3. Determination of Best Secondary Use

SCE states that its objective in selecting secondary uses for utility property is to find those uses that will provide the greatest revenue consistent with the utility's obligation to maintain the safety and reliability of its facilities. Because of the above-ground power lines crossing the site, secondary uses are limited by restrictions and height clearances. SCE states that, of the uses examined for the site, it determined that a self-storage facility offered the highest level of potential revenues.

To evaluate the rental value of the site, SCE analyzed lessee's projected cost and income projections. The utility further reviewed rent paid by comparable self-storage facilities in Southern California. The annual base rent SCE would receive from RHC falls within the acceptable market range based on the analysis of comparable facilities and is in line with the revenues SCE receives in other transactions approved by this Commission. (See, e.g., Decision (D.) 04-12-044, D.04-03-035, D.03-03-035, and D.03-08-060.)