VIII. Assignment of Proceeding

Geoffrey Brown is the Assigned Commissioner and Myra J. Prestidge is the assigned Administrative Law Judge in this proceeding.

IX. Findings of Fact

1. SDG&E currently leases a portion of its office building located at 10975 Technology Drive in San Diego to ADP.

2. The current lease extension between SDG&E and ADP will expire on February 28, 2006.

3. SDG&E and ADP have entered into an amendment to the lease that would permit the parties to extend the lease from March 1, 2006 to February 28, 2007, subject to Commission approval.

4. Permitting SDG&E to extend the lease with ADP so that ADP may continue to occupy part of the office building from March 1, 2006 until February 28, 2007 will not conflict with SDG&E's use of the property.

5. Extension of the lease will not impair SDG&E's ability to provide service to the public.

6. ADP's use of part of the office building to provide tax services is a productive use of the property.

7. The Commission is the Lead Agency for this project under CEQA.

8. CEQA Guidelines Section 15301 provides an exemption from CEQA review for the lease of existing facilities involving negligible or no expansion of existing use at the time of the agency's determination.

9. ADP will continue to use its existing office space and no physical changes to the facilities are anticipated as a result of the lease expansion.

X. Conclusions of Law

1. SDG&E's entry into the lease extension with ADP is in the public interest.

2. The lease of office space located on SDG&E property located at 10975 Technology Drive, San Diego, California to ADP qualifies for a Class 1 Categorical Exemption from CEQA pursuant to CEQA Guidelines Section 15301, and no further environmental review is required.

3. This decision should be effective today in order to allow SDG&E to expeditiously enter into the lease extension with ADP.

ORDER

IT IS ORDERED that:

1. The First Amendment to Lease Agreement (Attachment A to this application) between San Diego Gas & Electric Company (SDG&E) and ADP Tax Services, Inc. (ADP), which permits SDG&E to extend its lease of a portion of the office building located at 10975 Technology Drive, San Diego, California, to ADP for the period from March 1, 2006 through February 28, 2007 is approved pursuant to Public Utilities Code Section 851.

2. The application of SDG&E for authority to extend its existing lease to ADP is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301, and no further environmental review is required.

3. Application 05-05-008 is closed.

This order is effective today.

Dated June 16, 2005, at San Francisco, California

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