6. Discussion
Under Section 851, the Commission must approve any transfer, sale, lease, assignment or encumbrance of utility property that is necessary or useful to the utility in the performance of its duties to the public. Granting of an easement on utility property is an encumbrance, and therefore requires approval under Section 851.5
The primary question for the Commission in Section 851 proceedings is whether the proposed transaction is in the public interest. In reviewing a Section 851 application, the Commission may "take such action, as a condition to the transfer, as the public interest may require."6 The public interest is served when utility property is used for other productive purposes without interfering with the utility's operations or affecting the availability of adequate service at reasonable rates to utility customers.7
We find that SoCalGas' conveyance of the proposed easement to SCE is in the public interest. The proposed easement will not interfere with SoCalGas' use of the property for its utility operations or with service to SoCalGas customers, and will be utilized in a manner consistent with Commission and legal requirements. Moreover, SoCalGas' conveyance of the easement to SCE will uphold and preserve SCE's pre-existing right to an easement across the property for use as a transmission line corridor, if an additional transmission line is needed to serve the public in the future. Conveyance of the easement to SCE will also enable Rye to proceed with its project and the construction and dedication of Aurora Drive, a public street. SoCalGas will be fully compensated for the value of the new easement.
We also approve the proposed ratemaking treatment for the compensation that SoCalGas will receive from Rye for the easement.
For all of the foregoing reasons, we grant the application of SoCalGas pursuant to Section 851, effective immediately.
5 As the Commission previously stated: "The language of Section 851 is expansive, and we conclude that it makes sense to read "encumber" in this statute as embracing the broader sense of placing a physical burden, which affects the physical condition of the property, on the utility's plant, system, or property." (D.92-07-007, 45 CPUC 2d 24, 29.) 6 D.3320, 10 CRRC 56, 63. 7 D.00-07-010 at p. 6.
