STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 17, 2003 Agenda ID #1935

TO: PARTIES OF RECORD IN APPLICATION 02-12-007

This is the draft decision of Administrative Law Judge (ALJ) Long. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:hkr

Attachment

ALJ/DUG/hkr DRAFT Agenda ID #1935

Ratesetting

Decision DRAFT DECISION OF ALJ LONG (Mailed 3/17/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the matter of the Application of SIERRA PACIFIC POWER COMPANY for an Order Authorizing the Sale of Four Hydroelectric Generation Plants on the Truckee River to the Truckee Meadows Water Authority.

Application 02-12-007 (Filed December 5, 2002)

DENIAL OF APPLICATION WITHOUT PREJUDICE

Pursuant to Rules 17.1(a) and 17.1(b)(2) of the Commission's Rules of Practice and Procedure,¹ this decision sets forth the determination that this application is subject to the provisions of the California Environmental Quality Act of 1970² (CEQA) as an integral part of the Commission's discretionary decision-making process. Sierra Pacific Power Company (Sierra Pacific) did not file a sufficient application to allow the Commission to address the request for authority to transfer utility property. The application is denied without prejudice and Sierra Pacific may file a new application, with adequate justification, including a proponent's environmental assessment (PEA).

Background

Sierra Pacific requests an exemption from the California Pub. Util. Code § 851 that governs transfers of utility property.³ Sierra Pacific proposes to sell the water rights and assets associated with four run-of-the-river hydroelectric facilities located on the Truckee River, at Farad, California, Fleish, Verdi, and Washoe, Nevada to the Truckee Meadows Water Authority (TMWA). The TMWA is a publicly owned municipal water utility that provides retail commercial and residential water services to customers in portions of the cities of Reno and Sparks, Nevada. Alternatively, Sierra Pacific seeks expedited approval of the sale under § 851.

The Commission made a preliminary finding in Resolution ALJ 176-3103, issued on December 17, 2002, that the category for this proceeding is ratesetting and determined that the matter did not require hearings. We have considered our preliminary determinations and find that a hearing is not necessary.