Assignment of Proceeding
Geoffrey F. Brown is the Assigned Commissioner and James C. McVicar is the assigned Administrative Law Judge in this proceeding.
1. The property to be sold consists of five parcels originally acquired in 1971, 1972 and 1975 for construction of a new switching station as part of an expansion of PG&E's Geysers Power Plant.
2. The total original cost of the property was $112,015. The purchase price as set forth in the Purchase and Sale Agreement is $250,000. The after-tax gain on sale will be approximately $63,379.
3. Until 1990, PG&E classified the property as part of utility operations in its accounting records, and all associated taxes, maintenance costs and other revenue requirements were borne by ratepayers. PG&E reclassified the property as non-utility in 1990, and all costs since then have been borne by shareholders.
4. Four electric transmission lines traverse the property, but PG&E makes no other use of it and does not foresee that it will ever be useful for public utility purposes.
5. PG&E will continue to enjoy easements across the property sufficient for all present and future public utility needs, including the right to expand or construct new facilities.
6. Any future easement expansion costs on the property to be sold which are not funded by new customers pursuant to the tariffs will be borne by PG&E and will not be reflected in rates.
7. The proposed sale to Santa Rosa will not impair PG&E's ability to serve its customers.
8. PG&E and the public will benefit by the sale.
9. Extension and/or minor modifications of the Purchase and Sale Agreement may be needed to complete the transaction.
10. The easements for which PG&E seeks ratification lie entirely within the property to be sold. Because we have decided to approve the sale and transfer, our decision today renders moot PG&E's request that we ratify those easements.
11. Santa Rosa is purchasing the property for a pipeline and a pump station facility that are part of the Geysers Recharge Project.
12. Santa Rosa is the Lead Agency for the Project pursuant to CEQA.
13. The Commission is a Responsible Agency for the Project pursuant to CEQA.
14. Santa Rosa certified a Final Environmental Impact Report approving the Geysers Recharge Project in June 1997 and prepared a Northern Segment SEIR which includes the parcels of land subject to this application.
15. Santa Rosa approved the Modified Geysers Recharge Project Alternative with the Pine Flat Road Modified Alignment finding potential environmental impacts that could be mitigated to less than significant levels in the areas of land use, geology, wetland disruption, biology, air quality, visual resources and cultural resources. Implementation of the adopted Mitigation and Monitoring Plan was a condition of Project approval.
16. Santa Rosa adopted a Statement of Overriding Considerations determining that various Project benefits outweighed significant unavoidable environmental impacts associated with the Project in the areas of geology, transportation, noise and visual resources.
17. There is no known opposition to the authorization granted in this order.
1. PG&E violated Section 851 by not securing our advance approval of the easements for which it now seeks ratification.
2. Determination of how to allocate the after-tax gain on sale should be deferred to the Commission's gain on sale rulemaking, R.04-09-003. In the meantime, the net-of-tax gain resulting from the sale should be booked to PG&E's Real Property Gain/Loss on Sale Memorandum Account and accrue interest following the method established for that account.
3. The Commission has considered Santa Rosa's environmental review documents and we find these documents adequate for our decision-making purposes.
4. With respect to the potentially significant environmental impacts in the areas of land use, geology, wetland disruption, biology, air quality, visual resources and cultural resources, we find that Santa Rosa adopted feasible mitigation measures to either eliminate or reduce these impacts to less than significant levels. We adopt Santa Rosa's findings and mitigations for purposes of our approval.
5. With respect to the significant unavoidable environmental impacts in the areas of geology, transportation, noise, and visual resources, we believe that in its Statement of Overriding Considerations, Santa Rosa identified reasonable Project benefits that outweigh the significant unavoidable Project impacts and we adopt the Statement of Overriding Considerations for purposes of our approval.
6. Approving the proposed sale is in the public interest.
7. A public hearing is not necessary.
8. The application should be granted as set forth in the following order.
9. This order should be made effective immediately to allow the sale to take effect expeditiously.
IT IS ORDERED that:
1. Pacific Gas and Electric Company (PG&E) is authorized to sell and convey to City of Santa Rosa the real property listed in, and in accordance with the terms and conditions set forth in, Application 03-08-003.
2. PG&E is authorized to enter into an extension of, and/or make minor modifications to, the Purchase and Sale Agreement if necessary to complete the transaction, without applying for additional Commission approval.
3. The mitigation measures outlined in the Geysers Recharge Project Environmental Impact Report and adopted by City of Santa Rosa are hereby made conditions of project approval by this Commission order.
4. PG&E shall record the net-of-tax gain resulting from the sale in its Real Property Gain/Loss on Sale Memorandum Account, to accrue interest following the method established for that account, and shall allocate that gain and interest as determined in the Commission's Rulemaking 09-04-003 or as otherwise directed by the Commission.
5. Application 03-08-003 is closed.
This order is effective today.
Dated November 19, 2004, at San Francisco, California.
MICHAEL R. PEEVEY
President
GEOFFREY F. BROWN
SUSAN P. KENNEDY
Commissioners
I dissent.
/s/ CARL W. WOOD
Commissioner
I dissent.
/s/ LORETTA M. LYNCH
Commissioner
