3. Parties to the Transaction

PacifiCorp is a public utility based in Portland, Oregon, serving approximately 1.5 million retail customers in six western states. In California, the company provides electric service to approximately 42,000 customers in Siskiyou, Del Norte, Modoc and Shasta counties in northern California.

PacifiCorp owns 47.5% of the Skookumchuck Project. Other entities with an ownership interest in the Project are Public Utility District No. 1 of Snohomish County, Washington; Puget Sound Energy, Inc.; City of Tacoma, Washington; Avista Corporation; City of Seattle, Washington; and Public Utility District No. 1 of Grays Harbor County, Washington (collectively, the Owners).

Washington LLC is a Washington limited liability company and a direct wholly owned subsidiary of TransAlta. TransAlta is the indirect owner of the Centralia Power Plant and the Centralia Coal Mine.

In the year 2000, PacifiCorp and the other Owners sold the Centralia Power Plant to a wholly owned subsidiary of TransAlta, TECWA Power Inc., and PacifiCorp sold the Centralia Coal Mine to another wholly owned subsidiary of TransAlta, TECWA Fuel, Inc. These transactions were approved by this Commission in Decision (D.) 00-04-031 (April 6, 2000). TransAlta Centralia Generation, a wholly owned subsidiary of TECWA Power Inc., owns and operates the Centralia Power Plant.

The application states that sale of the Skookumchuck Project was contemplated at the time of the power plant and coal mine sale but for a number of reasons, including stability and safety studies required by the Federal Energy Regulatory Commission (FERC), was not consummated at that time.