III. Determination of Best Secondary Use

The utility's objective in selecting secondary uses for utility sites is to find uses that provide the greatest revenue consistent with the utility's obligations to maintain the safety and reliability of its facilities. Because of the presence of above-ground power lines crossing the Site, secondary land uses on the Site are limited by operating restrictions and height clearances.

To evaluate the rental value for the Site, SCE solicited development proposals from the real estate market place. After reviewing all submitted proposals, SCE reviewed rent paid by "comparable" self-storage facilities in Southern California as a function of the effective gross income of the facilities. The annual base rent SCE will receive from CT falls within the acceptable market range established by the analysis of these comparable facilities and is in line with rents received in the transactions approved by the Commission in Decisions (D.) 96-12-024, D.99-02-035, D.99-02-036, D.99-03-016, D.00-04-066, D.00-02-041 and D.00-06-057.

A. Selection of Lessee

CT was awarded the Site to develop, because of the proposed use of the property, and the background and financial position of CT's operating officers and managing corporation, CT Realty Corporation. CT Realty Corporation was formed in February, 1994 and has acquired 27 properties with a total value over

$175 million. CT began its business operations as CT Self Village, LLC, a limited liability company in May, 1998. In 1999, the LLC changed its name to CT Self-Storage Fund, LLC. The two primary members of CT are Robert Campbell and U. T. Thompson, III.

Robert Campbell, President and co-founder of CT Realty Corporation, has 25 years of real estate development experience. He was responsible for developing approximately 30 industrial, commercial and retail projects in California, Nevada and Arizona, involving 7.5 million square feet of space.

U. T. Thompson, III, Chairman of the Board of CT Reality Corporation, is a lawyer and real estate broker with 20 years' experience as a general partner and investor in numerous commercial real estate ventures. He is a founder and past Chairman of the Board of Pacific National Bank.