ALJ/SRT/jva Mailed 11/23/2004

Decision 04-11-019 November 19, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the matter of the Application of SIERRA PACIFIC POWER COMPANY for an Order Authorizing the Sale of Four Hydroelectric Generation Plants on the Truckee River to the Truckee Meadows Water Authority.

Application 03-09-045 (Filed September 30, 2003)

OPINION

I. Summary

This decision grants Sierra Pacific Power Company's (Sierra) application pursuant to Pub. Util. Code § 851 to sell its four run-of-the-river hydroelectric generating plants on the Truckee River to the Truckee Meadows Water Authority (TMWA). The sale of these electric generating plants is authorized by statute, and is in the public interest. Further, there will be no adverse environmental impact as a result of the sale.

However, Sierra has not provided adequate explanation of its proposed gain on sale allocation. Because of our recent initiation of Rulemaking (R.) 04-09-003, examining how to allocate gains from the sale of utility property, the issue should be addressed once that Rulemaking is resolved.