You can catch them in Viridian Forest as well as the Power Plant
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You cannot evolve Pikachu in Pokemon Yellow, unless you trade it to a red or blue version, and give it a thunderstone there. Once you get it back it will not follow you.
Find a Pikachu on red or blue, find the surfing hm, teach it surf, trade pikachu with another pokemon, and you have a surfing pikachu.
Basically it's the 3 (and pikachu) beginning Pokemon you got to choose in red and blue version, you can get them from people in the game one is in cerulean city, the other on route 24 and the last in vermilion city.
there is a really rare electric type Pokemon in the forest sorry forgot the name its close to the 2nd town u can catch a pikachu lv 3 there note hes really hard to lv up