March 30, Advice Letter 3698-E

Transcription

1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA March 30, 2018 Advice Letter 3698-E Russell G. Worden Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA SUBJECT: Request by Southern California Edison Company for Approval to Convey an Easement to CRP Oakmont Santa Anita, L.L.C. to Accommodate the Construction of a Private Emergency Access Road and an Easement to the City of Rancho Cucamonga to Accommodate the Extension of Santa Anita Avenue (an existing public road) Dear Mr. Worden: Advice Letter 3698-E is effective as of March 22, 2018 per Resolution E-4923 per ordering paragraphs. Sincerely, Edward Randolph Director, Energy Division

2 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: Southern California Edison Date Utility Notified: December 11, 2017 Utility No./Type: U 338-E [X] to: Darrah.morgan@sce.com Advice Letter Nos.: 3698-E Date AL filed: November 17, 2017 Fax No.: N/A Utility Contact Person: Darrah Morgan ED Staff Contact: Andrew Barnsdale Utility Phone No.: (626) For Internal Purposes Only: Date Calendar Clerk Notified / / Date Commissioners/Advisors Notified / / [x] INITIAL SUSPENSION (up to 120 DAYS) This is to notify that the above-indicated AL is suspended for up to 120 days beginning December 11, 2017, for the following reason(s) below. If the AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division extends beyond the expiration of the initial suspension period, the advice letter will be automatically suspended for up to 180 days beyond the initial suspension period. [ ] Section 455 Hearing is required - A Commission resolution may be required to address the advice letter. [ X ] Advice Letter Requests a Commission Order [ X ] Advice Letter Requires Staff Review Expected duration of initial suspension period: 120 days [ ] FURTHER SUSPENSION (up to 180 DAYS beyond initial suspension period) The AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division has extended beyond the expiration of the initial suspension period. The advice letter is suspended for up to180 days beyond the initial suspension period. If you have any questions regarding this matter, please contact Andrew Barnsdale at BCA@cpuc.ca.gov or Mary Jo Borak at BOR@cpuc.ca.gov. cc: Maria Salinas * Reference General Rule of General Order 96-B.

3 Russell G. Worden Managing Director, State Regulatory Operations November 17, 2017 ADVICE 3698-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Request by Southern California Edison Company for Approval to Convey an Easement to CRP Oakmont Santa Anita, L.L.C. to Accommodate the Construction of a Private Emergency Access Road and an Easement to the City of Rancho Cucamonga to Accommodate the Extension of Santa Anita Avenue (an existing public road) PURPOSE Southern California Edison Company (SCE) respectfully requests authorization from the California Public Utilities Commission (CPUC or Commission) pursuant to Section 851 of the California Public Utilities Code and CPUC General Order (GO) 173 to grant a 9,674 square foot easement to CRP Oakmont Santa Anita, L.L.C. (Oakmont) for a private emergency access road and a 20,060 square foot easement to the City of Rancho Cucamonga for the purpose of extending an existing street known as Santa Anita Avenue. The requests for both easements arise out of Oakmont s development of an industrial warehouse facility described more fully below. PROPERTY DESCRIPTION/CONDITION/USE SCE owns approximately acres of property located east of I-15, north of 6 th Street, west of Etiwanda Avenue, and south of Arrow Route in the City of Rancho Cucamonga, San Bernardino County. Several transmission towers and transmission lines are situated on the property. These facilities include: two towers serving the Padua-Rancho Vista 220kV line; two towers serving the Lugo-Rancho Vista 500kV line; five poles serving the Etiwanda-Arbors-Forge-MWD Reduction 66kV line; and twelve poles serving the Etiwanda-Archline-Cucamonga-Genamac 66kV line. SCE s property is L shaped and partially wraps around three vacant parcels of property owned by Oakmont. The Oakmont parcels are bordered to the north and east by a P.O. Box Rush Street Rosemead, California (626) Fax (626)

4 ADVICE 3698-E (U 338-E) November 17, 2017 railroad track and to the west and south by SCE s property. As such, the Oakmont property is partially landlocked. Oakmont has obtained development entitlements from the City of Rancho Cucamonga (City) to develop an approximately 339,000 square foot warehouse/industrial building on its property. As a condition to its development approvals, Oakmont has agreed to extend Santa Anita Avenue and to develop an emergency access road to and from its property. Oakmont has therefore requested the subject easements to accommodate portions of both roadways. The first proposed easement (to be granted to the City) consists of 26,060 square feet and would facilitate the extension of Santa Anita Avenue (an existing City road) to the southern boundary of the Oakmont property. The second proposed easement (to be granted to Oakmont) consists of 9,674 square feet and would accommodate a private emergency access road. An aerial photograph depicting the properties and general location of the requested easements is attached as Exhibit A. Copies of the two proposed easements are attached as Exhibit B. INTENDED USE Upon conveyance of the road easement to the City, Oakmont intends to extend Santa Anita Avenue to reach the southern boundary of the Oakmont property. Upon conveyance of the emergency access road easement to Oakmont, Oakmont will also build the emergency access road over a portion of SCE s property. FINANCIAL TERMS OF TRANSACTION/USE OF FINANCIAL PROCEEDS/IMPACT TO RATE BASE SCE seeks to convey the public road easement to the City and the emergency access road easement to Oakmont (see attached Exhibit B ). Oakmont has agreed to pay SCE the sum of $271,747 for these easements. D approved a settlement between SCE and the Office of Ratepayer Advocates (ORA) concerning SCE s application for a revenue sharing mechanism for certain other operating revenue. The adopted Gross Revenue Sharing Mechanism allocates revenues resulting from non-tariffed products and services between shareholders and ratepayers. In the settlement, SCE and ORA agreed to classify all existing non-tariffed products and services as either active or passive. The gross revenue from active products and services is allocated 90 percent to shareholders and 10 percent to ratepayers; passive products and services are allocated 70 percent to shareholders and 30 percent to ratepayers. The classifications are listed in Attachment A to the settlement agreement and were subsequently affirmed in Resolution E-3639 (effective May 15, 2000, approving Advice Letter 1286-E/1286-E-A). They were also filed as Preliminary Statement G to SCE s tariffs. The subject easements are

5 ADVICE 3698-E (U 338-E) November 17, 2017 considered a passive use of SCE s land and, accordingly, the sum paid by the City will be allocated 70 percent to shareholders and 30 percent to ratepayers. PROPERTY VALUE An appraisal to determine fair market value of SCE s property before and subsequent to the grant of the proposed easements was conducted. The appraiser ultimately derived value in accordance with accepted appraising principles and methodologies including highest and best use with full consideration given to zoning, development potential and the use the property is capable of producing coupled with comparable sales data. The overall property was appraised at $7,744,960. Following the grant of the proposed easement, the property would be valued at $7,476,955. The appraiser extrapolated that the cumulative value of the two easements is therefore $268,005 (the amount of the diminished value). Due to the passage of time, SCE s appraiser determined that a marginal increase in the value of the easements to $271,747 is warranted. The easements do not have a fair market value in excess of $5,000,000. Therefore, pursuant to GO 173, the transaction may be approved by an advice letter filing. FUTURE TRANSACTIONS There are no future transactions by SCE and either Oakmont or the City related to the present transaction. ENVIRONMENTAL REVIEW/CEQA COMPLIANCE The instant transaction (grant of easements) facilitates the extension of an existing public road and the construction of a private emergency access road which are conditions of development of Oakmont s warehouse development. Based on information received from the City, Oakmont s warehouse project (inclusive of conditions for both roads) was approved on June 28, A copy of a decision from the City s Planning Commission is attached as Exhibit C. A description of the widening of Santa Anita Avenue and construction of the emergency access road is provided in item j of the City Planning Commission s decision. The City served as lead agency under the California Environmental Quality Act for Oakmont s warehouse project and approved a Mitigated Negative Declaration (MND). The MND and a letter from the City confirming that it approved the project (inclusive of the emergency access road and extension of Santa Anita Avenue) follows the Planning Commission approval attached as Exhibit C.

