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STATE OF CALIFORNIA GAVIN NEWSOM, Governor PUBLIC UTILITIES COMMISSION 505 Van Ness Avenue San Francisco CA 94102-3298 Pacific Gas & Electric Company ELC (Corp ID 39) Status of Advice Letter 4330G/5991E As of April 15, 2021 Subject: Amendment to a Reciprocal Agreement for Merced Regional Service Center Request for Approval Under Section 851 and General Order 173 Division Assigned: Energy Date Filed: 12-02-2020 Date to Calendar: 12-04-2020 Authorizing Documents: None Disposition: Accepted Effective Date: 04-15-2021 Resolution Required: No Resolution Number: None Commission Meeting Date: None CPUC Contact Information: [email protected] AL Certificate Contact Information: Annie Ho (415) 973-8794 [email protected] STATE OF CALIFORNIA GAVIN NEWSOM, Governor PUBLIC UTILITIES COMMISSION 505 Van Ness Avenue San Francisco CA 94102-3298 To: Energy Company Filing Advice Letter From: Energy Division PAL Coordinator Subject: Your Advice Letter Filing The Energy Division of the California Public Utilities Commission has processed your recent Advice Letter (AL) filing and is returning an AL status certificate for your records. The AL status certificate indicates: Advice Letter Number Name of Filer CPUC Corporate ID number of Filer Subject of Filing Date Filed Disposition of Filing (Accepted, Rejected, Withdrawn, etc.) Effective Date of Filing Other Miscellaneous Information (e.g., Resolution, if applicable, etc.) The Energy Division has made no changes to your copy of the Advice Letter Filing; please review your Advice Letter Filing with the information contained in the AL status certificate, and update your Advice Letter and tariff records accordingly. All inquiries to the California Public Utilities Commission on the status of your Advice Letter Filing will be answered by Energy Division staff based on the information contained in the Energy Division's PAL database from which the AL status certificate is generated. If you have any questions on this matter please contact the: Energy Division's Tariff Unit by e-mail to [email protected] Erik Jacobson Pacific Gas and Electric Company Director 77 Beale St., Mail Code B13U Regulatory Relations P.O. Box 770000 San Francisco, CA 94177 Fax: 415-973-3582 December 2, 2020 Advice 4330-G/5991-E (Pacific Gas and Electric Company ID U 39 M) Public Utilities Commission of the State of California Subject: Amendment to a Reciprocal Agreement for Merced Regional Service Center – Request for Approval Under Section 851 and General Order 173 Purpose Pacific Gas and Electric Company (PG&E or the Company) requests Public Utilities Commission (Commission) approval under Public Utilities Code Section 851 and General Order 173 of an amendment to a reciprocal use agreement between PG&E and Lyons Investments, Lyons Cattle (Lyons) which will allow Lyons the ability to legally drain its retention overflow into a shared drainage pipeline which will be located on PG&E property. PG&E has determined that an amendment to the reciprocal easement agreement (Attachment 1) does not interfere with PG&E’s operations or PG&E’s ability to provide safe and reliable utility service to its customers. In addition, this reciprocal easement will not be adverse to the public interest. The Amendment to Reciprocal Easement Agreement has not yet been executed, as it is conditioned on Commission approval under Section 851. Furthermore, Section G of the Amendment to Reciprocal Easement Agreement references a temporary license agreement for the construction company to enter the property and install pipeline pursuant to the Amendment to Reciprocal Easement Agreement. The dates for this license have not been entered into Section G, as the start date for that construction is dependent on the Commission approval date for this advice letter. Background PG&E owns land, buildings, and other facilities in connection with the provision of electric and natural gas services to its customers throughout Northern and Central California. In the provision of these services, PG&E relies on a portfolio of fee properties, rights-of-way, and facilities to support its electric and gas activities. Relevant to this advice letter, PG&E owns the “Merced Regional Service Center” (APN 061-033-027) and “Wilson Substation” (APN 061-033-021) parcels. PG&E purchased the Merced Regional Service Center parcel in 2017 and commenced construction of the Advice 4330-G/5991-E - 2 - December 2, 2020 Merced Regional Service Center in 2018. The Wilson Substation property has been owned by PG&E since the early 1900s and contains an active substation, but the substation does not fully encompass the entire site/parcel. PG&E purchased the Merced Regional Service Center site from the Lyons family in 2017 in order to construct the Merced Regional Service Center. At the time of the purchase, the parties negotiated a “Reciprocal Easement Agreement” (Attachment 2) between the new PG&E property and the