ALJ/MCK/jyc DRAFT CA-32

3/21/2002

Agenda ID #347

Decision

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company on an Expedited Basis for Exemption under Section 853 for Easements on PG&E Land Allowing Delta Energy Center, LLC to Maintain an Electric Transition Structure for the Delta Project and CPN Pipeline to Maintain Gas Facilities for the Delta Project and the Los Medanos Energy Center Project, or in the Alternative for Approval of Easements under Section 851. (U 39 M)

Application 01-07-031 (Filed July 26, 2001)

INTERIM DECISION APPROVING FORM OF MODIFIED EASEMENTS

A. Background

In this decision we approve the final form of the two easements that were the original subject matter of this application by Pacific Gas and Electric Company (PG&E). As noted in Decision (D.) 01-08-069, the two easements on PG&E land are needed for an underground-to-overhead electric transition structure, as well as a gas pipeline and valves, associated with a new 880 MW

electric generation plant in Pittsburg, California known as the Delta EnergyCenter.¹ (Mimeo. at 1-2.)

In D.01-08-069, we granted approval of these easements under Section 851 of the Public Utilities Code. We gave this approval reluctantly, however, because we concluded that PG&E had waited an unreasonably long time to file the application, and because it appeared that PG&E was misusing General Order (G.O.) 69-C's limited exemption of revocable licenses from Commission review as a means of allowing work to proceed on projects that require prior approval by the Commission under § 851. Nonetheless, because of the urgent need to license new power plants in California, as identified in the Governor's Executive Order D-26-01, we concluded that the § 851 approvals requested by PG&E should be granted. We also concluded, however, that a later phase of this proceeding should be held to consider whether sanctions should be imposed on PG&E for its apparent misuse of G.O. 69-C. (Mimeo. at 18, 22-23.)

Although D.01-08-069 granted the requested approvals, the decision expressly reserved the right to review any changes that might be negotiated to the transition structure and gas pipeline easements. On this issue, D.01-08-069 said:

"As a practical matter, the Commission only needs to review modifications [to the easements] that alter the rights granted. However, given the context of this Application, the Commission reserves the right to determine whether any particular modification alters the rights granted, and accordingly will require all proposed modifications to be approved in advance by the Commission." (Id. at 18, fn. 16.)

"The Delta Plant is an 880 MW combined cycle natural gas fired power plant located on a 20-acre parcel owned by Dow Chemical in Pittsburg, California. In addition to the plant itself, the [Energy Commission's] decision also addressed a new 3.3 mile 230 kv electric transmission line that interconnects the Delta Plant to the transmission grid at PG&E's existing Pittsburg substation, and a new 5.2 mile natural gas fuel supply line that connects the Delta Plant to PG&E's Line 400 in Antioch. Specific portions of these linear facilities are the subject of this proceeding. "The electric transmission line runs both overhead and underground in its route from the Delta Plant to the Pittsburg substation. In order to connect with PG&E's facilities at the substation, the transmission line makes a transition from underground to overhead, which requires what has been described as a "Transition Structure" to be constructed on PG&E-owned land. The Transition Structure is being constructed by Delta Energy." (Mimeo. at 2-3.)

"The gas pipeline connects to PG&E's Line 400 in Antioch, on what is referred to as the `Wilbur Avenue property.' The gas pipeline supplies gas to both the Delta Plant and the already operational Los Medanos Energy Center in Pittsburg. The gas pipeline and related gas valves . . . have already been constructed on and/or under PG&E's property by CPN Pipeline Company, a subsidiary of Calpine." (Id. at 3-4.)