ALJ/BMD/tcg Mailed 4/8/2002

Decision 02-04-011 April 4, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of the Plumas-Sierra Rural Electric Cooperative to Amend its Certificate of Public Convenience and Necessity to Alter and Extend its Service Territory.

Application 01-10-037 (Filed October 3, 2001)

DECISION GRANTING APPLICATION OF PLUMAS-SIERRA RURAL
ELECTRICAL COOPERATIVE TO AMEND ITS
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

Summary

We grant Plumas-Sierra Rural Electric Cooperative's (PSREC's) request to amend its Certificate of Public Convenience and Necessity (CPCN).¹ PSREC is herein granted our approval to alter and extend its service territory to include customers now served by Lassen Municipal Utility District (LMUD). In granting this approval, pursuant to the California Environmental Quality Act (CEQA), we have considered any possible environmental consequences under which such a project might otherwise merit further scrutiny. The Commission is satisfied that the Lead Agency (LMUD) has fulfilled its obligation concerning issues specific to environmental impacts. LMUD has determined that this service area transfer is exempt from CEQA under Guidelines Section 15061 (b)(3) and, accordingly as Lead Agency, filed with the Commission its Notice of Exemption dated January 4, 2002. The Commission remains unaware of any information which would not support its finding of exemption from CEQA for this project. Furthermore, PSREC asserts that it has successfully worked with LMUD to establish a plan that is fair and reasonable to transfer four LMUD customers and that it is now fully equipped to manage such an undertaking.

PSREC estimates that the requested transfer of four LMUD customers into its service area will provide a net benefit to PSREC of $700,000 per year. This net benefit is the result of a more efficient compact electric system for PSREC without adding additional costs for maintenance or distribution operations. This means that rate increases estimated for 2003 affecting existing PSREC customers will be reduced by approximately 8% from those rates otherwise estimated for 2003.

In the process of overseeing and evaluating the public interest as it relates to the service territory transfer, the Commission has considered other implications of this transfer, such as rate effects on both existing and transferred customers as well as increased operating efficiencies for all concerned. Since such efficiencies positively influence all California electric energy users, we find PSREC's request to be both reasonable and of benefit to all California energy users.

No protests have been received by the Commission, and there is no apparent reason why this application request should not be granted. On that basis, it is agreed that a public hearing is not necessary and that the preliminary determinations stand on their merits.

Summarily, we find the transfer to be both reasonable and in the public interest; accordingly, PSREC's request to amend its CPCN should be approved.