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<SEC-DOCUMENT>/in/edgar/work/0000827052-00-000088/0000827052-00-000088.txt : 20001024
<SEC-HEADER>0000827052-00-000088.hdr.sgml : 20001024
ACCESSION NUMBER:		0000827052-00-000088
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20001020
ITEM INFORMATION:		
ITEM INFORMATION:		
FILED AS OF DATE:		20001023

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOUTHERN CALIFORNIA EDISON CO
		CENTRAL INDEX KEY:			0000092103
		STANDARD INDUSTRIAL CLASSIFICATION:	 [4911
]		IRS NUMBER:				951240335
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		8-K
			SEC ACT:		
			SEC FILE NUMBER:	002-26323
			FILM NUMBER:		743819
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		2244 WALNUT GROVE AVE
				STREET 2:		P O BOX 800
				CITY:			ROSEMEAD
				STATE:			CA
				ZIP:			91770
				BUSINESS PHONE:		6263021212
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		2244 WALNUT GROVE AVE
					CITY:			ROSEMEAD
					STATE:			CA
					ZIP:			91770
</MAIL-ADDRESS>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>0001.txt
<DESCRIPTION>SCE DISCLOSURE
<TEXT>


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K



                                 CURRENT REPORT



                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934




       Date of Report (Date of earliest event reported): October 17, 2000



                       SOUTHERN CALIFORNIA EDISON COMPANY
             (Exact name of registrant as specified in its charter)



            CALIFORNIA                    001-2313              95-1240335
(State of principal jurisdiction of   (Commission file       (I.R.S. employer
  incorporation of organization)           number)          identification no.)



                            2244 Walnut Grove Avenue
                                 (P.O. Box 800)
                           Rosemead, California 91770
          (Address of principal executive offices, including zip code)

                                  626-302-1212
              (Registrant's telephone number, including area code)


<PAGE>


Items 1 through 4, 6, 8 and 9 are not included because they are inapplicable.

Item 5.  Other Events

As previously disclosed in the registrant's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2000, and Current Report on Form 8-K dated September
25, 2000, Southern California Edison Company (SCE), the electric utility
subsidiary of Edison International, is experiencing adverse impacts from
unusually high prices for energy and ancillary services procured through the
California Power Exchange and the California Independent System Operator.
Because of the high prices, SCE has received insufficient revenues from
customers through currently frozen rates to cover all costs of providing service
during each month since May 2000. The amount by which the revenues are
insufficient to cover costs is recorded as a negative balance, or
undercollection, in a regulatory asset account called the transition revenue
account (TRA). The amount of undercollections recorded by SCE in its TRA was
$2.358 billion as of September 30, 2000. Current published prices for future
deliveries of wholesale electricity suggest that wholesale prices and other
costs of providing service to customers will continue to exceed SCE's authorized
rates for the foreseeable future, resulting in continued increases in the
undercollected TRA balance.

Past decisions of the California Public Utilities Commission (CPUC), as
discussed below, allow SCE to recover TRA undercollections only from any future
positive revenues attributable to the account through the end of the current
statutory rate freeze period. Under California's electric industry restructuring
statute (known as "AB 1890"), the statutory rate freeze period ends for SCE as
of the earlier of March 31, 2002, or the date when SCE has recovered all of its
generation-related assets and obligations (commonly referred to as "stranded
costs"). A regulatory balancing account called the transition cost balancing
account (TCBA) has been created to record these costs. Based on current
projections of future wholesale energy prices, SCE anticipates that it will be
unable to recover its TRA undercollections before the end of the statutory rate
freeze. Therefore, if the CPUC does not modify its past decisions and SCE is
unable to obtain other regulatory or judicial relief, SCE likely will not be
able to recover its TRA undercollections.

In October 1999, the CPUC adopted an order that interpreted and applied AB 1890
to prohibit SCE and other California electric utility companies from either
recovering TRA undercollections after the end of the statutory rate freeze or
offsetting those undercollections with overcollections of stranded costs in the
TCBA. Pacific Gas and Electric Company (PG&E) requested a rehearing of that
order, which the CPUC denied in March 2000. PG&E then sought judicial review of
those CPUC decisions, but on September 6, 2000, the California Court of Appeal
denied PG&E's petition. On September 18, 2000, PG&E filed a petition with the
California Supreme Court for review of the decision of the Court of Appeal. SCE
has filed an amicus curiae brief in support of PG&E's petition. The CPUC filed
an answer to PG&E's petition for review on October 10, 2000, in which counsel
for the CPUC argued, among other things, that the petition


                                       2
<PAGE>

should  be denied on  procedural  grounds  and  because  "the  Commission's
interpretation  of AB 1890 on the  issue  of  carrying  over  costs  is the only
possible interpretation of the statute."

