Analysis and Action

We grant PG&E's request under Section 851 to amend the Existing Lease. The basic task of the Commission in a Section 851 proceeding is to determine whether the transaction serves the public interest: "The public interest is served when utility property is used for other productive purposes without interfering with the utility's operation or affecting service to utility customers." (D.02-01-058.) We have reviewed the proposed transaction and find it does not interfere with PG&E's operation or affect its ability to provide service to its customers. The additional land to be leased to Johns Manville for construction of the trench is excess to the utility's needs. The lease rental will financially benefit the ratepayers. Allowing Johns Manville to provide increased electric service to its glass manufacturing plant is a productive purpose. Accordingly, the transaction is in the public interest and should be approved.