UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K


                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        Date of Report: December 15, 2006
                        (Date of earliest event reported)


                              Public Storage, Inc.
             (Exact name of registrant as specified in its charter)


                                   California
                 (State or other jurisdiction of incorporation)

                 1-8389                                    95-3551121
- ----------------------------------------       ---------------------------------
        (Commission File Number)               (IRS Employer Identification No.)

701 Western Avenue, Glendale, California                    91201-2349
- ----------------------------------------       ---------------------------------
(Address of Principal Executive Offices)                    (Zip Code)

                                 (818) 244-8080
              ----------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)


                                 Not applicable
                   ------------------------------------------
                   (Former name or former address, if changed
                               since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below):

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

[  ]  Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act (17
      CFR 240.14a-12)

[  ]  Pre-commencement  communications  pursuant to Rule  14d-2(b)  under the
      Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement  communications  pursuant to Rule  13e-4(c)  under the
      Exchange Act (17 CFR 240.13e-4(c))




Item 2.03 Creation of a Direct Financial  Obligation or an Obligation under
          an Off-Balance Sheet Arrangement of a Registrant


          On December 15, 2006,  Shurgard Self Storage SCA ("Shurgard  Europe"),
an affiliate of Public Storage,  Inc. (the "Company")  notified Citicorp Trustee
Company Limited, as trustee, of its intent to prepay on or about January 2, 2007
the  obligations  of Shurgard  Europe  related to  outstanding  Euro 325 million
collateralized  notes.  The  obligations  were  otherwise  payable in 2011.  The
Company assumed this  indebtedness  when it acquired the European  operations of
Shurgard  Storage  Centers,  Inc.  (Shurgard)  through a merger with Shurgard on
August 22,  2006.  The notes bear  interest  at  EURIBOR  plus 0.51%  (3.928% at
September  30,  2006).  At  current  exchange  rates,  the  cost to  prepay  the
outstanding  principal  and  accrued  interest  will be  approximately  USD $433
million. The Company expects to fund the prepayment with bank borrowings.

          In  addition,  on December  18,  2006,  the Company gave notice to the
holders of depositary  shares  representing  interests in its 7.625%  Cumulative
Preferred  Stock,  Series  T, of its  intent to redeem at $25 per share all such
depositary  shares  outstanding  on January 18, 2007. On such date,  the Company
will  pay  the  holders  of  the  depositary   shares  an  aggregate  amount  of
approximately  $152.7 million  including  accumulated and unpaid  dividends from
December 31, 2006 through the date of redemption.



                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                            PUBLIC STORAGE, INC.


Dated: December 21, 2006

                                            By: /s/ John Reyes
                                            ----------------------
                                            John Reyes
                                            Senior Vice President and
                                            Chief Financial Officer