PG&E Sale of the Merced Falls Hydroelectric Project



On April 1, 2015, PG&E filed an Application with the CPUC requesting CPUC approval of the proposed sale of its 10MW Merced Falls Hydroelectric Project to the Merced Irrigation District (MID). PG&E's proposal would allocate $5.5 million of the net loss on the sale to its customers and only $4,053 of those costs to its shareholders.

On December 22, 2015, the CPUC issued a Ruling setting the Scope and Schedule for the proceeding.

The CPUC will hold an evidentiary hearing in the matter beginning March 9, 2016.


Public Advocates Office (the Office) Position

The Office’s does not oppose the sale of Merced Falls to the Merced Irrigation District, however, the loss on sale should be shared about equally between ratepayers and PG&E’s shareholders. 

  • Ratepayers would be responsible for $2.7 million.  
  • PG&E’s shareholders would be responsible for $2.8 million.  

The Office recommends that ratepayers should not be required to pay the costs to relicense Merced Falls at the Federal Energy Regulatory Commission.


See the Office's January 22, 2016 Testimony with its full analysis of PG&E's request.


See the Office's May 4, 2015 Protest.



Proceeding Docket

See the CPUC's record of the case in the Proceeding docket. 

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