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<SEC-DOCUMENT>0000827052-06-000031.txt : 20060307
<SEC-HEADER>0000827052-06-000031.hdr.sgml : 20060307
<ACCEPTANCE-DATETIME>20060307115408
ACCESSION NUMBER:		0000827052-06-000031
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		11
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060307
DATE AS OF CHANGE:		20060307

FILER:

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

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-02313
		FILM NUMBER:		06669209

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

	MAIL ADDRESS:	
		STREET 1:		2244 WALNUT GROVE AVE
		CITY:			ROSEMEAD
		STATE:			CA
		ZIP:			91770
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<DESCRIPTION>SCE 2005 10K
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<PRE>
==============================================================================================
                                        UNITED STATES
                              SECURITIES AND EXCHANGE COMMISSION
                                    Washington, D.C. 20549

                                          FORM 10-K

(Mark One)

[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2005

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to ______________________________________

                                Commission File Number 1-2313

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

             California                                                  95-1240335
   (State or other jurisdiction of                                    (I.R.S. Employer
   incorporation or organization)                                    Identification No.)

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

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

                 Securities registered pursuant to Section 12(b) of the Act:

                                                                    Name of each exchange
         Title of each class                                         on which registered
            Capital Stock
        Cumulative Preferred                                              American
        4.08% Series  4.32% Series
        4.24% Series  4.78% Series


               Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known  seasoned issuer,  as defined in Rule
405 of the Securities Act.  Yes |X|    No |_|

Indicate by check mark if the  registrant is not required to file reports  pursuant to Section
13 or Section 15(d) of the Exchange Act.  Yes |_|    No |X|


Page


Indicate by check mark whether the registrant  (1) has filed all reports  required to be filed
by Section 13 or 15(d) of the  Securities  Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the  registrant  was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.  Yes |X|    No |_|

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405 of Regulation
S-K is not  contained  herein,  and  will  not be  contained,  to  the  best  of  registrant's
knowledge,  in definitive  proxy or information  statements  incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K.  |X|

Indicate by check mark whether the  registrant is a large  accelerated  filer,  an accelerated
filer  or  a  non-accelerated   filer.  See  definition  of  "accelerated  filer"  and  "large
accelerated filer" in Rule 12b-12 of the Exchange Act. (Check One):

   Large   Accelerated   Filer  |_|   Accelerated   Filer   |_|   Non-accelerated filer   |X|

Indicate by check mark  whether the  registrant  is a shell  company (as defined in Rule 12b-2
of the Exchange Act).  Yes |_|    No |X|

As of June 30, 2005, there were 434,888,104 shares of Common Stock  outstanding,  all of which
are  held  by  the  registrant's  parent  holding  company.  The  aggregate  market  value  of
registrant's  voting and  non-voting  common  equity held by  non-affiliates  was zero.  As of
March 3, 2006, there were 434,888,104 shares of Common Stock outstanding.


                             DOCUMENTS INCORPORATED BY REFERENCE

Portions of the following  documents  listed below have been  incorporated  by reference  into
the parts of this report so indicated.

(1) Designated portions of the registrant's Annual Report to Shareholders
    for the year ended December 31, 2005....................................Parts I and II
(2) Designated portions of the Proxy Statement relating
    to registrant's 2006 Annual Meeting of Shareholders.....................Part III

==============================================================================================



Page

                                      TABLE OF CONTENTS

Item                                                                                   Page
- ----------------------------------------------------------------------------------------------

Forward-Looking Statements................................................................ 1

                                            Part I

1.  Business.............................................................................. 1
        Regulation........................................................................ 2
        Competition....................................................................... 3
        Properties........................................................................ 3
        Nuclear Power Matters............................................................. 5
        Purchased Power and Fuel Supply................................................... 5
        Discontinued Operations........................................................... 6
        Seasonality....................................................................... 6
        Environmental Matters............................................................. 6
        Finding Information About Geographic Area ........................................12
1A. Risk Factors..........................................................................12
1B. Unresolved Staff Comments.............................................................15
2.  Properties............................................................................15
3.  Legal Proceedings.....................................................................16
        Navajo Nation Litigation..........................................................16
        Department of the Army, Los Angeles District, Corps of Engineers/Notice of
        Violation of Clean Water Act......................................................16
4.  Submission of Matters to a Vote of Security Holders...................................16
Executive Officers of the Registrant......................................................17

                                           Part II

5.  Market for Registrant's Common Equity, Related Stockholder Matters and Issuer
    Purchases of Equity Securities........................................................19
6.  Selected Financial Data...............................................................19
7.  Management's Discussion and Analysis of Financial Condition and Results of Operations.19
7A. Quantitative and Qualitative Disclosures About Market Risk............................20
8.  Financial Statements and Supplementary Data...........................................20
9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure..20
9A. Controls and Procedures...............................................................20
9B. Other Information.....................................................................20

                                           Part III

10. Directors and Executive Officers of the Registrant....................................20
11. Executive Compensation................................................................21
12. Security Ownership of Certain Beneficial Owners and Management........................21
13. Certain Relationships and Related Transactions........................................21
14. Principal Accounting Fees and Services................................................21
15. Exhibits and Financial Statement Schedules............................................21
        Financial Statements..............................................................21
        Report of Independent Registered Public Accounting Firm and
           Schedules Supplementing Financial Statements...................................22
        Exhibits..........................................................................22
    Signatures............................................................................27



Page




                                  FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect
Southern California Edison Company's (SCE) current expectations and projections about future
events based on SCE's knowledge of present facts and circumstances and assumptions about
future events and include any statement that does not directly relate to a historical or
current fact. Other information distributed by SCE that is incorporated in this report, or
that refers to or incorporates this report, may also contain forward-looking statements. In
this report and elsewhere, the words "expects," "believes," "anticipates," "estimates,"
"projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," and
variations of such words and similar expressions, or discussions of strategy or of plans,
are intended to identify forward-looking statements. Such statements necessarily involve
risks and uncertainties that could cause actual results to differ materially from those
anticipated. See "Risk Factors" in Part I, Item 1A of this report and "Introduction" in the
MD&amp;amp;amp;A for cautionary statements that accompany those forward-looking statements and identify
important factors that could cause results to differ. Readers should carefully review those
cautionary statements as they identify important factors that could cause results to differ,
or that otherwise could impact SCE or its subsidiaries.

Additional information about risks and uncertainties, including more detail about the
factors described in this report, is contained throughout this report, in the Management's
Discussion and Analysis of Financial Condition and Results of Operations (MD&amp;A) that appears
in SCE's 2005 Annual Report to Shareholders (Annual Report), the relevant portions of which
are filed as Exhibit 13 to this report, and which is incorporated by reference into Part II,
Item 7 of this report, and in Notes to Consolidated Financial Statements (Notes to Financial
Statements). Readers are urged to read this entire report, including the information
incorporated by reference, and carefully consider the risks, uncertainties and other factors
that affect SCE's business. Forward-looking statements speak only as of the date they are
made and SCE is not obligated to publicly update or revise forward-looking statements.
Readers should review future reports filed by SCE with the Securities and Exchange
Commission (SEC).


                                            PART I

ITEM 1.  BUSINESS

SCE was incorporated in 1909 under the laws of the State of California. SCE is a public
utility primarily engaged in the business of supplying electric energy to a
50,000-square-mile area of central, coastal and southern California, excluding the City of
Los Angeles and certain other cities. This SCE service territory includes approximately 428
cities and communities and a population of more than 13 million people. In 2005, SCE's total
operating revenue was derived as follows:  39% commercial customers, 33% residential
customers, 9% resale sales, 7% industrial customers, 5% other electric revenue, 5% public
authorities, and 2% agricultural and other customers. At December 31, 2005, SCE had
consolidated assets of $24.7 billion and total shareholder's equity of $5.7 billion. SCE had
14,041 full-time employees at year-end 2005.  Edison International owns all of the common
stock of SCE. Except when otherwise stated, references to SCE mean SCE together with its
subsidiaries on a consolidated basis.

Information about SCE is available on the internet website maintained by Edison
International at http://www.edisoninvestor.com. SCE makes available, free of charge on that
internet website, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as soon as reasonably
practicable after SCE electronically files such material with, or furnishes it to, the SEC.
Such reports are also available on the SEC's internet website at http://www.sec.gov. The


Page 1

information contained in our website, or connected to that site, is not incorporated by
reference into this report.

Regulation

SCE's retail operations are subject to regulation by the California Public Utilities
Commission (CPUC). The CPUC has the authority to regulate, among other things, retail rates,
issuance of securities, and accounting practices. SCE's wholesale operations are subject to
regulation by the Federal Energy Regulatory Commission (FERC). The FERC has the authority to
regulate wholesale rates as well as other matters, including retail transmission service
pricing, accounting practices, and licensing of hydroelectric projects.

Additional information about the regulation of SCE by the CPUC and the FERC, and about SCE's
competitive environment, appears in the MD&amp;A under the heading "Regulatory Matters." Also
see "--Competition."

SCE is subject to the jurisdiction of the United States Nuclear Regulatory Commission with
respect to its nuclear power plants. United States Nuclear Regulatory Commission regulations
govern the granting of licenses for the construction and operation of nuclear power plants
and subject those power plants to continuing review and regulation.

The construction, planning, and siting of SCE's power plants within California are subject
to the jurisdiction of the California Energy Commission and the CPUC. SCE is subject to the
rules and regulations of the California Air Resources Board, State of Nevada, and local air
pollution control districts with respect to the emission of pollutants into the atmosphere;
the regulatory requirements of the California State Water Resources Control Board and
regional boards with respect to the discharge of pollutants into waters of the state; and
the requirements of the California Department of Toxic Substances Control with respect to
handling and disposal of hazardous materials and wastes. SCE is also subject to regulation
by the United States Environmental Protection Agency (US EPA), which administers federal
statutes relating to environmental matters. Other federal, state, and local laws and
regulations relating to environmental protection, land use, and water rights also affect SCE.

The California Coastal Commission issued a coastal permit for the construction of the San
Onofre Nuclear Generating Station (San Onofre) Units 2 and 3 in 1974. This permit, as
amended, requires mitigation for impacts to fish and the San Onofre kelp bed. California
Coastal Commission jurisdiction will continue for several years due to ongoing
implementation and oversight of these permit mitigation conditions, consisting of
restoration of wetlands and construction of an artificial reef for kelp. SCE has a coastal
permit from the California Coastal Commission to construct a temporary dry cask spent fuel
storage installation for San Onofre Units 2 and 3. The California Coastal Commission also
has continuing jurisdiction over coastal permits issued for the decommissioning of San
Onofre Unit 1, including for the construction of a temporary dry cask spent fuel storage
installation for spent fuel from that unit.

The United States Department of Energy has regulatory authority over certain aspects of
SCE's operations and business relating to energy conservation, power plant fuel use and
disposal, electric sales for export, public utility regulatory policy, and natural gas
pricing.

SCE is subject to CPUC affiliate transaction rules and compliance plans governing the
relationship between SCE and its affiliates. On October 27, 2005, the CPUC issued an order
instituting rulemaking (OIR) to allow the CPUC to re-examine the relationships of the major
California energy utilities with their parent holding companies and non-regulated
affiliates. The OIR was issued in part in response to the repeal of PUHCA 1935. Additional
information about the OIR appears in the MD&amp;A under the heading


Page 2

"Regulatory Matters--Current Regulatory Developments--Holding Company Order Instituting
Rulemaking."

In addition, the CPUC has issued affiliate transaction rules governing the relationships
between SCE and its affiliates, including Edison International and its nonutility
subsidiaries. SCE has filed compliance plans which set forth SCE's implementation of the
CPUC's affiliate transaction rules. The rules and compliance plans are intended to maintain
separateness between utility and nonutility activities and ensure that utility assets are
not used to subsidize the activities of nonutility affiliates.

