VI. Assignment of Proceeding

Susan P. Kennedy is the Assigned Commissioner and Kim Malcolm is the assigned ALJ in this proceeding.

Findings of Fact

1. The Viejo System Project will serve an area in South Orange County where local growth in demand cannot be met with existing distribution and transmission facilities. Without additional distribution facilities, loads within the South Orange County area may routinely exceed existing power line and substation capacity.

2. The Viejo System Project will upgrade SCE's system and will provide safe and reliable electric service to the South Orange Country area while minimizing environmental impacts if the project is constructed in accordance with the final MND certified herein.

3. The FMND reflects the independent judgment of this Commission.

4. The contents of the FMND conform to the requirements of CEQA.

5. The FMND identified no significant environmental effects of the project that could not be avoided or reduced to non-significant levels by changes to the project that have been accepted by SCE.

6. The Commission has considered the FMND in considering whether to approve the Viejo System Project.

7. The Viejo System Project application appropriately seeks a permit to construct rather than a CPCN because the project is for distribution facilities that operate at less than 200 kilowatts.

8. The partial undergrounding proposal made by NOPE may be feasible but would require additional environmental review before it could be approved.

9. The Commission does not require evidentiary hearings in this proceeding to comply with CEQA or other relevant law, or to consider whether to substantially modify the proposed project or reject the authority requested herein.

Conclusions of Law

1. The FMND has been processed and completed in compliance with the requirements of CEQA.

2. The Viejo System Project should be granted a permit to construct, subject to the Mitigation Implementation and Monitoring Plan included in the FMND.

ORDER

IT IS ORDERED that:

1. The Final Mitigated Negative Declaration (FMND) is identified as Exhibit 2 and is received into evidence.

2. The FMND related to the application in this proceeding is adopted pursuant to the requirements of the California Environmental Quality Act (CEQA).

3. The mitigation, monitoring, and reporting program included in the FMND is adopted.

4. Southern California Edison Company (SCE) is authorized to construct the power lines and associated substation and substation modifications known as the Viejo System Project, subject to the mitigation measures described in the FMND to avoid or mitigate the reasonably foreseeable adverse environmental affects of the project.

5. The Executive Director shall supervise and oversee construction of the project insofar as it relates to monitoring and enforcement of the mitigation conditions described in Section C of the FMND. The Executive Director may delegate his duties to one or more Commission staff members or outside staff. The Executive Director is authorized to employ staff independent of the Commission staff to carry out such functions, including, without limitation, the on-site environmental inspection, environmental monitoring, and environmental mitigation supervision of the construction of the project. Such staff may be individually qualified professional environmental monitors or may be employed by one or more firms or organizations. In monitoring the implementation of the environmental mitigation measures described in the FMND, the Executive Director shall attribute the acts and omissions of SCE's employees, contractors, subcontractors, or other agents to SCE.

6. SCE shall comply with all orders and directives of the Executive Director concerning implementation of the environmental mitigation measures described in the FMND.

7. The Executive Director shall not authorize SCE to commence actual construction until SCE has entered into a cost reimbursement agreement with the Commission for the recovery of the costs of the mitigation monitoring program described in the FMND, including, but not limited to, special studies, outside staff, or Commission staff costs directly attributable to mitigation monitoring. The Executive Director is authorized to enter into an agreement with SCE that provides for such reimbursement on terms and conditions consistent with this decision in a form satisfactory to the Executive Director. The terms and conditions of such agreement shall be deemed conditions of approval of the application to the same extent as if they were set forth in full in this decision.

8. SCE's right to construct the project as set forth in this decision shall be subject to all other necessary state and local permitting processes and approvals.

9. SCE shall file a written notice with the Commission, served on all parties to this proceeding, of its agreement, executed by an officer of SCE duly authorized, as evidenced by a resolution of its board of directors duly authenticated by a secretary or assistant secretary of SCE, to acknowledge SCE's acceptance of the conditions set forth in this order. Failure to file such notice within 75 days of the effective date of this decision shall result in the lapse of the authority granted by this decision.

10. The Executive Director shall file a Notice of Determination for the project as required by the CEQA and the regulations promulgated pursuant thereto.

11. Application 03-03-043 is closed.

This order is effective today.

Dated July 8, 2004, at San Francisco, California.

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