Background - California

?ALJ/BRC/gp2PROPOSED DECISIONAgenda ID #18455RatesettingDecision __________BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIAApplication of San Diego Gas & Electric Company (U902E) for Approval Pursuant to Public Utilities Code Section 851 to Transfer Portions of a 138-kV Power Line Easement to DMB San Juan Investment North, LLC.Application 19-10-011DECISION APPROVING TRANSFER OF ASSET AND RELOCATION OF 138-KV POWER LINESummaryThis decision grants, pursuant to Section 851 of the California Public Utilities (Pub. Util.) Code, San Diego Gas & Electric Company’s request to quitclaim an existing easement in its service territory just east of San Juan Capistrano, CA for a 138-kV power line in return for a new easement and a relocation of the 138-kV power line. The purpose underlying the proposed easement relocation is to support a transportation project in south Orange County. This decision finds that the proposed transaction is in the public interest, will be ratepayer cost neutral, and will not disrupt service to SDG&E electric customers. Further, this decision finds that the existing Final Environmental Impact Report certified by the County of Orange is the appropriate environmental document for California Environmental Quality Act purposes and the Commission is in the role of responsible agency. This decision grants the relief requested. The proceeding is closed. BackgroundOn October?16,?2019, San?Diego Gas?& Electric Company (SDG&E) filed the instant application requesting approval pursuant to Pub.?Util. Code §?851 to transfer portions of a 138kV power line easement, located immediately east of San Juan Capistrano, California, to DMB San?Juan Investment North, LLC (developer or buyer). SDG&E asserts that the developer will be financially responsible for constructing a new power line in the new easement, in turn ensuring there is no negative impact on service quality nor bill impact for the customers of SDG&E. SDG&E clarified in a letter to the assigned Commissioner dated February 3, 2020 and filed in this docket on February 5, 2020, that SDG&E will be responsible for the construction of the new power line in the new easement. SDG&E further indicated that the County of Orange is the California Environmental Quality Act (CEQA) Lead Agency with a programmatic environmental impact report conducted for the Ranch Plan which included the proposed relocation of the 138-kV.There were no protests nor responses filed in this proceeding. A prehearing conference (PHC) was held on January?9,?2020 in San?Francisco,?California. Issues Before the CommissionThe issues to be determined are:Does the Application comport with CEQA?What are the cost and rate implications of the Application? Would approval of the Application be in the public interest? Should the Application be approved as submitted?Description of the ProjectSDG&E’s existing 138-kV electric power line easement was established in 1993 (existing easement) and is 100 feet wide. A portion of the existing easement (approximately 13.377 acres) is comprised of the property interest SDG&E proposes to quitclaim (property). The new easement that the buyer proposes to dedicate to SDG&E is comprised of 11.121 acres of land, is 100?feet wide, and will be utilized for the operation and maintenance of a relocated 138-kV power line, Tie Line 13831. The parties made and entered into the easement agreements subject to the Commission’s approval pursuant to Section 851 of the California Public Utilities Code. SDG&E’s Application provides an overview of the proposed construction. The Proposed Construction would remove existing facilities, which consist of 14 poles (2 steel, 12 wood) and associated conductors, hardware, and access facilities within an existing 100-foot-wide easement and replace them with 10 galvanized engineered pier foundation steel poles and associated conductors and hardware. Existing poles have an average height of 81 feet and new poles would have an average height of 92 feet, an increase of approximately 14 percent. Prior to installation, reinforced concrete foundations would be constructed for each new steel pole. Access roads will be approximately 14 feet wide and suitable for heavy utility vehicles to allow routine maintenance. Construction of these roadways would be conducted in accordance with guidelines for new construction of access roads as provided by SDG&E. Temporary storage and stringing sites would be located within the RMV planned community development area identified in FEIR 589 or as being disturbed, developed, or bare ground. The staging yard site will be temporary and fenced during the construction period.Does the Application Comport with the CEQA? The Rancho Mission Viejo Development project, referred to as The Ranch Plan (project), a large development project in Orange County, constitutes a project under CEQA.? The relocation of the SDG&E 138 kV transmission line and transfer of ownership of the easement is a subcomponent of this?greater project.??Under?CEQA, the lead agency is either the public agency that carries out the project or has the greatest responsibility?for supervising or approving the project.??The County of Orange is the lead agency under CEQA?for the purpose of identifying environmental impacts from the project.? The subject of this application, the relocation of the 138 kV transmission line and transfer of ownership of the easement makes the CPUC a responsible agency under CEQA.? A basic purpose of CEQA is to inform governmental decision makers and the public about potential significant environmental effects.?In an effort to comply with CEQA requirements, the County of Orange has submitted a number of environmental documents.? These include, Program Environmental Impact Report 589 (State Clearinghouse Number 200302114, certified October 8, 2004); and Addendum 3.1 for FEIR 584 and 589?