Discussion

PSREC is an electrical cooperative as defined in Pub. Util. Code § 2776.⁷ PSREC was issued a CPCN in Decision (D.) 47989, issued on December 2, 1952. D.47989 provided that the lands of the Sierra Army Depot were certified to California Pacific National, later purchased by the LMUD. Although Applicant is exempt from regulation of its rates, debt or property,⁸ it is subject to Part 1 of the Public Utilities Act, including § 1001, in regard to its certificated service area.⁹

PSREC states it has worked with LMUD to devise a fair and reasonable plan¹⁰ to transfer all customers associated with the current and former Sierra Army Depot property from the LMUD service area to that of PSREC as that property is described in Exhibits D and E attached to the application. PSREC asserts the transfer of customers will provide economic benefits, avoid economic burdens for LMUD and provide rate stability. Furthermore, PSREC has detailed how these benefits will accrue to current customers of PSREC and LMUD, as well as the customers transferred from LMUD to PSREC service. As provided in Exhibit B attached to the application, LMUD has agreed to relinquish the four affected customers and approved the transfer through its Board of Directors. PSREC asserts its position of being ready, willing and able to serve these customers.

As shown in Exhibit C attached to the application, a compilation of letters from the four transferred customers in support of the transfer to PSREC service, all affected customers support the proposed transfer. These four customers are SIAD (the United States Department of the Army), Citizens Communications, Susanville Indian Rancheria, and the Fort Sage Unified School District. In addition, as described in the supplemental information, the Federal Bureau of Prisons has requested service by PSREC. Given the benefits of significant rate reductions for these customers this support is understandable. No protests or responses to the proposed application as amended have been filed.

We have considered the application of PSREC as amended and the support indicated by the LMUD and all affected customers. Although PSREC is exempt from regulation of its rates, debt or property, we have considered other implications of this transfer of customers and service territory, including issues such as rate effects on both existing and transferred PSREC and LMUD customers. While these are unregulated issues, we believe that our approval of the application should consider any possible effects that might significantly affect customers outside of PSREC's service territory. In this instance we find that there are benefits for both the transferred LMUD customers, and the existing customers of PSREC and LMUD due to increased operating efficiencies,¹¹ as well as benefits that will improve the overall economy of Lassen County. Therefore, we find that the application is reasonable, in the public interest, and should be adopted.

In Resolution ALJ 176-3076 dated November 29, 2001, the Commission preliminarily categorized this application as ratesetting, and preliminarily determined that hearings were not necessary. No protests have been received. There is no apparent reason why this application should not be granted. Given these developments, a public hearing is not necessary, and it is not necessary to disturb the preliminary determinations.

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Section 311(g)(2) of the Public Utilities Code, the otherwise applicable 30-day period for public review and comment is being waived.