On October 4, 2000, SCE filed with the CPUC an emergency petition for expedited
modification of the CPUC's October 1999 and March 2000 decisions. In the
emergency petition, SCE argued that (1) modification of the prior decisions is
justified by significant new facts, a material change in conditions, and a basic
misconception of law by the CPUC; (2) the prior decisions violate federal law by
preventing SCE from recovering costs incurred pursuant to tariffs and rate
schedules filed with the Federal Energy Regulatory Commission (FERC); and (3)
the prior decisions seriously misinterpreted AB 1890. Accordingly, SCE's
emergency petition requested that the CPUC modify its prior decisions to allow
electric utility companies to carry over costs, excluding stranded costs,
incurred during the statutory rate freeze period to the post-rate freeze period,
and to recover those costs over a reasonable period of time. The emergency
petition also asked for expedited consideration with a decision at the CPUC's
meeting on October 19, 2000. SCE filed with the CPUC on October 5, 2000 an ex
parte request for immediate suspension of the effectiveness of portions of the
October 1999 and March 2000 CPUC decisions. The assigned CPUC administrative law
judge issued rulings requesting SCE to provide specified financial information
by October 17, 2000, giving other parties until October 30, 2000 to file
comments on the requested information and file responses to SCE's emergency
petition, and giving parties until October 20, 2000 to respond to SCE's ex parte
suspension request. On October 12, 2000, SCE again requested that the CPUC
address SCE's ex parte suspension request at the CPUC's October 19 meeting. PG&E
has filed an emergency petition and a suspension request which parallel those
filed by SCE, and to which the same procedural schedule applies.

On October 17, 2000, the assigned commissioner and the administrative law judge
in the CPUC proceedings described above issued a joint ruling (1) stating that
they will consider the accounting mechanisms developed by the CPUC, including
the TRA and TCBA, (2) scheduling a prehearing conference on October 27, 2000,
and (3) directing SCE and PG&E to file statements by October 25 that propose
initial steps in modifying the accounting provisions to provide interim relief,
and a schedule that permits a decision on this matter by the end of the year. In
the joint ruling, the assigned commissioner and the administrative law judge
took "official notice" of the wholesale market prices for electric power, which
"reflect the fact that the wholesale market is not workably competitive," and
said: "We also note that these wholesale prices are being paid by the utilities,
and--but for the rate freeze--would be reflected in retail bills for customers
of Edison and PG&E . . . . Accelerating the end of the rate freeze under these
conditions would expose ratepayers to price volatility and rate increases. We
also recognize that preserving the shelter of the rate freeze for ratepayers may
impose costs on the utilities that may be appropriate for recovery over time."
They also stated that at the prehearing conference on October 27 they "will
develop a schedule for submitting testimony related to potential changes to the
TCBA, the TRA, and the interaction of these accounting mechanisms, including,
for example, such methods as applying generation revenues to offset operating
losses, or transferring the TRA undercollection to the TCBA. We believe
creative, equitable solutions can be developed." In a statement accompanying the
joint ruling, the President of the CPUC noted claims that recent


                                       3
<PAGE>

power purchase liabilities have undermined the financial integrity of
California's utilities, and stated that the magnitude of the claims imposes a
responsibility on regulators to evaluate the utilities' financial circumstances
on behalf of utility customers and the state. The CPUC President said that the
CPUC "will review the books, records and financial circumstances of the
utilities to determine what additional action is required to protect
California's consumers and to mitigate the effects of power purchase costs on
California's utilities." The CPUC President also stated that "it is crucial to
explore equitable solutions to this problem, including how the Commission should
revise the accounting procedures and cost recovery mechanisms related to the
Transition Cost Balancing Account and the Transition Revenue Account. These
approaches might include, for example, whether the generating revenues that have
been earned should be used to net out operating losses." At the CPUC's meeting
on October 19, 2000, two more members of the five-person CPUC voiced support for
the joint ruling. The full text of the joint ruling and the CPUC President's
statement are attached to this report as Exhibits 99.1 and 99.2.