Competition

Because SCE is an electric utility company operating within a defined service territory
pursuant to authority from the CPUC, SCE faces competition only to the extent that federal
and California laws permit other entities to provide electricity and related services to
customers within SCE's service territory. California law currently provides only limited
opportunities for customers to choose to purchase power directly from an energy service
provider other than SCE. SCE also faces some competition from cities that create municipal
utilities or community choice aggregators. In addition, customers may install their own
on-site power generation facilities. Competition with SCE is conducted mainly on the basis
of price as customers seek the lowest cost power available. The effect of competition on SCE
generally is to reduce the size of SCE's customer base, thereby creating upward pressure on
SCE's rate structure to cover fixed costs, which in turn may cause more customers to leave
SCE in order to obtain lower rates.

Properties

SCE supplies electricity to its customers through extensive transmission and distribution
networks. Its transmission facilities, which deliver power from generating sources to the
distribution network, consist of approximately 7,200 circuit miles of 33 kilovolt (kV),
55 kV, 66 kV, 115 kV, and 161 kV lines and 3,500 circuit miles of 220 kV lines (all located
in California), 1,238 circuit miles of 500 kV lines (1040 miles in California, 86 miles in
Nevada, and 112 miles in Arizona), and 851 substations. SCE's distribution system, which
takes power from substations to the customer, includes approximately 60,300 circuit miles of
overhead lines, 37,900 circuit miles of underground lines, 1.5 million poles, 569
distribution substations, 695,000 transformers, and 777,000 area and streetlights, all of
which are located in California.

SCE owns and operates the following generating facilities:  (1) an undivided 75.05% interest
(1,614 megawatts (MW)) in San Onofre Units 2 and 3, which are large pressurized water
nuclear units located on the California coastline between Los Angeles and San Diego; (2) 36
hydroelectric plants (1,153 MW) located in California's Sierra Nevada, San Bernardino and
San Gabriel mountain ranges, three of which (2.7 MW) are no longer operational and will be
decommissioned; and (3) a diesel-fueled generating plant (9 MW) located on Santa Catalina
island off the southern California coast.

SCE also owns and operates an undivided 56% interest (885 MW net) in the Mohave Generating
Station (Mohave), which consists of two coal-fueled generating units located in Clark
County, Nevada near the California border. The plant ceased operating on December 31, 2005.
At this time, there is no definite return to service date. Additional information regarding
Mohave appears in the MD&amp;A under the heading "Regulatory Matters--Mohave Generating Station
and Related Proceedings."

In addition, SCE acquired in 2004 Mountainview Power Company LLC, which consisted of a
natural gas-fueled two unit power plant in the early stages of construction in Redlands,
California. The first unit commenced commercial operations in December 2005, and the second
unit commenced commercial operations in January 2006. The Mountainview plant has a
generating capacity of 1,054 MW.


Page 3


SCE also owns an undivided 15.8% interest (601 MW) in Palo Verde Nuclear Generating Station
(Palo Verde), which is located near Phoenix, Arizona, and an undivided 48% interest (710 MW)
in Units 4 and 5 at Four Corners Generating Station (Four Corners), which is a coal-fueled
generating plant located near the City of Farmington, New Mexico. The Palo Verde and Four
Corners plants are operated by Arizona Public Service Company.

At year-end 2005, the SCE-owned generating capacity (summer effective rating) was divided
approximately as follows:  43% nuclear, 23% hydroelectric, 20% natural gas, 14% coal, and
less than 1% diesel. The capacity factors in 2005 for SCE's nuclear and coal-fired
generating units were:  98% for San Onofre; 76% for Mohave; 85% for Four Corners; and 77%
for Palo Verde. For SCE's hydroelectric plants, generating capacity is dependent on the
amount of available water. SCE's hydroelectric plants operated at a 49% capacity factor in
2005. These plants were operationally available for 91% of the year.

The San Onofre units, Four Corners station, certain of SCE's substations, and portions of
its transmission, distribution and communication systems are located on lands of the United
States or others under (with minor exceptions) licenses, permits, easements or leases, or on
public streets or highways pursuant to franchises. Certain of such documents obligate SCE,
under specified circumstances and at its expense, to relocate transmission, distribution,
and communication facilities located on lands owned or controlled by federal, state, or
local governments.

Thirty-one of SCE's 36 hydroelectric plants (some with related reservoirs) are located in
whole or in part on United States lands pursuant to 30- to 50-year FERC licenses that expire
at various times between 2006 and 2039 (the remaining five plants are located entirely on
private property and are not subject to FERC jurisdiction). Such licenses impose numerous
restrictions and obligations on SCE, including the right of the United States to acquire
projects upon payment of specified compensation. When existing licenses expire, the FERC has
the authority to issue new licenses to third parties that have filed competing license
applications, but only if their license application is superior to SCE's and then only upon
payment of specified compensation to SCE. New licenses issued to SCE are expected to contain
more restrictions and obligations than the expired licenses because laws enacted since the
existing licenses were issued require the FERC to give environmental purposes greater
consideration in the licensing process. SCE's applications for the relicensing of certain
hydroelectric projects with an aggregate dependable operating capacity of approximately 209
MW are pending. Annual licenses have been issued to SCE hydroelectric projects that are
undergoing relicensing and whose long-term licenses have expired. Federal Power Act
Section 15 requires that the annual licenses be renewed until the long-term licenses are
issued or denied.

Substantially all of SCE's properties are subject to the lien of a trust indenture securing
first and refunding mortgage bonds, of which approximately $5.4 billion in principal amount
was outstanding on December 31, 2005 (including the first mortgage bonds issued to secure a
$1.7 billion revolving credit facility). Such lien and SCE's title to its properties are
subject to the terms of franchises, licenses, easements, leases, permits, contracts, and
other instruments under which properties are held or operated, certain statutes and
governmental regulations, liens for taxes and assessments, and liens of the trustees under
the trust indenture. In addition, such lien and SCE's title to its properties are subject to
certain other liens, prior rights and other encumbrances, none of which, with minor or
insubstantial exceptions, affect SCE's right to use such properties in its business, unless
the matters with respect to SCE's interest in the Four Corners plant and the related
easement and lease referred to below may be so considered.

SCE's rights in the Four Corners station, which is located on land of the Navajo Nation of
Indians under an easement from the United States and a lease from the Navajo Nation, may be
subject to possible defects. These defects include possible conflicting grants or
encumbrances not ascertainable because of the absence of, or inadequacies in, the applicable
recording law and the record systems of the Bureau of


Page 4

Indian Affairs and the Navajo Nation, the possible inability of SCE to resort to legal
process to enforce its rights against the Navajo Nation without Congressional consent, the
possible impairment or termination under certain circumstances of the easement and lease by
the Navajo Nation, Congress, or the Secretary of the Interior, and the possible invalidity
of the trust indenture lien against SCE's interest in the easement, lease, and improvements
on the Four Corners station.

Nuclear Power Matters

Information about operating issues related to San Onofre appears in the MD&amp;A under the
heading "Regulatory Matters--Current Regulatory Developments--San Onofre Nuclear Generating
Station Steam Generators." Information about Palo Verde steam generator replacements appears
in the MD&amp;A under the heading "Regulatory Matters--Current Regulatory Developments--Palo Verde
Generating Station Steam Generators." Information about nuclear decommissioning can be found
in Note 8 of Notes to Financial Statements. Information about nuclear insurance can be found
in Note 9 of Notes to Financial Statements.

Purchased Power and Fuel Supply

SCE obtains the power needed to serve its customers from its generating facilities and from
purchases from qualifying facilities, independent power producers, the California
Independent System Operator, and other utilities. In addition, power is provided to SCE's
customers through purchases by the California Department of Water Resources (CDWR) under
contracts with third parties. Sources of power to serve SCE's customers during 2005 were as
follows:  33% purchased power; 23.5% CDWR; and 43.5% SCE-owned generation consisting of
14.3% nuclear, 22.7% coal, and 6.5% hydro. Additional information about SCE's power
procurement activities appears in the MD&amp;A under the heading "Regulatory Matters."

Natural Gas Supply

SCE's natural gas requirements in 2005 were for start-up use at Mohave, to meet contractual
obligations for power tolling agreements (power contracts in which SCE has agreed to provide
the natural gas needed for generation under those power contracts) and to serve demand for
gas at SCE's new Mountainview gas-fired generation facility, which commenced operations in
December 2005. All of the physical gas purchased by SCE in 2005 was purchased under North
American Energy Standards Board agreements (master gas agreements) that define the terms and
conditions of transactions with a particular supplier prior to any financial commitment.

SCE contracted for firm access rights onto the Southern California Gas Company system at
Wheeler Ridge for 198,863 million British thermal units (MMBtu) per day in a 13-year
contract entered into in August 1993, effective November 1, 1993. SCE has the unilateral
right to renew this contract for an equivalent term upon the expiration of its initial term.
SCE has not yet made a determination as to whether this contract will be extended. SCE also
has firm transportation rights of 18,000 MMBtu per day on Southwest Gas Corp's pipeline to
serve Mohave.

In 2005, SCE secured a one-year natural gas storage capacity contract with Southern
California Gas Company for the 2005/2006 storage season. Storage capacity was secured to
provide operation flexibility and to mitigate potential costs associated with the dispatch
of SCE's tolling agreements. SCE has been in negotiations with Southern California Gas
Company for additional storage but has not yet entered into a similar arrangement.


Page 5

Nuclear Fuel Supply

For San Onofre Units 2 and 3, contractual arrangements are in place covering 100% of the
projected nuclear fuel requirements through the years indicated below:

     Uranium concentrates...............................................   2008
         Conversion.....................................................   2008
         Enrichment.....................................................   2008
         Fabrication....................................................   2015

For Palo Verde, contractual arrangements are in place covering 100% of the projected nuclear
fuel requirements through the years indicated below:

     Uranium concentrates...............................................   2008
         Conversion.....................................................   2008
         Enrichment.....................................................   2010
         Fabrication....................................................   2015

Spent Nuclear Fuel

Information about Spent Nuclear Fuel appears in Note 9 of Notes to Financial Statements.

Coal Supply

SCE has purchased coal pursuant to long-term contracts to provide stable and reliable fuel
supplies to its two coal-fired generating stations, the Four Corners and Mohave plants. SCE
entered into a coal contract, dated September 1, 1966, with the Utah Construction &amp; Mining
Company, the predecessor to the current owner of the Navajo mine, the BHP Navajo Coal
Company, to supply coal to Four Corners Units 4 and 5. The initial term of this coal supply
contract for the Four Corners plant was through 2004 and included extension options for up
to 15 additional years. On January 1, 2005 SCE and the other Four Corners participants
entered into a Restated and Amended Four Corners Fuel Agreement under which coal will be
supplied until July 6, 2016. The Restated and Amended Agreement contains an option to extend
for not less than five additional years or more than 15 years. The coal supply contract for
the Mohave plant expired on December 31, 2005, and the plant has ceased operating while coal
and water issues are resolved. There is no definite return to service date. Additional
information about the litigation affecting the coal supply contract for the Mohave plant
appears in the MD&amp;A under the heading "Other Developments--Navajo Nation Litigation."

Discontinued Operations

Information about SCE's discontinued operations appears in Note 11 of Notes to Financial
Statements.

Seasonality

Due to warmer weather during the summer months, electric utility revenue during the third
quarter of each year is generally significantly higher than other quarters.

Environmental Matters

SCE is subject to environmental regulation by federal, state and local authorities in the
jurisdictions in which it operates in the United States.  This regulation, including the
areas of air and water pollution,


Page 6

waste management, hazardous chemical use, noise abatement, land use, aesthetics, and nuclear
control, continues to result in the imposition of numerous restrictions on SCE's operation
of existing facilities, on the timing, cost, location, design, construction, and operation
by SCE of new facilities, and on the cost of mitigating the effect of past operations on the
environment.

