2. Scope of the Proceeding
The general scope of this proceeding is whether to approve the Applicants' request to exempt the proposed transaction from § 854(a) pursuant to § 853(b). If it is determined to that the proposed transaction should not be exempted from § 854(a), this proceeding will determine whether to approve the proposed transaction under § 854(a).3 This proceeding will also determine what conditions, if any, should attach to the proposed transaction whether it is exempted under § 853(b) or approved under § 854(a).
Specific matters that are within the scope of this proceeding are as follows:
_ How the proposed transaction will affect PacifiCorp's ability to finance utility infrastructure in general, without focusing on specific infrastructure projects.
_ How the proposed transaction will affect PacifiCorp's ability to finance, implement, and comply with any future conditions associated with PacifiCorp's Klamath River dams that may be imposed by the Federal Energy Regulatory Commission (FERC) or other body of competent jurisdiction.
Specific matters that are outside the scope of this proceeding are as follows:
_ Issues that will continue to exist regardless of whether the proposed transaction is ultimately approved and consummated. These issues include (1) the provision of electric service to areas that currently lack service, and (2) adverse impacts associated with PacifiCorp's hydroelectric facilities on the Klamath River.
_ Issues that are better addressed in other Commission proceedings, such as the type, location, and/or reasonableness of renewable resources that PacifiCorp will acquire in the future.
_ Issues that are beyond the Commission's jurisdiction to resolve, including the imposition of conditions associated with the operation of PacifiCorp's Klamath River hydroelectric facilities that fall under FERC's exclusive purview.
_ The costs, benefits, and other issues associated with each of the utility infrastructure investments that the Applicants commit to undertake in A.05-07-010 if the proposed transaction is approved.
This proceeding will not include a formal environmental review of the proposed transaction, as this proceeding will not review or approve any new construction, including changes to existing facilities and structures. Nor will this proceeding review or approve any changes to the operation of PacifiCorp's hydroelectric facilities.
Section 854(c) does not apply to the proposed transaction because neither of the Applicants has gross California utility revenues in excess of $500 million per year.4 Accordingly, the Applicants will not have to demonstrate that the proposed transaction satisfies § 854(c).
3 See PHC transcript pages (pp.) 3 - 4.
4 Section 854(c) states: Before authorizing the...acquisition...of any electric...utility...where any of the entities that are parties to the proposed transaction has gross annual California revenues exceeding...$500,000,000, the commission shall consider each of the [following] criteria...and find, on balance, that the [proposed transaction] is in the public interest. (1) Maintain or improve the financial condition of the resulting public utility doing business in the state. (2) Maintain or improve the quality of service to public utility ratepayers in the state. (3) Maintain or improve the quality of management of the resulting public utility doing business in the state. (4) Be fair and reasonable to affected public utility employees, including both union and nonunion employees. (5) Be fair and reasonable to the majority of all affected public utility shareholders. (6) Be beneficial on an overall basis to state and local economies, and to the communities in the area served by the resulting public utility. (7) Preserve the jurisdiction of the commission and the capacity of the commission to effectively regulate and audit public utility operations in the state. (8) Provide mitigation measures to prevent significant adverse consequences which may result.
