7. Exempt Wholesale Generator

In addition to seeking approval of the sale of the Skookumchuck Project, the application requests that the Commission issue the findings required for Washington LLP to qualify as an EWG pursuant to Section 32 of the Public Utility Holding Company Act, 15 U.S.C. § 792-5a(c).

EWG is a FERC classification created by the Energy Policy Act of 1992 to help promote wholesale generation competition. An EWG is exempt from the provisions of the Holding Company Act. Congress in providing this exemption sought to open the wholesale generation market to more participants.

To qualify as an EWG, the owner/operator of the Skookumchuck Project must be engaged exclusively in the business of owning or operating an "eligible facility" and selling electric energy at wholesale. If the costs of a generation facility were included in the rates of a regulated utility on October 24, 1992 (the date of enactment of the exemption), then in order for the facility to be considered an "eligible facility," every state commission having jurisdiction over such rates must determine that allowing the facility to become an eligible facility (1) will benefit customers, (2) is in the public interest, and (3) does not violate state law. (15 U.S.C. § 79z-5a(c).) Thus, this Commission and each of PacifiCorp's other state regulatory commissions must make these determinations regarding PacifiCorp's transfer of the Skookumchuck Project.

The record in this case is sufficient to support the findings sought by the application. Transfer of the Project will benefit customers, is in the public interest, and does not violate state law.