Assignment of Proceeding

Rachelle B. Chong is the assigned Commissioner and Angela K. Minkin is the assigned ALJ in this proceedings.

Findings of Fact

1. On October 9, 2007, Nevada Hydro filed A.07-10-005 without the required PEA and requested that the Commission issue a CPCN for the Talega-Escondido/Valley-Serrano 500-kV Project.

2. Nevada Hydro submitted "draft" and "revised" PEAs on February 8, 2008, July 29, 2008, and November 12, 2008.

3. Commission Staff worked diligently to review all submitted PEAs and attempted to work with Nevada Hydro to correct the noted and substantial deficiencies. Staff deficiency letters were provided to Nevada Hydro on November 16, 2007, March 6, 2008, August 18, 2008, October 20, 2008, and December 5, 2008.

4. The assigned ALJ properly issued a ruling on December 30, 2008, ordering Nevada Hydro to either to file a full amended application with a complete PEA; to file comments providing compelling arguments for why the present application should not be dismissed without prejudice; or to voluntarily request that the Commission dismiss the present application without prejudice.

5. Nevada Hydro filed an amended application in response to the December 30 ruling. The amended application was given a new docket number, A.09-02-012, and A.09-02-012 and A.07-10-005 were consolidated.

6. Staff has carefully and thoroughly reviewed the revised PEA submitted with A.09-02-012 and, by letter issued on March 12, 2009, has informed Applicant that the PEA is still incomplete, particularly with regard to the necessary detailed description of the Project and critical project elements.

7. Despite considerable resources expended by Commission Staff, consultants, and Applicant, these efforts have not led to a PEA that can be deemed complete.

8. We affirm the assigned ALJ's finding in the December 30, 2008 ruling that provided notice to Applicant that the ALJ would prepare a proposed decision dismissing this application without prejudice if our Staff determined that the amended PEA remained seriously deficient in the description of the Project.

9. Nevada Hydro paid a deposit of $714,000 in October 2007, to reimburse the Commission for expenses associated with the environmental review of the Project.

Conclusions of Law

1. In order to allow the Commission to discharge its duties and obligations under CEQA, Commission Staff must deem complete Nevada Hydro's application for a CPCN.

2. Nevada Hydro has not met its obligations under CEQA, GO 131-D, and Rule 2.4(b).

3. A.09-02-012 and A.07-10-005 should be dismissed without prejudice. If Nevada Hydro decides to file a new application, it should ensure that the application and PEA fully and completely comply with the requirements established by CEQA, GO 131-D, and Rule 2.4(b). Any new application and PEA must also cure the specific deficiencies identified in the Commission Staff's most recent deficiency letter, dated March 12, 2009. Those deficiencies relate to project components involving the Case Spring Substation location as well as the proposed 115-kV transmission line.

4. Pursuant to Rule 2.5(c), the balance of the remaining funds paid by Applicant to reimburse the Commission for preparation of the environmental documents should be promptly refunded.

5. This order should be effective immediately.

ORDER

IT IS ORDERED that:

1. The Nevada Hydro Company's application for a Certificate of Public Convenience and Necessity for the Talega-Escondido/Valley-Serrano 500-Kilovolt Interconnect Project first filed on October 9, 2007 as Application (A.) 07-10-005 and then filed on February 20, 2009 as A.09-02-012, are dismissed without prejudice. If Applicant files a new application for this Project, Applicant shall ensure that the application and the associated Proponent's Environmental Assessment shall fully and completely comply with the requirements under the California Environmental Quality Act, General Order 131-D, and Rule 2.4(b). In addition, any new application and Proponent's Environmental Assessment must also cure the specific deficiencies identified in the Commission Staff's most recent deficiency letter, dated March 12, 2009. Those deficiencies relate to project components involving the Case Spring Substation location as well as the proposed 115-kV transmission line.

2. Within 30 days of the date of this decision, Staff shall work with Fiscal Office to refund the remaining balance of the deposit paid by Applicant pursuant to Rule 2.5(c).

3. A.09-02-012 and A.07-10-005 are closed.

This order is effective today.

Dated April 16, 2009, at San Francisco, California.

D0904006 Attachment 1

D0904006 Attachment 2

D0904006 Attachment 3

D0904006 Attachment 4

D0904006 Attachment 5

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