Surrenders and Transfers

Surrenders and Transfers

License Surrenders [18 CFR § 6.1 and 6.2]

PG&E may decide that it no longer wishes to hold a FERC license because the project is not economical, natural catastrophes have damaged or destroyed project facilities, or for other reasons. In such instances, PG&E must apply to FERC to surrender its license. Licensed projects under FERC jurisdiction cannot be simply abandoned; surrenders must be approved by FERC to ensure public safety and protection of the environment.

License surrenders vary greatly, and the complexity of any individual surrender proceeding is determined by the site-specific conditions at the project and the implications of ending FERC’s jurisdiction. In addition to operating costs, PG&E should consider the environmental effects and the perspective of resource agencies and other stakeholders before filing an application with FERC.

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Transfer Process [18 CFR § 9.1]

When a license is issued, FERC approves both the hydropower project and the licensee. PG&E may decide that it no longer wants to hold a license and instead, intends to sell and transfer that license to another entity. PG&E can transfer a license for any reason, but most often transfers are for economic and regulatory reasons. A license may only be transferred with FERC’s prior approval. PG&E cannot transfer a license or sell or convey any lands, facilities, or assets that are considered part of the project before it receives approval. A transfer application must be submitted to FERC for:

Sale of a project
Adding or removing a co-licensee(s)
Changing the licensee’s corporate structure
Bankruptcy transfers;

The following transactions would typically not require PG&E to file an application to transfer a license with FERC. However, PG&E should notify FERC of these changes: