ALJ/TOM/avs Mailed 3/19/2007

Decision 07-03-037 March 15, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of PacifiCorp (U-901-E) For Approval of the Sale of the Upper Beaver Hydroelectric Project to the City of Beaver, Utah.

Application 06-09-003 (Filed September 1, 2006)

OPINION GRANTING APPROVAL UNDER PUBLIC UTILITIES CODE

SECTIONS 377 AND 851 FOR SALE OF PACIFICORP'S UPPER BEAVER HYDROELECTRIC PROJECT TO THE CITY OF BEAVER, UTAH

I. Summary

This decision grants the application of PacifiCorp for Commission authorization under Pub. Util. Code § 851¹ to sell its Upper Beaver Hydroelectric Project (the Facility), located in Beaver County, Utah, to the City of Beaver (City).² We find that under Section 377.2, this transaction is exempt from the requirement of Section 377 that that the Facility remain dedicated to serve for the benefit of California ratepayers, because the Facility is located outside of California, serves less than 60,000 customers, and is not necessary to provide electricity to California customers. In addition, pursuant to Section 362, we find since the Facility serves only approximately 0.03% of total peak load in PacifiCorp's California service area, continued operation of the Facility by PacifiCorp is not necessary to maintain the reliability of the electric supply in this state.

¹ All statutory references are to the Public Utilities Code unless otherwise stated.

² The application was filed on September 1, 2006. In Resolution ALJ 176-3178, dated September 7, 2006, we preliminarily categorized this proceeding as ratesetting and preliminarily determined that hearings are unnecessary.