ALJ/KJB/sid Mailed 1/21/2003

Decision 03-01-039 January 16, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U 338-E) for Authority to Lease Available Land on the La Fresa-Lighthip Transmission Right of Way to General Mills Operations, Inc.

Application 02-09-008 (Filed September 10, 2002)

OPINION GRANTING APPROVAL UNDER

PUBLIC UTILITIES CODE SECTION 851 FOR

A LEASE OF UTILITY PROPERTY

We grant the Application of Southern California Edison Company (SCE) for authority to lease available land under Public Utilities Code Section 851.¹ The SCE property consists of a 2.7-acre site located on a portion of SCE's La Fresa-Lighthipe transmission right of way (ROW) in the City of Carson (Site). The Site is part of the La Fresa-Lighthipe 220 kilovolt (kV) system. The lease is sought to permit General Mills Operations, Inc. (General Mills or Lessee) to construct and operate a vehicle parking lot on the Site.

Background

The Site is subject to an Option Agreement (Option Agreement) between SCE and General Mills dated June 13, 2002. Pursuant to the Option Agreement, General Mills has the right, subject to Commission approval, to lease the Site from SCE for the described uses for a period of 20 years beginning on the date General Mills exercises the option. Annual rent will be $81,400 in years 1 to 5 of the lease term. In the 6^th, 11^th and 16^th years of the lease term, the rent will be increased by10% compounded annually. The lease also grants General Mills two 10-year renewal options at fair rental value, excluding the value of General Mills's improvements.

The Option Agreement provides that General Mills's activities must not interfere with the operation of the electric facilities that cross the Site. To that end, General Mills is forbidden to use or store hazardous substances, explosives or flammable materials on the Site. Further, any equipment used by General Mills on or adjacent to the Site must maintain at all times a clearance of at least eighteen (18) feet from all overhead electrical conductors. General Mills must maintain a minimum radius of fifty (50) feet around all tower legs and ten (10) feet around all poles and anchors and provide access roads to the Site that are at least sixteen (16) feet wide and capable of supporting a gross load of forty (40) tons on a three-axle vehicle.

SCE retains various rights under the Option Agreement including the rights to:

· Approve General Mills's construction plans and specifications,

· Enter the Site at any and all reasonable times to inspect the property,

· Impose temporary restrictions on General Mills's right to enter, occupy and use the Site in order to perform necessary work on the electrical facilities located on the Site and

· Take back all or part of the leasehold by eminent domain or inverse condemnation.

General Mills is also required to:

· Pay all personal property taxes, general or special assessments, or other fees levied against the Site or the improvements to be constructed thereon,

· Obtain all permits and approvals for construction and any zoning changes or use permits required for operation of its business on the Site,

· Maintain appropriate comprehensive general liability, auto liability and worker's compensation insurance and

· Indemnify SCE against all liability for damages or injury to persons on the Site except to the extent caused by SCE's negligent or willful misconduct.