Rockpoint Paves Way for Control of Key California Gas Storage Facilities

CALGARY, AB – January 12, 2026 – Rockpoint Gas Storage Inc., North America's largest independent operator of natural gas storage, has taken a significant step toward consolidating its control over two critical energy assets in California. The company announced today that it has jointly filed an application with the California Public Utilities Commission (CPUC) to pre-approve a potential future acquisition of a controlling interest in the Wild Goose and Lodi natural gas storage facilities.

The filing is a proactive maneuver designed to navigate California's complex regulatory landscape. While no sale is imminent, the application seeks to clear the path for Rockpoint to acquire the 60% stake currently held by its partner, Brookfield Infrastructure Fund II, at some point in the future. The move underscores a strategic push for consolidation in an industry vital to the stability of California's energy grid as it undergoes a profound transition.

A Strategic Play for Optionality

At the heart of the filing is a contractual arrangement between Rockpoint and Brookfield. Currently, Rockpoint holds a 40% indirect interest in both Wild Goose and Lodi, with Brookfield holding the majority 60%. However, Brookfield possesses an "Exchange Right," which becomes exercisable after October 15, 2026. This right allows Brookfield to compel Rockpoint to acquire its stake in exchange for cash, Rockpoint shares, or a combination of both.

Recognizing that securing approval from the CPUC for a change of control in a public utility can be a protracted process, the partners have chosen to file the application now. As stated in their press release, the goal is to "preserve optionality and flexibility should Brookfield wish to exercise its Exchange Right."

No decision has been made by Brookfield to trigger this right, but the application effectively starts the regulatory clock. The parties have proposed that the CPUC issue a final decision by September 2026, though the ultimate timeline rests with the commission. This foresight aims to prevent regulatory delays from impeding a potential future transaction, ensuring a smooth and predictable process if and when Brookfield decides to divest.

The Backbone of California's Energy Grid

The facilities at the center of this filing, Wild Goose and Lodi, are not just corporate assets; they are cornerstones of Northern California's energy infrastructure. Wild Goose, located in Butte County, was the first independent gas storage facility in the state and boasts a working capacity of 75 billion cubic feet (Bcf). Lodi, near Sacramento, adds another 31 Bcf of capacity. Both are strategically connected to Pacific Gas and Electric's (PG&E) main pipeline system, placing them at the vital PG&E Citygate hub.

Their importance has grown exponentially as California deepens its commitment to renewable energy. While solar and wind power are central to the state's climate goals, their intermittent nature creates significant challenges for grid stability. Natural gas storage facilities act as a critical balancing mechanism, injecting excess gas during periods of low demand and rapidly releasing it to fuel gas-fired power plants when solar and wind generation drops. This reliability is essential for preventing blackouts and ensuring a stable power supply for millions of homes and businesses.

Furthermore, the state is witnessing surging electricity demand from the rapid growth of data centers and the broader electrification of transport and buildings. Rockpoint's own corporate strategy identifies this trend as a key driver for its business, positioning its storage assets to support the gas-fired power generation needed to meet this new, relentless demand.

A Tale of Two Strategies: Consolidation vs. Capital Recycling

The CPUC filing highlights the diverging strategic paths of the two partners. For Rockpoint, which went public on the Toronto Stock Exchange in late 2025, gaining full control of Wild Goose and Lodi would be a landmark achievement. It would solidify its status as the dominant independent storage operator in North America and deepen its footprint in one of the continent's most crucial energy markets. The move aligns perfectly with its stated goal of optimizing its platform to capitalize on growing gas demand.

For Brookfield, the potential sale reflects a broader, well-documented pivot. As one of the world's largest infrastructure investors, Brookfield has been aggressively reallocating capital toward the energy transition. The firm has raised massive funds, including a record $20 billion for its second Global Transition Fund in 2025, dedicated to renewable power and decarbonization projects. Selling its stake in the California gas facilities would be a classic example of "capital recycling"—divesting a mature, fossil fuel-related asset to fund new investments in high-growth sectors like battery storage, offshore wind, and sustainable fuels. This aligns with its long-term goal of achieving net-zero emissions across its portfolio by 2050.

Navigating Regulatory and Public Scrutiny

With the application now filed, all eyes turn to the CPUC. The commission is tasked with ensuring any change of control serves the public interest, which involves a multifaceted review of market competition, ratepayer impact, and service reliability. Historically, the CPUC has recognized the value of these facilities, having approved multiple expansions for both Wild Goose and Lodi over the past two decades, often citing the need for competitive storage capacity in the state.

However, the application will likely attract scrutiny from various stakeholders. Environmental groups may voice concerns that consolidating and strengthening natural gas infrastructure could prolong the state's reliance on fossil fuels, potentially hindering its ambitious climate targets. Conversely, consumer advocates will be keen to ensure that greater market concentration under Rockpoint does not lead to higher costs or reduced service quality for Californians.

The filing by Rockpoint and Brookfield sets the stage for a potential major shift in the ownership of California's energy infrastructure. While the gears of commerce may not turn until late 2026 or beyond, the regulatory gears have now officially begun to grind, and their outcome will have lasting implications for the state's delicate energy balance.