June 19, 2013 Advice Letter 2668-E

Size: px

Start display at page:

Download "June 19, 2013 Advice Letter 2668-E"

Phebe Stephens
6 years ago
Views:

STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION SAN FRANCISCO, CA 94102-3298 Edmund G. Brown Jr.

1 STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION SAN FRANCISCO, CA Edmund G. Brown Jr., Governor June 19, 2013 Advice Letter 2668-E Akbar Jazayeri Vice President, Regulatory Operations Southern California Edison Company P O Box 800 Rosemead, CA Subject: Request by SCE for Approval to Grant Easement Pursuant to Resolution ALJ-186 as Extended and Modified by Resolutions ALJ-202, ALJ-244, and ALJ-272 (Section 851 Pilot Program) Dear Mr. Jazayeri: Advice Letter 2668-E is effective May 9, Sincerely, Edward F. Randolph, Director Energy Division

2 Akbar Jazayeri Vice President of Regulatory Operations December 2, 2011 ADVICE 2668-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Request by Southern California Edison Company for Approval to Grant Easement Pursuant to Resolution ALJ-186 as Extended and Modified by Resolutions ALJ-202, ALJ-244 and ALJ- 272 (Section 851 Pilot Program) PURPOSE Southern California Edison Company ( SCE ) respectfully requests an order from the California Public Utilities Commission ( Commission ) authorizing SCE to convey certain real property under Public Utilities Code Section 851 to the City of Menifee (the City ). The conveyance of the subject property (herein the ROW Property ) is being requested in order to allow the City to expand and/or construct certain street and highway improvements (including associated landscaping). The conveyance would be made pursuant to the form of Grant Deed attached hereto as Exhibit A ( Grant Deed ). The Grant Deed is required to be provided by SCE to satisfy a development condition placed on SCE in connection with its expansion of the SCE Menifee Service Center. The ROW Property consists of a portion of the perimeter of SCE s fee-owned parcels in Menifee, California on which SCE s Menifee Service Center and Valley Substation are located. The total area of the ROW Property is approximately 3.2 acres of land. Legal descriptions and depictions of the ROW Property are set forth in the proposed form of Grant Deed attached hereto. SCE believes that the grant to and use of the ROW Property by the City will not affect SCE s use and operation of its facilities on SCE s remaining property. Utility service will not be affected as a result of Commission approval of the conveyance contemplated in the Grant Deed. P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

3 ADVICE 2668-E (U 338-E) December 2, 2011 BACKGROUND SCE has obtained approvals to expand its Menifee Service Center facilities on its approximately 108 acre property located in Menifee, California ( Project Site ). One of the development conditions for SCE s project is that SCE grant to the City public street or highway rights-of-way to allow for the widening and/or construction of Menifee Road, Ethanac Road/SR-74, McKinley Road and Street A ; all such roads border SCE s property. If the Commission authorizes SCE to grant the ROW Property to the City, then the Grant Deed, in the form attached hereto, would be executed by SCE and recorded with the County of Riverside. The Grant Deed reserves for SCE a utility easement ( Easement ) which will permit SCE to construct, maintain, use, operate, alter, add to, repair, replace, reconstruct, enlarge and/or remove above- and below-ground electrical and other utilities. Accordingly, the conveyance of the ROW Property is not believed to unreasonably endanger or interfere with the construction, maintenance, use or operation of SCE s electrical transmission and distribution lines and other utility improvements necessary for SCE s utility purposes. SCE believes that the granting of the ROW Property to the City is in the best interests of SCE s customers and shareholders as doing so allows SCE to proceed with the expansion of its Menifee Service Center. INFORMATION AS REQUIRED PER RESOLUTION ALJ-244 Section IV of Appendix A to ALJ-244 requires that the following information be included in advice letters related to the Section 851 Pilot Program: (1) Identity and addresses of all parties to the proposed transaction: Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA City of Menifee Haun Road Menifee, CA (2) Complete description of the property including present location, condition and use: A legal description of the ROW Property is attached to the proposed form of Grant Deed attached hereto. The ROW Property consists of variable-

