TRANSPORTATION

State PUC Backs Rail Merger: The California Public Utilities Commission threw its weight behind the proposed mega-merger of Southern Pacific Rail Corp. and Union Pacific Corp. The agency’s formal recommendation will be filed with the federal Surface Transportation Board, which has final say on the $5.4-billion deal. That board is expected to issue its decision on what would be the largest rail merger in U.S. history on Aug. 12. The PUC said the buyout would improve service and have a positive economic impact on the state. However, members expressed some concern about the effect on competition and service along certain routes.