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?PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION RESOLUTION E-5090 January 14, 2021RESOLUTION Resolution E-5090. Southern California Edison Company Request to Grant an Easement to City of Fontana pursuant to Advice Letter 4196-E.PROPOSED OUTCOME: This Resolution approves Southern California Edison Company’s (SCE) Advice Letter (AL) 4196-E with an effective date of today. SCE proposes to grant an Easement to the City of Fontana (City). SAFETY CONSIDERATIONS: There are no specific safety concerns with this transaction.ESTIMATED COST: A request for authority to enter into transactions pursuant to General Order (GO) 173 requires the filing of cost information. SCE will receive a $140,000 payment from the City for this transaction.By Advice Letter 4196-E, filed on April 22, 2020. __________________________________________________________SummaryThis Resolution approves SCE’s AL 4196-E, with an effective date of today. On April 22, 2020, SCE filed Advice Letter 4196-E requesting approval under GO 173 and Public Utilities Code Section 851 to enter into an easement on SCE fee property with the City of Fontana. The Easement for road and utility purposes will allow the City to issue permits for a housing development project. SCE has reviewed the City’s plans and has determined that the project will neither impede SCE’s ability to access, maintain, repair, and replace its facilities within SCE property; nor will they interfere with SCE’s safe and reliable operations.BackgroundSCE filed Advice Letter 4196-E on April 22, 2020, requesting approval to grant an easement to the City of Fontana. The City is seeking the Easement on fee property with SCE in order to allow the City to issue permits for a housing development for Lennar Homes of California (Lennar). Lennar intends to build a 180-acre development of 856 residential dwellings, parkland, an elementary school, and an 8-acre mixed-use activity center. The City has conditioned Lennar’s development of its project with the acquisition of the Easement, which will be used to expand the existing Sierra Avenue. The Easement has a land area of 26,876 feet.Portions of SCE’s Mira-Loma #3 500kV line and the Falcon Ridge-Alder 66kV are located on the property. The property consists of two contiguous land parcels that total 14.48 acres and is shaped like a rectangle. It is used as a utility right-of-way and is improved with SCE’s facilities. The property borders Sierra Avenue to the west. SCE states that operations at the property are compatible with the construction and use of the expanded Sierra Avenue, which will not affect any existing facilities. The City of Fontana prepared an Environmental Impact Report (EIR) for the project (SCH#2004121079) pursuant to CEQA Guidelines. The City certified the Final EIR and a Notice of Determination was filed with the County Clerk for San Bernardino County on March 23, 2006. An appraisal of the fair market value of the Easement was completed by Mason & Mason, Inc. with an effective date of April 15, 2019. The appraisal used a sales comparison approach to establish the fair market value of the Easement. The appraisal was reviewed by SCE’s Real Properties evaluation group, which appraised the Easement value higher than the initial appraiser. Lennar agreed to pay the higher value calculated by the SCE Real Properties group. SCE will receive a $140,000 payment from Lennar for this transaction. The City will pay all special assessments or fees levied against its improvements located on the easement, if any. Pursuant to D.99-09-070 (affirmed in Resolution E-3639), this easement is considered passive operating revenue: according to the adopted Gross Revenue Sharing Mechanism for certain Other Operating Revenue for non-tariffed products and services, the gross revenue of the easement paid by Lennar is therefore allocated 70 percent to shareholders and 30 percent to ratepayers.Notice Notice of AL 4196-E was made by publication in the Commission’s Daily Calendar. SCE states that AL 4196-E was filed in accordance with the noticing requirements of both General Order 173 and General Order 96-B. ProtestsThere were no protests to SCE Advice Letter 4196-E. DiscussionThe Commission has reviewed SCE AL 4196-E and the attached materials relating to the CEQA process as prepared by the City of Fontana. The Commission has determined that the documents comply with the requirements of the California Environmental Quality Act. The Commission finds that SCE’s AL 4196-E request for approval was made in accordance with the streamlined procedure adopted by the Commission in General Order 173 and Public Utilities Code Section 851. The Commission finds that the relief requested in AL 4196-E is not adverse to the public interest and should be mentsThis is an uncontested matter in which the resolution grants the relief requested. Accordingly, pursuant to PU Code 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived. FindingsOn April 22, 2020, SCE filed Advice Letter 4196-E to enter into an Easement with the City of Fontana under General Order 173 and Public Utilities Code Section 851.The City requires an Easement agreement with SCE to allow the City to permit road and utility improvements related to a housing development project.SCE states that it has reviewed the project and has determined that it will not interfere with SCE’s operations or SCE’s ability to provide safe and reliable utility services to its customers. Approval of this transaction will not impair SCE’s provision of utility service. There are no specific safety concerns with this transaction. SCE will receive $140,000 in payment from Lennar for this transaction.The proceeds from this easement are considered passive Other Operating Revenue: the gross revenue is therefore allocated 70 percent to shareholders and 30 percent to ratepayers according to Commission precedent.The City of Fontana prepared an Environmental Impact Report (EIR) for the project (SCH#2004121079) pursuant to CEQA Guidelines. The City certified the Final EIR and a Notice of Determination was filed with the County Clerk for San Bernardino County on March 23, 2006.The Commission has reviewed SCE AL 4196-E and the associated documentation filed with the AL and has determined that the documents comply with the requirements of the California Environmental Quality Act. SCE Advice Letter 4196-E complies with the streamlined procedures adopted by the Commission in General Order 173.The Commission finds that the relief requested in AL 4196-E is not adverse to the public interest and should be granted.Therefore it is ordered that:The request of Southern California Edison Company in AL 4196-E for approval to enter into an Easement agreement with the City of Fontana is approved. This Resolution is effective today.I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held January 14, 2021; the following Commissioners voting favorably thereon: /s/_Rachel Peterson________RACHEL PETERSONExecutive DirectorMARYBEL BATJER PresidentMARTHA GUZMAN ACEVES CLIFFORD RECHTSCHAFFENGENEVIEVE SHIROMA Commissioners ................
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