9. Conclusion

The record before us provides insight into a changing natural gas storage market. While the noncore customers continue to exhibit demand for independent storage, and overall demand for natural gas in California is likely to increase in the near term, as-available backbone transmission capacity is less abundant than in the recent past. Once PG&E completes its proposed expansion of the Redwood Path, backbone transmission capacity should be sufficient to serve demand for storage withdrawals from an expanded Wild Goose facility and from Lodi at most times, but may be insufficient at times of peak demand. Imposing the reporting requirements discussed herein and prohibiting Wild Goose from entering into storage and storage-related transactions with its parent company or affiliates controlled by its parent company will mitigate the possibility that Wild Goose could exercise market power in the changing gas storage market. The EIR for the expansion project shows only one significant environmental impact that cannot be completely mitigated or avoided, the permanent removal from production of approximately 5.8 acres of prime farmland. This one issue, in a project of great complexity, affects Butte County, the location of the existing storage facility. The Board of Supervisors has issued a resolution in support of the expansion project, and the project is generally consistent with the county's zoning and land use policies. In this situation it is appropriate to adopt a statement of overriding consideration and to authorize the Wild Goose expansion project, because we conclude it advances the policy goals of the state by providing additional natural gas storage capacity, which outweighs this environmental cost. Accordingly, we approve the amendment of Wild Goose's CPCN, and authorize the expansion project, subject to the conditions discussed in this decision.

Monitoring and enforcement of the Mitigation, Monitoring and Reporting Program (Attachment B as modified by Attachment C) is critical to our authorization, since under CEQA, the permit that is finally issued must be conditioned on completion of any adopted mitigation measures. We require Wild Goose to cooperate with staff and with the Commission's Executive Director in this regard, as further detailed in the Ordering Paragraphs.