II. Jurisdiction

Sierra, a Nevada corporation, is a wholly-owned subsidiary of Sierra Pacific Resources, also a Nevada corporation. Sierra is a public utility electric corporation subject to the jurisdiction of this Commission as defined in Pub. Util. Code § 218.² Approximately 39,100 of Sierra's 44,100 electric customers are residential customers. The territory in which Sierra operates is primarily mountainous with elevations from 5,000 to 8,000 feet. The service territory includes the counties in the Tahoe Basin, with about 88% of the land being owned by the federal or state governments which falls under the jurisdiction of the Lake Tahoe Basin management Unit of the U.S. Forest Service. Sierra's California electric operations equate to approximately 8% of its annual electric revenues. Sierra also provides gas, electric, and water services in other states. This application was filed pursuant to Rules 23 and 42 of the Commission's Rules of Practice and Procedure (Rules) and Decision (D.) 96-12-084, dated December 20, 1996.³