ALJ/JOL/sid Mailed 12/1/2006

Decision 06-11-043 November 30, 2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In The Matter of the Application of Lodi Gas Storage, L.L.C. (U-912-G) for Approval of Long-term Financing Pursuant to Public Utilities Code Section 851.

Application 06-09-018 (Filed September 21, 2006)

OPINION GRANTING LODI GAS STORAGE AUTHORITY
FOR LONG-TERM FINANCING

I. Summary

This decision grants the request of Lodi Gas Storage, L.L.C. (LGS) for authority to issue or otherwise incur up to $25 million in secured long-term debt, to enter into financial hedging contracts for the purpose of managing interest rate risks, and to secure its Working Capital facility with the assets of LGS. This proceeding is closed.