7. Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Robert Barnett is the assigned ALJ in this proceeding.

1. SCE requests authority under Pub. Util. Code § 851 to lease 41.55 acres of land on SCE's Santiago-Estrella No. 2 transmission right of way to Centra. Centra will use the Site to develop and operate a retail and office complex, and a horticulture and agriculture growing grounds.

2. The lease agreement will generate revenue for the benefit of SCE's shareholders and ratepayers. The lease revenue will be treated as "passive" OOR and split between shareholders and ratepayers in accordance with D.99-09-070.

3. The use of the Site for a retail and office complex, etc., in accordance with the Lease Agreement will not interfere with SCE's use of the Site for utility operations, SCE's facilities located at the Site, or with service to SCE's customers.

4. The City of Irvine has issued a permit for Centra to construct on the Site. The permit incorporates the City's approved environmental documents, including a Final EIR and a Mitigation Monitoring Program. These documents include the City's determination that the potentially significant environmental impacts of the project can be avoided or mitigated to less than significant by the imposition of the conditions and mitigation measures in the Mitigation Monitoring Program.

5. The Lease Agreement requires Centra to maintain certain minimum clearances from SCE's facilities located at the Site.

1. This is a ratesetting proceeding. A hearing is not necessary.

2. It is in the public interest to approve this application pursuant to § 851, subject to the conditions set forth in the following order.

3. Construction on the Site should maintain the same minimum clearances and distances from SCE's facilities as set forth in the Lease Agreement.

4. The City of Irvine is the Lead Agency under CEQA for the proposed project. The Commission is a Responsible Agency under CEQA.

5. The City of Irvine's environmental documents are adequate for the Commission's decision-making purposes with respect to this application. No additional CEQA review by the Commission is required.

6. The City of Irvine reasonably concluded that Centra's construction and operation of its facilities will not have significant adverse effects on the environment with the conditions and mitigation measures adopted in the City's environmental documents.

7. Pursuant to the CEQA Guidelines, §  5096(g)(1), the Commission should adopt the mitigation measures identified in the City of Irvine's environmental documents, including those measures in the Mitigation Monitoring Program.

8. SCE should not be permitted to recover from ratepayers any costs for environmental claims that result from Centra's tenancy or activities.

9. In order to comply with CEQA and §  851, if Centra wishes to utilize the property for any use other than the retail and office complex and for horticulture and agriculture growing grounds, authorized by the City, SCE must first apply for authorization pursuant to §  851 and undergo any additional required environmental review.

ORDER

IT IS ORDERED that:

1. Application (A.) 08-12-003 is approved pursuant to Pub. Util. Code § 851, subject to the following conditions:

2. SCE shall notify the Director of the Commission's Energy Division in writing of any amendment, extension, or termination of the Lease Agreement no later than 30 days after the amendment, extension, or termination is executed.

3. A.08-12-003 is closed.

This order is effective today.

Dated March 26, 2009, at San Francisco, California.

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