6. Approval of Transfer

a. CEQA

Under the California Environmental Quality Act (CEQA) and Rule 17.1 of the Commission's Rules of Practice and Procedure, we must consider the environmental consequences of projects that are subject to our discretionary approval. (Pub. Resources Code § 21080.) It is possible that a change of ownership and/or control may alter an approved project, result in new projects, or change facility operations, etc., in ways that have an environmental impact.

Joint Applicants state that they do not intend post-transfer of control, to make any changes to operations that were not discussed in the Joint Applications or that could have potential adverse effects on the environment. Nor will employees will be laid-off as a result of these transfers; thus the systems will continue to be operated by experienced and technically competent personnel.

Based upon the record, the proposed transfers will have no significant effect on the environment because the facilities will continue to be operated as they are now, and the Commission-approved tariffs will be unchanged by these transactions. Therefore, the proposed projects qualify for an exemption from CEQA pursuant to § 15061(b)(3)(1) of the CEQA guidelines and the Commission need perform no further environmental review. (See CEQA Guidelines § 1506(b)(3)(1).)⁷

b. Authority

Code § 854(a) and § 851 require Commission authorization before a company may "merge, acquire, or control...any public utility organized and doing business in this state...." The purpose of these and related sections is to enable the Commission, before any transfer of public utility authority is consummated, to review the situation and to take such action, as a condition of the transfer, as the public interest may require. (San Jose Water Co. (1916) 10 CRC 56.)

Both the PPS and PT facilities will continue to be operated in accordance with Commission-approved tariffs and with no changes in the terms and conditions of service or rates are requested as part of these Joint Applications. We therefore determine that the transfers are not adverse to the public interest and we can approve them. We also conclude that no further actions or conditions to the sale are necessary.

c. Conclusion

Based on these findings, the proposed transaction is in the public interest as required by § 854(a). We will authorize under our authority in § 851 the transfers of control over PPS and PT from PPS Holding to LB Pacific.