Background
PG&E acquired the property in 1921, and it has been recorded on the company's books as a nondepreciable asset at the original cost and net book value of $5,670.1 The utility's transmission lines with a 115-kilovolt capacity cross the property. One to three 100-foot lattice steel transmission towers are also located on the property (the exact number being in question until the property is surveyed). The property has been classified as a transmission asset in PG&E's transmission rate base, and the maintenance and operating costs of the property have been recovered under FERC's ratemaking procedures for PG&E's transmission services.
On September 25, 2001, Brickner (who also owns adjoining land) entered into a written agreement to purchase the property from PG&E for $40,000 (payable in full at closing), the transaction conditioned on our approval. Under the agreement, PG&E is also entitled "to reserve easements for all existing or proposed utility facilities located, or to be located, on or under the Property."2 Because the consideration for the transmission-related property is less than $50,000, the transaction does not have to be specifically approved by FERC under Section 203 of the Federal Power Act.3
On December 20, 2002, applicants filed their application to approve the sale and conveyance of the property under Section 851 of the California Public Utilities Code. The application contains all information required by our Rules of Practice and Procedure including applicant information, PG&E's articles of incorporation and financial data (incorporating by reference other recent Commission filings), environmental information, property description, terms of the proposed sale, and reasons for the proposed transfer. The property is not a generation facility so the prohibition against the transfer of such facilities, set forth in Section 377 of the Public Utilities Code, does not apply.
On January 27, 2003, the Office of Ratepayer Advocates (ORA) protested the application; but ORA's protest is limited to PG&E's proposed distribution of the net "gain-on-sale" proceeds to shareholders.
1 The property is a 1.53-acre parcel that, prior to closing, will be surveyed and subdivided from a larger parcel owned by PG&E. The larger parcel is presently described as Alameda County Assessor's Parcel No. 048H-7524-009-00. In approving this conveyance, we also order the applicants to file the legal description for the conveyed parcel once the final legal description is ascertained. 2 Purchase and Sale Agreement ¶ 4.2 (Sept. 25, 2001), set forth as Ex. A to the application. 3 16 U.S.C. § 824(b) (LEXIS through May 29, 2003). Normally, a utility proposing to dispose of an asset, such as transmission-related property that is under FERC's jurisdiction, must seek that agency's authorization under Section 203. Unless protested, an application usually results in an approval order issued by the FERC staff. See, e.g., Order Authorizing Disposition of Jurisdictional Facilities, AEP Texas Central Co. & AEP Texas North Co., No. EC03-58-000, 102 Fed. Energy Reg. Comm'n Report (CCH) ¶ 62,193 (Mar. 31, 2003). The authorization usually is "without prejudice to the authority of the Commission or any other regulatory body with respect to rates, services, accounts, valuation" and other matters. Id.
