Word Document

HMD/LMC/cgj 4/5/2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of PACIFIC GAS & ELECTRIC COMPANY for a Certificate of Public Convenience and Necessity Authorizing the Construction of the Northeast San Jose Transmission Project

Application 99-09-029

ASSIGNED COMMISSIONER'S RULING

DENYING MOTION OF CALPINE c*POWER

Summary

The motion of Calpine c*Power to compel Pacific Gas & Electric Company (PG&E) to comply with Public Utilities Code section 625 is hereby denied.

Background

In Decision (D) 01-05-059, the Commission granted the application of Pacific Gas and Electric Company (PG&E) for a certificate of public convenience and necessity (CPCN) to build a new 7.3 mile 230 kilovolt (kV) double-circuit transmission line, upgrade certain other transmission facilities, and construct a transmission/distribution substation to serve the Northeast San Jose area. We found that PG&E had demonstrated the need for the project to maintain the reliability of its electric system.

The Commission chose the environmentally superior route for the project, as set forth in the Final Environmental Impact Report (FEIR). We adopted PG&E's proposed substation location at 1515 Alviso-Milpitas Road1 and rejected the alternate - and adjacent - location proposed by the intervenor US Dataport, Inc. Finally, PG&E was directed to prepare updated, and detailed, cost estimates for the route and substation location selected.

PG&E submitted its new cost information on June 18, 2001. The new cost estimate exceeded by more than $100 million the original estimate PG&E furnished for the project. D.01-05-059 was thereafter stayed and further hearings were ordered on cost. On December 11, 2001, the Commission approved the project and established the project's cost cap at $148,416,138. (D.01-12-017)

PG&E subsequently initiated discussions with Calpine c*Power to acquire the property. (Motion Attachment 1) On or about March 1, 2002, PG&E filed an action to condemn the property and an ex parte application for prejudgment possession. (Motion Attachment 3). The superior court issued an order granting possession of the property to PG&E. This motion followed.

1 The subject property is owned by North San Jose Energy Center, LLC, an affiliate of the movant Calpine c*Power.

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