7. Assignment of Proceeding

Susan P. Kennedy is the Assigned Commissioner and Glen Walker is the assigned ALJ in this proceeding.

Findings of Fact

1. Pub. Util. Code § 367.3 permits a qualifying direct transaction customer to apply for relief from direct access CRS if to pay them would cause certain and imminent closure of the customer's plant or facility.

2. SierraPine filed this application on August 12, 2003, within seven days of the operative date of Section 367.3, as required.

3. SierraPine's Rocklin facility produces MDF and thin MDF, recycling over 200,000 tons of wood waste per year.

4. The Rocklin facility employs more than 200 persons and contributes $60 million per year to the local and state economy.

5. Imposition of the DA surcharge results in energy cost increases at the Rocklin facility that SierraPine is unable to pass along or to absorb within the facility's profit margin.

Conclusions of Law

1. SierraPine's Rocklin facility is a "qualifying direct transaction customer" for purposes of seeking relief under Pub. Util. Code § 367.3.

2. Waving collection of the DA CRS, as authorized by Section 367.3, is in the public interest.

3. Absent waiver of the DA CRS, there is no other feasible alternative that will allow the Rocklin facility to stay in operation.

4. Waiver of the DA CRS will not result in any shifting of costs to bundled service customers or delay full and timely recovery of costs from direct access customers as a group.

5. The application should be granted, and collection of DA CRS for SierraPine's Rocklin facility should be waived, effective immediately.

ORDER

IT IS ORDERED that:

1. Collection of the direct access cost responsibility surcharge for the SierraPine Limited Rocklin facility is waived, effective immediately, pursuant to Pub. Util. Code § 367.3.

2. Because the Commission is required to act on this application on or before September 4, 2003, the protest period has been reduced to five days.

3. Pursuant to Pub. Util. Code § 367.3 and Rule 77.7(f)(9) of the Rules of Practice and Procedure, the 30-day comment period for this proceeding is waived.

4. Application 03-08-008 is closed.

This order is effective today.

Dated September 4, 2003, at San Francisco, California.

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