On October 17, 2000, The Utility Reform Network (TURN), a customer advocacy
group, petitioned the CPUC to modify, apparently retroactively, a 1998 CPUC
decision in such a way as to require all TRA undercollections and
overcollections to be transferred to the TCBA on a monthly basis. SCE believes
that TURN's requested modifications likely would preclude SCE from recovering a
substantial portion of its stranded costs and ongoing power procurement costs.
SCE will oppose TURN's petition.

SCE cannot predict what actions the CPUC will finally take in the proceedings
described above or their financial impact on SCE.

SCE is continuing to work with the CPUC, the FERC, the California Electricity
Oversight Board, the California Power Exchange, and the California Independent
System Operator to fix the market problems that have resulted in the recent high
prices for wholesale energy and ancillary services. On October 16, 2000, SCE,
PG&E and TURN filed a joint petition for the FERC to (1) immediately find the
California wholesale electricity market to be not workably competitive and the
resulting prices to be unjust and unreasonable; (2) immediately impose a cap on
the price for energy and ancillary services; and (3) institute further expedited
proceedings regarding the market failure, mitigation of market power, structural
solutions, and responsibility for refunds. Equitable solutions to the current
market problems are essential to the long-term financial stability of SCE.


                                       4
<PAGE>

As of September 30, 2000, the book value of the stranded assets to be recovered
by the end of the rate freeze, less estimated credits from the market valuation
or pending sale of remaining generation assets, and the book value of the TRA
are as follows:

 In millions
- -------------------------------------------------------------------------------

 Unamortized nuclear investment - net                               $   783
 Unamortized loss on sale of plant                                       76
 Transition-related balancing accounts:
     Transition cost balancing account (TCBA)                          (159)
     Generation asset balancing account (GABA)                          510
     Coal and hydro balancing accounts                                 (807)
 Flow-through taxes                                                     132
 Other regulatory assets                                                 35
- -------------------------------------------------------------------------------

 Subtotal                                                               570
 Book value of remaining generation plant                               363
- -------------------------------------------------------------------------------

 Total stranded assets                                                  933
     Less projected credits:
     Excess of market value over book for hydro assets                 (500)
     Market value of generating plants based on
     pending sale prices                                             (1,083)
- -------------------------------------------------------------------------------

 Net amount of stranded assets (overcollection)                     $  (650)
- -------------------------------------------------------------------------------

 Transition revenue account (TRA) undercollection                   $  2,358

The amounts in the above table are based on SCE's application of the ratemaking
procedures previously approved by the CPUC for recording amounts in the TRA, the
TCBA and related accounts, but the balances reflected here have not been
approved by the CPUC. As discussed above, the CPUC may change the applicable
ratemaking and accounting procedures, and could propose to make changes
retroactively.

There are many factors that affect SCE's ability to recover its stranded costs
and its TRA undercollections. Based on the valuations of generating assets that
have been filed with the CPUC, SCE believes it is probable that the company will
be able to recover its stranded costs that are recorded in the TCBA. SCE also
believes it is probable that the company will be able to recover its costs that
are recorded as undercollections in the TRA. Recovery by SCE of its TRA
undercollections, however, depends on favorable regulatory actions as described
above, as well as other factors such as weather conditions, market prices of gas
and electricity, levels of sales, and economic conditions, about which there can
be no certainty. Under Statement of Financial Accounting Standards (FAS) No. 71,
"Accounting for the Effects of Certain Types of Regulation," the TRA
undercollections can be recorded as a regulatory asset on the balance sheet
rather than being charged to earnings if it is probable that these
undercollections will be recoverable through the ratemaking process. At any time
that all or a portion of the existing TRA undercollections are not deemed to be
probable of recovery, the undercollections or a portion thereof must be charged
against earnings. Thereafter, any further undercollections not probable of
recovery also would be charged to earnings, and any overcollections would be
recorded as earnings. Substantial earnings charges at SCE could adversely affect
SCE's ability


                                       5
<PAGE>

to declare and pay dividends. SCE is reviewing on an ongoing basis the
facts and circumstances relating to the TRA undercollections in light of FAS No.
71.

