5. Final Categorization and Waiver of Review Period

Based on our review of this application, we conclude that there is no need to alter the preliminary determinations as to categorization and need for a hearing made in Resolution ALJ 176-3076 (November 29, 2001). Moreover, since this proceeding is uncontested and we grant the relief granted, pursuant to Section 311(g)(2), the otherwise applicable 30-day period for public review and comment is waived.

Findings of Fact

1. Our consideration of this application is expedited based on representations that CPN must obtain the easement by February 1, 2002 in order to meet its construction schedule and minimize the time that the SRGS pipeline is out of service.

2. The proposed easements 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 and Commission requirements.

3. CEC is the Lead Agency for the proposed DEC project under CEQA.

4. Delta Enegy's Petition seeking approval to amend its license for the DEC project, filed with CEC in October 2001, addressed the SRGS interconnection and components of the pigging station that created the need for the easement requested in this application.

5. CEC's NOI for Delta Energy's amendments to its license for the DEC project addressed the SRGS interconnection and components of the pigging station.

6. CEC's NOI for Delta Energy's amendments to its license for the DEC project, adopted by CEC on April 27, 2001, found that there is no possibility that changes to the project, including the SRGS interconnection and the pigging station addressed in this application, will have a significant environmental effect.

7. The Commission is a Responsible Agency for the purposes of environmental review of the proposed easement under CEQA.

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

9. Compensation received by PG&E from CPN for the proposed easements will be credited according to the applicable FERC accounting and ratemaking requirements.

10. The proposed easement will facilitate CPN's cleaning and remote inspection of its gas line facilities, will provide an additional interconnection with the SRGS pipeline, and will increase gas service reliability for DEC and Los Medanos.

Conclusions of Law

1. Since the CEC siting process is a "certified regulatory program" pursuant to Section 21080.5 of the Public Resources Code, the Commission must treat CEC's final decision on the DEC project and the NOI on amendments to Delta Energy's license for the project as equivalent to an EIR and a negative declaration, respectively.

2. The final decision and NOI prepared by CEC are adequate for the Commission's decisionmaking purposes as a responsible agency.

3. Consistent with Section 851, PG&E's conveyance of the proposed easement to CPN will serve the public interest and should be authorized.

4. The decision should be effective today in order to allow the easement to be conveyed to CPN expeditiously.

ORDER

IT IS ORDERED that:

1. Pacific Gas and Electric Company (PG&E) is authorized to convey an easement across its electric transmission property in the area of Pittsburgh, California to CPN Pipeline Company (CPN) as described in this decision.

2. PG&E shall amend Section 15, regarding Assignment; Agreement to Dedicate and Section 16, regarding Collateral Assignment, of its proposed agreement with CPN, to require advance notice to PG&E and Commission approval of any proposed assignment, transfer, conveyance, or mortgage of the easement that would alter the terms of the easement.

3. PG&E shall submit a copy of final easement documents by advice letter filing within sixty (60) days of this order.

4. PG&E shall credit revenues received from CPN for the easement according to the applicable FERC accounting and ratemaking requirements.

5. This proceeding is closed.

This order is effective today.

Dated January 23, 2002, at San Francisco, California.

APPENDIX A

(SEE CPUC FORMAL FILES FOR A COPY OF APPENDIX A)

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