7. Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Darwin E. Farrar is the assigned Administrative Law Judge in this proceeding.

1. Notice of the application appeared on the Daily Calendar on April 7, 2009.

2. No protests have been filed.

3. A hearing is not required.

4. SCE seeks a CPCN from the Commission authorizing the construction of 1,200 feet of 230 kV Tie-Line from the Project to SCE's existing Walnut Substation.

5. SCE will own the Tie-Line.

6. The estimated cost of constructing the Tie-Line and related interconnection facilities is $7.19 million. SCE represents that the total costs associated with the Tie-Line will be paid by WCE according to the terms of the Large Generator Interconnection Agreement entered into by SCE and WCE.

7. SCE has established that the Tie-line is necessary.

8. The CEC conducted an environmental review of the Project (including the Tie-Line), and approved the Project with certain "conditions of certification" in Application for Certification 05-AFC-2.

9. SCE's EMF plan for the Tie-Line is consistent with D.93-11-013 and
D.06-01-042.

10. In this application, we need not consider the cost-effectiveness of the Project, project alternatives, and related financial issues and their impact on ratepayers, since SCE represents that WCE will pay the total costs of the Project and there will be no impact on ratepayers.

11. The "total costs" of the Project, from which ratepayers are insulated, include all construction, operation, maintenance, and administrative charges associated with the entire transmission project as well as all risk and liability which are or may be associated with the project in the future.

12. The CEC is the lead agency under CEQA for the Project and associated
tie-line. The Commission is a Responsible Agency under CEQA.

13. The CEC conducted an environmental analysis of the Project and associated tie-line. The CEC found in Order No. 08-0227-02 that the proposed
tie-line, with the CEC's Conditions of Certification, would not result in, nor contribute substantially to, any significant direct, indirect, or cumulatively adverse environmental impacts. The CEC is responsible for monitoring and enforcing compliance with its Conditions of Certification.

1. SCE should not recover any costs associated with the new single circuit 230kV line from ratepayers.

2. SCE's shareholders, as opposed to ratepayers, should assume all risk and liability associated with the transmission project based upon SCE's agreement with WCE.

3. SCE should be granted a CPCN to construct, operate, and maintain a single-circuit 230 kV transmission line that will connect the Project to SCE's existing Walnut Substation, in the manner described in this application, subject to the conditions set forth in this decision, and any related "Conditions of Certification" specified in CEC Application for Certification 05-AFC-2.

4. Pursuant to Pub. Res. Code § 25519(c), CEC Order No. 08-0227-02 is functionally equivalent to an environmental impact report under CEQA. This document is adequate for the Commission's decision-making purposes, and the Commission has considered this document in its decision-making process in accordance with CEQA Guideline 15096(f).

5. The CEC reasonably concluded that its adopted Conditions of Certification will ensure that that the tie-line will not result in, or contribute substantially to, any significant direct, indirect, or cumulatively adverse environmental impacts.

6. Pursuant to CEQA Guideline 15096(g)(1), and to ensure there are no adverse environmental impacts from the tie-line, the granting of a CPCN for the Walnut Project tie-line should be subject to the Conditions of Certification and Compliance Verifications applicable to the tie-line that are contained in CEC Order No. 08-0227-02.

7. SCE's Field Management Plan contained in Appendix E of
Application 09-04-010 complies with GO 131-D and the low-cost, no-cost EMF policy adopted by the Commission in D.06-01-042.

8. Because of the public need for additional power generation during periods of high demand, the following order should be effective immediately.

ORDER

IT IS ORDERED that:

1. A certificate of public convenience and necessity is granted to Southern California Edison Company to construct, operate, and maintain approximately 1,200 feet of new single-circuit 230 kilovolt transmission line that will connect a proposed 500 megawatt simple-cycle power plant to Southern California Edison Company's existing Walnut Substation subject to the conditions in Ordering paragraph 2 and 3 below.

2. Southern California Edison Company shall not recover any costs associated with the new single-circuit 230 kilovolt transmission line project from ratepayers. Southern California Edison Company's shareholders, as opposed to ratepayers, shall assume all risk and liability of the transmission project based on Southern California Edison Company's agreement with Walnut Creek Energy, LLC. Southern California Edison Company may not pass on to ratepayers, directly or indirectly, any costs, risks, or liability associated with the transmission line project.

3. Southern California Edison Company shall comply with, and use its best efforts to assist Walnut Creek Energy, LLC to comply with all applicable conditions of certification related to the transmission project specified in the decision issued February 27, 2008, by the California Energy Commission in Docket No. 05-AFC-2, granting Walnut Creek Energy, LLC's Application for Certification.

4. Application 09-04-010 is closed.

This order is effective today.

Dated July 30, 2009, at San Francisco, California.

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