SCE believes that it is in substantial compliance with environmental regulatory requirements
and that maintaining compliance with current requirements will not materially affect its
financial position or results of operations. However, possible future developments, such as
the promulgation of more stringent environmental laws and regulations, future proceedings
that may be initiated by environmental authorities, and settlements agreed to by other
companies could affect the costs and the manner in which SCE conducts its business and could
cause it to make substantial additional capital or operational expenditures. There is no
assurance that SCE would be able to recover these increased costs from its customers or that
SCE's financial position and results of operations would not be materially adversely
affected. SCE is unable to predict the extent to which additional regulations may affect its
operations and capital expenditure requirements.

Typically, environmental laws and regulations require a lengthy and complex process for
obtaining licenses, permits and approvals prior to construction, operation or modification
of a project. Meeting all the necessary requirements can delay or sometimes prevent the
completion of a proposed project as well as require extensive modifications to existing
projects, which may involve significant capital or operational expenditures. Furthermore, if
SCE fails to comply with applicable environmental laws, it may be subject to injunctive
relief, penalties and fines imposed by regulatory authorities.

The laws and regulations discussed below primarily impact SCE's coal-fired, gas-fired and
nuclear generation facilities. The air quality and climate change discussions primarily
impact the coal-fired Mohave and Four Corners plants. Developments in the air quality and
climate change areas may also have an impact on SCE's gas-fired Mountainview plant. However,
the Mountainview plant was constructed with current pollution control technology so the
impact of new regulations would likely have less of an impact on Mountainview than Mohave
and Four Corners. The Mountainview plant is SCE's only gas-fired generation facility. The
water quality discussion primarily impacts San Onofre.

Air Quality

SCE's facilities are subject to various air quality regulations, including the Federal Clean
Air Act and similar state and local statutes.

Mohave Shutdown

In 1998, several environmental groups filed suit against the co-owners of the Mohave plant
regarding alleged violations of emissions limits. In order to resolve the lawsuit and
accelerate resolution of key environmental issues regarding the plant, the parties entered
into a consent decree, which was approved by the Nevada federal district court in December
1999. The consent decree required the installation of certain air pollution control
equipment prior to December 31, 2005 if the plant was to operate beyond that date. In
addition, operation beyond 2005 required that agreements be reached with the Navajo Nation
and the Hopi Tribe (Tribes) regarding post-2005 water and coal supply needs.

SCE's share of the costs of complying with the consent decree and taking other actions to
allow operation of the Mohave plant beyond 2005 is estimated to be approximately
$605 million. Agreement with the Tribes on water and coal supplies for Mohave was not reached
by December 31, 2005, and it is not currently known whether such an agreement will be
reached. No agreement was reached to amend the terms of the federal court consent decree. As
a result, Mohave ceased operation on December 31, 2005.


Page 7

For the Mohave plant to restart operation, it will be necessary for agreements to be reached
with the Tribes on the water and coal supply issues, and for the terms of the consent decree
to be met or modified.

Until there is a final resolution as to whether the Mohave plant will begin operating again,
and what regulations will be in effect at that time, SCE cannot evaluate the potential
impact of the air quality regulations discussed below on the operations of its facilities.
Additional capital costs related to those regulations could be required in the future and
they could be material, depending upon the final standards adopted.

Regional Haze

In the event that the Mohave plant does restart operations, its operations may be subject to
the US EPA's final rulemaking on regional haze, issued on June 15, 2005. Under the rule, by
December 17, 2007, each state must file with the US EPA as part of its State Implementation
Plan (SIP) plans for regional haze improvement. It is not known whether Nevada's regional
haze SIP for Mohave will impose any additional emissions control requirements on the Mohave
plant beyond meeting the provisions of the 1999 consent decree.

Mercury

In the event of a Mohave restart, its operations may be subject to the US EPA's Clean Air
Mercury Rule (CAMR), which was issued on March 15, 2005. CAMR creates a market-based
cap-and-trade program to reduce mercury emissions from existing coal-fired power plants down
to a national cap of 38 tons by 2010 and to 15 tons by 2018. States may join the trading
program by adopting the CAMR model trading rules in state regulations, or they may adopt
regulations that mirror the necessary components of the model trading rule. States are not
required to adopt a cap-and-trade program and may promulgate alternative regulations, such
as command and control regulations, that are equivalent to or more stringent than the CAMR's
suggested cap-and-trade program. The CAMR allocates mercury emission credits to each plant,
including Mohave, based on a model rule that states, including Nevada, may adopt.

Contemporaneous with the adoption of the CAMR, the US EPA rescinded its previous finding
that mercury emissions from coal-fired power plants had to be regulated as a hazardous air
pollutant pursuant to Section 112 of the federal Clean Air Act, which would have imposed
technology-based standards. Litigation has been filed challenging the rescission action,
alleging that the US EPA erred in adopting a market-based program rather than
technology-based emissions limitations. Litigation has also been filed to challenge the
CAMR. Depending on the results of these challenges, the CAMR rules and timetables may
change.

If Nevada adopts the US EPA's model allocations rule, SCE expects that Mohave would have
sufficient mercury credits to meet operational needs until 2018, at which time estimated
mercury credit allocations are approximately 50% lower than required for operations. States
are required to adopt a mercury reduction method and submit their mercury SIP to the US EPA
by November 2006. While Nevada has begun its scoping meetings for this rulemaking, it is not
yet known what approach Nevada will take on its mercury regulation.

For SCE, these regulations will primarily impact its possible future operation of the Mohave
plant. Additional information regarding the shutdown of Mohave appears in the MD&amp;A under the
heading "Regulatory Matters--Current Regulatory Developments--Mohave Generating Station and
Related Proceedings."


Page 8

National Ambient Air Quality Standards

The ambient air quality standards for ozone and fine particulate matter adopted by the US
EPA in July 1997 are another regulatory standard to which Mohave may be subject if it
resumes operations. The US EPA designated non-attainment areas for the 8-hour ozone standard
on April 30, 2004, and for the fine particulate standard on January 5, 2005. States are
required to revise their implementation plans for the ozone and particulate matter standards
within three years of the effective date of the respective non-attainment designations - by
June 2007 for the 8-hour ozone SIP, and by April 2008 for the fine particulate SIP.

Clark County, Nevada, where the Mohave plant is located, has been designated a nonattainment
area for the new 8-hour ozone national ambient air quality standard. Clark County is
currently in the process of developing its SIP to demonstrate attainment of the 8-hour ozone
standard. Depending on the control measures adopted for Clark County's 8-hour ozone SIP,
Mohave may be required to reduce nitrogen oxide (NOx) emissions (NOx emissions are a
precursor to ambient levels of ozone) below the levels resulting from the low NOx burner
control technology required under the 1999 Mohave consent decree. Until information is
available regarding Clark County's SIP, SCE cannot fully evaluate the potential impact on
Mohave if it resumes operations. Additional capital costs related to those regulations could
be required in the future and they could be material, depending upon the final standards
adopted.

Clean Air Act Interstate Rule

At this time, the US EPA's Clean Air Act Interstate Rule (CAIR), does not have an impact on
SCE's facilities. CAIR, issued by the US EPA on March 10, 2005, applies to 28 eastern states
and the District of Columbia, and is intended to address ozone attainment issues by reducing
regional sulfur dioxide and NOx emissions. The CAIR has been challenged in court by state,
environmental, and industry groups, which may result in changes to the substance of the rule
and to the timetables for implementation. While the US EPA has not adopted a rule comparable
to CAIR for the western United States, where SCE has facilities, SCE cannot predict what
action the US EPA will take in the future with regard to the western United States, and what
impact those actions would have on its facilities.

New Source Review Requirements

Since 1999, the US EPA has pursued a coordinated compliance and enforcement strategy to
address Clean Air Act New Source Review (NSR) compliance issues at the nation's coal-fired
power plants. The NSR regulations impose certain requirements on facilities, such as
electric generating stations, in the event that modifications are made to air emissions
sources at the facility. The US EPA's strategy included both the filing of a number of suits
against power plant owners, and issuance of a number of administrative notices of violation
to power plant owners alleging NSR violations. SCE and its subsidiaries have not been named
as a defendant in these lawsuits and have not received any administrative notices of
violation alleging NSR violations at any facilities.

In October 2005, the US EPA announced a revised NSR strategy to take account of recent US
EPA rulemakings, such as the CAIR and regional haze rules, affecting coal-fired power
plants. Under the revised strategy, while the US EPA will continue to pursue filed cases and
cases in active negotiation, it intends to shift its future enforcement focus from
coal-fired power plants to other sectors where compliance assurance activities have the
potential to produce significant environmental benefits.

Developments will continue to be monitored by SCE, to assess what implications, if any, they
will have on the operation of power plants owned or operated by SCE, or on SCE's results of
operations or financial position.


Page 9

Climate Change

The Kyoto Protocol on climate change officially came into effect on February 16, 2005. Under
the Kyoto Protocol, the United States would have been required, by 2008-2012, to reduce its
greenhouse gas emissions, such as carbon dioxide, by 7% from 1990 levels. Under the Bush
administration, however, the United States has chosen not to pursue ratification of the
Kyoto Protocol. Instead, the Bush administration has proposed several alternatives to
mandatory reductions of greenhouse gases.

There have been several petitions from states and other parties to compel the US EPA to
regulate greenhouse gases under the Clean Air Act. Also, in 2004 several states and
environmental organizations brought a complaint in federal court in New York, alleging that
several electric utility corporations are jointly and severally liable under a theory of
public nuisance for damages caused by their alleged contribution to global warming resulting
from carbon dioxide emissions from coal-fired power plants owned and operated by these
companies or their subsidiaries. SCE was not named as a defendant in the complaint. The case
was dismissed and is currently on appeal with the United States Court of Appeals for the
Second Circuit.

In California, Governor Schwarzenegger issued an executive order on June 1, 2005 setting
forth targets for greenhouse gas reductions. The targets call for a reduction of greenhouse
gas emissions to 2000 levels by 2010; a reduction of greenhouse gas emissions to 1990 levels
by 2020; and a reduction of greenhouse gas emissions to 80% below 1990 levels by 2050.

The CPUC is addressing climate change related issues in various regulatory proceedings. In a
decision pertaining to SCE's 2004 long-term procurement plan the CPUC is requiring a "carbon
adder" of $8-$25/ton of carbon dioxide to be used in the evaluation of fossil fuel
generation bids for contracts of five years or longer. On October 6, 2005, the CPUC adopted
a resolution directing the CPUC staff and general counsel to investigate adoption by the
CPUC of a greenhouse gas emissions performance standard for investor-owned utilities
procurement. On February 16, 2006, the CPUC issued a decision in the Procurement Incentive
Framework proceeding, in which the CPUC states its intent to develop a load-based greenhouse
gas emissions cap for SCE, and other load serving entities the CPUC asserts to be within its
jurisdiction.

SCE will continue to monitor these developments relating to greenhouse gas emissions to
determine their impacts on SCE's operations. Any legal obligation that would require SCE to
reduce substantially its emissions of carbon dioxide could require extensive mitigation
efforts at its Mohave plant if it resumes operations, and could raise considerable
uncertainty about the future viability of fossil fuels, particularly coal, as an energy
source for new and existing electric generating facilities. New regulations could also
increase the cost of purchased power, which is generally borne by SCE's customers.
Additional information regarding purchased power costs appears in the MD&amp;A under the heading
"Regulatory Matters."

Hazardous Substances and Hazardous Waste Laws

Under various federal, state and local environmental laws and regulations, a current or
previous owner or operator of any facility, including an electric generating facility, may
be required to investigate and remediate releases or threatened releases of hazardous or
toxic substances or petroleum products located at that facility, and may be held liable to a
governmental entity or to third parties for property damage, personal injury, natural
resource damages, and investigation and remediation costs incurred by these parties in
connection with these releases or threatened releases. Many of these laws, including the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), and
the Resource Conservation and Recovery Act (RCRA), impose liability without regard to
whether the owner


Page 10

knew of or caused the presence of the hazardous substances, and courts have interpreted
liability under these laws to be strict and joint and several.

