VIII. Discussion

We are not persuaded by SSRC's recommendation that a single, lower-capacity 15 MVA (nameplate rating) transformer be installed within the footprint of the existing substation to handle the load growth identified by SDG&E. As SDG&E witness Snow testified, the utility's practice is to standardize the use of 28 MVA nameplate rating transformers in its rural substations, and SDG&E limits the operation of these transformers to a maximum 15 MVA for one hour per year for the sake of reliability. Snow's testimony is unrefuted. For the same reason, we reject SSRC's arithmetic calculation purporting to show that based on SDG&E's estimate of annual load growth (0.2 MVA per year), the first phase of the new substation (28 MVA) would not be fully utilized until the year 2075.

Also, we reject SSRC's arguments that because SDG&E identified the Pala Substation as its alternative "southern anchor" for the Valley-Rainbow transmission line project, it would be improper under CEQA for the Commission to split the project into two or more segments; and, to comply with CEQA requirements the Commission must fully analyze the impacts of the Pala Substation Expansion and the Valley-Rainbow project in a single environmental document. The only connection between the Pala Substation and any future southern anchor for the Valley-Rainbow project is that they could be on the same 203-acre parcel of land owned by SDG&E.

As SDG&E has pointed out, any development of the proposed new 500/230-kV bulk power transmission substation, as a part of the Valley-Rainbow transmission line project, or any other project, on the 203-acre parcel owned by SDG&E is not a foreseeable consequence of the Pala Substation Expansion. The expansion of the Pala Substation will not change the scope or nature of the Valley-Rainbow transmission line project, or vice-versa.

We believe it is prudent and in the public interest to expand Pala Substation to ensure that customers have continuous, reliable service. Therefore, we conclude that the Pala Substation Expansion should be constructed without further delay. The project will initially consist of a single 28 MVA transformer and facilities to install a second 28 MVA transformer. SDG&E should file an application for authorization to install the second transformer when needed.

In view of the recommendations of our environmental staff, and the unqualified support for the project by the residents of the Pala area, we will grant SDG&E's request for a PTC. We will also approve the Final Mitigated Negative Declaration. The California Office of Planning and Research on June 25, 2001, issued a Notice of Completion indicating that the Commission has complied with the State Clearinghouse review requirements for draft documents, pursuant to CEQA. The project's State Clearinghouse number is 20010511129.