Conclusions of Law

1. This transaction is within the discretionary authority of the Commission under § 851 and § 377.1.

2. This transaction is permissible under § 362(a).

3. The sale is in the public interest pursuant to § 851.

4. The FONSI prepared by the Bureau of Reclamation is adequate to demonstrate NEPA compliance.

5. Naches is an out-of-state project for purposes of Public Resources Code § 21080(b)(14).

6. Section 21080(b)(14), of the Public Resources Code provides that CEQA does not apply to an out-of-state project that is subject to NEPA review or similar state environmental review law of that state.

7. Pursuant to Public Resources Code § 21080(b)(14), CEQA does not apply to this application.

8. This order should be effective immediately, because it is the last required regulatory approval, in order to allow PacifiCorp to promptly conclude the transfer to Reclamation.

Therefore, IT IS ORDERED that:

1. PacifiCorp is authorized to transfer the Naches hydroelectric facility to the United States Bureau of Reclamation pursuant to Pub. Util. Code § 851.

2. PacifiCorp shall include the California jurisdictional share of the gain on sale in its next ratesetting proceeding.

3. We modify the preliminary determination made in Resolution ALJ 176-3099 and make a final determination that evidentiary hearings are not required in this proceeding.

4. This proceeding is closed.

This order is effective today.

Dated February 13, 2003, at San Francisco, California.

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