The Cases

There are a number of relevant Commission decisions interpreting § 377. The first, both in time and in impact, is D.01-04-004. In D.01-04-004, this Commission determined that the sale of the Kern Facility was barred by § 377. The Commission held that under the clear wording of the statute, the Kern Facility was both a "generating facility owned by a public utility" and a "public utility generation asset." (Id. p. 3.) Accordingly, the Commission determined that it was precluded by § 377 from allowing PG&E to sell the Kern Facility.

In D.01-10-002, the Commission addressed PG&E's and NAPG's applications for rehearing of D.01-04-004, which alleged (among other things) that the Commission erred in its application of § 377. The Commission found that there was no error in its prior application of § 377, and based on both the statutory language and the legislative history, confirmed that sale of the Kern Facility was barred by § 377.

In D.03-06-028, the Commission held that § 377 did not bar the sale of three properties owned by PG&E, two of which had held power plants that had been removed in the 1990s. The Commission determined that since the land "is not and will not potentially be used directly or indirectly for electric generation purposes," the legislature did not intend to bar sales of this type under § 377. (Id. pp. 6-7.)²

In D.03-07-031, the Commission held that § 377 did not bar the sale of a fuel oil pipeline and related facilities owned by Southern California Edison (SCE) that had at one time served electric power plants, but that subsequently had been disconnected from those power plants. The Commission concluded that the pipeline facilities were no longer used directly or indirectly for electric generation purposes.