In addition, the federal Toxic Substances Control Act (TSCA) and accompanying regulations
govern the manufacturing, processing, distribution in commerce, use, and disposal of listed
compounds, including polychlorinated biphenyls (PCBs), a toxic substance. Federal, state,
and local laws, regulations and ordinances also govern the removal, encapsulation or
disturbance of asbestos-containing materials when these materials are in poor condition or
in the event of construction, remodeling, renovation or demolition of a building and other
structures containing asbestos.

In connection with the ownership and operation of its facilities, SCE may be liable for
costs associated with hazardous waste compliance and remediation required by the laws and
regulations identified herein. The CPUC allows SCE to recover in retail rates paid by its
customers partial environmental remediation costs at certain sites through an incentive
mechanism. Additional information about these laws and regulations appears in Note 9 of
Notes to Financial Statements and in the MD&amp;A under the heading "Other
Developments--Environmental Matters."

Water Quality

Regulations under the federal Clean Water Act require permits for the discharge of
pollutants into United States waters and permits for the discharge of storm water flows from
certain facilities. The Clean Water Act also regulates the thermal component (heat) of
effluent discharges and the location, design, and construction of cooling water intake
structures at generating facilities. California has a US EPA approved program to issue
individual or group (general) permits for the regulation of Clean Water Act discharges.
California also regulates certain discharges not regulated by the US EPA. SCE incurs
additional expenses and capital expenditures in order to comply with guidelines and
standards applicable to certain of its facilities.

Cooling Water Intake Structures

On July 9, 2004, the US EPA published the final Phase II regulations implementing Section
316(b) of the Clean Water Act. The rulemaking establishes standards for cooling water intake
structures at existing electrical generating stations that withdraw more than 50 million
gallons of water per day and use more than 25% of that water for cooling purposes. The
purpose of the regulations is to substantially reduce the number of aquatic organisms that
are impinged against cooling water intake structures or drawn into cooling water systems.

While SCE believes that this rule, as drafted, would not have a material impact on SCE's
operations at San Onofre, certain aspects of the rule that are being contested in the
courts, such as the right to offset impacts through restoration, are important to SCE's
expectation that compliance with the new rules will not require any physical or operational
modifications at San Onofre. Until the challenges to the rulemaking have concluded, SCE
cannot determine the full financial impact of this rule.

Electric and Magnetic Fields

Electric and magnetic fields naturally result from the generation, transmission,
distribution and use of electricity. Since the 1970s, concerns have been raised about the
potential health effects of electric and magnetic fields (EMF). After 30 years of research,
a health hazard has not been established to exist. Potentially important public health
questions remain about whether there is a link between EMF exposures in homes or work and
some diseases, and because of these questions, some health authorities have identified EMF
exposures as a possible human carcinogen.


Page 11

In October 2002, the California Department of Health Services released to the CPUC and the
public its report evaluating the possible risks from EMF. The conclusions in the report of
the California Department of Health Services contrast with other recent reports by
authoritative health agencies in that the California Department of Health Services has
assigned a substantially higher probability to the possibility that there is a causal
connection between EMF exposures and a number of diseases and conditions, including
childhood leukemia, adult leukemia, amyotrophic lateral sclerosis, and miscarriages.

On August 19, 2004, the CPUC issued an order instituting rulemaking to update the CPUC's
policies and procedures related to EMF emanating from regulated utility facilities.
Following submission of comments and information by all interested parties to the CPUC in
2004 and 2005, the administrative law judge issued a draft decision in December 2005, and
the CPUC issued its final decision on January 26, 2006. The decision concluded that a direct
link between exposure to EMF and human health effects has yet to be proven, and affirms the
CPUC's existing "low-cost/no-cost" EMF policies to mitigate EMF exposure for new utility
transmission and substation projects.

Financial Information About Geographic Areas

All of SCE's revenues for the last three fiscal years are attributed to SCE's country of
domicile, the United States. All of SCE's assets are located in the United States.

ITEM 1A.  RISK FACTORS

SCE's financial viability depends upon its ability to recover its costs in a timely manner
from its customers through regulated rates.

SCE is a regulated entity subject to CPUC jurisdiction in almost all aspects of its
business, including the rates, terms and conditions of its services, procurement of
electricity for its customers, issuance of securities, dispositions of utility assets and
facilities and aspects of the siting and operations of its electricity distribution systems.
SCE's ongoing financial viability depends on its ability to recover from its customers in a
timely manner its costs, including the costs of electricity purchased for its customers, in
its CPUC-approved rates and its ability to pass through to its customers in rates its
FERC-authorized revenue requirements. SCE's financial viability also depends on its ability
to recover in rates an adequate return on capital, including long-term debt and equity. If
SCE is unable to recover any material amount of its costs in rates in a timely manner or
recover an adequate return on capital, its financial condition and results of operations
could be materially adversely affected.

SCE's revenues and earnings are substantially affected by regulatory proceedings known as
general rate cases and cost of capital proceedings. General rate cases are expected to occur
every three years. During those cases, the CPUC determines SCE's rate base (the value of
assets on which SCE earns a rate of return for investors), depreciation rates, operation and
maintenance costs, and administrative and general costs that SCE may recover from its
customers through its rates. Cost of capital proceedings are conducted annually. During
those cases, the CPUC authorizes SCE's capital structure and the return on common equity
applicable to the rate base determined in the general rate case proceedings. More
information about these proceedings is set forth in the MD&amp;A under the heading "Regulatory
Matters."

SCE's energy procurement activities are subject to regulatory and market risks that could
adversely affect its financial condition, liquidity, and earnings.

SCE obtains energy, capacity, and ancillary services needed to serve its customers from its
own generating plants and contracts with energy producers and sellers. California law and
CPUC decisions


Page 12

allow SCE to recover in customer rates reasonable procurement costs incurred in compliance
with an approved procurement plan. Nonetheless, SCE's cash flows remain subject to
volatility resulting from its procurement activities. In addition, SCE is subject to the
risks of unfavorable or untimely CPUC decisions about the compliance of procurement
activities with its procurement plan and the reasonableness of certain procurement-related
costs.

Many of SCE's power purchase contracts are tied to market prices for natural gas. Some of
its contracts also are subject to volatility in market prices for electricity. SCE seeks to
hedge its market price exposure to the extent authorized by the CPUC. SCE may not be able to
hedge its risk for commodities on favorable terms or fully recover the costs of hedges in
rates, which could adversely affect SCE's liquidity and results of operation.

In its power purchase contracts and other procurement arrangements, SCE is exposed to risks
from changes in the credit quality of its counterparties. If a counterparty were to default
on its obligations, SCE could be exposed to potentially volatile spot markets for buying
replacement power or selling excess power.

SCE relies on access to the capital markets. If SCE were unable to access capital markets or
the cost of capital were to substantially increase, its liquidity and operations could be
adversely affected.

SCE's ability to make scheduled payments of principal and interest, refinance debt, and fund
its operations and planned capital expenditure projects depends on its cash flow and access
to the capital markets. SCE's ability to arrange financing and the costs of such capital are
dependent on numerous factors, including its levels of indebtedness, maintenance of
acceptable credit ratings, its financial performance, liquidity and cash flow, and other
market conditions. Market conditions which could adversely affect SCE's financing costs and
availability include:

o   an economic downturn;

o   capital market conditions generally;

o   market prices for electricity or gas;

o   changes in interest rates and rates of inflation;

o   terrorist attacks or the threat of terrorist attacks on SCE's facilities or unrelated
    energy companies; and

o   the overall health of the utility industry.

SCE may not be successful in obtaining additional capital for these or other reasons. The
failure to obtain additional capital from time to time may have a material adverse effect on
SCE's liquidity and operations.

SCE is subject to numerous environmental laws and regulations with respect to operation of
its facilities. New laws and regulations could adversely affect SCE.

The operation of SCE's power generation, transmission, and distribution facilities is
subject to numerous environmental laws and regulations. Those laws and regulations require
SCE to expend substantial sums to mitigate or remove the effect of its operations on the
environment and can impede the development of new facilities. Violations of environmental
laws and regulations can result in fines, penalties and liability to third parties. In
addition, new environmental laws, regulations and standards may be adopted that would impose
substantial costs on SCE or impair its future operations. Environmental advocacy groups and
regulatory agencies have been focusing considerable attention on carbon dioxide emissions
and the effect of those emissions on global warming. The adoption of new laws and
regulations to control carbon


Page 13

dioxide or other emissions could adversely affect the operation of SCE's generating plants
and other facilities and result in additional costs that could adversely affect SCE's
results of operations.

SCE is subject to extensive regulation and the risk of adverse regulatory decisions and
changes in applicable regulations or legislation.

SCE operates in a highly regulated environment. SCE's business is subject to extensive
federal, state and local energy, environmental and other laws and regulations. The CPUC
regulates SCE's retail operations, and the FERC regulates SCE's wholesale operations. The
United States Nuclear Regulatory Commission regulates SCE's nuclear power plants. The
construction, planning, and siting of SCE's power plants in California are also subject to
the jurisdiction of the California Energy Commission and the CPUC. Additional regulatory
authorities with jurisdiction over some of SCE's operations include the California Air
Resources Board, the California State Water Resources Control Board, the California
Department of Toxic Substances Control, the California Coastal Commission, the United States
Environmental Protection Agency, the United States Department of Energy, the Nuclear
Regulatory Commission, and various local regulatory districts.

SCE must periodically apply for licenses and permits from these various regulatory
authorities and abide by their respective orders. Should SCE be unsuccessful in obtaining
necessary licenses or permits or should these regulatory authorities initiate any
investigations or enforcement actions or impose penalties or disallowances on SCE, SCE's
business could be adversely affected. Existing regulations may be revised or reinterpreted
and new laws and regulations may be adopted or become applicable to SCE or SCE's facilities
in a manner that may have a detrimental effect on SCE's business or result in significant
additional costs because of SCE's need to comply with those requirements.

There are inherent risks associated with operating nuclear power generating facilities.

Spent fuel storage capacity could be insufficient to permit long-term operation of SCE's
nuclear plants.

SCE operates and is majority owner of the San Onofre Nuclear Generating Station and is part
owner of the Palo Verde Nuclear Generating Station. The United States Department of Energy
has defaulted on its obligation to begin accepting spent nuclear fuel from commercial
nuclear industry participants by January 31, 1998. If SCE or the operator of the Palo Verde
plant were unable to arrange and maintain sufficient capacity for interim spent-fuel storage
now or in the future, it could hinder operation of the plants and impair the value of SCE's
ownership interests until storage could be obtained, each of which may have a material
adverse effect on SCE.

Existing insurance and ratemaking arrangements may not protect SCE fully against losses from
a nuclear incident.

Federal law limits public liability from a nuclear incident to $10.8 billion. SCE and other
owners of the San Onofre and Palo Verde nuclear generating stations have purchased the
maximum private primary insurance available of $300 million per site. If the public
liability limit is insufficient, federal regulations may impose further revenue-raising
measures to pay claims, including a possible additional assessment on all licensed reactor
operators. In the event of such an under-insured nuclear incident, a tension could exist
between the federal government's attempt to impose revenue-raising measures upon SCE and the
CPUC's willingness to allow SCE to pass this liability along to its customers, resulting in
undercollection of SCE's costs.


Page 14

SCE's financial condition and results of operations could be materially adversely affected
if it is unable to successfully manage the risks inherent in operating its facilities.

SCE owns and operates extensive electricity facilities that are interconnected to the United
States western electricity grid. The operation of SCE's facilities and the facilities of
third parties on which it relies involves numerous risks, including:

o   operating limitations that may be imposed by environmental or other regulatory
    requirements;

o   imposition of operational performance standards by agencies with regulatory oversight
    of SCE's facilities;

o   environmental and personal injury liabilities caused by the operation of SCE's
    facilities;

o   interruptions in fuel supply;

o   blackouts;

o   employee work force factors, including strikes, work stoppages or labor disputes;

o   weather, storms, earthquakes, fires, floods or other natural disasters;

o   acts of terrorism; and

o   explosions, accidents, mechanical breakdowns and other events that affect demand,
    result in power outages, reduce generating output or cause damage to SCE's assets or
    operations or those of third parties on which it relies.

