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PUBLIC UTILITIES COMMISSION August 16, 2017 Advice Letter 5042-E Erik Jacobson Director, Regulatory Relations Pacific Gas An

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PUBLIC UTILITIES COMMISSION August 16, 2017 Advice Letter 5042-E Erik Jacobson Director, Regulatory Relations Pacific Gas An STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3298 August 16, 2017 Advice Letter 5042-E Erik Jacobson Director, Regulatory Relations Pacific Gas and Electric Company 77 Beale Street, Mail Code B10C P.O. Box 770000 San Francisco, CA 94177 SUBJECT: Encroachment Agreement with Sacramento Regional Transit District Request for Approval Under Section 851 and General Order 173 Dear Mr. Jacobson: Advice Letter 5042-E is effective as of August 10, 2017, per Resolution E-4856 Ordering Paragraph. Sincerely, Edward Randolph Director, Energy Division Erik Jacobson Pacific Gas and Electric Company Director 77 Beale St., Mail Code B10C Regulatory Relations P.O. Box 770000 San Francisco, CA 94177 Fax: 415-973-1448 March 30, 2017 Advice 5042-E (Pacific Gas and Electric Company ID U 39 E) Public Utilities Commission of the State of California Subject: Encroachment Agreement with Sacramento Regional Transit District – Request for Approval Under Section 851 and General Order 173 Purpose Pacific Gas and Electric Company (PG&E) requests approval under Public Utilities Code Section 851 (Section 851) and General Order 173 to grant an encroachment agreement (Agreement) to the Sacramento Regional Transit District, a Public Corporation (RT). The Agreement permits the encroachment of a light rail system and passenger station platform (Improvements) within PG&E’s Easement Area (PG&E Easement). A copy of the Agreement is attached hereto as Attachment 1. PG&E has inspected the encroachment agreement and has determined that granting the encroachment will not interfere with PG&E’s operations or its ability to provide utility services to its customers. In addition, PG&E believes that granting this encroachment will not be adverse to the public interest. 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 an Easement for electric transmission facilities located in the City of Sacramento (APN 117-0140-044 - previously 117-0140- 040 & 006). RT is the legal owner of a certain easement for public transit purposes, as set forth in the Easement Grant Deed recorded in Book 20120404 of Official Records at page 0188, Sacramento County Records, (RT Easement) legally described in Exhibit A of Attachment 1. The RT Easement occupies a portion of the PG&E Easement and is Advice 5042-E - 2 - March 30, 2017 subject to the PG&E Easement (Area of Common Use) and is legally described in Exhibit B of Attachment 1. A portion of the Improvements encroach within the Area of Common Use, but do not interfere with the present full use of the Area of Common Use by PG&E. PG&E is therefore willing to agree to allow such encroachments within the Area of Common Use on the terms and subject to the conditions set forth in the Agreement. RT’s Improvements were constructed as part of the South Sacramento Corridor Light Rail Phase 2 Project (LRT Project) and is located within one of the fastest growing areas of Sacramento County. The LRT Project is intended to fulfill the need for additional peak-period transportation capacity and to help the region meet its air quality goals as part of the SACOG Air Quality Conformity Model. PG&E and RT have been negotiating an encroachment agreement since 2010, which was finalized and signed by RT in September 2015. During negotiations, PG&E communicated to RT that construction of the light rail system and passenger station platform could not begin until a maintenance agreement was in place to address maintenance and operations of PG&E’s facilities. As part of the negotiations it was decided to incorporate the maintenance agreement into the encroachment agreement resulting in the Encroachment Agreement attached as Attachment 1. Construction of the light rail system has since been completed and is in operation with the public. Though RT constructed the Improvements against the direction of PG&E, PG&E has inspected the area and determined that the Improvements, pursuant to the plans and specifications approved by PG&E as shown in the Agreement (Attachment 1), do not interfere with the present full use of the Area of Common Use by PG&E. Among the terms and conditions of the Agreement, PG&E reserves the right to use the Encroachment Area at any time and for any purposes it deems necessary or appropriate when in the interest of its service to its patrons or consumers or the public. Id., Section 9. Further, the Agreement prohibits RT from altering, adding or improving any additional buildings or structures on the Area of Common Use that encroaches upon or over the Easement Area. RT shall be responsible for keeping the Improvements in good condition and repair. Id., Sections 5, 8. For the above reasons, PG&E respectfully requests the Commission approve this Section 851 request to grant RT the encroachment of the Improvements over this Area of Common Use, and find that doing so is not adverse to the public interest1 because it will not impair PG&E’s provision of safe and reliable utility service to customers. 