Discussion

We agree that the language in question in D.01-01-039 is overly broad and should be modified.¹ Because the property will continue to be owned by SCE as utility operating property, SCE provides a logical rationale for limiting the restriction on recovery of environmental claims, and defense of such claims, to claims relating to the activities or tenancy of the Silagi Trust. Furthermore, no party objects to SCE's petition. Therefore, we will grant SCE's petition and modify D.01-01-039, with a slight modification to SCE's proposed language.

The paragraph in question currently states:

"Approval of this lease is conditioned upon compliance by lessee with all applicable environmental regulations. Should environmental claims be made on SCE subsequent to the sale, SCE shall not seek recovery of any cost of the claims or defense of the claims from its ratepayers."

We will leave the first sentence of the ordering paragraph intact and modify only the second sentence. We will simplify SCE's proposed language so that the new second sentence of the ordering paragraph will read as follows:

Should environmental claims, in whole or in part, related to the tenancy or activities of the lessee be made on SCE subsequent to the execution of the lease, SCE shall not seek recovery of any such claims, or defense of such claims, from ratepayers.

We will also make this change to the second paragraph on page 9 of the opinion.