COM/JLN/hkr Mailed 1/5/2001

Decision 01-01-007 January 4, 2001

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking into Implementation of Pub. Util. Code § 390.

Rulemaking 99-11-022 (Filed November 18, 1999)

O P I N I O N

(See Appendix A for List of Appearances.)

TABLE OF CONTENTS

Title Page

OPINION 2

1. Summary 2

2. Procedural History 2

3. Outstanding Procedural Matters 4

4. Line Loss Methodology 4

4.1 Background 4

4.2 Parties' Positions 8

4.3 Discussion 11

5. Implementation Issues 18

6. Sierra Pacific and Pacificorp 19

Comments on Proposed Decision 19

Findings of Fact 19

Conclusions of Law 20

ORDER 21

Appendix A .............List of Appearances

OPINION

1. Summary

This decision adopts a Generation Meter Multiplier (GMM) based formula for the transmission line loss factor to be used in calculating qualifying facility (QF) payments while QFs continue to receive payments under Pub. Util. Code § 390(b) ¹. The adopted formula for the transmission loss factor is GMM_QF/GMM_SYS, to be implemented with the first posting following the effective date of this decision. The remaining issues to be decided in Phase 1 of this proceeding will be considered in a subsequent decision.