VII. Procedural Summary

Notice of this application appeared in the Commission's calendar dated January 4, 2001.

In Resolution ALJ 176-3054, dated January 4, 2001, the Commission preliminarily categorized this proceeding as ratesetting and preliminarily determined that hearings were not necessary. Based on the record, we conclude that a public hearing is not necessary, nor is it necessary to alter the preliminary determinations in Resolution ALJ 176-3054.

Because the application is unopposed, and because our decision today grants the relief requested, the requirement for 30-day public review and comment is waived pursuant to Pub. Util. Code § 311(g)(2).

Findings of Fact

1. SCE is an electric public utility subject to the jurisdiction and regulation of this Commission.

2. SCE has property at the Huntington Beach-Ellis 220 kV transmission line right of way in the City of Huntington Beach available for secondary use, and it seeks to obtain revenue for ratepayers and shareholders through a secondary use lease.

3. Subject to Commission authorization required under Pub. Util. Code § 851, SCE has negotiated a long-term lease proposal for the available property to provide lease revenues with no interference with the operation of the transmission line.

4. The two primary members of CT are Robert Campbell, who has 25 years of real estate development experience, and U. T. Thompson, III, who has 20 years' experience in numerous commercial real estate ventures.

5. CT will finance, construct, and maintain a self-storage facility at the Site, bearing the costs and making payments to SCE.

6. Revenue in excess of a Commission-established threshold will be shared 70%/30% between the utility and ratepayers, by treating all revenues as Other Operating Revenue, pursuant to D.99-09-070.

7. The Commission will make a discretionary determination whether to approve SCE's Section 851 lease application.

8. Development of the property in question by CT is subject to all applicable laws and receipt of discretionary approvals from the City of Huntington Beach.

9. Pursuant to the California Environmental Quality Act (CEQA), where a project is to be approved by more than one public agency, one agency becomes the lead agency for purposes of preparing an Environmental Impact Report or negative declaration for the project.

10. Under the applicable CEQA Guidelines, the City of Huntington Beach is the appropriate lead agency for CEQA purposes and the Commission is a responsible agency.

11. The applicant has submitted documentation to establish that the project in question is exempt from CEQA pursuant to CEQA Guideline 15332.

12. There is no opposition to this application.

Conclusions of Law

1. No public hearing is necessary.

2. Joint use of utility property should be encouraged in appropriate cases because of the obvious economic and environmental benefits.

3. The Commission should condition its approval of the proposed lease on lessee's compliance with all applicable environmental regulations.

4. SCE should be authorized pursuant to Pub. Util. Code § 851 to lease the designated 1.92-acre site to CT on the terms and conditions set forth in the application.

5. The proposed sharing of revenues with ratepayers conforms to the Commission's order in D.99-09-070.

6. Should environmental claims, in whole or in part, related to the tenancy or activities of the lessee be made on SCE subsequent to the execution of the lease, SCE shall not seek recovery of any such claims, or defense of such claims, from ratepayers.

7. The City of Huntington Beach, as the lead agency, has properly determined that the project in question is exempt from CEQA pursuant to CEQA Guideline 15332 and thus, no CEQA review is required by the Commission as a responsible agency.

8. Because of the benefits of this lease agreement for the utility and for ratepayers, approval of this application should be made effective immediately.

ORDER

IT IS ORDERED that:

1. Southern California Edison Company (SCE) is authorized to enter into a lease of an 1.92-acre site located on a portion of SCE's Huntington Beach-Ellis 220 kilovolt (kV) transmission line right of way in the City of Huntington Beach to CT Self-Storage, LLC., under the terms and conditions set forth in this application.

2. As received, all revenues from the lease authorized shall be treated as Other Operating Revenue and shall be subject to the gross revenue sharing mechanism set forth in Decision 99-09-070.

3. Approval of this application is conditioned upon lessee's compliance with all applicable environmental regulations, pursuant to the California Environmental Quality Act.

4. SCE shall notify the Director of the Energy Division, in writing, of any substantial amendments to, extension of, or termination of the lease agreement, within 30 days following the execution of such amendments, extensions or termination.

5. Application 00-12-042 is closed.

This order is effective today.

Dated August 2, 2001 , at San Francisco, California.

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