6 ADVICE 3698-E (U 338-E) November 17, 2017 PUBLIC INTEREST SCE respectfully submits that the conveyance of the easements will not have an adverse impact on the public interest or on the ability of SCE to provide safe and reliable service to customers at reasonable rates. Due to existing development surrounding SCE s property, access points to SCE facilities are limited. The proposed extension of Santa Anita Avenue would also provide an additional means for SCE to access its facilities. The easements reserve to SCE the right to construct, maintain, use, and operate its facilities (See, Section 1). Moreover, the easements may not be utilized in a manner that unreasonably endanger or interfere with SCE s operations/use of its property and imposes safety clearances (See Sections 2, 3, 5 and 6) from SCE facilities. SCE has further reviewed and approved the plans for the widening of Santa Anita Avenue and the emergency access road and determined that the construction and use of such roads will not interfere with SCE s existing facilities. SCE does not have any foreseeable plans to install new facilities within the areas subject to the easements. PARTIES Upon authorization from the Director of the Energy Division or other CPUC designee, the parties to these transactions will be SCE and CRP Oakmont Santa Anita, L.L.C., for the emergency access road easement and SCE and the City of Rancho Cucammonga for the Santa Anita Avenue extension easement. Any communications related to this advice letter should be sent to the following parties: Any communications to the Oakmont should be directed to: Mr. John Atwell Senior Vice President Oakmont Industrial Group 3520 Piedmont Road, Ste. 100 Atanta, Georgia, Any communications to the City of Rancho Cucamonga should be directed to: Dominick Perez City of Rancho Cucamonga 1500 Civic Center Dr. P.O. Box 807 Rancho Cucamonga, CA (909)

7 ADVICE 3698-E (U 338-E) November 17, 2017 Any communications to SCE regarding this advice letter should be sent to SCE as follows: Ms. Geetha Eva Shanmugasundaram SCE Regulatory Affairs 2244 Walnut Grove Avenue Rosemead, California (626) With a copy to: Mark A. Rothenberg, Esq. Counsel for SCE 2244 Walnut Grove Avenue Rosemead, California (626) Mark.A.Rothenberg@sce.com TIER DESIGNATION Pursuant to GO 96-B, Energy Industry Rule 5.2, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE SCE requests that this advice filing become effective on December 17, 2017, the 30 th calendar day after the date filed. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be submitted to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California Edtariffunit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:

8 ADVICE 3698-E (U 338-E) November 17, 2017 Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com With a copy to: Mark A. Rothenberg Attorney Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) Mark.A.Rothenberg@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above. In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B list and, in accordance with Resolution ALJ-244, on the Energy Division, the Commission Office of Ratepayer Advocates, the Commission CEQA Team (clu@cpuc.ca.gov; jnr@cpuc.ca.gov; jmu@cpuc.ca.gov). Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) For changes to all other service lists, please contact the Commission s Process Office at (415) or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at

9 ADVICE 3698-E (U 338-E) November 17, 2017 For questions, please contact Mark A. Rothenberg at (626) or by electronic mail at mark.a.rothenberg@sce.com. Southern California Edison Company RGW:gs:cm Enclosure /s/ Russell G. Worden Russell G. Worden

10 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company (U 338-E) Utility type: Contact Person: Darrah Morgan ELC GAS Phone #: (626) PLC HEAT WATER Disposition Notice to: EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 3698-E Tier Designation: 2 Subject of AL: Request by Southern California Edison Company for Approval to Convey an Easement to CRP Oakmont Santa Anita, L.L.C. to Accommodate the Construction of a Private Emergency Access Road and an Easement to the City of Rancho Cucamonga to Accommodate the Extension of Santa Anita Avenue (an existing public road) Keywords (choose from CPUC listing): Easement AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL: Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information: Resolution Required? Yes No Requested effective date: 12/17/17 No. of tariff sheets: -0- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: None Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: None 1 Discuss in AL if more space is needed.

11 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California Russell G. Worden Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415) With a copy to: Mark A. Rothenberg Attorney 2244 Walnut Grove Avenue, 3rd Floor Rosemead, CA Facsimile: (626) Mark.A.Rothenberg@sce.com

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