8. Discussion
Section 851 of the Public Utilities Code provides that no public utility "shall...lease...[property] necessary or useful in the performance of its duties to the public...without first having secured from the [C]ommission an order authorizing it so to do." The relevant inquiry for the Commission in Section 851 proceedings is whether the proposed transaction is "adverse to the public interest." (See, e.g., Universal Marine Corporation (1984) 14 CPUC2d 644.)
The proposed lease satisfies this test. The public interest is not harmed since the lease will not affect the utility's operation of the transmission lines. The Commission has determined that the public interest is served when utility property is used for other productive purposes without interfering with the utility's operation.3 Because the proposed agreement will increase the level of revenues SCE can obtain from secondary use of the land in question, with no additional ratepayer risk, the application should be approved.
In Resolution ALJ 176-3063, dated June 14, 2001, the Commission preliminarily categorized this proceeding as ratesetting and preliminarily determined that hearings were not necessary. Based on the record, we conclude that a public hearing is not necessary, nor is it necessary to alter the preliminary determinations in Resolution ALJ 176-3063.
Because the application is unopposed, and because our decision today grants the relief requested, the requirement for 30-day public review and comment is waived pursuant to Pub. Util. Code § 311(g)(2).
1. SCE is an electric public utility subject to the jurisdiction and regulation of this Commission.
2. SCE has property at the Mandalay-Santa Clara 220-kv transmission right-of-way in the City of Ventura available for secondary use, and it seeks to obtain revenue for ratepayers and shareholders through a secondary use lease.
3. Subject to Commission authorization required under Pub. Util. Code § 851, SCE has negotiated a long-term lease proposal for the available property to provide lease revenues with no interference with the operation of the transmission line.
4. The proposed lessee, Montalvo, is directed by KMI, a property management firm with substantial experience in developing shopping center projects and other developments.
5. Montalvo will finance, construct and maintain a small retail and office building, parking area and a public park at the four-acre site that will be part of a 32-acre neighborhood retail and office center.
6. Revenue in excess of a Commission-established threshold will be shared 70/30 between the utility and ratepayers, by treating all revenues as Other Operating Revenue, pursuant to D.99-09-070.
7. Development of the property in question by Montalvo is subject to all applicable laws and receipt of discretionary approvals from the City of Ventura.
8. Pursuant to CEQA, where a project is to be approved by more than one public agency, one agency becomes the lead agency for purposes of preparing an EIR or negative declaration for the project.
9. Under applicable CEQA guidelines, the City of Ventura is the appropriate lead agency for CEQA purposes and the Commission is a responsible agency.
10. The applicant has submitted documentation to establish that the City of Ventura Planning Commission has adopted a mitigated negative declaration for the project.
11. Pursuant to CEQA Guideline 15050(b), the Commission has reviewed and considered the information contained in the mitigated negative declaration adopted by the City of Ventura Planning Commission.
12. There is no opposition to this application.
1. Joint use of utility property should be encouraged in appropriate cases because of the obvious economic and environmental benefits.
2. The Commission should condition its approval of the proposed lease on lessee's compliance with all applicable environmental regulations.
3. SCE should be authorized pursuant to Pub. Util. Code § 851 to lease the designated four-acre site to Montalvo on the terms and conditions set forth in the application.
4. The proposed sharing of revenues with ratepayers conforms to the Commission's order in D.99-09-070.
5. Through its Planning Commission, the City of Ventura has reviewed the project under CEQA and issued a mitigated negative declaration.
6. Because of the benefits of this lease agreement for the utility and for ratepayers, approval of this application should be made effective immediately.
IT IS ORDERED that:
1. Southern California Edison Company (SCE) is authorized to enter into a lease of a four-acre site located on a portion of SCE's Mandalay-Santa Clara 220-kilovolt (kV) transmission right-of-way in the City of Ventura to Montalvo Development Partners, LLC, under the terms and conditions set forth in this application.
2. As received, all revenues from the lease authorized shall be treated as Other Operating Revenue and shall be subject to the gross revenue sharing mechanism set forth in Decision 99-09-070.
3. Approval of this application is conditioned upon lessee's compliance with all applicable environmental regulations, pursuant to the California Environmental Quality Act.
4. SCE shall notify the Director of the Energy Division, in writing, of any substantial amendments to, extension of, or termination of the lease agreement, within 30 days following the execution of such amendments, extensions or termination.
5. Application 01-05-050 is closed.
This order is effective today.
Dated October 25, 2001, at San Francisco, California.
LORETTA M. LYNCH
President
HENRY M. DUQUE
RICHARD A. BILAS
CARL W. WOOD
GEOFFREY F. BROWN
Commissioners
