February 5, 2002
ROSEMEAD, Calif., Feb. 5, 2002-Southern California Edison (SCE) and PPS Holding Company announced today that they have reached an agreement for SCE to sell substantially all of its pipeline and storage assets including those of Edison Pipeline and Terminal Company (EPTC), its oil pipeline division, to PPS Holding Company, a wholly owned subsidiary of the Anschutz Corporation and parent of Pacific Energy Group LLC. The sale will be effective following regulatory approval. Financial terms were not disclosed.
"These were assets that supported the operation of certain electric generation facilities previously owned by SCE," said SCE President Bob Foster. "SCE made the decision to sell these assets once the electric generating stations the pipeline system served were sold."
As part of the transition process, SCE will work closely with its pipeline customers to facilitate a smooth transition to PPS Holding Company.
SCE's pipeline and storage assets consist of a major oil pipeline and storage system specializing in the storage, custody, and transportation of various grades of crude oil and refinery feedstocks in the Southern California region. Originally built to supply back-up fuel to SCE's former fossil fuel generating plants, this system has, since 1994, been storing and transporting petroleum products for pipeline customers in the area as a regulated pipeline utility. The pipeline system is connected to most of the Los Angeles basin oil industry infrastructure, marine facilities and other major storage terminals in the region.
"We are excited about this strategic acquisition which will significantly expand our service capability in the Los Angeles area," said Irv Toole, president of Pacific Energy Group LLC. "It will add storage and distribution facilities, including a waterborne import and export capability, to our existing California pipeline portfolio, which includes two major crude oil pipelines service from the San Joaquin Valley to the Los Angeles basin, as well as a marketing and transportation operation in southern California."
SCE is headquartered in Rosemead. The Anschutz Corporation and PPS Holding Company are based in Denver. Pacific Energy Group LLC is headquartered in Long Beach.
SCE's advisor during the auction was J.P. Morgan Securities.
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An Edison International company, Southern California Edison is one of the nation's largest electric utilities, serving a population of more than 11 million via 4.3 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California. For more information on the California electricity crisis, see www.sce.com.