SCE's liquidity is being affected materially and adversely by the significant
extent to which costs have exceeded revenues in recent months and are continuing
to exceed current revenues, as well as by uncertainties about SCE's ability to
recover these past and future undercollections. On October 10, 2000, the CPUC
approved SCE's application to increase its authorized level of borrowing to
finance regulatory balancing accounts from $700 million to $2 billion. The
increase may be used only to finance the purchase of wholesale electric power
for delivery to retail customers, which is the source of most of the TRA
undercollections. SCE needs to arrange additional bank credit facilities to
finance current and expected balancing account undercollections and other
operating requirements. SCE has received commitments from a lender to provide
interim financing. Additionally, SCE has received commitments from a lender to
arrange permanent financing. The commitments are subject to documentation and
other conditions, however, and there can be no assurance that the permanent
financing actually will be obtained. The ability of SCE to meet its obligations
as they come due will depend in significant part upon the willingness of
regulatory bodies to allow SCE to recover in rates the costs discussed above.

On October 20, 2000, Edison International reported third quarter 2000 earnings
for itself, SCE and other subsidiaries. A copy of Edison International's press
release is attached as Exhibit 99.3.

In the preceding discussion and elsewhere in this report, the words "expects,"
"believes," "anticipates," "projections," "probable," and other similar
expressions are intended to identify forward-looking information that involves
risks and uncertainties. Actual results or outcomes could differ materially as a
result of such important factors as further actions by state and federal
regulatory bodies setting rates, adopting or modifying cost recovery, accounting
or rate setting mechanisms, and implementing the restructuring of the electric
utility industry including the sale or retention and ongoing operation of
remaining generation assets; the effects, unfavorable interpretations and
implementations of new or existing laws and regulations relating to
restructuring, taxes and other matters; the effects of increased competition in
the electric utility business and other energy-related businesses, including
direct customer access to retail energy suppliers and the unbundling of revenue
cycle services such as metering and billing; changes in prices of electricity
and fuel costs; changes in financial market conditions; the amount of revenue
available to recover both transition and non-transition costs; the ability to
sell or retain electric generation assets; the ultimate selling price of those
plants that are sold; new or increased environmental liabilities; the ability to
create and expand new businesses such as telecommunications; weather conditions;
and other unforeseen events, some of which are discussed above.


                                       6
<PAGE>

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

(a)  Not applicable

(b)  Not applicable

(c)  Exhibits

     99.1 Joint Assigned Commissioner's and Administrative Law Judge's Ruling
          Regarding Potential Review and Modification of Certain Accounting
          Procedures and Scheduling a Prehearing Conference.

     99.2 Statement of California Public Utilities Commission President Loretta
          Lynch

     99.3 Press Release of Edison International


                                       7
<PAGE>


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    SOUTHERN CALIFORNIA EDISON COMPANY
                                                (Registrant)



                                             KENNETH S. STEWART
                              -------------------------------------------------
                                             KENNETH S. STEWART
                              Assistant General Counsel and Assistant Secretary


October 20, 2000


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>0002.txt
<DESCRIPTION>JOINT RULING
<TEXT>



HMD/ANG/hkr  10/17/2000



        BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Pacific Gas and Electric Company for
authority to establish post-transition                 Application 99-01-016
period electric ratemaking mechanisms.                (Filed January 15, 1999)

- --------------------------------------------------------------------------

San Diego Gas & Electric Company
for authority to implement Post Rate                   Application 99-01-019
Freeze Ratemaking Mechanism.                          (Filed January 15, 1999)

- --------------------------------------------------------------------------

Southern California Edison Company (U 338-E)
to:  (1) Propose a Method to Determine and
Implement the End of Rate Freeze; and                  Application 99-01-034
(2) Propose Ratemaking Which Should Be in Place       (Filed January 15, 1999)
After the End of the Rate Freeze Periods.

- --------------------------------------------------------------------------

Application of SAN DIEGO GAS & ELECTRIC
COMPANY:  (1) informing the Commission of
the Probable Timing of the End of its
Electric Rate Freeze, (2) for Authorization
to Change Electric Rates Through Implementation
of Interim Ratemaking Mechanisms Concurrent with       Application 99-02-029
Termination of the Electric Rate Freeze,              (Filed February 19, 1999)
and (3) for Authorization to Change
Electric Rates by Adding New, and Revising
or Terminating Existing, Rate and Revenue
Mechanisms and Rate Designs.
(U 902-E)

- --------------------------------------------------------------------------

<PAGE>



                        JOINT ASSIGNED COMMISSIONER'S AND
                        ADMINISTRATIVE LAW JUDGE'S RULING
                   REGARDING POTENTIAL REVIEW AND MODIFICATION
                        OF CERTAIN ACCOUNTING PROCEDURES
                     AND SCHEDULING A PREHEARING CONFERENCE

         As parties are well aware, there has been a recent flurry of activity
in these proceedings. On October 4, 2000, Pacific Gas and Electric Company
(PG&E) and Southern California Edison Company (Edison) each filed and served an
Emergency Petition for Expedited Modification of Decision (D.) 99-10-057 and
D.00-03-058. On October 5, Edison filed an ex parte request for the immediate
suspension of the effective date of portions of D.99-10-057 and D.00-03-058. On
October 6, Edison and PG&E filed separate amendments to the emergency petitions
filed on October 4. Also on October 6, PG&E filed its support of Edison's
request for immediate suspension of the effective dates of the above-referenced
decisions.

