Background to the Application
PacifiCorp requests an exemption from § 851, which governs transfers of utility property. PacifiCorp proposes to sell the water rights and assets associated with Naches, which is located in the State of Washington, to Reclamation. Naches is a 7.8-megawatt (MW) capacity "run of river" facility. The facility only provides on a system basis an average of 3.5 MW, and California represents only 2% of the system load for a 70-kilowatt (kW) share. The Federal Energy Regulatory Commission (FERC) does not license the facility.
We affirm the Assigned Commissioner's preliminary determination2 that § 851 does apply. Section 851 states in part that no public utility "shall sell, lease, ...or otherwise dispose of or 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." As an integral part of the Commission's decision-making process in reviewing a § 851 application the Commission may "take such action, as a condition to the transfer, as the public interest may require."3 The Commission made a preliminary finding in Resolution ALJ 176-3099, issued on November 7, 2002, that the category for this proceeding is ratesetting and determined that the matter did require hearings. We have considered our preliminary determinations and find that a hearing is not necessary.
2 Assigned Commissioner's Ruling Establishing Category and Providing Scoping Memo (Scoping Memo) in Compliance With Article 2.5, SB 960 Rules and Procedures, dated January 2, 2003. 3 D.3320, 10 CRRC 56, 63.
