3. Identification of Parties

MU is a Delaware limited liability company whose sole member and parent is Mountainsprings-Kirkwood, LLC. Mountainsprings-Kirkwood, LLC is also the parent and sole member of Kirkwood Mountain Resort, LLC. MU is an electric microutility5 providing retail electric service in the Kirkwood, California area. MU has approximately 700 customers with a coincident peak load of 2.2 megawatts (MW) and an additional interruptible load of approximately 1.1 MW. Kirkwood Mountain Resort represents about 75% of MU's total winter load and about 55% of MU's summer load.6 Until January 1, 2010, MU served its customers exclusively from a utility grade diesel generator facility (the powerhouse) that was installed in the 1970s and had a combined normal operating capacity of 4,200 kilowatts (kW) (6.325 MW nameplate capacity). On January 1, 2010, a fire completely destroyed the powerhouse. Since that time, MU has been providing service on an emergency basis using several portable diesel generators, which are less efficient than the original powerhouse.7

MU's service territory is approximately 2.5 miles by 0.75 miles and is located southwest of Lake Tahoe at an elevation of approximately 8,000 feet. MU is not connected (either directly or indirectly) to the transmission grid nor to any natural gas or diesel fuel pipelines.8 All energy needed to serve MU's load is generated by MU, and fuel for this generation is transported to MU by truck.

KMPUD is a non-profit public utility district formed in 1985 pursuant to the California Public Utilities Code9 and is governed by a five-member board of directors elected by the Kirkwood community. KMPUD currently provides water, sewer, fire department, recreation, cable television, refuse collection, snow removal, employee housing, and vector control services to the Kirkwood community. KMPUD's service territory is coterminous with MU's service territory. In 1999, KMPUD installed and began to operate three 360 kW generation units to meet its electric needs. Operation of these generation units represents the extent of KMPUD's experience with owning and operating electric generation resources at this time.10 In December 2006, KMPUD applied to the Alpine County Local Agency Formation Commission (LAFCO) for authorization to provide electric and gas service. On April 17, 2007, the Alpine County LAFCO approved KMPUD's request to provide electric and propane retail distribution service within its service territory. The LAFCO approval was subsequently reviewed and approved by the Alpine County Counsel.11

DRA is a ratepayer advocacy group, which statutorily is part of the Commission. As noted above, DRA has party status in this proceeding but, after discovery, has not protested the application.

5 Cal Pub. Util. Code § 2780 defines an "electric microutility" as "any electrical corporation that is regulated by the commission and organized for the purpose of providing sole-source generation, distribution, and sale of electricity exclusively to a customer base of fewer than 2,000 customers."

6 Application at 2.

7 The backup generators were applied for through the Great Basin Unified Air Quality Control District and permitted for temporary use; therefore no California Environmental Quality Act (CEQA) review was triggered. (Tr. at 7.)

8 See D.08-05-029 at 5-6.

9 Cal. Pub. Util. Code § 15701 et seq.

10 Tr. at 10. KMPUD currently provides propane services to all of its main structures. (Tr. at 10.)

11 Application at 4.

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