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JB2/sid 9/26/2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of PacifiCorp (U-901-E) and MidAmerican Energy Holdings Company for Exemption Under Section 853(b) from the Approval Requirements of Section 854(a) of the Public Utilities Code with Respect to the Acquisition of PacifiCorp by MidAmerican.

Application 05-07-010

(Filed July 15, 2005)

ASSIGNED COMMISSIONER'S RULING AND SCOPING MEMO

1. Summary

In Application (A.) 05-07-010, PacifiCorp and MidAmerican Energy Holdings Company (MEHC) (referred to jointly as "Applicants") request an exemption under Pub. Util. Code § 853(b)1 from § 854(a) with respect to the proposed acquisition of PacifiCorp by MEHC. Sections 853(b) and 854(a) state, in relevant part, as follows:

Section 853(b): The commission may...by order or rule, and subject to those terms and conditions as may be prescribed therein, exempt any public utility...from [§ 854(a)] if it finds that the application thereof with respect to the public utility...is not necessary in the public interest.

Section 854(a): No person or corporation...shall merge, acquire, or control...any public utility organized and doing business in this state without first securing authorization to do so from the commission...Any merger, acquisition, or control without that prior authorization shall be void and of no effect.

A prehearing conference (PHC) was held on September 9, 2005. Pursuant to Rules 6(a)(3) and 6.3 of the Commission's Rules of Practice and Procedure (Rules), this ruling and scoping memo (collectively, "Ruling") determines the scope, need for evidentiary hearings, schedule, principal hearing officer, and the category of this proceeding. This Ruling also establishes certain procedures for the conduct of this proceeding.2

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

2 Parties were invited to submit written PHC statements, including parties that were unable to attend the PHC. All written PHC statements were considered in preparing this Ruling.

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