9. Assignment of Proceeding

Geoffrey F. Brown is the assigned Commissioner in this matter, and Myra J. Prestidge is the assigned Administrative Law Judge.

Findings of Fact

1. The proposed easement will not interfere with PG&E's use of the property or with service to PG&E's customers, and will be utilized in a manner consistent with FERC, Commission, and legal requirements.

2. The easement area is part of watershed lands covered by the LCC established as part of a settlement agreement between PG&E, PG&E Corporation, and the Commission in I.02-04-026.

3. Pursuant to the settlement agreement in I.02-04-026, PG&E has established SC, a California non-profit corporation to oversee and carry out the LCC.

4. Pursuant to its policy regarding third party uses of watershed property, SC has reviewed the County's request for approval of the easement and found that PG&E's conveyance of the easement to the County would be consistent with the long-term management objectives for the property as contemplated in the settlement agreement in I. 02-04-026, a stipulation that clarified and supplemented the settlement agreement, and the LCP.

5. The County is the Lead Agency for the proposed project under CEQA.

6. The County has prepared and adopted a negative declaration for the project, which found that the project will not have a significant adverse effect on the environment.

7. The Commission is a Responsible Agency for the proposed project under CEQA.

8. Consistent with the County's findings and determinations, we find that no significant environmental effect will result from the project.

9. Compensation received by PG&E from the County for the proposed easements will be credited to Other Operating Revenue and will be used to reduce the generation revenue requirement in future general rate cases, consistent with conventional cost-of-service ratemaking.

10. The project will enable the County to install and maintain necessary drainage improvements in unincorporated portions of Plumas County near Lake Almanor.

Conclusions of Law

11. The mitigated negative declaration prepared and approved by the County is adequate for the Commission's decision-making purposes as a responsible agency under CEQA.

12. Consistent with § 851, PG&E's conveyance of the proposed easement to the County for the drainage improvement project is in the public interest and should be authorized.

13. The decision should be effective today in order to allow the easement to be conveyed to the County expeditiously.

ORDER

IT IS ORDERED that:

14. Pacific Gas and Electric Company (PG&E) is authorized to convey a permanent easement for the installation and maintenance of storm drain facilities over its property located in Plumas County, as described in Exhibit B to the application, to Plumas County. When the final easement documents are executed, PG&E shall submit a copy by advice letter filing within sixty (60) days of this order.

15. PG&E shall credit the fees of $200.00 to Other Operating Revenue and use these fees to reduce the generation revenue requirement in future general rate cases, consistent with conventional cost-of-service ratemaking.

16. Application 05-09-023 is closed.

This order is effective today.

Dated May 11, 2006, at San Francisco, California.

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