SAN FRANCISCO, CA 94102-3298

October 29, 1997

To: To Whom it May Concern:
From: Douglas M. Long, Energy Division

RE: Note to Readers of the Mitigated Negative Declaration And Initial Study

The California Public Utilities Commission (CPUC) received PG&E's application (Application No. 96-11-020) for the divestiture of four power plants in November 1996. This was subsequently amended in June 1997 to the divestiture of three facilities. The facilities proposed to be divested include: Morro Bay Power Plant, Moss Landing Power Plant and the Oakland Power Plant. Approval of the specific divestiture plans by the CPUC is required by Public Utilities Code 851 prior to the sale of these power plants.

A Draft Initial Study was prepared and submitted to the CPUC in June of 1997. The Draft Initial Study identified several potentially significant impacts of the project. The CPUC and PG&E developed modifications to the project to mitigate the adverse impacts, thereby enabling the project to qualify for a Negative Declaration (CEQA Guidelines, Section 15063(c)(2)). A Mitigated Negative Declaration and Initial Study was published by the CPUC for public review and comment in August of 1997. Comments were received and although not required by CEQA (Public Resources Code Section 21000 et seq.), written responses were prepared to those comments. These comments as well as text changes were incorporated into the Mitigated Negative Declaration and Initial Study and Mitigation Monitoring and Reporting Program document. Having found that the proposed plant sales, as revised by the mitigation measures, did not have a significant impact on the environment, the CPUC adopted the Mitigated Negative Declaration and the Mitigation, Monitoring and Reporting Program on October 22, 1997 under Interim Order, as Decision 97-10-058.

The Mitigated Negative Declaration and Initial Study as contained herein, incorporates the revisions and changes as adopted by the CPUC. The full text of this document will be made available on the "Internet" and become available on the CPUC World Wide Web page at "".

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