Natural Gas Storage Update
Wild Goose Storage and Lodi Gas Storage filed a joint application at the CPUC seeking exemptions from the Public Utilities Code to support a 2025 refinancing of their Brookfield-owned gas storage assets.
Their proposed transaction would replace the prior asset-based lending facility with a new $350 million revolving credit facility and continue an amended $1.25 billion term loan through 2031.
As part of the refinancing, Wild Goose and Lodi would pledge their assets and provide corporate guarantees to support affiliate-level borrowing. The applicants argue that portfolio-wide financing lowers borrowing costs, improves liquidity, and does not impair safety or service, noting that both facilities operate at market-based rates with no captive customers and that similar exemptions have been repeatedly approved in prior re-financings.
Protests to this item will be due 30 days from when it appears on the CPUC's Daily Calendar.
INSTANT ANALYSIS: This filing continues the Commission’s long-standing practice of allowing independent gas storage operators to participate in portfolio-level financings. The filing reinforces that the CPUC remains comfortable with asset pledges and affiliate guarantees where storage facilities:
- Operate at market-based rates;
- Have no captive customers; and
- Can demonstrate that refinancing improves liquidity without increasing operational or safety risk.