Discussion

Pub. Util. Code § 854 requires Commission authorization before a company may "merge, acquire, or control . . . any public utility organized and doing business in this state . . . " The purpose of this section is to enable the Commission, before any transfer of public utility property 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 CRS 56.)

As noted above, simplification of the corporate structure of the Shell group of companies will have no effect on the operations of Shell Pipeline. The restructuring is expected to produce cost savings and tax savings that will flow through to Shell Pipeline and other subsidiaries that are not part of this application. Thus, the transaction promises benefits to Shell Pipeline and its customers.

The California Environmental Quality Act (CEQA) requires the Commission as the designated lead agency to assess the potential impact of a project to ensure that adverse effects are avoided, alternatives are investigated, and environmental quality is restored or enhanced to the fullest degree possible. Applicants will not be constructing any facilities beyond those already in use. Therefore, it can be seen with certainty that there is no possibility that granting this application will have an adverse effect on the environment.