8.1 A.05-12-011

We concluded in D.06-10-047 that the Yreka-Weed transmission line project that is the subject of A.05-12-011 was needed. We relied on PacifiCorp's explanation in its application that there was growth in the Mount Shasta and Weed areas of about 2.5% per year, which had led to overloading on the line during summer and winter peak periods. PacifiCorp asserted in its application that thermal line overload had been a common occurrence and schedule curtailment had occurred over the two-year period before PacifiCorp filed the application. PacifiCorp claimed that it might in the future be required to shed distribution customer load and curtail contracted scheduled flow to avoid an overload condition.

We also addressed need in D.07-03-043, affirmed on rehearing in D.07-07-021, after obtaining greater information at the October 2006 hearings about usage of the then-existing line. We found that the need for a transmission upgrade was due to a contract PacifiCorp signed with a firm transmission customer, Powerex, rather than due to growth in PacifiCorp's local customer base. Nonetheless, we did not reverse our earlier conclusion that the line was needed, and nothing we have learned since we issued the foregoing decisions has changed our view. We find the project is needed to ensure electric reliability in the Yreka-Weed area.