10. Conclusion

Because SDG&E will continue to meet the WECC/NERC reliability criteria during the relevant planning horizon and the Valley-Rainbow Project cannot be justified on the basis of providing economic benefits to ratepayers, SDG&E's request for a CPCN should be denied without prejudice. Because a project is not needed at this time, the Energy Division should halt its preparation of the DEIR/DEIS for the Valley-Rainbow Project. Energy Division is directed to prepare and file a document that provides a preliminary alternatives feasibility analysis based on the environmental information developed to date.

If SDG&E identifies a reliability or economic need for a similar transmission project in the future, SDG&E may file a new application seeking a CPCN for its proposed project. With Energy Division's preliminary alternatives feasibility analysis in hand, SDG&E will be in a better position to evaluate potential alternatives in its Proponent's Environmental Assessment for a new project. The Commission will also be well positioned to quickly begin its environmental review for a newly proposed project, should a reliability or economic need be identified.