Discussion

As leases of utility-owned real property, the proposed transaction falls squarely within the requirements of § 851, which requires Commission approval before a utility can sell, lease, assign, mortgage, or otherwise encumber the whole or any part of its property that is necessary or useful in the performance of its duties to the public. The basic task of the Commission in a § 851 proceeding is to determine whether the transaction serves the public interest: "The public interest is served when utility property is used for other productive purposes without interfering with the utility's operation or affecting service to utility customers." (D.02-01-058) We have reviewed the proposed agreements and find they do not interfere with SCE's operation or affect its ability to provide service to its customers. Because ratepayers will receive 30% of the gross revenue from the transaction without incurring any measurable increased costs, we find that the properties are being "used for other productive purposes" and accordingly the proposed Leases are in the public interest and the Application should be approved.