Decision 00-05-048 May 18, 2000
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Lodi Gas Storage, LLC for Certificate of Public Convenience and Necessity for Construction and Operation of Gas Storage Facilities. |
Application 98-11-012 (Filed November 5, 1998) |
(See Attachment A for a List of Appearances.)
TABLE OF CONTENTS
Title Page
OPINION ON LODI GAS STORAGE'S APPLICATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CONSTRUCT AND OPERATE A GAS STORAGE FACILITY 2
1. Summary 2
2. Background 3
A. Brief Overview of the Recent Changes in the Natural Gas Industry 3
B. Overview of LGS and the Proposed Project 9
C. Procedural Background 13
3. Standard of Review: The CPCN/CEQA Process 18
4. Parties' Positions 20
5. Need 25
6. Pub. Util. Code § 1002 29
7. Interconnection Issues 36
8. Market Power 38
9. Certifying The EIR 39
A. The EIR Process 39
B. Alternatives to the Project 42
C. Environmental Impacts 43
1. Safety 44
2. Agricultural Impacts 47
3. Rural Character 49
4. Levee Stability 52
5. Water Quality 54
6. Geology 54
7. Wetlands, Wildlife, and Habitat 55
8. Air Quality 56
D. Other EIR Sections 58
E. EIR Certification 59
10. Eminent Domain and SB 177 60
11. Other Issues 65
Title Page
Findings of Fact 68
Conclusions of Law 75
ORDER 80
Attachment A
Attachment B
Attachment C
Attachment D
Attachment E
OPINION ON LODI GAS STORAGE'S APPLICATION FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
TO CONSTRUCT AND OPERATE A GAS STORAGE FACILITY
1. Summary
By this application, Lodi Gas Storage, LLC (LGS, or applicant) seeks a certificate of public convenience and necessity (CPCN) to develop, construct, and operate an underground natural gas storage facility and ancillary pipeline and to provide firm and interruptible storage services at market-based rates.
This decision certifies the Environmental Impact Report (EIR) for LGS' project. It also grants LGS' application after weighing the statewide need for competitive gas storage in California as well as the factors set forth in Pub. Util. Code § 1002, and the outcome of the EIR. This decision conditions the CPCN primarily on the conditions and mitigation set forth in the EIR. The decision also requires LGS to obtain adequate liability insurance and a surety or performance bond and certain permits prior to construction.
As a result of our granting this application, LGS will become a public utility with respect to the project authorized by the CPCN and as a public utility, will have eminent domain power pursuant to Pub. Util. Code § 613. However, LGS will have to comply with Pub. Util. Code § 625 before it can exercise the power of eminent domain. Because the eminent domain issue was of great concern to many interested parties and community members, we also elaborate on LGS' future obligations with respect to § 625.
