Conclusions of Law

1. The Principles and Minimum Requirements for the Economic Evaluation of Proposed Transmission Projects appended as Appendix A should be adopted, with the further guidance provided in this decision, for use in CPCN proceedings in which the applicant proposes a transmission project wholly or partly on the basis of expected economic benefits.

2. The Assigned Commissioner or assigned ALJ in a CPCN proceeding should be allowed to modify application of the minimum requirements for economic evaluations adopted in this decision with good cause shown, taking case-specific conditions into account.

3. In order to rebut the presumption created by a CAISO Board-approved economic evaluation in support of a proposed transmission project, parties opposing the proposed project in a CPCN proceeding should bear the burden of demonstrating either (1) that the CAISO Board-approved economic evaluation does not comply with the principles and minimum requirements of this decision or (2) that the project is not cost-effective.

4. A CAISO determination of economic value should not be a prerequisite to obtaining a CPCN and an applicant should retain the right to rely upon its own economic evaluation.

5. This order should be effective today so that the adopted principles and minimum requirements can be applied to transmission projects that the Respondents may propose.

6. This proceeding should be closed.