ALJ/GEW/hl2 Mailed 3/18/2005

Decision 05-03-010 March 17, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Avista Corporation (U 907 G), a Washington corporation, and Southwest Gas Corporation (U 905 G), a California corporation, for authority to sell interests in utility property pursuant to the provision of Section 851 of the Public Utilities Code of the State of California.

Application 04-09-009 (Filed September 3, 2004)

Bridget A. Branigan, Attorney at Law, for

Southwest Gas Corporation,

David J. Meyer, Attorney at Law, for

Avista Corporation, applicants.

Patrick Gileau, Attorney at Law, for the

Office of Ratepayer Advocates, protestant.

OPINION APPROVING SETTLEMENT AND GRANTING

AUTHORITY FOR PROPOSED ACQUISITION

1. Summary

Avista Corporation (Avista) and Southwest Gas Corporation (Southwest) seek approval for Avista to sell its South Lake Tahoe gas facilities to Southwest. The Office of Ratepayer Advocates (ORA) protested the application, seeking protection against rate increases for the current Avista gas customers. This decision approves a settlement agreement among the parties that protects current Avista customers from an increase in gas base rates through at least 2008. Under Pub. Util. Code §§ 851 and 854, we authorize the acquisition of Avista's California gas facilities by Southwest. This proceeding is closed.