Lyons property. The Lyons still own the parcel to the north of the PG&E Merced Regional Service Center. As part of the City of Merced Project/Site Approvals of the PG&E Merced Regional Service Center, the PG&E property requires a retention/drainage system tied to the Merced Irrigation District (MID) irrigation system. The Lyons’ property directly to the north of PG&E’s Merced Regional Service Center is required to tie into this drainage system as well. Both the Lyons and PG&E have the obligation to install retention basins (rainstorm retention) on their respective properties. Overflow from these retention basins would drain into the drainage pipeline that is the subject of this advice letter, which would then drain into the existing MID system. The drainage pipeline is a shared line that is 24 inches in diameter and 870 linear feet in length. This amendment to the existing reciprocal use agreement will allow for the extension of the existing drainage pipeline benefitting both PG&E’s Merced Regional Service Center parcel and the adjacent Lyon’s parcel (APN 061-033-024) and connection to the existing MID infrastructure along Childs Avenue (see exhibit in Attachment 3). PG&E has reviewed the terms and conditions of this reciprocal easement and has determined that the easement is in the public interest. This is because adequate drainage is a requirement for final approval by the City of Merced of the Merced Regional Service Center project and the amendment to the easement satisfies the operational compliance requirements for the Merced Regional Service Center without sacrifice to PG&E’s provision of safe and reliable utility service to its customers. For all the above reasons, the Commission should approve this Section 851 request to grant the reciprocal easement. In accordance with General Order 173, Rule 4, PG&E provides the following information related to the proposed transaction: (a) Identity and Addresses of All Parties to the Proposed Transaction: Advice 4330-G/5991-E - 3 - December 2, 2020 Pacific Gas and Electric Company Lyons Investments, Lyons Cattle Steven Frank Lyons Land and Cattle, Inc. Law Department 10555 Maze Boulevard P.O. Box 7442 Modesto, CA 95358 San Francisco, CA 94120 Attn: William J. Lyons, Jr., Secretary Telephone: (415) 973-6976 Telephone: (209) 522-1762 Facsimile: (415) 973-5520 Email: [email protected] Email: [email protected] (b) Complete Description of the Property Including Present Location, Condition and Use: The property currently is used by PG&E as Merced Regional Service Center (APN 061-003-027) and Wilson Substation (APN 061-033-021). The parcels are partially improved land. The portion being discussed is currently unimproved and encumbered by irrigation easements. The Wilson Substation parcel (APN: 061-033-021) is legally described as follows: The land referred to herein below is situated in the City of Merced, County of Merced, State of California and is described as follows: Beginning at a point in the westerly boundary line of Caumyrna Drive in the southwest quarter of Section 26, Township 7 south, Range 14 east, Mount Diablo Base and Meridian, in the City of Merced, County of Merced, State of California, according to the official plat thereof, said point of beginning being distant on a course south 89’ 32’ west, 20.0 feet from a point, which said last mentioned point is distant south 0’ 34’ west 973.0 feet from the northeast corner of said southwest quarter of said section 26; thence from said point of beginning running south 0’ 34’ west, a distance of 1649.0 feet along said westerly boundary line of Caumyrna Drive to a point in the northerly boundary line of Childs Avenue; thence from said last mentioned point running south 89’ 32' west, a distance of 700.0 feet along said northerly boundary line of Childs Avenue, to a point; thence running north 0’ 34’east, a distance of 1649.0 feet to a point; thence from said last mentioned point running north 89’ 32’ east, a distance of 700.0 feet to the point or place of beginning. (c) Intended Use of the Property: CPUC approval of the amendment to the reciprocal easement agreement (Attachment 1) will allow PG&E and Lyons to complete the storm drain system required for the newly constructed PG&E Merced Regional Service Center and Lyons property, connecting to the MID infrastructure as mandated. Lyons needs the ability to legally drain their retention overflow into the shared drainage line. Advice 4330-G/5991-E - 4 - December 2, 2020 (d) Complete Description of Financial Terms of the Proposed Transaction: Not applicable. (e) Description of How Financial Proceeds of the Transaction Will Be Distributed: Not applicable. (f) Statement on the Impact of the Transaction on Rate Base and Any Effect on the Ability of the Utility to Serve Customers and the Public: There is no impact to PG&E’s rate base nor will granting the amendment to the reciprocal easement affect PG&E’s ability to provide reliable service to its customers.