1 “The Commission has long recognized that the public interest is served when utility property is used for other productive purposes without inferring with the utility’s operations or the provision of utility services to the public.” (D.06-07-023, p. 1.) Advice 5042-E - 3 - March 30, 2017 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: Pacific Gas and Electric Sacramento Regional Transit Sacramento Regional Transit Company District District Darren P. Roach Darryl J. Abansado Bruce Behrens Law Department P.O. Box 2110 Chief Counsel P.O. Box 7442 Sacramento, CA 95812-2110 Telephone: (916) 321-2973 San Francisco, CA 94120 Telephone: (916) 321-3876 Facsimile: (916) 444-2156 Telephone: (415) 973-6345 Facsimile: (916) 454-6016 Email: [email protected] Facsimile: (415) 973-5520 Email: [email protected] Email: [email protected] (b) Complete Description of the Property Including Present Location, Condition and Use: The PG&E Easement is located in the City of Sacramento, State of California, more specifically the Legal Description and Drawing of the encroachment area is attached hereto in Exhibits A, B, C, and D of the Attachment 1. It is identified as Assessor’s Parcel Numbers APN 117-0140-044 - previously 117-0140-040 & 006. The real property is owned by Los Rios Community College District with PG&E owner of that certain easement and right-of-way for electric transmission facilities as set forth in the Grant of Easement dated March 2, 1967 (see Attachment 2). (c) Intended Use of the Property: RT has constructed a light rail system and passenger station platform, which includes: a removable shelter, tracks, drainage structures, overhead contact system wires, poles and hardware, signal system including grade crossing gates and warning devices; fencing, concrete station platform, passenger amenities such as ramps, display cases, signage, benches, light poles, overhead message signs, and other improvements associated therewith, a portion of which are within the Area of Common Use (d) Complete Description of Financial Terms of the Proposed Transaction: PG&E is not collecting any use fees associated with granting the Agreement. The light rail system and passenger station platform within the Easement does not rise to the level of a right that has any realizable economic value to PG&E. Advice 5042-E - 4 - March 30, 2017 (e) Description of How Financial Proceeds of the Transaction Will Be Distributed: Not Applicable. (f) Statement on the Impact of the Transaction on Ratebase and Any Effect on the Ability of the Utility to Serve Customers and the Public: The transaction will not impact PG&E’s provision of safe and reliable utility service to customers. (g) The Original Cost, Present Book Value, and Present Fair Market Value for Sales of Real Property and Depreciable Assets, and a Detailed Description of How the Fair Market Value Was Determined (e.g., Appraisal): Not Applicable. (h) The Fair Market Rental Value for Leases of Real Property, and a Detailed Description of How the Fair Market Rental Value Was Determined: Not Applicable. (i) The Fair Market Value of the Easement or Right-of-Way, and a Detailed Description of How the Fair Market Value Was Determined: Not Applicable (j) A Complete Description of any Recent Past (Within the Prior Two Years) or Anticipated Future Transactions that May Appear To Be Related to the Present Transaction: There are no recent, past or anticipated future transactions that appear related to the present transaction. (k) Sufficient Information and Documentation (Including Environmental Information) to Show that All of Eligibility Criteria Set Forth in Rule 3 of General Order 173 are Satisfied: PG&E has provided information in this Advice Letter to satisfy the eligibility criteria under General Order 173 in that: The activity proposed in the transaction does not require environmental review by the CPUC as a Lead Agency; Advice 5042-E - 5 - March 30, 2017 The transaction will not have an adverse effect on the public interest or on the ability of PG&E to provide safe and reliable service to its customers; The transaction will not impact the rate base of PG&E; and The transaction does not warrant a more comprehensive review that would be provided through a formal Section 851 application.
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