4. Market Valuation and Divestiture

PG&E intends to quit claim the property, including the improvements, to Buyers for $1.00 and asks that the Commission determine that this amount represents the property's market value for purposes of § 367(b). Buyers had informed PG&E of their belief that the standpipe and pump house located on the property constitute a nuisance. To address this claim, and because the property's inaccessible location renders it valueless to anyone other than Buyers, PG&E entered into negotiations to sell the property to Buyers.¹ At PG&E's request, Buyers commissioned an appraisal, which concluded that the cost of demolition of the standpipe and pump station would exceed the value of the property, and

that the value of the property was zero. PG&E therefore agreed to quit claim the property to Buyers in exchange for $1.00. Buyers have agreed to remove the concrete standpipe and pump house at their own expense, and release PG&E from liability arising out of the transfer.

PG&E states that the property is not necessary and useful to its utility distribution operations. Due to the impractical shape and inaccessibility of the property, the property has little value. In addition, the cost of demolishing the standpipe and pump house will exceed the property's value. Given that Buyers will bear the cost of demolition, the $1.00 sale price exceeds the property's fair market value.