II. The Application

PG&E refers to the 13 agreements which are the subject of this Application as "Master Agreements." Each Master Agreement allows PG&E to grant both a license and a lease under its terms and conditions.² PG&E states that the benefit of a license is immediate access to its facilities. A lease would require prior Commission approval under Section 851. Pursuant to G.O. 69-C, PG&E may grant a license to install telecommunications equipment on its electric distribution facilities without Commission approval. A license granted pursuant to G.O. 69-C must be: 1) for limited uses; 2) revocable either upon order of the Commission or upon the utility's own determination that it is desirable or necessary in the interest of service to its patrons and customers and 3) not interfere with the utility's (PG&E) operations, practices or service to customers.

PG&E states that the benefit of converting a license to a lease is long-term, uninterrupted access to its facilities. Any equipment previously installed under a G.O. 69-C license will automatically become subject to a lease upon conversion. The Master Agreements state that the conversion of the Agreements into leases will not become effective absent Commission approval. The duration of a Master Agreements as a license, lease, or combination of the two is five years, with a one-time renewal option for an additional five years.

The Master Agreements govern the installation of telecommunications equipment on PG&E's electric distribution facilities located anywhere in PG&E's service territory. The agreements are for poles and underground facilities with no supply circuits in excess of 50kV. Once a site is identified, PG&E determines if the equipment can be installed safely and without harm to its electric distribution system. The Agreements limit the installation of equipment to only those PG&E facilities that (1) have unused space, and (2) are located within PG&E's existing rights-of-way. The Agreements also provide that the equipment be installed and maintained in accordance with all applicable laws and regulations, including G.O. 95 and G.O. 128.³

The Master Agreements allow PG&E to reclaim space if PG&E needs the space to provide utility service. If space is reclaimed, the Agreements require PG&E to make a good faith effort to provide alternate space by rearranging existing facilities or adding new facilities. If this is not possible, the space will simply be lost.

The Master Agreements also require that PG&E be reimbursed for any costs incurred by PG&E associated with the installations. The Agreements also require the payment of various fees to PG&E. The fees include mapping and engineering fees, as well as a fee for each attachment.⁴ The Master Agreements also require payment of a one-time $10,000 fee to PG&E for the filing of an application to convert the license agreements into lease agreements.⁵ In addition, the Agreements require PG&E to request authority from the Commission for an unlimited number of installations under the Agreements without the need for additional filings. If the Commission denies the request, each subsequent filing requires a $5,000 payment to PG&E. PG&E states that all fees will be credited "above the line" to electric ratepayers for general rate case purposes.

In A.00-12-026, PG&E requests authority to make the following "insubstantial amendments" to the Master Agreements without having to file a new application:

· Installations and removals of equipment that are made in accordance with the provisions of the Master Agreements.

· One-time renewals of Master Agreements that are made in accordance with Section 2.5 of the Agreements.

· Reductions in the duration of the Master Agreements.

· Revisions in the amount of the fees paid to PG&E that are made in accordance with (i) the Master Agreements, and (ii) the rules, regulations, or orders of the Commission or a court of law.

· Assignments of the Master Agreements.

· Other insubstantial amendments agreed to by the parties.

PG&E states that prior Commission approval of insubstantial amendments will avoid unnecessary expenditures of resources by the Commission, PG&E, and other parties.

As to nine of the Master Agreements, PG&E believes that it is unnecessary for the Commission to conduct an environmental review. This is because each of the nine carriers that are parties to Master Agreements obtained its CPCN in a proceeding where the Commission adopted a mitigated negative declaration regarding the activities authorized by the carrier's CPCN. PG&E states the mitigated negative declarations encompass the types of activities that will occur under the Agreements, since the Agreements are specifically limited to activities that (1) are covered by the carriers' CPCNs, and (2) conform with all applicable laws, including Commission orders.

PG&E offers several reasons why it is in the public interest for the Commission to authorize the conversion of the Master Agreements into Section 851 leases. First, the Agreements are consistent with the Commission's policy of favoring the use of existing utility facilities for the development of telecommunications infrastructure. Second, the Agreements are structured to prevent the use of facilities from interfering with PG&E's electric operations or public utility services. Third, the Agreements benefit carriers by enabling them to expand and improve their service using existing utility facilities. Fourth, the fees paid will benefit PG&E's electric ratepayers. Fifth, the Agreements are consistent with Commission rules governing access to utility rights-of-way (ROW) by telecommunication companies that were adopted in Decision (D.) 98-10-058, as modified by D.00-03-055 (ROW decisions). Finally, the Agreements will not have an adverse effect on the environment, since any installation of equipment by a carrier must comply with the carrier's mitigated negative declaration.