7. Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Myra J. Prestidge is the assigned ALJ in this proceeding.

1. The proposed lease/option agreement will not interfere with SCE's use of the property or its facilities or with service to SCE customers and the property will be utilized safely and in a manner consistent with Commission and legal requirements.

2. City is the Lead Agency for RVSA's proposed project under CEQA.

3. The Commission is a Responsible Agency for the purposes of environmental review of the proposed lease/option agreement under CEQA.

4. Rent received by SCE from RVSA under the lease will be treated as OOR from a "passive" revenue source and will be allocated among shareholders and ratepayers on a 70%/30% basis pursuant to D.99-09-070.

5. The proposed lease will generate substantial lease revenues for the benefit of SCE's ratepayers.

6. The proposed lease will allow productive use of the site without interfering with SCE's existing use of the property for its transmission and substation facilities.

1. Under Section 851, a regulated utility must obtain prior Commission authorization before entering into a lease of utility property that is used or useful in serving the public.

2. Under Section 851, the Commission must review a proposed lease of utility property that is used or useful in serving the public to determine if the proposed lease is in the public interest.

3. The public interest is served when utility property is used for other productive purposes without interfering with the utility's operations or affecting service to utility customers.

4. The Commission has reviewed the City's Mitigated Negative Declaration, Mitigation Monitoring and Reporting Plan, and other environmental documents for the project and finds them adequate for our decision-making purposes under CEQA.

5. The Commission finds that the City reasonably concluded that RVSA's construction, operation, and maintenance of a recreational vehicle and boat storage facility on the property, will not have significant adverse effects on the environment, provided that RVSA implements the mitigation measures required by City's Mitigated Negative Declaration and Mitigation Monitoring and Reporting Plan.

6. Consistent with Section 851, SCE's conveyance of the lease to RVSA is in the public interest and should be approved, as consistent with this order.

7. There is no need to change the preliminary determinations made in Resolution ALJ-3237, dated July 9, 2009, that this proceeding should be categorized as ratesetting and that no hearing is necessary.

ORDER

IT IS ORDERED that:

1. Southern California Edison Company is authorized pursuant to Public Utilities Code Section 851 to convey to RVSA, LLC a lease of 22.65 acres of land located along certain portions of Southern California Edison Company's
West Lugo-Mira Loma transmission right-of-way located in the City of Ontario, as described in the application.

2. Southern California Edison Company shall treat compensation received from RVSA, LLC under the lease as Other Operating Revenue received from a "passive" revenue source pursuant to Decision 99-09-070 and shall allocate this revenue between shareholders and ratepayers on a 70%/30% basis, unless directed otherwise in a future Commission order.

3. Southern California Edison Company shall amend its option agreement and any subsequent lease with RVSA, LLC to require advance Commission approval of any proposed assignment, transfer, conveyance, encumbrance, sublease, or mortgage of the lease that would alter the lease terms or change the use of the property to other than for RVSA, LLC's construction, operation, and maintenance of a recreational vehicle and boat storage facility on the site. This requirement applies to transactions between RVSA, LLC and "permitted transferees" as defined in Section 10.1 of the Option Agreement between Southern California Edison Company and RVSA, LLC, dated April 11, 2007, attached to the application as Appendix A, as well as to transactions between RVSA, LLC and other parties.

4. If RVSA, LLC wishes to utilize the property for any purposes other than the uses analyzed in the environmental documents prepared by the City of Ontario and relied upon by the Commission in this decision, and Southern California Edison Company wishes to permit such use, Southern California Edison Company shall first apply for Commission authorization pursuant to Public Utilities Code Section 851, undergo any required environmental review, and apply for any required local approvals. Southern California Edison Company shall amend its option agreement and any subsequent lease with RVSA, LLC to include this requirement.

5. Since the Mitigated Negative Declaration, Mitigation Monitoring and Reporting Plan, and other environmental documents prepared and adopted by the City of Ontario, as the Lead Agency under the California Environmental Quality Act, for the project are adequate for our decision-making purposes as a Responsible Agency under California Environmental Quality Act, we approve and adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Plan prepared by the City of Ontario as the Lead Agency for the project.

6. Application 09-06-026 is closed.

This order is effective today.

Dated December 3, 2009, at San Francisco, California.

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