         On October 12, Edison filed an "Ex Parte Request to Assigned
Commissioner for Modification of the October 11, 2000 Ruling of ALJ Minkin." In
this filing, Edison requests that the date on which responses are due to
Edison's October 5 ex parte request for the immediate suspension of the
effective date of portions of D.99-10-057 and D.00-03-058 be changed. Edison
also requests that the Commission address its October 5 ex parte request at its
October 19 meeting. Finally, on October 16, The Utility Reform Network filed a
response in opposition to the request to shorten the time parties would have to
respond to the utility's earlier ex parte request to suspend key provisions of
the above-referenced decisions.

         Due to higher-than-expected wholesale market prices for electricity,
Edison and PG&E began accruing large undercollections in their respective
Transition Revenue Accounts (TRA), beginning in June 2000. PG&E and Edison are
extremely concerned that Generally Accepted Accounting Principles will require
that this undercollection be written off against earnings. Now the utilities
insist that emergency action is required, pursuant to Rule 81, which allows the
Commission to address requests for relief based on extraordinary conditions in
which time is of the essence. Edison also states that time is of the essence
because quick action is required to avoid a write-off in its Third Quarter
Earnings Report. Edison asserts that "the Commission must take action which
will, at a minimum, send the right signal to the financial markets."

<PAGE>

         We take official notice of wholesale market prices for electric power
published by the California Power Exchange on its website (www.calpx.com), and
electric loads and real time prices for ancillary services and imbalance energy
published by the California Independent System Operator on its website
(www.caiso.com). The Commission has previously determined that these prices
reflect the fact that the wholesale market is not workably competitive (see,
e.g., D.00-08-021).

         We also note that these wholesale prices are being paid by the
utilities, and--but for the rate freeze--would be reflected in retail bills for
customers of Edison and PG&E pursuant to Schedule PX. Accelerating the end of
the rate freeze under these conditions would expose ratepayers to price
volatility and rate increases. We also recognize that preserving the shelter of
the rate freeze for ratepayers may impose costs on the utilities that may be
appropriate for recovery over time.

         It is crucial that the Commission develop a complete evidentiary record
to consider Edison's and PG&E's requests and the implications for ratepayers.
(Pub. Util. Code Sections 451 and 454.) We want to ensure that a record is
developed to allow the Commission to consider lawful approaches that balance the
interests and the equities under the extraordinary circumstances presented by
the current wholesale market conditions.

         The Commission has the authority to implement any necessary changes to
the electric restructuring accounting provisions and cost recovery consistent
with statutory requirements. Specifically, accounting provisions related to the
TRA and the Transition Cost Balancing Account (TCBA) have been developed by the
Commission to implement the cost recovery plans submitted in response to Pub.
Util. Code Section 368(a). The Commission has the authority to identify and
determine those costs eligible for transition cost recovery consistent with the
provisions of Section 367. Section 367(d), in particular, requires that
transition costs be adjusted throughout the period through March 31, 2002, to
track the accrual and recovery, including the manner and timing of recovery of
costs of service and costs of generation assets.

         By this ruling, we put parties on notice that we will consider these
accounting mechanisms, as provided for in several Commission decisions, in the
above-docketed proceedings. The TCBA was developed in Application (A.) 96-08-001
et al. in D.97-06-060 (Phase 1 Transition Cost Decision), D.97-11-074 (Phase 2
Transition Cost Decision), and D.97-12-039. These accounting procedures have
been further refined in recent decisions in the above-captioned dockets, such as
D.99-10-057 (Phase 1 PTR Decision) and D.00-03-058 (Decision Denying Rehearing
of D.99-10-057). Finally, we have further refined the workings of the TCBA in
A.98-09-003 et al. in D.00-02-048 (Annual Transition Cost Proceeding Decision)
and D.00-06-004 (Decision Establishing Generation Asset Balancing Account). The
TRA was specifically developed, at the utilities' request, in Rulemaking
94-04-031 in D.97-10-057 (Streamlining Decision). This ruling shall be served on
the service lists of all affected proceedings.

