6. Assignment of the Proceeding

Michael R. Peevey is the assigned Commissioner and Darwin E. Farrar is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. SCE has entered into an agreement, subject to authorization by the Commission, under which SCE will provision certain optical fibers along a cable route within Southern California to form a redundant fiber optic network ring, and lease them to the County of Los Angeles. A copy of the Agreement is attached as an Attachment to this Decision.

2. The leasing arrangement governed by the Agreement will utilize SCE's assets in a manner compatible with its electric utility operations.

3. Use of the fiber system under the Agreement will have no negative effect upon service to SCE's customers.

4. Under the terms of the Agreement, SCE's ratepayers will receive a material financial benefit without incurring any additional financial risk, because all financial risk will be borne by SCE's shareholders.

5. The leasing arrangement under the Agreement is a lease of dark fiber on SCE's fiber optic system, and SCE's participation in the lease is therefore classified as "active" for the purpose of sharing revenues between shareholders and ratepayers.

6. The leasing arrangement under the Agreement is similar to other such arrangements that have previously been approved by the Commission.

7. The leasing arrangement qualifies for a categorical exemption as a minor alteration of existing utility structures involving negligible expansion of an existing use.

8. Should the leasing arrangement require the building of new facilities, SCE has previously received authority for such construction pursuant to D.98-12-083.

Conclusions of Law

1. Authorization of the leasing arrangement set forth in the Agreement would not be contrary to the public interest by reason of the matters set forth in Findings of Fact 2 through 8.

2. The Commission should approve the application by reason of Conclusion of Law 1.

3. This leasing arrangement is exempt from CEQA.

4. Any future construction that may be accomplished under this leasing arrangement has previously been authorized by this Commission pursuant to D.98-12-083.

ORDER

IT IS ORDERED that:

1. Application 10-07-003 of Southern California Edison Company for authority to lease certain fiber optic cables to the County of Los Angeles, pursuant to the Fiber Use Agreement Between Southern California Edison Company and the County of Los Angeles, dated May 11, 2010, attached in redacted form as an Attachment to this Order, is approved.

2. Southern California Edison Company's motion to file under seal the confidential version of the agreement identified in the preceding paragraph is granted, to the extent that the confidential portions of the agreement shall not be made accessible or disclosed to anyone other than Commission staff for a period of three years from the effective date of this Order, except pursuant to a protective order or on further ruling of the Commission, the assigned Administrative Law Judge, or the Administrative Law Judge then designated as the Law and Motion Judge.

3. The lease of utility resources approved herein must have no impact on Southern California Edison Company's ability to serve its electric utility customers.

4. All costs associated with the lease arrangement approved herein must be paid by Southern California Edison Company's shareholders, and must not be included in electric utility rates.

5. Any new construction pursuant to this leasing arrangement must comply with the permitting conditions of Decision 98-12-083 and its associated Mitigated Negative Declaration.

6. Southern California Edison Company must file construction reports listing all new construction in the Appendix to its quarterly advice letter, consistent with its Mitigated Negative Declaration in Appendix D to Decision 98-12-083 until superseded by Commission General Order 170.

7. Revenues from the leasing arrangement approved in this Order shall be shared between Southern California Edison Company's shareholders and ratepayers using a 90/10 split pursuant to the revenue sharing mechanism adopted in Decision 99-09-070.

8. Southern California Edison Company must provide the following notifications to the extent that they apply to the circumstances of this matter in the future:

a. Southern California Edison Company shall notify the Commission's Division of Ratepayer Advocates and the Consumer Protection and Safety Division, through their respective assistant directors for energy, in writing, of all substantive amendments to, extensions of, or termination of the Appendix;

b. Southern California Edison Company shall notify the Division of Ratepayer Advocates and Consumer Protection and Safety Division assistant directors for energy, in writing, of any substantive changes to plant in service resulting from implementation of the Appendix within 60 days of any such change;

c. Southern California Edison Company shall notify the Division of Ratepayer Advocates and Consumer Protection and Safety Division assistant directors for energy, in writing, if any right-of-way which is the subject of the Appendix ceases to be used and useful for the provision of electric service or if there are any substantive changes in the right-of-way segments which are the subject of the Appendix within 30 days of any such event; and

d. If Southern California Edison Company or any affiliate of Southern California Edison Company enters into an agreement to make direct use of the fiber optic cables which are the subject of the Appendix, Southern California Edison Company shall notify the Division of Ratepayer Advocates and Consumer Protection and Safety Division assistant directors for energy, in writing, at least 60 days prior to the commencement of such use.

The required notification shall include a specification of the rates to be charged to Southern California Edison Company or the affiliate and the accounting principles which will be used to track the costs and payments associated with such use.

9. Application 10-07-003 is closed.

This order is effective today.

Dated March 24, 2011, at San Francisco, California.

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