7. Discussion
Pub. Util. Code § 851 provides that no public utility "shall ... lease ... [property] necessary or useful in the performance of its duties to the public ... without first having secured from the [C]ommission an order authorizing it to do so . . ." The Commission's role in examining transactions subject to § 851 is the protection of the public interest.9 The Commission has determined that the public interest is served when utility property is used for other productive purposes without interfering with the utility's operations,10 and such is the case here. There is a clear public benefit to be gained here in that the agreement will generate revenues that will be shared between SCE and its ratepayers, thus lowering rates and at the same time enhancing the utility's financial health and the California economy.
As discussed above, the proposed use has been reviewed, its environmental impact assessed, and the project approved by Compton.
The lease agreement contains provisions addressing lessee activities that could potentially impair the site's primary public utility use; informing the lessee of potential hazards; and reserving SCE's rights to fully access the site, to use the site for other compatible, productive purposes, and to reclaim the site if necessary. We conclude that the proposed lease is in the public interest and should be approved.
9 Section 853(a): "This article [Article 6, Transfer or Encumbrance of Utility Property, Sections 851 through 856] ... shall apply to any public utility ... if the commission finds ... that the application of this article is required by the public interest."
10 In D.93-04-019, p. 3, we observed: "Joint use of utility facilities has obvious economic and environmental benefits. 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."