<PAGE>

         Finally, we schedule a prehearing conference (PHC) for October 27 at 9
a.m. At this time, we will develop a schedule for submitting testimony related
to potential changes to the TCBA, the TRA, and the interaction of these
accounting mechanisms, including, for example, such methods as applying
generation revenues to offset operating losses, or transferring the TRA
undercollection to the TCBA. We believe creative, equitable solutions can be
developed. We direct PG&E and Edison to file and serve PHC statements by October
25 that propose initial steps in modifying the accounting provisions to provide
interim relief, and a schedule that permits a decision on this matter by the end
of the year.

         Therefore, IT IS RULED that:

     1.  This  ruling  shall be  served on all  parties  to the  above-captioned
proceedings  and to  those  parties  to the  electric  restructuring  rulemaking
(R.94-04-031)  and  investigation  (I.94-04-032),  Application (A.) 96-08-001 et
al., and A.98-09-003 et al.

     2. A  prehearing  conference  (PHC)  shall be held on October 27, 2000 at 9
a.m. in the Commission's Courtroom,  State Office Building, 505 Van Ness Avenue,
San  Francisco,  California.

     3. Pacific Gas and Electric Company and Southern California Edison Company
shall file and serve PHC statements by October 25 that propose initial steps in
modifying the accounting provisions to provide interim relief, and a schedule
that permits a decision on this matter by the end of the year.

     Dated October 17, 2000, at San Francisco, California.


    /s/ HENRY M. DUQUE                  /s/ ANGELA K. MINKIN
- --------------------------     --------------------------------------
      Henry M. Duque                     Angela K. Minkin,
  Assigned Commissioner        Assist. Chief Administrative Law Judge


<PAGE>


A.99-01-016 et al.  HMD/ANG/hkr

                             CERTIFICATE OF SERVICE


     I certify that I have by mail this day served a true copy of the original
attached Joint Assigned Commissioner's and Administrative Law Judge's Ruling
Regarding Potential Review and Modification of Certain Accounting Procedures and
Scheduling a Prehearing Conference on all parties of record in these
proceedings, R.94-04-031/I.94-04-032, A.96-08-001 et al., and A.98-09-003 et
al., or their attorneys of record.

     Dated October 17, 2000, at San Francisco, California.

                                                      /s/ KE HUANG
                                        ---------------------------------------
                                                        Ke Huang

                                     NOTICE

     Parties should notify the Process Office, Public Utilities Commission, 505
     Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of
     address to insure that they continue to receive documents. You must
     indicate the proceeding number on the service list on which your name
     appears.

            * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

     The  Commission's policy is to schedule hearings (meetings, workshops,
     etc.) in locations that are accessible to people with disabilities. To
     verify that a particular location is accessible, call: Calendar Clerk
     (415) 703-1203.

     If   specialized accommodations for the disabled are needed, e.g., sign
     language interpreters, those making the arrangements must call the
     Public Advisor at (415) 703-2074 or TDD# (415) 703-2032 five working
     days in advance of the event.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>0003.txt
<DESCRIPTION>STATEMENT OF CPUC LORETTA LYNCH
<TEXT>


                           STATEMENT OF LORETTA LYNCH
                                    10/17/00



         On October 4, Southern California Edison Company and Pacific Gas and
Electric Company each filed and served an Emergency Petition for Expedited
Modification of D.99-10-057 and D.00-03-058 regarding cost recovery after the
end of the statutory electric rate freeze, in light of current conditions and
price levels in the wholesale markets. Edison and PG&E seek a suspension and
modification, respectively, of the Commission's current interpretation of Public
Utilities Code Sections 367(a) and 368(a). The Commission responded immediately
by issuing a ruling requesting additional financial information from the
companies. The information will allow the Commission to evaluate claims to
investors and the media that recent power purchase liabilities have undermined
the financial integrity of California's utilities. The magnitude of these claims
imposes a responsibility on regulators to evaluate the utilities' financial
circumstances on behalf of utility customers and the state.

