4. Descriptions of the Transactions

Of the transactions included in this application, more than 70% allow third parties to use hydro-generation land for recreational purposes. These are the transactions originally referenced in A.00-06-010. The remainder involve various other uses of PG&E property. PG&E has organized the 256 transactions into five broad categories and we will address them in that manner.

4.1. Category 1 - Recreational Sites on Hydro- Generation Lands

Category 1 includes leases and licenses of recreational sites on hydro-generation property. PG&E has entered into 186 agreements allowing recreational use of its FERC-licensed properties. These transactions include 131 Category 1a agreements involving individual recreational uses, primarily use of recreation sites, cottages and boating docks. For example, Transaction 34 is a 10-year lease to individuals for a cabin with a boat dock at Buck's Lake in Plumas County. Transaction 119 is a 10-year lease to individuals for a cottage at Philbrook Reservoir in Butte County. An additional 55 Category 1b agreements permit group recreational uses such as camping, boating, or hiking on PG&E property. Transactions 138 and 177 are leases for campgrounds used by the Boy Scouts and Girl Scouts, respectively. Transaction 136 is a lease to Bass Lake Enterprises for the operation of a marina on Bass Lake in Madera County. Transaction 179 is a license to Sigor Corporation to operate the Lake Haven Resort, which includes campsites, a store and boating facilities.

PG&E states that FERC strongly encourages the use of FERC-licensed lands for recreational purposes, citing 18 C.F.R. § 2.7 (2001) ("The [FERC] will evaluate the recreational resources of all projects under Federal license...and seek, within its authority, the ultimate development of these resources....").

4.2. Category 2 - Telecommunications

Category 2 involves licenses and leases with telecommunications companies. There are eight such agreements. For example, in Transaction 189, PG&E in 1983 leased property to Pacific Telephone and Telegraph Company "for the purpose of installing, maintaining, and using a microwave antenna tower together with microwave equipment and associated buildings...."

PG&E states it has also has entered into several transactions (unidentified number) allowing third parties to install telecommunications equipment on existing PG&E poles or in existing communication vaults. PG&E states that these transactions meet the Commission's current requirements for utility licenses under GO 69-C and thus are not included in this application. PG&E states that the Commission has held that such transactions are properly treated as licenses permissible under GO 69-C so long as the license is (1) for limited uses; (2) revocable either upon order of the Commission or upon the utility's determination that revocation is necessary in customers' interest, and (3) not interfering with the utility's operations, practices or service to customers. Prior Commission approval of such license agreements is not required. (Application of Pacific Gas and Electric Company for Section 851 Approval of Agreements Allowing Access to Electric Distribution Facilities (2002) D.02-12-018.)

Similarly, according to PG&E, revocable transactions involving minor, removable installations such as communications antennas, monopoles, and overhead or underground coaxial cable have been deemed by the Commission to be "limited uses" of utility property within the meaning of GO 69-C. (Application of Pacific Gas and Electric Company for Approval of a Lease for AT&T Wireless Services of California, Inc.'s Use of Certain Pacific Gas and Electric Company Structures for Communication Antennas and Related Equipment (2002) D.02-03-059, at 5.) Accordingly, PG&E states, licenses that permit telecommunications companies to use existing PG&E facilities and property to attach their equipment or to construct certain removable installations have not been included in this application.

4.3. Category 3 - Vehicle Parking

Category 3 involves licenses or leases that allow individuals to construct or maintain parking lots on PG&E property. Fifteen such leases or licenses are included in this application. PG&E states that the agreements generally allow only minor improvements, such as installation of pavement, gravel, gates or fences. For example, in Transaction 207, PG&E gives permission to the Valley Baptist Church to use PG&E property for a parking lot and to install gravel and gates.

PG&E states that a limited number of additional transactions that permit use of PG&E property for parking are not included in this application because they do not permit any construction. Instead, they merely allow individuals to park cars on existing PG&E lots. Because the transactions do not permit construction and are fully revocable, PG&E states that the transactions are permissible under recent Commission decisions involving GO 69-C and do not require Commission approval.

4.4. Category 4 - Storage

Category 4 involves licenses or leases that permit parties to use PG&E property for storage purposes. PG&E seeks approval of six such transactions. These leases and licenses permit limited improvements, such as fence construction or paving. The storage agreements do not allow the operation of self-storage businesses but rather permit the temporary storage of items such as equipment, vehicles, or containers. For example, PG&E in Transaction 214 has allowed the San Jose Conservation Corps to store vans and tool containers on PG&E property and to install fencing on the property.

In addition, PG&E states it has entered into a limited number of licenses (unidentified number) that simply permit third parties to store items on its property without any associated construction activity. PG&E states that to the extent these licenses are fully revocable and comply with the other requirements of GO 69-C, they are not included in this application.

4.5. Category 5 - Miscellaneous

Category 5 involves transactions that PG&E terms a catch-all category for agreements that do not fall into any of the categories identified above. There are 41 transactions in this miscellaneous category, including the following:

· Licenses for the construction of barns, corrals and riding areas. (Transactions 216-217.)

· Licenses or leases for the operation of fish hatcheries on utility land. (Transactions 218-222.)

· Licenses or leases that permit the use and/or maintenance of infrastructure for public and private uses, such as roads, water or septic system pipelines, small electrical substations or fire stations. (Transactions 223-233.)

· Licenses and leases that permit mining operations on PG&E land. (Transactions 234-235.)

· A license granting permission for an existing encroachment on utility property. (Transaction 236.)

· Licenses for use of PG&E office space. (Transactions 237-238.)

· A license allowing plant nursery operations on utility land. (Transaction 239.)

· Licenses or leases for recreational uses of land other than hydro-generation lands. (Transactions 240-244.)

· Licenses or leases that permit the construction and maintenance of signs, such as advertising billboards, on PG&E property. (Transactions 245-252.)

· Licenses that permit the construction and maintenance of small accessory structures on PG&E land, such as fencing, stairways, weather equipment or a structure to house an emergency generator. (Transactions 253-256.)

4.6. Transactions for Which Environmental
Review Was Performed

Within the five broad categories, PG&E states that environmental review under CEQA was performed for nine of the transactions. Copies of the local environmental review documents for each of the transactions were submitted with the Application as part of Exhibit B. (Transactions 180, 224, 225, 227, 231, 232, 234, 235, and 243.)

4.7. Transactions That Pre-Date CEQA

Within the five broad categories, PG&E states that six of the transactions were entered into before the enactment of CEQA in 1970. Accordingly, PG&E states that no environmental review is necessary because the transactions preceded the environmental review requirement. (Transactions 178, 218, 226, 229, 230, and 252.)