(approved November 18, 2008).??(Addendum 3.1- Addendum for Planning Areas 3 and 4 Master?Area Plans, Subarea Plans and Associated Infrastructure).??FEIR?584 was the CEQA portion of the Joint Programmatic EIR/EIS?prepared for the Southern Subregion Natural Community Conservation Plan/Master Streambed Alteration Agreement/Habitat Conservation?Plan.? Addendum 3.1 found the findings of the two EIRs to be consistent with each other.? The relocation of the transmission line was identified, studied, and established mitigation measures in FEIR 589?and Addendum 3.1.? Furthermore, the County of Orange issued a CEQA Memorandum, “Relocation of the San Diego Gas?& Electric 138-kV Line”, dated March 27, 2017.? This was followed by an Addendum to the CEQA Memorandum, dated November?17, 2017.?As a responsible agency, the Commission must consider the environmental effects identified in the environmental documents relating to the portion of the project that is before the Commission for approval.?The Commission has the authority to mitigate or avoid only the direct and indirect environmental effects of those?parts?of the project which it is called on to carry out or approve.? The Commission must adopt any mitigation measures within?the Commission’s jurisdiction that avoid or mitigate the part of the project that the Commission?approves, unless the changes or alterations are infeasible for specific, economic, legal, social, technical?and other benefits.? The Commission must file a Notice of Determination (NOD) with the State Clearinghouse certifying that the Commission has considered the environmental?document.?The environmental documents submitted with the application, FEIR 589 and Addendum 3.1 to FEIR 584 and FEIR 589, considered numerous categories of possible impacts.? These included: land use and related planning? programs; agriculture resources; population and housing; geology and soils; water resources; transportation and circulation; air quality; noise; biological resources; aesthetics and visual resources; cultural and paleontological resources; recreation; mineral resources; hazards; public services and facilities; growth inducing impacts; and cumulative impacts.??An extensive set of mitigation measures and a mitigation monitoring program was developed to lessen these impacts caused by the project with the goal of keeping all impacts below the level of significance.? When an impact?was found to exceed the accepted level of significance a mitigation measure was designed to reduce the impact below the level of significance.??FEIR 589 and Addendum 3.1 indicated that there were certain impacts that could not be kept below the level of significance even with the implementation of mitigation measures and therefore were considered significant. However, the relocation of the transmission line, which is the subject of this application,?was found not to cause any significant impacts with the implementation of mitigation measures.? The CEQA Memorandum clarified the impacts of the relocation?of the transmission line addressed in the two FEIRs and Addendum 3.1 and determined that no future CEQA evaluation and documentation was necessary.??The Addendum to the CEQA Memorandum addressed additional minor modifications to the transmission relocation but again indicated there were?no significant impacts caused by the relocation.?The Commission reviewed and considered the environmental documents that related to the proposed relocation of the transmission line.?? Based on our independent judgement, we find FEIR 589 and Addendum 3.1, along with the mitigation measures and monitoring program adopted for the project adequate for our decision making purposes.? The Commission’s Energy Division will file an NOD with the State?Clearinghouse stating the Commission considered the environmental documents related to the proposed relocation of the transmission line.?Further, the Applicant asserted that “[r]eliance on these previous environmental documents as the basis for an exemption from G.O. 131-D, Section III.B, Permit to Construct requirements is appropriate because the relocation of the subject 138-kV power line was addressed as part of previously certified and approved CEQA documents prepared by the County of Orange.” We agree. What Are the Cost and Rate Implications of the Application?The property is adjacent and within a portion of the Planning Area 3 and the Rancho Mission Viejo Habitat Reserve of the master planned community of Rancho Mission Viejo. The original cost of the property was $8,036.09 and the net book value of the property in July 2019 is $5,590.25. SDG&E obtained an appraisal, by the independent