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 West Lugo-Mira Loma transmission line right of way in the City of Ontario 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 proposed lessee, Chuka Foods, is managed by Ronald Smothers, who has over 25 years experience in the development and operation of Burger King franchise restaurants.

5. Chuka Foods will finance, construct, and maintain a retail shopping center 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. 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 11.49-acre site to Chuka Foods 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. 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 11.49-acre site located on a portion of SCE's Lugo-Mira Loma transmission line right of way in the City of Ontario to Chuka Foods, Inc., 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 (CEQA).

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. SCE shall within 120 days provide the Commission with copies of the documents issued by the local entity acting as Lead Agency to establish that the environmental review has been conducted and any mitigation measures required

under CEQA have been imposed, or that the project is exempt from CEQA pursuant to CEQA Guideline 15332.

6. Application 00-12-041 is closed.

This order is effective today.

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

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