Assignment of Proceeding

Carl Wood is the Assigned Commissioner and James McVicar is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Portions of the lease site have been licensed to Commerce Club under three separate license agreements since 1987 for vehicle parking, horticultural use, and a landscape and beautification area in support of Commerce Club's casino and restaurant.

2. Neither construction nor any change to the current use of the site is contemplated as a result of our approval here.

3. Under terms of the lease, Commerce Clubs use of the site will not interfere with SCE's operations or facilities on the site.

4. All revenue from the lease in excess of a Commission-established threshold will be treated as other Operating Revenue and shared 70%/30% between SCE and its ratepayers, pursuant to D.99-09-070.

5. Conversion of three license agreements to a lease for this site was not part of a design to circumvent the advance approval requirements of Pub. Util. Code § 851 and CEQA review.

6. It can be seen with certainty that conversion of the three license agreements to a lease as proposed in the application will have no significant effect on the environment, consistent with Section 15061(b)(3) of the CEQA guidelines.

7. There is no known opposition to granting the authorization requested.

Conclusions of Law

1. City of Commerce's lack of discretionary approval and CEQA review related to the activity in question does not eliminate the Commission's responsibility to consider CEQA when, as here, the Commission must issue a discretionary decision.

2. The transaction proposed in Application 02-02-015 is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA guidelines.

3. The proposed revenue sharing conforms to the Commission's order in D.99-09-070.

4. A public hearing is not necessary.

5. The Application should be granted as set forth in the following order.

6. This order should be made effective immediately to allow the lease to take effect and its benefits to begin flowing to SCE and its ratepayers as soon as possible.

ORDER

IT IS ORDERED that:

1. Southern California Edison Company (SCE) is authorized to lease to California Commerce Club, Inc. a site on SCE's Laguna Bell-Mesa transmission right of way in City of Commerce, in accordance with the terms and conditions set forth in Application 02-02-015 and this order.

2. All revenue from the lease shall be treated as Other Operating Revenue and subject to the sharing mechanism set forth in Decision 99-09-070.

3. SCE shall notify the Director of the Commission's Energy Division in writing of any amendments to, extension of, or termination of the lease agreement, within 30 days after such amendments are executed.

4. Application 02-02-015 is closed.

This order is effective today.

Dated January 30, 2003, at San Francisco, California.

MICHAEL R. PEEVEY

President

CARL W. WOOD

LORETTA M. LYNCH

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners

I will file a concurrence.

/s/ LORETTA M. LYNCH