20150807-5028 FERC PDF (Unofficial) 8/6/2015 6:56:31 PM

PAUL R. MINASIAN, INC. TELEPHONE:

MINASIAN, MEITH, JEFFREY A. MEITH (530) 533-2885
M. ANTHONY SOARES
SOARES, SEXTON & DUSTIN C. COOPER FACSIMILE:
EMILY E. LaMOE (530) 533-0197
COOPER, LLP PETER C. HARMAN
ATTORNEYS AT LAW ANDREW J. McCLURE
A Partnership Including Professional Corporations
WILLIAM H. SPRUANCE,
1681 BIRD STREET Retired
P.O. BOX 1679
OROVILLE, CALIFORNIA 95965-1679 MICHAEL V. SEXTON,
Retired
Writer's e-mail: dcooper@minasianlaw.com

August 6, 2015
Via - Electronic Filing

Charles Cover
Federal Energy Regulatory Commission
Division of Hydropower Administration and Compliance
888 First Street, NE
Washington, DC 20426

Re: Project No. 803, DeSabla Centerville Project - Pacific Gas and Electric
Company ("PG&E")

On December 24, 2014, PG&E advised the Federal Energy Regulatory Commission
(Commission) of its anticipated plan to begin proceedings in late 2016 to remove the Centerville
Development from the De-Sabla Centerville Hydroelectric Project, No. 803. The Centerville
Development includes the Upper Centerville Canal, from which a number of homeowners hold
rights to water and water service from PG&E. Our firm represents some of these homeowners.

The purpose of this letter is to advise the Commission that PG&E has not consulted with
impacted homeowners, including our clients, regarding its future plans, nor to our knowledge,
incorporated its proposal to exclude the Centerville Development from the De-Sabla Centerville
Project in any of the analyses prepared in connection with PG&E's recent application for new
license for Project 803. In connection with seeking Commission approval to exclude the
Centerville Development from Project 803, PG&E must comply with all requirements of the
Federal Power Act, including consideration of the public interest in continuing to deliver water
through the Upper Centerville Canal, as it has for well over 100 years.

A. Introduction and Background

In June of 1980, the Commission granted PG&E an Order Issuing License permitting the
continued operation and maintenance of PG&E's De Sabla - Centerville Project. The Order
identifies "the Upper and Lower Centerville Canals, Access Roads and Transmission Lines" as
"Constructed project facilities," and makes clear that "water, for water users and excess water in
De Sabla Forebay is routed through the Upper Centerville Canal and Helltown Ravine to the
Lower Centerville Canal."
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Charles Cover
August 6, 2015
Re: Project No. 803, DeSabla Centerville Project - Pacific Gas and Electric Company
Page 2.

The homeowners rights to water and water service from the Upper Centerville Canal was
formalized in the 1942 judgment and decree of water rights to Butte Creek. The Decree granted
PG&E a first priority right to divert 1.175 cfs of water from Butte Creek "for public service
delivery to consumers ... through appropriate openings or taps in the Upper Centerville Canal ..
. and said consumers shall be entitled to use said amounts of water for domestic, stock watering
and irrigation purposes." Our clients represent some of the successors in interest to the
consumers identified in the Decree.

Admittedly, the Decree made these rights contingent upon the use of the Upper
Centerville Canal (also known as the "old Cherokee Ditch" 1) by PG&E or its successors as a
conduit for conveying water, but confirmed that consumers are entitled to service as provided at
all times when water is flowing in the canal. Excluding the Upper Centerville Canal from the
Project 803 boundary could lead to a situation in which water is no longer available to these
homeowners from the Upper Centerville Canal. To our knowledge, PG&E has not studied the
impacts of its proposed amendment, nor consulted with us regarding potential impacts.

B. PG&E's Study Plans Submitted In Connection With Relicensing Did Not

Analyze the Surrender and Decommission of the Centerville Development.

In connection with the integrated license application process for the Project 803
relicensing, PG&E submitted Study Plans for gathering information related to resources impacted
by Project 803. The requirement to file Study Plans exists generally to permit a detailed analysis
of project impacts on affected resources which are expected to occur during the proposed
licensing term. Had PG&E intended to surrender and decommission the Centerville Development
components of Project No. 803, it should have developed and completed a study analyzing
potential impacts of that decision. PG&E never performed any such study.

In its July 15, 2005 'Revised Relicensing Study Plan' PG&E advised that "Study Plans
developed to date assume continued operation of Centerville Powerhouse," and that the goal of
Study Plan 6.3.11 ("Identify and Evaluate Potential Impacts of Discontinuing Centerville
Powerhouse") was to "provide a placeholder study in the overall DeSabla - Centerville Project
Revised Study Plan" so that in the event PG&E did decide to propose discontinuing operation, "a
study will already be in place and be triggered to identify and evaluate the impacts of such

1
According to historical documents, the "old Cherokee Ditch" includes what is now known as Butte Canal and what
is now known as the Upper Centerville Canal. It is homeowners' position that when PG&E is operating any aspect
of the "old Cherokee Ditch", which includes Butte Canal, that homeowners' are entitled to exercise their water rights
and rights to service.
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Charles Cover
August 6, 2015
Re: Project No. 803, DeSabla Centerville Project - Pacific Gas and Electric Company
Page 3.

action."2 PG&E advised FERC (and stakeholders) that the Study Plan "would be implemented
only if Licensee proposes to discontinue operation of the Centerville Powerhouse.".

