II. Procedure

PacifiCorp, an Oregon corporation, is a public utility providing electric service to customers in Modoc, Del Norte, Siskiyou and Shasta counties in Northern California.

Nor-Cal is a joint powers authority (JPA) established by the county of Del Norte and the City of Yreka pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code and a Joint Exercise of Powers Agreement. Nor-Cal signs the application for the limited purpose of satisfying the requirements of Rule 35 of the Commission's Rules of Practice and Procedure (Rules) and to join in PacifiCorp's request for a favorable order authorizing Nor-Cal to acquire PacifiCorp's Northern California service territory.

PacifiCorp requests authority pursuant to Public Utilities Code Section 851 to sell and Nor-Cal to purchase all of its distribution assets, certain of its transmission assets, and all of those permits and other authorizations utilized to provide retail electric service to customers in its Northern California service territory which consists of portions of the counties of Del Norte, Modoc, Siskiyou, and Shasta together with cities located within those counties. PacifiCorp will retain its generation facilities and necessary transmission lines located in California.

This application was filed on August 19, 1999 and was noticed in the Commission's Daily Calendar on August 23, 1999. A ruling of the Administrative Law Judge (ALJ) required all protests to be filed by November 15, 1999. On September 22, 1999, the Office of Ratepayer Advocates (ORA) filed a limited protest to the application. Siskiyou County (Siskiyou) filed a response.

A prehearing conference (PHC) was held on October 26, 1999 in San Francisco at which time PacifiCorp, Roseburg Forest Products (Roseburg), Nor-Cal, Pacific Gas and Electric Company (PG&E), Coalition of California Utility Employees (CCUE), ORA and Siskiyou entered appearances in this proceeding.

Public Participation Hearings (PPH) were held in Yreka on December 9, 1999 and in Crescent City on December 10, 1999.

Following negotiations between the parties, a settlement conference was held on January 13, 2000 in San Francisco resulting in a Settlement Agreement executed by PacifiCorp, Nor-Cal, Roseburg, CCUE, and ORA. PG&E provided notice in writing that it would not object to the proposed settlement if certain revisions to the settlement were made and certain findings of fact were used. While an extensive list of proposed findings is submitted by the settling parties, it is unexplained which findings or revisions were made as a result of PG&E's participation in the settlement negotiations.

It is unclear whether, or to what extent, Siskiyou participated in the settlement conference, although it did receive notice of the event.

PacifiCorp filed and served a Motion of PacifiCorp for Adoption of Settlement Agreement and Settlement Agreement on May 11, 2000. (Rules 51.3-51.5.) Siskiyou filed and served its Opposition of Siskiyou County to Motion by PacifiCorp for Adoption of Settlement Agreement on May 12, 2000. PacifiCorp and Nor-Cal filed a timely Reply to Siskiyou's Opposition.

On May 22, 2000, Modoc County (Modoc) filed a Joinder of Modoc County in which it joins with Siskiyou in any and all documents filed by Siskiyou in opposition to the Settlement Agreement. On June 5, 2000, PacifiCorp filed PacifiCorp's Motion to Strike the Joinder of Modoc County, or, alternatively, motion that the Commission treat Modoc's pleading as non-party Rule 51 comments.

PacifiCorp, Nor-Cal, ORA, Roseburg, and CCUE move that the Commission find that the Settlement Agreement is reasonable in light of the whole record, is consistent with applicable laws, and is in the public interest. They request an Order Adopting the Settlement Agreement.