XI. Categorization and Comments on the Proposed Decision
Pursuant to Rule 6.1, the Commission preliminarily determined in Resolution ALJ 176-3036, dated April 6, 2000, that this is a ratesetting proceeding that would not require a hearing. Based on the record in this matter, it is not necessary to alter these preliminary determinations.
The Commission mailed the draft decision of the ALJ in this matter to the parties in accordance with Section 311 (g) (1) and Rule 77.7 of the Rules of Practice and Procedure. Parties filed comments on , and filed reply comments on .
1. On September 18, 2000, Sierra and ORA filed a joint motion to adopt a proposed settlement that asks the Commission to either exempt Sierra's proposed auction and divestiture from review under Section 853 or in the alternative, approve it under Section 851.
2. Hearings are not required on the settlement.
3. The public interest in protecting the interests of Sierra's California ratepayers requires the Commission to retain review over the auction and divestiture under Section 851.
4. The Commission has an ongoing obligation under Section 362 to ensure that generation facilities remain available and operational, while avoiding an overconcentration of market power.
5. The proposed settlement is not consistent with the law because it does not assure reliability of supply and avoid an overconcentration of market power as required by Section 362 and it does not comport with the language of AB 6X prohibiting the sale of public utility generation assets.
1. The Commission should deny Sierra's request for exemption from Section 851 for the sale of certain generating assets.
2. The Commission should deny the motion requesting approval of the proposed settlement because it is not consistent with the law or in the public interest.
3. This application is a project under CEQA but does not require further CEQA review by the Commission because the motion regarding the proposed settlement is denied.
IT IS ORDERED that:
1. The joint motion of Sierra Pacific Power Company (Sierra) and the Office of Ratepayer Advocates to Adopt Proposed Settlement Agreement, filed on September 18, 2000 is denied.
2. Sierra's request for an exemption from Public Utilities Code Section 851 is denied.
3. In all other respects, Sierra's application is denied without prejudice.
4. This proceeding is closed.
This order is effective today.
Dated , at San Francisco, California.
