VI. Discussion of the Application
Applicants seek approval of the proposed transfer of control pursuant to Pub. Util. Code § 854. Section 854(a) states, in relevant part, as follows:
No person or corporation...shall merge, acquire, or control...any public utility organized and doing business in this state without first securing authorization to do so from the commission...Any merger, acquisition, or control without that prior authorization shall be void and of no effect.
The Commission has broad discretion to determine if it is in the public interest to authorize a transaction pursuant to § 854(a).9 The primary standard used by the Commission to determine if a transaction should be authorized under that section is whether the transaction will adversely affect the public interest.10 The Commission may also consider if the transaction will benefit the public interest.11 When necessary and appropriate, the Commission may attach conditions to a transaction in order to protect and promote the public interest.12
Neither this application nor the transaction for which approval is sought has any potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment within the meaning of California Environmental Quality Act Guideline 15378 because no external construction or change in service will result from the transfer of control. Therefore, in accordance with Rule 17.1 of the Commission's Rules of Practice and Procedure, there is no possibility that the proposed transaction may have any significant effect on the environment.
For the following reasons, we conclude that the proposed transfer of control is in the public interest and that it is reasonable to grant this § 854(a) application. First, the Five PSCs will continue to operate as they have in the past, using the same names, operating authority, and existing tariffs. Second, the Five PSCs will continue to possess the technical, managerial, and financial resources necessary to provide their authorized services. Third, the public may benefit from the transfer of control to the extent that the transaction enables the Five PSCs to achieve economies of scale. We therefore approve the transfer of control.
9 See, for example, D.95-10-045, 1995 Cal. PUC LEXIS 901, *18-19, and D.91-05-026, 40 CPUC 2d 159, 171.
10 See, for example, D.00-06-079, p. 13; D.00-06-057, p. 7; D.00-05-047, p. 11 and Conclusion of Law 2.
11 See, for example, D.00-06-005, 2000 Cal PUC LEXIS 281, *4; D.99-04-066, p. 5; D.99-02-036, p. 9; and, D.97-06-066, 72 CPUC 2d 851, 861.
12 See, for example, D.95-10-045, 62 CPUC 2d 160, 167-68; D.94-01-041, 53 CPUC 2d 116, 119; and, D.90-07-030, 1990 Cal. PUC LEXIS 612 *5.
