Determination of Best Secondary Use

The utility's objective in selecting secondary uses for utility sites is to find uses that provide the greatest revenue consistent with the utility's obligations to maintain the safety and reliability of its facilities. Because of the presence of above-ground power lines crossing the site, secondary land uses thereon are limited by operating restrictions and height clearances.

SCE states that the surrounding areas, the Cities of Ontario and Rancho Cucamonga, currently have a number of vacant, similarly zoned (light industrial) land parcels available for third-party development. In consideration of this, the SCE appraisal staff established a rental range for the 11.49-acre site by researching the sale prices of similarly zoned, local area land parcels and applying a fair market rate of return to the indicated sale prices. According to SCE, the annual base rent it will receive from Chuka Foods falls within the acceptable market range based on the study of these similarly zoned property sales and is in line with rents received in the transactions approved by the Commission in Decision (D.) 96-12-024, D.99-02-035, D.99-02-036, D.99-03-016, D.99-04-066, D.00-02-041, and D.00-06-057.