ALJ/KJB/tcg Mailed 3/14/2003

Decision 03-03-027 March 13, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U 338-E) for Authority to Lease Available Land on the El Nido-Sepulveda-Culver Transmission Right of Way to Volkswagen of America, Inc.

Application 03-01-020 (Filed January 17, 2003)

DECISION GRANTING APPROVAL
UNDER PUBLIC UTILITIES CODE SECTION 851
FOR A LEASE OF UTILITY PROPERTY

We grant the Application of Southern California Edison Company (SCE) for authority to lease available land under Public Utilities Code Section 851.¹ The SCE property consists of a 3.91-acre site located on a portion of SCE's El Nido-Sepulveda-Culver transmission right of way in the City of Hawthorne (Site). The Site is part of the El Nido-Sepulveda-Culver 66 kilovolt (kV) system and includes, among others, CPUC jurisdictional facilities. The lease is sought to permit Volkswagen of America, Inc. (VOA or Lessee) to construct and operate a vehicle parking and storage lot on the Site.

Background

The Site is subject to an Option Agreement between SCE and VOA dated June 19, 2002. Pursuant to the Option Agreement, VOA has the right, subject to Commission approval, to lease the Site from SCE for the described uses for a period of 20 years beginning on the date VOA exercises the option. Annual rent for Years 1 through 5 of the lease term will be $103,337. Beginning in the 6^th year of the lease term, and every fifth year thereafter, base rent will be increased by ten percent (10%). The lease also grants VOA three ten-year renewal options at fair rental value.

The Option Agreement provides that VOA's activities must not interfere with the operation of the electric facilities that cross the Site. To that end, VOA is forbidden to use or store hazardous substances, explosives, or flammable materials on the Site. Further, any equipment used by VOA on or adjacent to the Site must maintain at all times a clearance of at least eighteen (18) feet from all overhead electrical conductors. VOA must maintain a minimum radius of fifty (50) feet around all tower legs and ten (10) feet around all poles and anchors and provide access roads to the Site that are at least sixteen (16) feet wide and capable of supporting a gross load of forty (40) tons on a three-axle vehicle.

SCE retains various rights under the Option Agreement including the rights to:

· Enter the Site at any and all reasonable times to inspect the property;

· Impose temporary restrictions on VOA's right to enter, occupy and use the Site in order to perform necessary work on the electrical facilities located on the Site; and

· Take back all or part of the leasehold by eminent domain or inverse condemnation.

VOA is also required to:

· Pay all personal property taxes, general or special assessments, or other fees levied against the Site or the improvements to be constructed thereon;

· Obtain all permits and approvals for construction and any zoning changes or use permits required for operation of its business on the Site;

· Maintain appropriate comprehensive general liability, auto liability, and worker's compensation insurance; and

· Indemnify SCE against all liability for damages or injury to persons on the Site except to the extent caused by SCE's negligent or willful misconduct.