California PUC Issues Final Resolution for San Diego Gas & Electric

SAN FRANCISCO, California, May 23 (TNSsro) -- The California Public Utilities Commission issued the following final resolution (No. E-5208):

San Diego Gas & Electric Company Request for Easement to Aviara, LP, pursuant to Advice Letter 3974-E.

PROPOSED OUTCOME:

* This Resolution approves San Diego Gas & Electric Company's (SDG&E) Advice Letter (AL) 3974-E with an effective date of today. SDG&E proposes to grant an Easement to Aviara, LP, a Delaware Limited Partnership (The Developer).

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. SDG&E will receive a $21,000 payment from The Developer for this transaction.

By Advice Letter 3974-E, filed on March 25, 2022.

SUMMARY

This Resolution approves SDG&E's AL 3974-E, with an effective date of today. On March 25, 2022, SDG&E filed Advice Letter 3974-E requesting approval under GO 173 and Public Utilities Code Section 851 to enter into an Easement in an existing SDG&E overhead transmission easement (Property) with The Developer within the City of Carlsbad in the County of San Diego. The Easement will allow The Developer to complete a housing development project (Project) known as the Aviara Apartments, including affordable housing units. In addition, SDG&E will receive a fee of $21,000 from The Developer. SDG&E has reviewed The Developer's plans and has determined that the Project will neither impede SDG&E's ability to access, maintain, repair, and replace its facilities within the SDG&E Right-of-Way; nor will they interfere with SDG&E's safe and reliable operations within the Easement Area.

BACKGROUND

SDG&E filed Advice Letter 3974-E on March 25, 2022, requesting approval to grant an Easement to The Developer. Aviara, LP, is seeking the Easement with SDG&E on an existing overhead transmission easement in order to allow The Developer to complete a housing development project (Project) known as the Aviara Apartments, including affordable housing units. The Developer intends to develop the proposed Project site with 329 residential units, and associated parking, landscaping, and recreational amenities. In order to complete the proposed Project, the developer is requesting to encroach upon the existing SDG&E transmission easement with a driveway, a small retaining wall, paved parking improvements, sidewalk improvements, irrigated landscaping, an underground storm drain, and an underground fire main. The total area of proposed improvements within The Easement is approximately 3,665 square feet.

The parties have negotiated the agreement for the Easement. An appraisal of the fair market value of the Easement was completed by Anderson & Brabant, Inc. a licensed and certified appraisal firm by the Appraisal Institute using industry approved standards. The Easement's appraised fair market value is $21,000; this fee will be paid to SDG&E by The Developer. SDG&E asserts in the Advice Letter that the proceeds will be treated as per their FERC accounting for Transmission assets.

The City of Carlsbad prepared an Environmental Impact Report (EIR) for the project (EIR#2018-0001) pursuant to CEQA Guidelines and a Notice of Determination was filed with the County Clerk for San Diego County on November 20, 2020. The City certified the Final EIR in Resolution 7398 on December 16, 2020.

NOTICE

Notice of AL 3974-E was made by publication in the Commission's Daily Calendar. SDG&E states that AL 3974-E was filed in accordance with the noticing requirements of both General Order 173 and General Order 96-B.

PROTESTS

There were no protests to SDG&E Advice Letter 3974-E.

DISCUSSION

The Commission has reviewed SDG&E AL 3974-E and the attached materials relating to the CEQA process as prepared by the City of Carlsbad. The Commission has determined that the documents comply with the requirements of the California Environmental Quality Act. The Commission finds that SDG&E's AL 3974-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 3974-E is not adverse to the public interest and should be granted.

Public Utilities Code Section 854.2 defines "change of control" events and statutory requirements that are triggered when a "change of control" event occurs. Section 854.2(b)(1)(A) defines "change of control" as an "event that triggers the application of Section 851 or 854." SDG&E requests approval in this Advice Letter under Section 851 and General Order 173 which would typically trigger the "change of control provisions" of Section 854.2. Section 853(b) states "[t]he commission may...exempt any public utility...from this article if it finds that the application thereof with respect to the public utility...is not necessary in the public interest." Accordingly, the Commission exempts this application from the change of control requirements contained in Section 854.2.

COMMENTS

This 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.

FINDINGS

1. On March 25, 2022, SDG&E filed Advice Letter 3974-E to enter into an Easement with Aviara, LP, pursuant to General Order 173 and Public Utilities Code Section 851.

2. The Developer requires an Easement Agreement with SDG&E to allow the City to allow Aviara, LP, to complete a housing development project (Project) known as the Aviara Apartments, including affordable housing units.

3. The Easement's appraised fair market value is $21,000. The Developer will be paying SDG&E $21,000 at the closing of the transaction.

4. SDG&E states that it has reviewed the Project and has determined that it will not interfere with SDG&E's operations or SDG&E's ability to provide safe and reliable utility services to its customers. Approval of this transaction will not impair SDG&E's provision of utility service.

5. There are no specific safety concerns with this transaction.

6. The City of Carlsbad prepared an Environmental Impact Report (EIR) for the project (EIR2018-0001) pursuant to CEQA Guidelines.

7. The City certified the Final EIR and a Notice of Determination was filed with the County Clerk for San Diego County on November 20, 2020.

8. The Commission has reviewed SDG&E AL 3974-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.

9. Pursuant to Section 853(b) of the Public Utilities Code the Commission exempts these Advice Letters from the change of control requirements contained in Section 854.2.

10.SDG&E Advice Letter 3974-E complies with the streamlined procedures adopted by the Commission in General Order 173.

11.The Commission finds that the relief requested in AL 3974-E is not adverse to the public interest and should be granted.

THEREFORE IT IS ORDERED THAT:

1. The request of San Diego Gas & Electric Company in AL 3974-E for approval to enter into an Easement Agreement with Aviara, LP, 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 May 19, 2022; the following Commissioners voting favorably thereon:

Rachel Peterson, Executive Director

ALICE REYNOLDS, President

CLIFFORD RECHTSCHAFFEN

GENEVIEVE SHIROMA

DARCIE HOUCK

JOHN R.D. REYNOLDS

Commissioner