4 ADVICE 2668-E (U 338-E) December 2, 2011 width strips of land adjacent to existing and contemplated roadways that are to be expanded by the City. The ROW Property is generally unimproved, vacant land over which SCE s transmission lines cross and certain landscaping improvements exist. The conveyance of the ROW Property will have no effect on existing transmission lines due to the Easement reservation set forth in the Grant Deed. (3) Transferee s intended use of the property: Public street and highway expansion and/or construction, plus attendent landscaping improvements. (4) Complete description of financial terms of the proposed transaction: SCE is conveying the ROW Property without any monetary consideration. The grant of the ROW Property is being made to satisfy a condition placed on SCE s expansion of its service center facilities on SCE s land. (5) Description of how financial proceeds of the transaction will be distributed: Not applicable. (6) Statement on the impact of the transaction on ratebase and any effect on the ability of the utility to serve customers and the public: SCE believes that the transaction will have a minimal effect on ratebase. SCE believes that the granting of the ROW Property subject to the reservation of the Easement will have no effect on SCE s ability to serve its customers or the public and will have no effect on SCE s electric transmission or distribution facilities.

5 ADVICE 2668-E (U 338-E) December 2, 2011 (7) For sales of real property and depreciable assets, the original cost, present book value, and present fair market value, and a detailed description of how the fair market value was determined (e.g. appraisal): Not applicable; see item 9 below. (8) For leases of real property, the fair market rental value, a detailed description of how the fair market rental value was determined, and any additional information necessary to show compliance with Section II, A.6 of Appendix A of ALJ-244: Not applicable. (9) For easements or rights-of-way, the fair market value of the easement or right-ofway and a detailed description of how the fair market value was determined: An appraisal to properly value the ROW Property was completed by David Guder, a State Licensed Real Estate Appraiser, CA Lic. #AG The most appropriate method for valuing this type of property interest was employed - a variation of the Sales Comparison Approach. In this approach, the appraiser compared the subject property to similar use property near the subject property. The appraiser concluded a unit value for the land from the comparable sales, then applied a percentage of that unit value to represent the specific property rights that are reserved to SCE by virtue of the Easement. Generally, right-of-way dedications are not transferred in the marketplace and there is, therefore, no market for the value of such an interest. By taking an estimated percentage of the rights reserved to SCE in the Easement compared to the fee title value, the appraiser can correctly estimate the value of the remaining property rights conveyed. Here, the ROW Property value (net of the the reserved rights in the Easement) was determined to be $104,300. A copy of the appraisal is attached as Exhibit B.

6 ADVICE 2668-E (U 338-E) December 2, 2011 (10) A complete description of any recent past (within the prior two years) or antcipated future transactions that may appear to be related to the present transaction, such as sales or leases of real property that are located near the property at issue or that are being transferred to the same transferee; or for depreciable assets, sales of similar assets or sales to the same transferee: Not applicable as no related transactions are involved. (11) Sufficient information and documentation (including environmental documentation) to show that all of the eligibity criteria stated in Section II.A of Appendix A of ALJ-244 have been met: SCE believes that all applicable eligibility criteria stated in Section II.A of Appendix A of ALJ-244 are satisfied, as follows: 1. Satisfied. The County of Riverside (through its Transportation & Land Management Agency/Planning Department) (the County ) conducted the CEQA environmental review as Lead Agency. On or about August 17, 2006, the Planning Commission for the County of Riverside adopted a mitigated negative declaration (Environmental Assessment No ) and approved Revision No. 1 to Public Use Permit No. 496 in relation to SCE s expansion project (see Exhibit C attached hereto). 2. Satisfied. The transaction will not adversely affect any public interest or SCE s ability to provide services. See item 6 above. 3. Not applicable. There are no financial proceeds. 4. Satisfied. See item 11.7 below. 5. Not applicable. The transaction does not result in the sale of any buildings. 6. Not applicable. The transaction is neither a sale of depreciable assets nor a lease or lease equivalent. 7. Satisfied. The value of the ROW Property (net of the Easement reservation to SCE) is $104,300 (refer to item 9 above), which is less than $5 million. 8. Satisfied. The transaction will not materially impact the ratebase. See item 6 above. 9. Not applicable. The transaction does not result in any transfer or change in ownership of facilities.