The occurrence of any of these events could result in lower revenues or increased expenses,
or both, which may not be fully recovered through insurance, rates or other means in a
timely manner or at all.

SCE's insurance coverage may not be sufficient under all circumstances and SCE may not be
able to obtain sufficient insurance.

SCE's insurance may not be sufficient or effective under all circumstances and against all
hazards or liabilities to which it may be subject. A loss for which SCE is not fully insured
could materially and adversely affect SCE's financial condition and results of operations.
Further, due to rising insurance costs and changes in the insurance markets, insurance
coverage may not continue to be available at all or at rates or on terms similar to those
presently available to SCE.

SCE is subject to costs and other effects of legal proceedings as well as changes in or
additions to applicable tax laws, rates or policies, rates of inflation, and accounting
standards.

SCE is subject to costs and other effects of legal and administrative proceedings,
settlements, investigations and claims, as well as the effect of new, or changes in, tax
laws, rates or policies, rates of inflation and accounting standards.

ITEM 1B.  UNRESOLVED STAFF COMMENTS

None.

ITEM 2.  PROPERTIES

The principal properties of SCE are described above in Part I under the heading "Properties."


Page 15


ITEM 3.  LEGAL PROCEEDINGS

Navajo Nation Litigation

Information about the Navajo Nation litigation appears in the MD&amp;A under the heading "Other
Developments--Navajo Nation Litigation."

Department of the Army, Los Angeles District, Corps of Engineers/Notice of Violation of
Clean Water Act

In December 2004, the United States Army Corps of Engineers (Corps) sent SCE a Notice of
Violation (Notice), alleging that SCE or its contractors had discharged fill material into
wetlands adjacent to the Santa Ana River (River), in the City of Huntington Beach, CA
(City). Under Sections 301 and 404 of the Clean Water Act, the discharge of fill material
into waters of the United States is unlawful unless first permitted by the Corps pursuant to
Section 404 of the Clean Water Act.

The Notice provided a general description of the area in question but did not specify the
location of the violation. Following discussions and correspondence with the Corps, it was
determined that the Corps was concerned about the actions of a licensee of SCE on an
SCE-owned transmission right-of-way corridor located adjacent to the River. SCE's licensee,
or its predecessor-in-interest, had obtained from the City a Conditional Use Permit (CUP) to
locate landscape nursery operations within the right-of-way corridor. The CUP required the
licensee to perform certain drainage and grading improvements to the property before
locating nursery operations on site. During the course of the grading work, the licensee
brought additional soil onto SCE's property for use as fill material.

Potential penalties for violation of Section 404 of the Clean Water Act include a maximum
criminal fine of $50,000 per day and imprisonment for up to three years, and a maximum civil
penalty of $25,000 per day of violation. To date, however, the Corps has not proposed to
impose any specific fine or penalty on SCE with respect to the subject matter of the Notice.

In the process of investigating the matter, the Corps requested that SCE perform a wetlands
delineation study of the property to determine whether the property in question qualifies as
a wetland area subject to Corps jurisdiction. SCE has hired a consulting group to perform
the wetlands delineation study, which indicates that there are no federally regulated
wetlands or waters of the United States associated with the study area. SCE delivered the
study to the Corps in January 2006. The Corps is in the process of evaluating the wetlands
delineation study.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No  matters  were  submitted  to a vote of  shareholders  of Edison  International  during the
fourth quarter of 2005.

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


Page 16



Pursuant to Form 10-K's General Instruction (General Instruction) G(3), the following
information is included as an additional item in Part I:

Executive Officers of the Registrant

 -------------------------- ------------------- ----------------------------------------------
                                   Age at
  Executive Officer(1)       December 31, 2005                 Company Position

 -------------------------- ------------------- ----------------------------------------------
 John E. Bryson                     62          Chairman of the Board
 -------------------------- ------------------- ----------------------------------------------
 Alan J. Fohrer                     55          Chief Executive Officer and Director
  -------------------------- ------------------- ----------------------------------------------
 John R. Fielder                    60          President
 -------------------------- ------------------- ----------------------------------------------
 Ronald L. Litzinger                46          Senior Vice President, Transmission and
                                                Distribution
 -------------------------- ------------------- ----------------------------------------------
 Thomas M. Noonan                   54          Senior Vice President and Chief Financial
                                                Officer
 -------------------------- ------------------- ----------------------------------------------
 Stephen E. Pickett                 55          Senior Vice President and General Counsel
 -------------------------- ------------------- ----------------------------------------------
 Pedro J. Pizarro                   40          Senior Vice President, Power Procurement
 -------------------------- ------------------- ----------------------------------------------
 Richard M. Rosenblum               55          Senior Vice President, Generation
 -------------------------- ------------------- ----------------------------------------------
 Mahvash Yazdi                      54          Senior Vice President, Business Integration,
                                                and Chief Information Officer
 -------------------------- ------------------- ----------------------------------------------
 Lynda L. Ziegler                   53          Senior Vice President, Customer Service
 -------------------------- ------------------- ----------------------------------------------
 Frederick J. Grigsby, Jr.          58          Vice President, Human Resources and Labor
                                                Relations
 -------------------------- ------------------- ----------------------------------------------
 Linda G. Sullivan                  42          Vice President and Controller
 -------------------------- ------------------- ----------------------------------------------

_________________
(1) The term "Executive Officers" is defined by Rule 3b-7 of the General Rules and
    Regulations under the Securities Exchange Act of 1934, as amended.



Page 17

None of SCE's executive officers is related to each other by blood or marriage. As set forth
in Article IV of SCE's Bylaws, the elected officers of SCE are chosen annually by and serve
at the pleasure of SCE's Board of Directors and hold their respective offices until their
resignation, removal, other disqualification from service, or until their respective
successors are elected. All of the above officers have been actively engaged in the business
of SCE, Edison International and/or the nonutility company affiliates of SCE for more than
five years. Those officers who have not held their present position with SCE for the past
five years had the following business experience during that period:

- --------------------- ------------------------------------------------ ----------------------------
Executive Officer                    Company Position                        Effective Dates
- --------------------- ------------------------------------------------ ----------------------------

John E. Bryson        Chairman of the Board, SCE                       January 2003 to present
                      Chairman of the Board, President, and Chief      January 2000 to present
                      Executive Officer, Edison International
                      Chairman of the Board, Edison Capital(1)         January 2000 to present
                      Chairman of the Board, EME(2)                    January 2000 to December
                                                                       2002
- --------------------- ------------------------------------------------ ----------------------------
Alan J. Fohrer        Chief Executive Officer and Director, SCE        January 2003 to present
                      Chairman of the Board and Chief Executive        January 2002 to December
                      Officer, SCE                                     2002
                      President and Chief Executive Officer, EME(2)    January 2000 to December
                                                                       2001
- --------------------- ------------------------------------------------ ----------------------------
John R. Fielder       President, SCE                                   October 2005 to present
                      Senior Vice President, Regulatory Policy and     February 1998 to October
                      Affairs, SCE                                     2005
- --------------------- ------------------------------------------------ ----------------------------
Ronald L. Litzinger   Senior Vice President, Transmission and          May 2005 to present
                      Distribution, SCE
                      Vice President, Strategic Planning, EIX          May 2004 to April 2005
                      Senior. Vice President and Chief Technical       January 2002 to April 2004
                      Officer, EME
                      Senior Vice President, Worldwide Operations,     June 1999 to December 2001
                      EME
- --------------------- ------------------------------------------------ ----------------------------
Thomas M. Noonan      Senior Vice President and Chief Financial        June 2005 to present
                      Officer, SCE
                      Vice President and Controller, Edison            March 1999 to May 2005
                      International and SCE
- --------------------- ------------------------------------------------ ----------------------------
Stephen E. Pickett    Senior Vice President and General Counsel, SCE   January 2002 to present
                      Vice President and General Counsel, SCE          January 2000 to December
                                                                       2001
- --------------------- ------------------------------------------------ ----------------------------
Pedro J. Pizarro      Senior Vice President, Power Procurement, SCE    May 2005 to present
                      Vice President, Power Procurement, SCE           January 2004 to April 2005
                      Vice President, Strategy and Business            July 2001 to December 2003
                      Development, SCE
                      Vice President, Technology Business              September 2000 to June 2001
                      Development, Edison International
- --------------------- ------------------------------------------------ ----------------------------
Richard M. Rosenblum  Senior Vice President, Generation, and Chief     November 2005 to present
                      Nuclear Officer, SCE

                      Senior Vice President, Generation, SCE           September 2005 to November 2005

                      Senior Vice President, Transmission &amp;            February 1998 to September
                      Distribution                                     2005
- --------------------- ------------------------------------------------ ----------------------------
Mahvash Yazdi         Senior Vice President, Business Integration,     September 2003 to present
                      and Chief Information Officer, Edison
                      International and SCE

                      Senior Vice President and Chief Information      January 2000 to September
                      Officer, SCE and Edison International            2003
- --------------------- ------------------------------------------------ ----------------------------


Page 18

- --------------------- ------------------------------------------------ ----------------------------
Lynda L. Ziegler      Senior Vice President, Customer Service, SCE     March 2006 to present

                      Vice President, Customer Programs and Services   May 2005 to February 2006
                      Division, SCE

                      Director, Customer Programs and Services         January 1999 to April 2005
                      Division, SCE
- --------------------- ------------------------------------------------ ----------------------------
Frederick J.          Vice President, Human Resources, Edison          January 2004 to present
Grigsby, Jr.          International and SCE

                      Vice President, Human Resources and Labor        July 2001 to December 2003
                      Relations, SCE
- --------------------- ------------------------------------------------ ----------------------------
Linda G. Sullivan     Vice President and Controller, Edison            June 2005 to present
                      International and SCE
                      Assistant Controller, Edison International       May 2002 to May 2005
                      Assistant Controller, SCE                        March 2005 to May 2005
                      Manager, Controllers Department, Edison          September 1999 to April
                      International                                    2002
                      Controller, Edison Select(3)                     September 1999 to August
                                                                       2001
- --------------------- ------------------------------------------------ ----------------------------

____________________
(1) Edison Capital is a subsidiary of Edison International and has investments worldwide in
    energy and infrastructure projects and affordable housing projects located throughout the
    United States.

(2) EME is a subsidiary of Edison International and is an independent power producer engaged
    in the business of owning or leasing, operating and selling energy and capacity from
    electric power generation facilities.

(3) Edison Select was a nonutility subsidiary of Edison International that was engaged in
    the business of offering retail products and services. Edison Select was sold in August
    2001.


                                           PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
         PURCHASES OF EQUITY SECURITIES

Certain information responding to Item 5 with respect to frequency and amount of cash
dividends is included in SCE's Annual Report to Shareholders for the year ended December 31,
2005 (Annual Report), under Quarterly Financial Data on page 80 and is incorporated herein
by this reference. As a result of the formation of a holding company described above in
Item 1, all of the issued and outstanding common stock of SCE is owned by Edison
International and there is no market for such stock.

Item 201(d) of Regulation S-K, "Securities Authorized For Issuance Under Equity Compensation
Plans," is not applicable because SCE has no compensation plans under which equity
securities of SCE are authorized for issuance.

ITEM 6.  SELECTED FINANCIAL DATA

Information responding to Item 6 is included in the Annual Report under "Selected Financial
and Operating Data:  2001-2005" on page 81, and is incorporated herein by this reference.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
         OPERATIONS

Information responding to Item 7 is included in the Annual Report on pages 1 through 34 and
is incorporated herein by this reference.


