II. Background
In D.00-05-048, the Commission granted LGS a certificate of public convenience and necessity (CPCN) for the development, construction, and operation of an underground natural gas storage facility and ancillary pipeline, known as the Lodi Facility, located in San Joaquin County approximately 5.4 miles northeast of Lodi.2 The Commission authorized LGS, a new public utility under Pub. Util. Code § 216 and § 222, to provide firm and interruptible gas storage services at market-based rates. D.00-05-048 also certifies the Environmental Impact Report for the LGS project, conditioning the Commission's authority on compliance with mitigation measures set forth in the report. (See generally, D.00-05-048, 2000 Cal. PUC LEXIS 394; D.00-08-024, 2000 Cal. PUC LEXIS 546.)
Two subsequent decisions address additional matters. In D.00-12-026, among other things, the Commission granted LGS limited waivers and exemptions from certain project financing requirements with respect to the project financing then in place. (D.00-12-026, 2000 Cal. PUC. LEXIS 978.) More recently, in D.01-08-023, the Commission authorized LGS to proceed with a replacement debt financing arrangement for the project. (D.01-08-023, 2001 Cal. PUC. LEXIS 652.)
D.01-08-023 notes LGS' representation that in the near future it would be filing a joint application with a prospective purchaser (now publicly disclosed as WHP) to request Commission approval of a change of control of LGS. This proceeding concerns that Application, filed on September 28, 2001, and an Amendment, filed on November 20, 2001. The same day they filed the Amendment, Joint Applicants filed a motion requesting an order shortening time for protests and/or responses and limiting the scope of response. The assigned administrative law judge (ALJ) took no action and the matter is now moot. No protests or responses were filed to either the Application or the Amendment.
An Assigned Commissioner's Ruling (ACR) on May 17, 2002 directed Joint Applicants to supplement the record on market power by responding to questions in the ACR. Joint Applicants filed their response on May 22.
2 The LGS project is expected to add 12 billion cubic feet (Bcf) of working gas to California's natural gas storage supplies, with a maximum firm deliverability of 500 million cubic feet per day (MMcf/d) and a maximum firm injection capacity of 400 MMcf/d. D.00-05-048 clarifies that "...this is LGS' project description, and does not refer to PG&E's ability to transport gas to and from LGS." (D.00-05-048 at footnote 4.)
