Natural Energy, NW Natural Gas Storage, and GRS submitted their most recent balance sheets (unaudited) and income statements (unaudited) (collectively, Financials).15 Concurrent with the filing of the Application, Applicants filed a motion requesting leave to file under seal the Financials for NW Natural Energy, NW Natural Gas Storage, and GRS (Motion).16 The Motion includes a proposed ruling that would place the Financials for NW Natural Energy, NW Natural Gas Storage, and GRS under seal for a period of two years, and is accompanied by the Declaration of C. Alex Miller, GRS Vice President, Treasurer and Director of Regulatory Affairs (Miller Declaration).
The Motion states that the Financials are confidential and their disclosure would place Applicants at an unfair business disadvantage. The Miller Declaration states that GRS, NW Natural Energy, and NW Natural Gas Storage are not publicly traded companies, that the financial condition of GRS, NW Natural Energy, and NW Natural Gas Storage is not public knowledge, and that GRS, NW Natural Energy, and NW Natural Gas Storage are not required to reveal their financial condition to the general public.
The Motion is unopposed.
The Public Records Act (PRA) requires an agency to justify withholding any record by demonstrating that the record in question is exempt under express provisions of the PRA or that on the facts of the particular case the public interest served by not disclosing the record clearly outweighs the public interest served by disclosure of the record.17 Section 583 and General Order 66-C establish a framework and process for considering confidentiality requests but do not establish a confidentiality right or privilege. The requestor bears the burden of showing why protection of certain information from disclosure is appropriate.
Applicants assert that releasing the Financials would cause NW Natural Energy, NW Natural Gas Storage, and GRS to suffer an unfair business disadvantage by revealing purchasing and financing strategies, and that Applicants' competitors in the gas storage industry could use the Financials to their advantage and to the disadvantage of GRS.
In adopting the gas storage policy, D.93-02-013 determined that a competitive gas storage market would efficiently allocate gas supplies, provide access to diverse gas supplies, and lower costs through gas-on-gas competition.18 As a competitive gas storage provider, GRS' shareholders are at complete risk for investments in gas storage operations.19 Because the shareholders of independent gas storage providers are completely at risk for investments, the Commission determined that it is unnecessary to place a high regulatory burden on a new entrant.20
In this case, absent additional concerns or protests, the public interest in protecting confidential financial information outweighs the public interest in disclosing the information. Therefore, we grant the request for confidential treatment as set forth below.
We grant Applicants' request for confidential treatment of the Financials for a period of two years from the effective date of this decision. During that period, the information must not be made accessible or disclosed to anyone other than the Commission staff except on the further order or ruling of the Commission, the assigned Commissioner, the assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge.
If Applicants believe that further protection of the information kept under seal is needed, they may file a motion stating the justification for further withholding of the information from public inspection, or for such other relief as the Commission rules may then provide. This motion must be filed no later than one month before the expiration date.
14 Rule 3.6(e) requires applications for a transfer of control to include a balance sheet as of the latest available date, together with an income statement covering the period from the close of the last year for which an annual report has been filed with the Commission to the date of the balance sheet attached to the application.
15 The Financials for GRS are attached to the Application as Exhibit G, and are entitled: "Gill Ranch Storage, LLC Condensed Balance Sheet (Unaudited) June 30, 2010" and "Gill Ranch Storage, LLC Condensed Income Statement, Six Months Ended June 30, 2010 (Unaudited)." The Financials for NW Natural Energy are attached to the Application as Exhibit H, and are entitled: "NW Natural Energy, LLC Condensed Balance Sheet (Unaudited) dated June 30, 2010" and "NW Natural Energy, LLC Condensed Income Statement, Six Months Ended June 30, 2010 (Unaudited)." The Financials for NW Natural Gas Storage are attached to the Application as Exhibit I, and are entitled: "NW Natural Gas Storage, LLC Condensed Balance Sheet (Unaudited) dated June 30, 2010" and "NW Natural Gas Storage, LLC Condensed Income Statement, Six Months Ended June 30, 2010 (Unaudited)."
16 The Application also includes as Exhibit J the unaudited financial statements for NW Natural as of June 30, 2010. Applicants do not seek protection of Exhibit J.
17 Government Code § 6255(a).
18 D.93-02-013, 48 CPUC2d 107, 118.
19 Ibid., Finding of Fact No. 43.
20 D.98-06-083 re: Wild Goose.