PG&E further advised that if it decided to discontinue operations, it would "develop and
provide to Interested Parties a Discontinue Operations Plan (DOP), which will provide specifics
of Licensee's proposal." Docket No. 803 does not include a 'DOP' nor is there any indication
that PG&E ever advised FERC or stakeholders that it expected to discontinue operation of the
Centerville Powerhouse and appurtenant facilities - thus the Study of Impacts of discontinuing
those operations was apparently not completed or submitted to the Commission for its review.

FERC's Office of Energy Projects' response to PG&E's Revised Study Plan took a dim
view of PG&E's proposed 'placeholder' study, noting that, "by this letter we are not approving
PG&E's proposed placeholder for a decommissioning study in the event PG&E decides to
discontinue operations at the Centerville Powerhouse. We simply note that § 5.9 of the
Commission's regulations provide for new studies if there are significant changes to the
applicant's proposal."3

FERC's Environmental Assessment, dated December 29, 2008, confirms that PG&E
never took concrete steps to decommission or surrender the Centerville Development
components of Project No. 803. In describing "Existing Project Operations," the Environmental
Assessment confirmed that," from the DeSabla Forebay approximately 3 cfs is provided to the
Upper Centerville Canal to satisfy local water rights." 4 In other words, FERC premised its
Environmental Assessment on the (well-founded) assumption that PG&E would maintain the
status quo of the Centerville Development, including water deliveries through the Upper
Centerville Canal, as it had for over 100 years.

In summary, PG&E did not submit to FERC any detailed studies addressing the impacts
of decomissioning and surrendering the Centerville Powerhouse and its appurtenant facilities.
PG&E filed something purporting to be a 'placeholder study' in connection with relicensing
related Study Plans - but never gathered data, or analyzed the potential impacts of
decommissioning the Centerville Development facilities. In turn, FERC' s Environmental
Assessment of the proposed relicensing of Project 803 is based on the assumption that PG&E
will continue to deliver water through the Upper Centerville Canal.
2
De Sabia - Centerville Project, FERC Docket No. 803, PG&E Revised Relicensing Study Plan, July 15, 2005.
3
De Sabia - Centerville Project, FERC Docket No. 803, Study Plan Determination for the DeSabla - Centerville
Hydroelectric Project, August 17, 2005.
4
De Sabia - Centerville Project, FERC Docket No. 803, Notice of Availability of Environmental Assessment,
December 29, 2008, at p. 20.
20150807-5028 FERC PDF (Unofficial) 8/6/2015 6:56:31 PM

Charles Cover
August 6, 2015
Re: Project No. 803, DeSabla Centerville Project - Pacific Gas and Electric Company
Pae 4.

Conclusion

In late December 2014, PG&E submitted a letter to FERC advising that it anticipated
seeking a license amendment to the Project 803 license to remove the Centerville Development,
including the Upper Centerville Canal, from the Centerville - DeSabla Hydroelectric project. Our
clients who hold water rights and rights to service from the Upper Centerville Canal are
extremely concerned by this potential development. Their fears are especially heightened because
neither PG&E, in its Relicensing Study Plans, nor FERC, in its Environmental Assessment of
PG&E's application for new license, have analyzed the environmental or socio- economic
impacts of PG&E's proposal. Despite this, in June 2015 PG&E informed these landowners that
water would not be delivered into the Canal. PG&E has trucked in water, but the quantities are
far below the landowners' water rights and rights to service. This letter advises you of our
sincere concerns, and our expectation that adequate and thorough environmental review will
precede any further action by PG&E in this regard.

FERC action on any PG&E request to surrender facilities subject to the license issued for
Project 803, including the Centerville Development and its appurtenances, is subject to the
comprehensive review process set forth in the Federal Power Act. To date, PG&E has not
completed any of the procedural or substantive requirements required to amend the license issued
to Project 803, or surrender components of the Project. Please accept this request that the
undersigned be informed of, and included in any future procedures and discussions in this regard.

Very truly yours,

MINASIAN, MEITH, SOARES,

SEXTON & COOPER, LLP

By~
coOPER'"' DUSTIN C.
DCC:aw
cc: Mr. Matthew Joseph,
Pacific Gas and Electric Company, License Coordinator,
Mail Code: Nl 3E,
P.O. Box 770000,
San Francisco, CA 94177

Judi K. Mosley
Law Department
PACIFIC GAS AND ELECTRIC COMP ANY
77 Beale Street, B30A
San Francisco, CA 94105
20150807-5028 FERC PDF (Unofficial) 8/6/2015 6:56:31 PM
Document Content(s)

FERC re De Sabla Centerville Project No. 803.PDF......................1-4