Standard of Review for this Acquisition

Commission authorization pursuant to §§ 851 and 854¹ is necessary in order for the applicants to assume indirect control of Valencia. The Commission has previously determined that such approval will only be granted where the proposed transaction is in the public interest. The Commission may use the standards set out in § 854(b) and (c) to "inform" its public interest determination. (Decision (D.) 02-12-068, mimeo., at 9.) Due to the nature of the proposed transaction, which is an indirect change of control at the holding company level where the holding company has little, if any, day-to-day involvement with the public utility, the primary focus of our evaluation will be the transaction's effects on ratepayers.