Central Valley Gas Storage LLC, a subsidiary of Nicor Inc. of Naperville, Ill., has received approval from the California Public Utilities Commission to construct and operate its underground natural gas storage facility in Colusa County, including a 14.7-mile pipeline to connect with Pacific Gas and Electric Company's natural gas transmission system.

This decision also grants Central Valley's requests to be designated a public utility and to charge market-based rates. It certifies the final Mitigated Negative Declaration (MND) for the Central Valley project and makes the Certificate subject to mitigation measures set forth in the MND.

Now that Central Valley has obtained its Certificate, it plans to initiate construction activity in late November, 2010 subject to receiving normal construction permits for the project. Construction is planned to be completed during the fourth quarter of 2011, with firm storage services commencing on April 1, 2012.

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