7 ADVICE 2668-E (U 338-E) December 2, Satisfied. SCE believes that the transaction does not warrant a more comprehensive review due to its nature and the rights and interests involved. (12) The filing utility may submit additional information to assist in the review of the advice letter, including recent photographs, scaled maps, drawings, etc.: None. (13) Environmental information dependent upon whether: (a) the applicant believes that the transaction is exempt from review under CEQA, (b) the applicant believes that the transaction is not a project under CEQA, or (c) if another public agency, acting as the lead agency, has completed environmental review of the project and the applicant believes that the Commission is a responsible agency under CEQA. See Section IV, A.13 of Appendix A of ALJ-244 for applicable information. The County, acting as the Lead Agency, has completed environmental review of the project and SCE believes the Commission is a Responsible Agency under CEQA. 1. (a) The Lead Agency: The County of Riverside Transportation & Land Management Agency Planning Department 4080 Lemon Street, 9 th Floor Riverside, California (b) (c) (d) The County prepared a Mitigated Negative Declaration. The County approved the Mitigated Negative Declaration on or about August 17, The Notice of Determination was filed on or about August 17, SCE will provide a copy of all CEQA documents prepared by or for the County regarding this project to the Commission s Energy Division upon request. 3. The Mitigated Negative Declaration examines the environmental impacts, mitigation measures and findings related to this project. 4. No aspect of the project and its environmental setting has changed since the issuance of the Mitigated Negative Declaration.

8 ADVICE 2668-E (U 338-E) December 2, The expansion of the affected streets will not require approval by any additional public agencies. TIER DESIGNATION Pursuant to Resolution ALJ-244, this advice letter is subject to Commission disposition and is submitted with a Tier 3 designation. EFFECTIVE DATE SCE requests that this advice filing become effective by Commission resolution as soon as possible. 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 mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California jnj@cpuc.ca.gov and mas@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: Akbar Jazayeri Vice President of Regulatory Operations Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com

9 ADVICE 2668-E (U 338-E) December 2, 2011 Leslie E. Starck Senior Vice President c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415) Karyn.Gansecki@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 shall be submitted expeditiously. In accordance with Section 4 of General Order No. (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 Division of Ratepayer Advocates, the Commission CEQA Team (clu@cpuc.ca.gov; jnr@cpuc.ca.gov; jmu@cpuc.ca.gov), and the relevant departments of the City of Menifee. 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.

10 ADVICE 2668-E (U 338-E) December 2, 2011 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 For questions, please contact Claire Keane at (626) or by electronic mail at claire.keane@sce.com. Southern California Edison Company AJ:ck:jm Enclosures Akbar Jazayeri

11 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: James Yee 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) #: 2668-E Tier Designation: 3 Subject of AL: Request by Southern California Edison Company for Approval to Grant Easement Pursuant to Resolution ALJ-186 as Extended and Modified by Resolutions ALJ-202, ALJ-244 and ALJ- 272 (Section 851 Pilot Program) Keywords (choose from CPUC listing): Compliance AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Resolutions ALJ-186, ALJ-202, ALJ-244 and ALJ-272 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 1 : 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: Upon Commission Approval Estimated system annual revenue effect: (%): Estimated system average rate effect (%): No. of tariff sheets: -0- 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: Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed.

12 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 Ave., San Francisco, CA and Akbar Jazayeri Vice President of Regulatory Operations Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) Leslie E. Starck Senior Vice President c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

SUBJECT: Request by Southern California Edison Company for Approval to Grant Easements to Praxair, Inc., a Delaware Corporation.

SUBJECT: Request by Southern California Edison Company for Approval to Grant Easements to Praxair, Inc., a Delaware Corporation. STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3298 June 6, 2018 Advice Letter 3771-E Russell G. Worden Director, State Regulatory