Page 19


ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information responding to Item 7A is included in the MD&amp;A under "Market Risk Exposures" on
pages 19 through 21.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Certain information responding to Item 8 is set forth after Item 15 in Part III. Other
information responding to Item 8 is included in the Annual Report on pages 37 through 41 and
is incorporated herein by this reference.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

SCE's management, under the supervision and with the participation of the company's Chief
Executive Officer and Chief Financial Officer, has evaluated the effectiveness of SCE's
disclosure controls and procedures (as that term is defined in Rules 13a-15(e) or 15d-15(e)
under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of
the period covered by this report. Based on that evaluation, the Chief Executive Officer and
Chief Financial Officer have concluded that, as of the end of the period, SCE's disclosure
controls and procedures are effective.

Change in Internal Control Over Financial Reporting

There were no changes in SCE's internal control over financial reporting (as such term is
defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) during the fiscal quarter
ended December 31, 2005 that have materially affected, or are reasonably likely to
materially affect, SCE's internal control over financial reporting.

For the reasons discussed in Note 1 of the Notes to Consolidated Financial Statements, SCE
has not designed, established, or maintained internal control over financial reporting for
four variable interest entities, referred to as "VIEs," that SCE was required to consolidate
under an accounting interpretation issued by the Financial Accounting Standards Board. SCE's
evaluation of internal control over financial reporting did not include these VIEs.

ITEM 9B.  OTHER INFORMATION

None.

                                           PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Information concerning executive officers of SCE is set forth in Part I in accordance with
General Instruction G(3), pursuant to Instruction 3 to Item 401(b) of Regulation S-K. Other
information responding to Item 10 will appear in SCE's definitive Proxy Statement (Proxy
Statement) to be filed with the SEC in connection with SCE's Annual Shareholders' Meeting to
be held on April 27, 2006, under the headings "Election of Directors, Nominees for Election"
and "Ethics and Compliance Code," and


Page 20

is incorporated herein by this reference. The SCE Board of Directors has determined that
Thomas C. Sutton, the Chair of the Board Audit Committee, is a financial expert under SEC
Guidelines and is independent under the New York Stock Exchange listing standards.

ITEM 11.  EXECUTIVE COMPENSATION

Information responding to Item 11 will appear in the Proxy Statement under the headings
"Director Compensation," "Executive Compensation:--Summary Compensation Table, Option/SAR
Grants in 2005, Aggregated Option/SAR Exercises in 2005 and FY-End Option/SAR Values,
Long-Term Incentive Plan Awards in Last Fiscal Year, Pension Plan Table, Other Retirement
Benefits, and Employment Contracts and Termination of Employment Arrangements," and
"Compensation and Executive Personnel Committees' Interlocks and Insider Participation," and
is incorporated herein by this reference.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Information responding to Item 12 will appear in the Proxy Statement under the headings
"Stock Ownership of Directors, Director Nominee, and Executive Officers" and "Stock Ownership
of Certain Shareholders," and is incorporated herein by this reference.

Item 201(d) of Regulation S-K, "Securities Authorized For Issuance Under Equity Compensation
Plans," is not applicable because SCE has no compensation plans under which equity
securities of SCE are authorized for issuance.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Information responding to Item 13 will appear in the Proxy Statement under the headings
"Certain Relationships and Transactions," and is incorporated herein by this reference.

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES

Information responding to Item 14 will appear in the Proxy Statement under the heading
"Independent Registered Public Accounting Firm Fees," and is incorporated herein by this
reference.

ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1)  Financial Statements
The following items contained in the Annual Report are found on pages 1 through 79, and are
incorporated herein by this reference.

        Management's Discussion and Analysis of Financial Condition and Results of Operations
        Report of Independent Registered Public Accounting Firm
        Consolidated Statements of Income - Years Ended December 31, 2005, 2004 and 2003
        Consolidated Statements of Comprehensive Income - Years Ended December 31, 2005,
           2004, and 2003
        Consolidated Balance Sheets - December 31, 2005 and 2004
        Consolidated Statements of Cash Flows - Years Ended December 31, 2005, 2004 and 2003
        Consolidated Statements of Changes in Common Shareholders' Equity - Years Ended
           December 31, 2005, 2004 and 2003
        Notes to Consolidated Financial Statements


Page 21


(a)(2)  Report of Independent Registered Public Accounting Firm and Schedules Supplementing
        Financial Statements

The following documents may be found in this report at the indicated page numbers:
                                                                                      Page
        Report of Independent Registered Public Accounting Firm
           on Financial Statement Schedules                                            23
        Schedule II - Valuation and Qualifying Accounts for the
           Year Ended December 31, 2005                                                24
           Year Ended December 31, 2004                                                25
           Year Ended December 31, 2003                                                26

Schedules I and III through V, inclusive, are omitted as not required or not applicable.

(a)(3)  Exhibits

See Exhibit Index beginning on page 28 of this report.

SCE will furnish a copy of any exhibit listed in the accompanying Exhibit Index upon written
request and upon payment to SCE of its reasonable expenses of furnishing such exhibit, which
shall be limited to photocopying charges and, if mailed to the requesting party, the cost of
first-class postage.



Page 22


                  Report of Independent Registered Public Accounting Firm on
                                Financial Statement Schedules







To the Board of Directors and
Shareholder of Southern California Edison Company



Our audits of the consolidated financial statements referred to in our report dated March 6,
2006, appearing in the 2005 Annual Report of Southern California Edison Company (which
report and consolidated financial statements are incorporated by reference in this Annual
Report on Form 10-K) also included an audit of the financial statement schedules listed in
Item 15(a)(2) of this Form 10-K. In our opinion, these financial statement schedules present
fairly, in all material respects, the information set forth therein when read in conjunction
with the related consolidated financial statements.




/s/ PricewaterhouseCoopers LLC
Los Angeles, California
March 6, 2006


Page 23



                              Southern California Edison Company

                       SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                             For the Year Ended December 31, 2005


                                                      Additions
                                              ------------------------
                              Balance at      Charged to    Charged to                 Balance
                             Beginning of      Costs and       Other                   at End
          Description           Period         Expenses      Accounts    Deductions   of Period
- ----------------------------------------------------------------------------------------------
                                                    (In millions)

Uncollectible Accounts:
    Customers                  $  24.0         $    8.4       $  --       $   10.5     $  21.9
    All other                      6.9              8.4          --            4.5        10.8
- ----------------------------------------------------------------------------------------------

Total                          $  30.9         $   16.8       $  --       $   15.0(a)  $  32.7
- ----------------------------------------------------------------------------------------------

____________________
(a) Accounts written off, net.



Page 24

                              Southern California Edison Company

                       SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                             For the Year Ended December 31, 2004


                                                      Additions
                                              -----------------------
                              Balance at      Charged to    Charged to                 Balance
                             Beginning of      Costs and       Other                   at End
          Description           Period         Expenses      Accounts    Deductions   of Period
- ----------------------------------------------------------------------------------------------
                                                    (In millions)

Uncollectible Accounts:
    Customers                  $  23.7         $   16.7       $  --       $   16.4     $  24.0
    All other                      6.6              3.3          --            3.0         6.9
- ----------------------------------------------------------------------------------------------

Total                          $  30.3         $   20.0       $  --       $   19.4(a)  $  30.9
- ----------------------------------------------------------------------------------------------

____________________
(a) Accounts written off, net.




Page 25

                              Southern California Edison Company

                       SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                             For the Year Ended December 31, 2003


                                                      Additions
                                              ------------------------
                              Balance at      Charged to    Charged to                 Balance
                             Beginning of      Costs and       Other                   at End
          Description           Period         Expenses      Accounts    Deductions   of Period
- ----------------------------------------------------------------------------------------------

                                                    (In millions)
Uncollectible Accounts:
    Customers                  $  30.0         $   19.2       $  --       $   25.5     $  23.7
    All other                      6.1              4.6          --            4.1         6.6
- ----------------------------------------------------------------------------------------------

Total                          $  36.1         $   23.8       $  --       $   29.6(a)  $  30.3
- ----------------------------------------------------------------------------------------------

____________________
(a) Accounts written off, net.




Page 26

                                          SIGNATURES

Pursuant to the  requirements  of Section 13 or 15(d) 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

                                                   By:

                                                   /s/ Linda G. Sullivan
                                                   ------------------------------------
                                                   Linda G. Sullivan
                                                   Vice President and Controller

                                                   Date:  March 7, 2006


Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  this report has been
signed below by the following  persons on behalf of the  registrant  and in the capacities and
on the date indicated.


     Signature                                    Title

Principal Executive Officer:            Chief Executive Officer and Director
    Alan J. Fohrer*

Principal Financial Officer:            Senior Vice President and
    Thomas M. Noonan*                   Chief Financial Officer


Controller or Principal Accounting Officer: Vice President and Controller
    Linda G. Sullivan

Board of Directors:

    John E. Bryson*                     Director
    France A. Cordova*                  Director
    Bradford M. Freeman*                Director
    Bruce Karatz*                       Director
    Luis G. Nogales*                    Director
    Ronald L. Olson*                    Director
    James M. Rosser*                    Director
    Richard T. Schlosberg, III*         Director
    Robert H. Smith*                    Director
    Thomas C. Sutton*                   Director

*By:


/s/ Linda G. Sullivan
- ------------------------------------
Linda G. Sullivan
    Vice President and Controller

Date:  March 7, 2006


Page 27

                                        EXHIBIT INDEX
                                        -------------

Exhibit
Number                                    Description
- -------                                   -----------

3.1        Certificate of Restated Articles of Incorporation of Southern California Edison
           Company, effective March 2, 2006
3.2        Amended Bylaws of Southern California Edison Company, as Adopted by the Board of
           Directors effective October 20, 2005 (File No. 1-2313, filed as Exhibit 3.1 to
           Southern California Edison Company's Form 8-K dated October 20, 2005, and filed
           October 26, 2005)*
4.1        Southern California Edison Company First Mortgage Bond Trust Indenture, dated as
           of October 1, 1923 (Registration No. 2-1369)*
4.2        Supplemental Indenture, dated as of March 1, 1927 (Registration No. 2-1369)*
4.3        Third Supplemental Indenture, dated as of June 24, 1935 (Registration No. 2-1602)*
4.4        Fourth Supplemental Indenture, dated as of September 1, 1935 (Registration No.
           2-4522)*
4.5        Fifth Supplemental Indenture, dated as of August 15, 1939 (Registration No.
           2-4522)*
4.6        Sixth Supplemental Indenture, dated as of September 1, 1940 (Registration No.
           2-4522)*
4.7        Eighth Supplemental Indenture, dated as of August 15, 1948 (Registration No.
           2-7610)*
4.8        Twenty-Fourth Supplemental Indenture, dated as of February 15, 1964 (Registration
           No. 2-22056)*
4.9        Eighty-Eighth Supplemental Indenture, dated as of July 15, 1992 (File No. 1-2313,
           Form 8-K dated July 22, 1992)*
4.10       Indenture, dated as of January 15, 1993 (File No. 1-2313, Form 8-K dated January
           28, 1993)*
10.1**     Form of 1981 Deferred Compensation Agreement (File No. 1-2313, filed as Exhibit
           10.2 to Southern California Edison Company's Form 10-K for the year ended
           December 31, 1981)*
10.2**     Form of 1985 Deferred Compensation Agreement for Executives (File No. 1-2313,
           filed as Exhibit 10.3 to Southern California Edison Company's Form 10-K for the
           year ended December 31, 1985)*
10.3**     Form of 1985 Deferred Compensation Agreement for Directors (File No. 1-2313,
           filed as Exhibit 10.4 to Southern California Edison Company's Form 10-K for the
           year ended December 31, 1985)*
10.4**     Director Deferred Compensation Plan as restated May 14, 2002 (File No. 1-9936,
           filed as Exhibit 10.1 to Edison International's Form 10-Q for the quarter ended
           June 30, 2002)*
10.4.1**   Director Deferred Compensation Plan Amendment No. 1, effective January 1, 2003
           (File No. 1-9936, filed as Exhibit 10.4.1 to Edison International's Form 10-K for
           the year ended December 31, 2002)*
10.5**     Director Grantor Trust Agreement, dated August 1995 (File No. 1-9936, filed as
           Exhibit 10.10 to Edison International's Form 10-K for the year ended December 31,
           1995)*