         The utilities responded promptly. Now the Commission will review the
books, records and financial circumstances of the utilities to determine what
additional action is required to protect California's consumers and to mitigate
the effects of power purchase costs on California's utilities under today's
changed circumstances. However, while the financial information provided by the
utilities is an important start, it does not constitute a complete record. The
Commission cannot decide the issues raised by the utility claims until an
evidentiary record is developed that lets us analyze both the utilities'
financial considerations and the consequences for ratepayers. Today's energy
realities make clear that it is crucial to explore equitable solutions to this
problem, including how the Commission should revise the accounting procedures
and cost recovery mechanisms related to the Transition Cost Balancing Account
and the Transition Revenue Account. These approaches might include, for example,
whether the generating revenues that have been earned should be used to net out
operating losses. Commissioner Duque's Assigned Commissioner Ruling begins that
process today, which will be pursued diligently to a speedy conclusion.

         In addition to the substantial reopening actions taken today, in my
view the basic assumptions underlying AB 1890 are ripe for reconsideration. This
legislation, enacted by the previous administration, was based on assumptions
about how the California energy markets would work in a restructured
environment. Those assumptions have not proven accurate. We should evaluate the
reality of California's energy markets and act to coordinate energy policy based
on today's facts, not theories, to serve the over-all public interest of
California's businesses, families and the California economy.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>0004.txt
<DESCRIPTION>PRESS RELEASE OF EIX
<TEXT>


                                                           October 20, 2000

              Edison International Third Quarter Earnings of $1.11
             Reflect Impact of Midwest Acquisitions; Utility Unit's
                  Undercollected Power Purchase Costs Increase

       Edison International (EIX) reported earnings for the third quarter of
2000 of $1.11 per share. While not reflected in reported earnings, EIX and its
utility unit, Southern California Edison (SCE), announced at the same time that
during the quarter costs of purchasing power in California's dysfunctional
markets exceeded revenues by more than $1.25 billion, upping SCE's year-to-date
regulatory undercollections for purchased power to $2.358 billion. "The
dysfunctional California wholesale power market must be fixed. It is
increasingly costing Californians billions of dollars, and poses a large risk to
the health of the California economy and the company. We urge that the
responsible state and federal officials move rapidly to fix it." said John
Bryson, Chairman and Chief Executive Officer of Edison International.

       Year-to-date earnings for EIX increased to $1.81 per share from $1.52 per
share for the same period in 1999. Net income was $360 million for the quarter,
up $105 million from third quarter 1999. The increase in earnings is primarily
due to earnings contributions from investments made in 1998 and 1999, strong
operating performance at each of the major EIX subsidiaries, and the impact of
share repurchases.

       Bryson also emphasized, "This quarter's earnings for the first time
reflect the large summer contribution of EME's Illinois generating facilities,
acquired last December. The Illinois plants sell their output under contract to
Commonwealth Edison. Under the contracts, all of the annual earnings from these
plants occur in the summer months. This new element in EIX's income has sharply
increased the seasonality of the company's earnings."

                                                   Quarter Ended
                                                   September 30,
  Earnings Per Share                              2000      1999     Change
  ------------------
                                                ------------------------------
  Reported and Operating Basis
  Southern California Edison                        $0.53     $0.46     $0.07
  Edison Mission Energy                              0.59      0.25      0.34
  Edison Capital                                     0.11      0.10      0.01
                                                ------------------------------
                                                     1.23      0.81      0.42
  Edison Enterprises & parent co.                   (0.12)    (0.07)    (0.05)
                                                ------------------------------
  Edison International - consolidated               $1.11     $0.74     $0.37
                                                ==============================


                                    - more -


<PAGE>



       SCE contributed earnings of 53 cents per share, an increase of seven
cents from the same period last year, primarily due to higher kilowatt-hour
sales and the impact of share repurchases. SCE continues to experience negative
margins between the costs of buying and delivering power and the prices SCE can
charge customers under California's rate freeze. These negative margins are not
reflected in reported earnings because EIX and SCE believe the amounts
ultimately will be recovered through rates. SCE is seeking approval from the
California Public Utilities Commission to recover these costs, but there is a
risk that SCE will not obtain adequate relief and will be forced to write off
the uncollected balances. A report on Form 8-K to be filed by EIX with the
Securities and Exchange Commission, describing in detail the current
circumstances, is attached to this release.

       EME contributed earnings of 59 cents per share in the third quarter of
2000, up 34 cents per share from the same quarter last year. The increase at EME
was primarily attributable to earning contributions from Illinois acquisitions
in its Midwest Generation division and in the United Kingdom. The increase also
included an 11-cent contribution from the adjustment to the accrued expense in
connection with the termination of EME's phantom option plan. The increase in
earnings was partially offset by higher interest expense resulting from
increased corporate borrowings to finance acquisitions. The net income for EME
was $191 million for the third quarter versus $87 million for the same period
last year, up 121 percent.

