3. Discussion

Section 851 provides that no public utility "shall . . . encumber the whole or any part of . . . property necessary or useful in the performance of its duties to the public, . . . without first having secured from the Commission an order authorizing it to do so." Since the easements proposed to be conveyed to the County would be encumbrances on PG&E property, we apply Section 851 in considering this application.⁸

The primary question for the Commission in Section 851 proceedings is whether the proposed transaction is adverse to the public interest. In reviewing a Section 851 application, the Commission may "take such action, as a condition to the transfer, as the public interest may require."⁹ The public interest is served when utility property is used for other productive purposes without interfering with the utility's operation or affecting service to utility customers.¹⁰

We find that PG&E's conveyance of the proposed easements to the County would serve the public interest. The proposed easements will not interfere with PG&E's use of the property or with service to PG&E customers, and will be utilized in a manner consistent with Commission and legal requirements. PG&E's conveyance of the easements to the County would also serve the public interest by enabling the County to widen Bell Road to address traffic problems.

We also approve the proposed ratemaking treatment for the compensation that the County will pay to PG&E for the easements. Since this land is part of PG&E's hydroelectric generation facilities, it is consistent with previously established guidelines that the revenue be credited to the Other Operating Revenue sub-account of the TCBA.

For all of the foregoing reasons, we grant the application of PG&E pursuant to Section 851, effective immediately.