Page 28

10.5.1**   Director Grantor Trust Agreement Amendment 2002-1, effective May 14, 2002 (File
           No. 1-9936, filed as Exhibit 10.4 to Edison International's Form 10-Q for the
           quarter ended June 30, 2002)*
10.6**     Executive Deferred Compensation Plan, as amended and restated January 1, 1998
           (File No. 1-9936, filed as Exhibit 10.2 to Edison International's Form 10-Q for
           the quarter ended March 31, 1998)*
10.6.1**   Executive Deferred Compensation Plan Amendment No. 1, effective January 1, 2003
           (File No. 1-9936, filed as Exhibit 10.6.1 to Edison International's Form 10-K for
           the year ended December 31, 2002)*
10.7**     Executive Grantor Trust Agreement, dated August 1995 (File No. 1-9936, filed as
           Exhibit 10.12 to Edison International's Form 10-K for the year ended December 31,
           1995)*
10.7.1**   Executive Grantor Trust Agreement Amendment 2002-1, effective May 14, 2002 (File
           No. 1-9936, filed as Exhibit 10.3 to Edison International's Form 10-Q for the
           quarter ended June 30, 2002)*
10.8**     Executive Supplemental Benefit Program, as amended January 30, 1990 (File
           No. 1-9936, filed as Exhibit 10.2 to Edison International's Form 10-Q for the
           quarter ended September 30, 1999)*
10.9**     Dispute resolution amendment, adopted November 30, 1989 of 1981 Executive
           Deferred Compensation Plan and 1985 Executive and Director Deferred Compensation
           Plans (File No. 1-9936, filed as Exhibit 10.21 to Edison International's Form
           10-K for the year ended December 31, 1998)*
10.10**    Executive Retirement Plan as restated effective April 1, 1999 (File No. 1-9936,
           filed as Exhibit 10.1 to Edison International's Form 10-Q for the quarter ended
           September 30, 1999)*
10.10.1**  Executive Retirement Plan Amendment 2001-1, effective March 12, 2001 (File No.
           1-9936, filed as Exhibit 10.1 to Edison International's Form 10-Q for the quarter
           ended March 31, 2001)*
10.10.2**  Executive Retirement Plan Amendment 2002-1, effective January 1, 2003 (File No.
           1-9936, filed as Exhibit 10.10.2 to Edison International's Form 10-K for the year
           ended December 31, 2002)*
10.11**    Executive Incentive Compensation Plan, effective January 1, 1997 (File No.
           1-9936, filed as Exhibit 10.12 to Edison International's Form 10-K for the year
           ended December 31, 1997)*
10.12**    Executive Disability and Survivor Benefit Program, effective January 1, 1994
           (File No. 1-9936, filed as Exhibit 10.22 to Edison International's Form 10-K for
           the year ended December 31, 1994)*
10.13**    Retirement Plan for Directors, as amended February 19, 1998 (File No. 1-9936,
           filed as Exhibit 10.2 to Edison International's Form 10-Q for the quarter ended
           June 30, 1998)*
10.14**    Officer Long-Term Incentive Compensation Plan as amended January 1, 1998 (File
           No. 1-9936, filed as Exhibit 10.3 to Edison International's Form 10-Q for the
           quarter ended March 31, 1998)*
10.15**    Equity Compensation Plan as restated effective January 1, 1998 (File No. 1-9936,
           filed as Exhibit 10.1 to Edison International's Form 10-Q for the quarter ended
           June 30, 1998)*
10.15.1**  Equity Compensation Plan Amendment No. 1, effective May 18, 2000 (File No.
           1-9936, filed as Exhibit 10.4 to Edison International's Form 10-Q for the quarter
           ended June 30, 2000)*
10.16**    2000 Equity Plan, effective May 18, 2000 (File No. 1-9936, filed as Exhibit 10.1
           to Edison International's Form 10-Q for the quarter ended June 30, 2000)*


Page 29

10.17**    Terms and conditions for 1996 long-term compensation awards under the Officer
           Long-Term Incentive Compensation Plan (File No. 1-9936, filed as Exhibit 10.16.2
           to Edison International's Form 10-K for the year ended December 31, 1996)*
10.18**    Terms and conditions for 1997 long-term compensation awards under the Officer
           Long-Term Incentive Compensation Plan (File No. 1-9936, filed as Exhibit 10.16.3
           to Edison International's Form 10-K for the year ended December 31, 1997)*
10.19**    Terms and conditions for 1998 long-term compensation awards under the Equity
           Compensation Plan (File No. 1-9936, filed as Exhibit 10.4 to Edison
           International's Form 10-Q for the quarter ended June 30, 1998)*
10.20**    Terms and conditions for 1999 long-term compensation awards under the Equity
           Compensation Plan (File No. 1-9936, filed as Exhibit 10.1 to Edison
           International's Form 10-Q for the quarter ended March 31, 1999)*
10.21**    Terms and conditions for 2000 basic long-term incentive compensation awards under
           the Equity Compensation Plan, as restated (File No. 1-9936, filed as Exhibit 10.2
           to Edison International's Form 10-Q for the quarter ended March 31, 2000)*
10.22**    Terms and conditions for 2000 special stock option awards under the Equity
           Compensation Plan and 2000 Equity Plan (File No. 1-9936, filed as Exhibit 10.2 to
           Edison International's Form 10-Q for the quarter ended June 30, 2000)*
10.23**    Terms and conditions for 2001 retention incentives under the Equity Compensation
           Plan (File No. 1-9936, filed as Exhibit 10.5 to Edison International's Form 10-Q
           for the quarter ended March 31, 2001)*
10.24**    Terms and conditions for 2001 exchange offer deferred stock units under the
           Equity Compensation Plan (File No. 1-9936, filed as Attachment C of Exhibit
           (a)(1) to Edison International's Schedule TO-I dated October 26, 2001)*
10.25**    Terms and conditions for 2002 long-term compensation awards under the Equity
           Compensation Plan and 2000 Equity Plan (File No. 1-9936, filed as Exhibit 10.1 to
           Edison International's Form 10-Q for the quarter ended March 31, 2002)*
10.26**    Terms and conditions for 2003 long-term compensation awards under the Equity
           Compensation Plan and 2000 Equity Plan (File No. 1-9936, filed as Exhibit 10.1 to
           Edison International's Form 10-Q for the quarter ended March 31, 2003)*
10.27**    Terms and conditions for 2004 long-term compensation awards under the Equity
           Compensation Plan and 2000 Equity Plan (File No. 1-9936, filed as Exhibit 10.1 to
           Edison International's Form 10-Q for the quarter ended March 31, 2004)*
10.28**    Terms and conditions for 2005 long-term compensation award under the Equity
           Compensation Plan and 2000 Equity Plan (File No. 1-9936, filed as Exhibit 99.2 to
           Edison International's Form 8-K dated December 16, 2004 and filed on December 22,
           2004)*
10.29**    Terms and conditions for 2006 long-term compensation awards under the Equity
           Compensation Plan and 2000 Equity Plan (File No. 1-9936, filed as Exhibit 10.29 to
           Edison International's Form 10-K for the year ended December 16, 2005)*
10.30**    Director Nonqualified Stock Option Terms and Conditions under the Equity
           Compensation Plan (File No. 1-9936, filed as Exhibit 10.1 to Edison
           International's Form 10-Q for the quarter ended June 30, 2002)*
10.31**    Director 2004 Nonqualified Stock Option Terms and Conditions under the Equity
           Compensation Plan (File No. 1-9936, filed as Exhibit 10.1 to Edison
           International's Form 10-Q for the quarter ended June 30, 2004.)*
10.32**    Estate and Financial Planning Program as amended April 23, 1999 (File No. 1-9936,
           filed as Exhibit 10.2 to Edison International's Form 10-Q for the quarter ended
           June 30, 1999)*
10.33**    Option Gain Deferral Plan as restated September 15, 2000 (File No. 1-9936, filed
           as Exhibit 10.25 to Edison International's Form 10-K for the year ended December
           31, 2000)*


Page 30

10.34**    Resolution regarding the computation of disability and survivor benefits prior to
           age 55 for Alan J. Fohrer dated February 17, 2000 (File No. 1-9936, filed as
           Exhibit 10.2 to Edison International's Form 10-Q for the quarter ended March 31,
           2000)*
10.35**    Executive Severance Plan as adopted effective January 1, 2001 (File No. 1-9936,
           filed as Exhibit 10.34 to Edison International's Form 10-K for the year ended
           December 31, 2001)*
10.36**    Amendment to 1985 Deferred Compensation Plan Agreement for Executives and
           Deferred Compensation Plan Deferred Compensation Agreement with John E. Bryson,
           dated December 31, 2003 (File No. 1-2313, filed as Exhibit 10.34 to Southern
           California Edison Company's Form 10-K for the year ended December 31, 2003)*
10.37**    Agreement between Edison International and Southern California Edison Company,
           dated December 31, 2003, addressing responsibility for the prospective costs of
           participation of John E. Bryson under the 1985 Deferred Compensation Plan
           Agreement for Executives, dated September 27, 1985, as amended, and the Deferred
           Compensation Plan Deferred Compensation Agreement, dated November 28, 1984, as
           amended (File No. 1-2313, filed as Exhibit 10.35 to Southern California Edison
           Company's Form 10-K for the year ended December 31, 2003)*
10.38**    Amendment to 1985 Deferred Compensation Plan Agreement for Directors with
           James M. Rosser, dated December 31, 2003 (File No. 1-2313, filed as Exhibit 10.36
           to Southern California Edison Company's Form 10-K for the year ended December 31,
           2003)*
10.39**    Amendment to 1985 Deferred Compensation Plan Agreement for Executives and
           Deferred Compensation Plan Deferred Compensation Agreement with Harold B. Ray
           dated December 31, 2003 (File No. 1-2313, filed as Exhibit 10.37 to SCE Form 10-K
           for the year ended December 31, 2003)*
10.40**    Edison International Director Compensation Schedule, adopted May 19, 2005, as
           amended (File No. 1-9936, filed as Exhibit 10.48 to Edison International's Form
           10-K for the year ended December 31, 2005)*
10.41**    Edison International Director Nonqualified Stock Options 2005 Terms and
           Conditions (File No. 1-9936, filed as Exhibit 99.3 to Edison International's Form
           8-K dated May 19, 2005, and filed on May 25, 2005)*
10.42**    Retirement Agreement, dated as of August 25, 2005, between Southern California
           Edison Company and Robert Foster (File No. 1-2313, filed as Exhibit 10.1 to
           Southern California Edison Company's Form 8-K dated August 25, 2005 and filed on
           August 26, 2005)*
10.43**    Consulting Agreement, dated as of August 25, 2005, between Southern California
           Edison Company and Robert Foster (File No. 1-2313, filed as Exhibit 10.2 to
           Southern California Edison Company's Form 8-K dated August 25, 2005, and filed on
           August 26, 2005)*
10.44**    Legal Fees Reimbursement, dated September 2005 between Southern California Edison
           Company and Robert Foster (File No. 1-2313, filed as Exhibit 10.3 to Southern
           California Edison Company's Form 10-Q for the quarter ended September 30, 2005)*
10.45**    Edison International Director Nonqualified Stock Options 2005 Terms and
           Conditions (File No. 1-2313, filed as Exhibit 99.3 to Edison International's Form
           8-K dated May 19, 2005, and filed on May 25, 2005)*
10.46**    Consulting Agreement, dated as of December 14, 2005, between Southern California
           Edison Company and Harold B. Ray (File No. 1-2313, filed as Exhibit 10.2 to
           Southern California Edison Company's Form 8-K dated December 15, 2005, and filed
           on December 21, 2005)*


