Central Valley Gas Storage LLC last week requested authorization from the California Public Utilities Commission (CPUC) to construct and operate an underground natural gas storage facility north of Sacramento with initial capacity of 5.5 Bcf, which would be expandable to 8 Bcf.

The Nicor Inc. subsidiary launched the gas storage plan last year through a nonbinding open season (see Daily GPI, April 17, 2008). In its CPUC request to build the storage facility, Central Valley Gas said the project would be sited in Colusa County, about one mile south of Princeton, CA.

“California’s expected greater reliance on renewables for electric generation and greenhouse gas reduction goals create greater demands for timely natural gas deliverability when renewable power is unavailable and as a replacement for higher emission fuels,” said Central Valley Gas President Steve Cittadine. “Storage will play a more vital role than ever in stabilizing customers’ natural gas portfolios.”

The high-deliverability reservoir, which would interconnect with Pacific Gas and Electric Co.’s (PG&E) gas transmission system, would provide firm services with the capability to be cycled three times during a year. The facility’s interconnect point would be considered a PG&E city gate point similar to other independent storage facilities connected to the PG&E system.

With approval, interim service could begin in 2011 and firm service could begin in April 2012.

Included with the request for a certificate of public convenience and necessity are a proponent’s environmental assessment and a proposed service tariff. Public hearings will be held as part of the application process.

For information contact Project Director Jim Kiefer at (630) 245-6101 or jkiefer@nicor.com. Information also is available at www.cvgastorage.com.

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