5. Discussion
Section 851 provides that no public utility "shall . . . encumber the whole or any part of . . . property necessary or useful in the performance of its duties to the public," without first having obtained Commission approval. Since the easement proposed to be conveyed to the County will be an encumbrance on PG&E property, we apply § 851 in considering this application.4
The primary question for the Commission in § 851 proceedings is whether the proposed transaction is in to the public interest. In reviewing a § 851 application, the Commission may "take such action, as a condition to the transfer, as the public interest may require."5 The public interest is served when utility property is used for other productive purposes without interfering with the utility's operation or affecting service to utility customers.6
We find that PG&E's conveyance of the proposed easement to the County is in the public interest. The proposed easement will not interfere with PG&E's use of the property or with service to PG&E customers, and will be utilized in a manner consistent with FERC, Commission, and legal requirements. PG&E's conveyance of the easement to the County will also serve the public interest by enabling the County to make necessary drainage improvements in the unincorporated area near Lake Almanor. Further, although the easement area is part of watershed lands covered by the LCC, PG&E's conveyance of the easement to the County for the storm drainage project will not interfere with the long-term objectives of the stipulation, settlement agreement, and LCP for water shed lands.
We also approve of the proposed ratemaking treatment for the compensation that the County will pay to PG&E for the easements.
4 Decision (D.) 01-08-069.
5 D.3320, 10 CRRC 56, 63.
6 D.00-07-010 at p. 6.
