6. Section 851

PG&E's application is made under § 851, which requires Commission approval before a utility can sell the whole or any part of its property that is necessary or useful in the performance of its duties to the public. The basic task of the Commission in a § 851 proceeding is to determine whether the transaction serves the public interest: "The public interest is served when utility property is used for other productive purposes without interfering with the utility's operation or affecting service to utility customers." (D.02-01-058 (2002).) With these requirements in mind, we examine the public interest aspect of the sale of the property at issue.

As stated above, this property is valueless to anyone other than buyers, and the value of the property is zero. It is part of PG&E's generation rate base,

with an allocated original cost of $100,600. The public interest would be served by selling the property to buyers, so that PG&E is relieved of the cost of maintaining this property and any liability arising from ownership of this property, which has been declared a nuisance.