X. Conclusion

Sierra's request for exemption from Section 851 for the auction and divestiture of its generation plants is denied because we find it is in the public interest for the Commission to review the transaction. Further, we find that the settlement jointly filed by Sierra and ORA is not consistent with the law or in the public interest because it does not satisfy the criteria of Section 362 to ensure reliability and avoid excess market power. The settlement also directly contradicts the provisions of AB 6X signed by the Governor on January 18, 2001. We deny the joint motion requesting approval of a settlement between Sierra and ORA.