Discussion

PG&E submitted A.01-04-012 as directed in my March 29, 2001 ruling in Investigation (I.) 00-11-001. PG&E and the ISO served opening testimony on September 25, 2001. PG&E's testimony focused on more fully describing the project and the expected costs to build the project. The ISO testimony addressed the need for the project, finding the Path 15 expansion to be economic under certain scenarios. In its November 8, 2001 testimony, ORA critiqued the ISO testimony and assumptions. The ISO responded to ORA's critiques in its rebuttal testimony. None of the testimony has been subject to cross-examination at this point in the proceeding.

PG&E has stated that it will not build a standalone Path 15 project. Therefore, pursuing A.01-04-012 is arguably moot. However, PG&E states its intent to participate in the MOU project, which we understand to encompass the same (or a very similar) physical project as proposed in A.01-04-012, with a lesser ownership responsibility for PG&E. In order to understand the impact on PG&E's ratepayers of potential participation in the MOU project, we must have a clearer understanding of the MOU project and its allocation of costs, benefits, and responsibilities and the resulting economic need for the project.

I.00-11-001 provides a logical forum to further explore the issue of project economics and to examine the allocation of benefits among project participants under the MOU development approach or a PG&E stand-alone project. For this reason, I am consolidating A.01-04-012 and I.00-11-001 and denying PG&E's motion to withdraw its application. PG&E is currently a respondent to I.00-11-001 and matters surrounding the economics of transmission projects throughout the state are the subject of the investigation. Parties to A.01-04-012 should be prepared to discuss a schedule for supplemental testimony regarding the allocation of costs and benefits of the federal project at the December 19, 2001 prehearing conference already scheduled in I.00-11-001. Proposals regarding schedule and scope for further exploration of a Path 15 expansion should be included in parties' prehearing conference (PHC) statements due on December 13, 2001. Based on the discussion at the PHC, the assigned Administrative Law Judge (ALJ) in I.00-11-001 will establish the scope and schedule for further consideration of the Path 15 expansion application, previously served testimony, and supplemental testimony.

IT IS RULED that:

1. Application 01-04-012 and Investigation 00-11-001 are consolidated.

2. Pacific Gas and Electric Company's November 6, 2001 Motion to Withdraw is denied.

3. Parties shall include proposals regarding schedule and scope for further exploration of a Path 15 expansion in their prehearing conference statements due December 13, 2001.

Dated November 30, 2001, at San Francisco, California.

		/s/ Loretta M. Lynch
		Loretta M. Lynch Assigned Commissioner

CERTIFICATE OF SERVICE

I certify that I have by mail this day served a true copy of the original attached Assigned Commissioner's Ruling Consolidating Application 01-04-012 with Investigation 00-11-001 and Denying Pacific Gas and Electric Company's Motion to Withdraw on all parties of record in this proceeding or their attorneys of record.

Dated November 30, 2001, at San Francisco, California.

/s/ Antonina V. Swansen

Antonina V. Swansen

NOTICE

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