       Earnings per share from Edison Capital were 11 cents per share for the
quarter, up one cent per share from the same period last year. Higher earnings
from infrastructure investments and the sale of interests in affordable housing
investments were the primary contributors to this increase. Edison Capital's net
income was $36 million for the quarter, up $1 million, or four percent, from the
same quarter last year.

       EIX's retail businesses, organized under Edison Enterprises, along with
the parent company were responsible for a 12-cent-per-share negative impact on
2000 third quarter earnings compared to a seven-cent-per-share negative impact
in 1999. The five-cent decrease in earnings is due to increased interest expense
at the parent which more than offset the improved earnings performance at Edison
Enterprises.

       Year-to-date, EIX earned $1.81 per share compared to $1.52 per share for
the same period last year. The increase was primarily due to contributions from
EME's Midwest Generation division, the absence of refueling outages at the San
Onofre Generating Station (SONGS), an 11 cent contribution from the adjustment
to the accrued expense in connection with the termination of EME's phantom
option plan, and the impact of share repurchases. The increase was partially
offset by anticipated higher operating costs and interest expense at EME, and
higher interest expense at the holding company.

                                           Year-to-date
                                          September 30,
Earnings Per Share                      2000          1999          Change
- ------------------                      ----------------------------------------
Reported and Operating Basis
Southern California Edison                  $1.32         $0.99           $0.33
Edison Mission Energy                        0.48          0.39            0.09
Edison Capital                               0.34          0.31            0.03
                                       -----------------------------------------
                                             2.14          1.69            0.45
Edison Enterprises & parent co.             (0.33)        (0.17)          (0.16)
                                       -----------------------------------------
Edison International - consolidated         $1.81         $1.52           $0.29
                                       =========================================

                                    - more -

<PAGE>

          For the twelve-month period ending September 30, 2000, EIX's earnings
per share were $2.08 compared to $1.98 for the same period last year. The
increase was primarily related to the absence of refueling outages at the SONGS.
The increase was partially offset by higher operating and interest expense at
EME, higher earnings contributions from the sale of investments in affordable
housing in the prior 12-month period as compared to the current 12-month period
at Edison Capital, and increased interest expense at the holding company.

                                           12 Months Ended
                                            September 30,
Earnings Per Share                     2000            1999          Change
- ------------------                     ----------------------------------------
Reported and Operating Basis
Southern California Edison                $1.72           $1.31          $0.41
Edison Mission Energy                      0.46            0.48          (0.02)
Edison Capital                             0.39            0.41          (0.02)
                                     ------------------------------------------
                                           2.57            2.20           0.37
Edison Enterprises & parent co.          (0.49)          (0.22)          (0.27)
                                     ------------------------------------------
Edison International - consolidated       $2.08           $1.98          $0.10
                                     ==========================================


                                               Quarter Ended
                                               September 30,
                                          2000             1999      Change
                                     -------------------------------------------
Reported Earnings ($000)
   Southern California Edison          $171,682        $160,106        $11,576
   Edison Mission Energy                191,282          86,605        104,677
   Edison Capital                        35,886          34,658          1,228
   Edison Enterprises & parent co.     (38,699)        (26,032)        (12,667)
                                     ------------------------------------------
Edison International - consolidated    $360,151        $255,337       $104,814
                                     =========================================

                                               Year-to-date
                                               September 30,
                                           2000             1999        Change
                                     ------------------------------------------
Reported Earnings ($000)
   Southern California Edison          $441,355        $342,838       $98,517
   Edison Mission Energy                160,287         136,176        24,111
   Edison Capital                       113,004         108,798         4,206
   Edison Enterprises & parent co.    (107,786)        (60,842)       (46,944)
                                     -----------------------------------------
Edison International - consolidated    $606,860        $526,970       $79,890
                                     =========================================

                                                    12 Months Ended
                                                      September 30,
                                          2000               1999         Change
                                     -------------------------------------------
Reported Earnings ($000)
   Southern California Edison          $582,049        $458,249       $123,800
   Edison Mission Energy                154,388         167,244        (12,856)
   Edison Capital                       133,572         143,419         (9,847)
   Edison Enterprises & parent co.    (167,089)        (79,390)        (87,699)
                                     ------------------------------------------
Edison International - consolidated    $702,920        $689,522        $13,398
                                     ==========================================



</TEXT>
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