STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
February 11, 2003 Agenda ID #1776
TO: PARTIES OF RECORD IN APPLICATION 01-09-045
This is the draft decision of Administrative Law Judge (ALJ) Vieth. It will not appear on the Commission's agenda for at least 10 days after the date it is mailed. The Commission may act then, or it may postpone action until later.
When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Pursuant to Rule 77.7(g), comments on the draft decision must be filed within ten days of its mailing and no reply comments will be accepted.
Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. In addition to service by mail, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, including ALJ Vieth at xjv@cpuc.ca.gov. Finally, comments must be served separately on the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious methods of service.
/s/ ANGELA K. MINKIN
Angela K. Minkin, Chief
Administrative Law Judge
ANG:hkr
Attachment
ALJ/XJV/hkr DRAFT Agenda ID #1776
Ratesetting
Decision DRAFT DECISION OF ALJ VIETH (Mailed 2/11/2003)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Joint Application of Lodi Gas Storage, L.L.C., Western Hub Properties L.L.C., and WHP Acquisition Company, LLC, to Transfer Control of Lodi Gas Storage, L.L.C., to WHP Acquisition Company, LLC, Which Will Occur Indirectly as a Result of the Purchase of Western Hub Properties L.L.C. by WHP Acquisition Company, LLC, Pursuant to Public Utilities Code Section 854(a) and of Lodi Gas Storage, L.L.C. for Approval of a Secured Long-Term Financing Pursuant to Public Utilities Code Sections 816, 817, 818, 823 and 851. |
Application 01-09-045 (Filed September 28, 2001) |
OPINION APPROVING TRANSFER OF CONTROL
OF LODI GAS STORAGE, LLC
TABLE OF CONTENTS
Title Page
OPINION APPROVING TRANSFER OF CONTROL
OF LODI GAS STORAGE, LLC 22
III. The Proposed Transaction 55
VI. Conclusion; Protection of Competitively Sensitive Information 1818
VII. Miscellaneous Procedural Matters 1919
VIII. Comments on Draft Decision 1919
IX. Assignment of Proceeding 1919
ATTACHMENT A
OPINION APPROVING TRANSFER OF CONTROL
OF LODI GAS STORAGE, LLC
I. Summary
We approve, subject to the conditions enumerated below, the unopposed request of Joint Applicants, Lodi Gas Storage, L.L.C. (LGS), Western Hub Properties, L.L.C. (Western Hub) and WHP Acquisition Company, LLC (WHP Acquisition), for a change in the ultimate ownership and control of LGS and its Lodi gas storage. The change in ownership, by which WHP Acquisition will acquire an indirect 50% interest in LGS concurrent with the reduction of Western Hub's interest from 100% to 50%, will not affect the rates, terms, or conditions under which LGS is to operate pursuant to previous Commission decisions. LGS will continue to offer market-based rates to noncore natural gas storage customers in accordance with the requirements of its tariff and the orders of this Commission.
The transactions underlying the change in ownership qualify for an exemption from the California Environmental Quality Act (CEQA) and therefore, additional environmental review is not required. However, we will continue the restrictions that prevent persons and entities with a beneficial interest in LGS or its present owners from monitoring the implementation of the environmental mitigation measures and we will extend these restrictions to persons and entities with a beneficial interest in the new owners.
As discussed in the body of this decision, we condition our approval upon disclosure to the Director of the Commission's Energy Division of the following information, including contracts and other documents, so that we may monitor LGS' position under its new ownership:
· Clear representation in writing, prior to the change of control, that the bonding entities will continue to bond LGS and the Lodi Facility under the $20 million performance bond we ordered in Decision (D.) 00-05-048;
· Information regarding ownership by LGS, its parents or affiliates of its parents of natural gas facilities or other entities specified herein as well as copies of service agreements for short-term and long-term gas transactions.
In addition, we prohibit LGS from engaging in any storage or hub services transactions with its ultimate corporate parents or with their affiliates. This ban, however, does not apply to the agreement by which Western Hub will continue to manage the day-to-day operations of LGS.