appraisal service Kagey Real Estate, for the property with a valuation of $5,864,850 on August 27, 2019. The Buyer has agreed to compensate SDG&E $1,995,571 for the difference in values between the property and the new easement.SDG&E proposes that “[t]he accounting treatment for financial proceeds from the sale of the Property, if any, will be distributed in accordance with the Commission’s adopted Gain on Sale allocation process.”The costs of the construction of the relocated 138-kV line will be assumed by the developer and will not be borne by ratepayers.Would approval of the Application be in the Public Interest?The purpose underlying the proposed easement relocation is to support a transportation project in south Orange County. SDG&E contends that this is an important transportation project. Specifically, relocation will facilitate implementation of infrastructure improvements for Cow Camp Road, a regional arterial highway providing connections to State Highway 74, Los Patrones Parkway, and Antonio Parkway. Further, SDG&E contends that approval of this application will not cause interruption of service to its customers. No party contested the public interest of the approval of the Application. Should the Application be Approved as Submitted?SDG&E contends that the Application as submitted is in the public interest, is compliant with the California Public Utilities Code and CEQA, will be ratepayer neutral, and will not disrupt service to SDG&E’s customers. Given the weight of the evidence, the Application should be approved as submitted. Waiver of Comment PeriodThis is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to § 311(g)(2) and Rule 14.6(c)(2), the otherwise applicable 30-day period for public review and comment is waived.Assignment of ProceedingLiane Randolph is the assigned Commissioner and Brian Stevens is the assigned Administrative Law Judge in this proceeding.Findings of FactSDG&E currently has an easement, established in 1993, for a 138-kV power line immediately east of San Juan Capistrano, CA that is 100 feet wide. SDG&E entered into an agreement with DMB San Juan Investment North, LLC to transfer a portion of its easement, approximately 13.377 acres, in return for a new easement of 11.121 acres and a payment of $1,995,571.An independent appraisal service, Keagy Real Estate, provided the appraisal behind the determination of the values of the two easements at issue in the proposed transaction. The County of Orange, California is the Lead Agency for the proposed project under CEQA.The Commission is a Responsible Agency for the proposed project under CEQA.The County of Orange, California conducted programmatic FEIR 589 and Addendum 3.1 for the project.The environmental findings of the FEIR 589 and Addendum 3.1 indicate that the portion of this project the Commission has jurisdiction over, the proposed relocation of the 138-kV line, will have all impacts reduced to a less than significant level after adoption of mitigation measures.There will be no cost to SDG&E’s ratepayers by way of the execution of the proposed transaction.There will be no disruption of service to SDG&E’s ratepayers by way of the execution of the proposed transaction. Relocation of the power line will facilitate implementation of infrastructure improvements for Cow Camp Road, a regional arterial highway providing connections to State Highway 74, Los Patrones Parkway, and Antonio Parkway.Conclusions of LawThe transaction proposed in the Application comports with the California Public Utilities Code. The transaction proposed in the Application is in the public interest.The FEIR prepared and approved by the County of Orange, California was prepared pursuant to CEQA and is adequate for the Commission's decision-making purposes as a Responsible Agency under CEQAThe Commission has reviewed the FEIR 589 and Addendum 3.1 and it represents our independent judgment in our decision-making process.FEIR 589 and Addendum 3.1 were completed in compliance?with CEQA.Reliance on previous environmental documents as the basis for an exemption from G.O. 131-D, Section III.B, Permit to Construct requirements is appropriate because the relocation of the subject 138-kV power line was addressed as part of previously certified and approved CEQA documents prepared by the County of OrangeThe Application should be approved.The proceeding should be closed. ORDERIT IS ORDERED that:Application 19-10-011 is approved. Pursuant to Section 851 of the California Public Utilities Code, San Diego Gas & Electric Company’s proposed quitclaim of property rights described in Exhibit G of the Application is approved. San Diego Gas & Electric Company is granted authority to construct the proposed Tie Line 13831 project, as described in this Application and supporting documents. There shall be no ratepayer cost impact nor disruption of electric service as a result of the approval of this Application. For purposes of the approval specified in this application, we adopt the Final Environmental Impact Report and Addendum prepared and certified by County of Orange, California.Application 19-10-011 is closed. This order is effective today.Dated , at San Francisco, California. ................
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