Page 31

10.47**    Director Deferred Compensation Plan Authorization of Edison International and
           Southern California Edison Company (File No. 1-2313, to Southern California
           Edison Company's Form 8-K dated December 30, 2004, and filed on January 5, 2005)*
10.48**    Form of Indemnity Agreement between Southern California Edison Company and its
           Directors and any officer, employee or other agent designated by the Board of
           Directors (File No. 1-2313, filed as Exhibit 10.5 to Southern California Edison
           Company's Form 10-Q for the period ended June 30, 2005, and filed on August 9,
           2005)*
10.49**    Edison International Executive Perquisites (File No. 1-9936, filed as Exhibit 10.56
           to Edison International's Form 10-K for the year ended December 31, 2005)*
10.50**    Deferred Compensation Program Amendments (File No. 1-9936, filed as Exhibit 10.55
           to Edison International's Form 10-K for the year ended December 31, 2005)*
10.51**    Southern California Edison Company Named Executive Officer Base Salaries for 2006
10.52.1    Amended and Restated Agreement for the Allocation of Income Tax Liabilities and
           Benefits among Edison International, Southern California Edison Company and The
           Mission Group dated September 10, 1996 (File No. 1-9936, filed as Exhibit 10.3 to
           Edison International's Form 10-Q for the quarter ended September 30, 2002)*
10.52.2    Administrative Agreement re Tax Allocation Payments among Edison International,
           Southern California Edison Company, The Mission Group, Edison Capital, Mission
           Energy Holding Company, Edison Mission Energy, Edison O&amp;M Services, Edison
           Enterprises, and Mission Land Company dated July 2, 2001 (File No. 1-9936, filed
           as Exhibit 10.3.4 to Edison International's Form 10-Q for the quarter ended
           September 30, 2002)*
10.53      Amended and Restated Credit Agreement, dated December 15, 2005 among Southern
           California Edison Company and JPMorgan Chase Bank, N.A., as Administrative Agent,
           Citicorp North America, Inc., as Syndication Agent, and Credit Suisse First
           Boston, Lehman Commercial Paper, Inc., and Wells Fargo Bank, N.A., as
           Documentation Agents (File No. 1-2313, to Southern California Edison Company's
           Form 8-K dated December 15, 2006 and filed on December 21, 2005)*
12         Computation of Ratios of Earnings to Fixed Charges
13         Selected portions of the Annual Report to Shareholders for year ended
           December 31, 2005
23         Consent of Independent Registered Public Accounting Firm - PricewaterhouseCoopers
           LLP
24.1       Power of Attorney
24.2       Certified copy of Resolution of Board of Directors Authorizing Signature
31.1       Certification of the Chief Executive Officer pursuant to Section 302 of the
           Sarbanes-Oxley Act
31.2       Certification of the Chief Financial Officer pursuant to Section 302 of the
           Sarbanes-Oxley Act
32         Statement Pursuant to 18 U.S.C. Section 1350

_____________
  *   Incorporated by reference pursuant to Rule 12b-32.
 **   Indicates a management  contract or  compensatory  plan or  arrangement,  as required by
      Item 15(a)3.


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<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>restatedarts.htm
<DESCRIPTION>CERT. OF RESTATED ARTICLES OF INCORPORATION
<TEXT>
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<HEAD>
<TITLE>SCE Restated Articles of Incorporation </TITLE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATE OF</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>RESTATED ARTICLES OF INCORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>The undersigned, ROBERT C. BOADA and BARBARA E. MATHEWS, hereby certify that they are the duly elected and acting Vice President and Treasurer, and Vice President, Associate General Counsel, Chief Governance Officer and Corporate Secretary, respectively, of SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation, and that the Articles of Incorporation of said corporation shall be restated as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&#147;RESTATED ARTICLES OF INCORPORATION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>OF</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="285" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>First:  The name of the corporation is:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Second:  The purpose of the corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of California other than the banking business, the trust company business or the practice of a profession permitted to be incorporated by the California Corporations Code.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="235" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="187" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Third:  Intentionally omitted.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="241" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="193" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fourth:  Intentionally omitted.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fifth:  SPECIAL VOTING PROVISIONS:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>1.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The preferred capital stock of the corporation may be increased or diminished at a meeting of the shareholders of said corporation by a vote representing at least two-thirds of the entire subscribed or issued capital stock of the corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>2.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Whenever six or more quarterly dividends, whether consecutive or not, payable with respect to any one or more series of the Cumulative Preferred Stock, 4.32% Series, 4.08% Series, 4.24% Series or 4.78% Series, of the corporation (such series being hereinafter collectively referred to in this paragraph 2 as &#147;Preferred Stock&#148;), shall be in default, and until all such Preferred Stock dividends then in default shall have been paid or declared and set apart for payment, the holders of Preferred Stock, voting separately as a single class and on the basis of the voting rights set forth in Article Sixth hereof, shall be entitled to elect two (2) directors to the Board of Directors of the corporation, and the holders of all the outstanding shares of the capital stock of the
corporation, exercising the voting rights conferred by Article Sixth and by law, shall be entitled to elect the remaining exact number of authorized directors.  The special voting power to elect directors conferred by this paragraph 2 upon the holders of Preferred Stock (herein called the &#147;Preferred Stock special voting right&#148;) shall terminate, subject to renewal from time to time upon the same terms and conditions, when all such dividends in default shall have been paid or declared and set apart for payment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>The Preferred Stock special voting right shall vest the day after the corporation defaults in the payment of a dividend on any one or more series or classes of the Preferred Stock which, together with prior continuing and concurrent defaults in the payment of dividends on any one or more series or classes of the Preferred Stock, aggregate six defaults in the quarterly dividend payments on any one or more series or classes of the Preferred Stock.  Upon such vesting, the Preferred Stock special voting right may be first exercised at the next scheduled annual meeting of shareholders of the corporation unless the Preferred Stock special voting right vests on a date falling on or after December 31 of any year and on or prior to the scheduled date of the annual meeting next following such December 31, in which case the Preferred Stock special voting right may be first exercised at a special
meeting of shareholders of the corporation, which may be held for such purpose upon call and notice as provided in the Bylaws of the corporation then in effect, not earlier than sixty (60) days after the date of such annual meeting.  If such special meeting shall not have been called within ten (10) days after personal service or fifteen (15) days after mailing by registered mail within the United States of America, of a request for the holding of such meeting by the record holders of at least 10% of the shares of Preferred Stock then outstanding addressed to the Secretary at the principal executive office of the corporation, then a person designated by the record holders of at least 10% of the shares of Preferred Stock then outstanding may call such meeting at the place and upon the notice provided in the Bylaws, and for that purpose shall have access to the stock records of the corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Except as provided in the next sentence, if the Preferred Stock special voting right shall terminate, the holders of all the outstanding shares of the capital stock of the corporation, exercising the voting rights conferred by Article Sixth and by law, shall be entitled to elect all directors comprising the authorized number of directors.  If the Preferred Stock special voting right shall terminate after a date which precedes by ten (10) days the proposed date of mailing of notice of any meeting of shareholders at which said right was to be exercised and before the date of said meeting, no election of directors shall occur at said meeting and the election of directors shall occur thereafter at a special or annual meeting of shareholders which may be held for such purpose upon call (in the case of a special meeting) and notice as provided in the Bylaws of the corporation then in effect
within ninety (90) days after the date of such prior special or annual meeting of shareholders; provided, however, that no special meeting of shareholders to elect directors shall be required if such terminated Preferred Stock special voting right has never been exercised.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>At any special or annual meeting of shareholders of the corporation at which the Preferred Stock special voting right shall be exercisable, the holders of the Preferred Stock may exercise the right to elect two directors to the Board of Directors prior to the exercise of the right of the holders of all of the outstanding shares of the capital stock of the corporation to elect the remaining members of the Board of Directors.  The terms of office of all persons who are directors of the corporation immediately prior to such meeting shall terminate upon the election of their successors.  Nothing herein contained shall be construed to be a bar to the reelection of any director at any special or annual meeting of shareholders at which the Preferred Stock special voting right is exercised.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Upon termination of the Preferred Stock special voting right, the term of office of all the directors of the corporation shall terminate upon the election of their successors at a meeting of the shareholders of the corporation then entitled to vote.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Sixth:</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>1.  AUTHORIZED CAPITAL:  The corporation is authorized to issue the following designated classes of shares of stock with the following number of shares per class:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Cumulative Preferred Stock</font></u><font size=2>--twenty-four million (24,000,000) shares with a par value of $25 per share;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>$100 Cumulative Preferred Stock</font></u><font size=2>--twelve million (12,000,000) shares with a par value of $100 per share;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="589" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td width="445" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Preference Stock</font></u><font size=2>--fifty million (50,000,000) shares with no par value; and</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Common Stock</font></u><font size=2>--five hundred sixty million (560,000,000) shares with no par value.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>2.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>CUMULATIVE PREFERRED STOCK AND $100 CUMULATIVE PREFERRED STOCK:  Shares of the Cumulative Preferred Stock may be issued from time to time in one or more series, and shares of the $100 Cumulative Preferred Stock may be issued from time to time in one or more series.  Each series of Cumulative Preferred Stock and each series of $100 Cumulative Preferred Stock shall be so designated as to distinguish it from other series of such stock.  Such designation may include an appropriate reference to its dividend rate and any other characteristics.  The Board of Directors is hereby authorized, within the limitations and restrictions stated in this Article, to fix or alter, from time to time, the dividend rights, dividend rate, conversion rights, voting rights (in addition to the voting
rights hereinafter provided), rights and terms of redemption (including sinking fund provisions), the redemption price or prices and/or the liquidation preferences of any wholly unissued series of Cumulative Preferred Stock and of any wholly unissued series of $100 Cumulative Preferred Stock, and to fix the number of shares constituting any unissued series.  The term &#147;fixed for such series&#148; and correlative terms shall be deemed to mean as stated in a resolution or resolutions adopted by the Board of Directors in exercise of the authority granted by this paragraph.  The term &#147;Board of Directors,&#148; as used in this Article Sixth, shall be deemed to include any duly authorized and functioning committee of the Board of Directors of the corporation, to the extent such committee is permitted to exercise the powers of the Board of Directors under the California General Corporation Law.  The number of shares of Cumulative Preferred Stock, 4.78% Series, heretofore fixed by
the resolution of the Board of Directors set forth in the Certificate of Determination of Preferences of said 4.78% Series filed in the office of the Secretary of State of the State of California on February 10, 1958, is determined to be 1,296,769.  The dividend rate, redemption price, and voluntary liquidation preferences of shares of said 4.78% Series shall be as heretofore fixed by the resolution of the Board of Directors set forth in said Certificate of Determination of Preferences.  In addition to any other rights, preferences, privileges and restrictions that the Board of Directors may grant to or impose upon any wholly unissued series of Cumulative Preferred Stock or any wholly unissued series of $100 Cumulative Preferred Stock, all of the holders of shares of Cumulative Preferred Stock and $100 Cumulative Preferred Stock shall be subject to the following rights, preferences, privileges and restrictions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Dividend Rights</font></b><font size=2>:  The holders of the Cumulative Preferred Stock of each series and the holders of the $100 Cumulative Preferred Stock of each series, in preference to the holders of the Preference Stock and the Common Stock, shall be entitled to receive, when and as declared by the Board of Directors out of any funds legally available therefor, cash dividends at the rate fixed for such series, and no more, payable quarterly on such dates as may be determined by the Board of Directors with respect to the quarterly period (or, in the case of initial issuance of any shares of any series, with respect to the portion of such period) ending on each such respective payment date.  Such dividends with respect to any particular shares of such stock shall be
cumulative from the first day of the quarterly period in which such shares were issued or, in the case of initial issuance of any shares of any series, from the date of issuance thereof.  No dividend shall be paid upon, or declared or set apart for, any share of Cumulative Preferred Stock or any share of $100 Cumulative Preferred Stock for any current dividend period if dividends on any series of Cumulative Preferred Stock or any series of $100 Cumulative Preferred Stock are accumulated and unpaid for any prior quarterly dividend period, or, in the case of payment of dividend arrearages on Cumulative Preferred Stock or on $100 Cumulative Preferred Stock, unless at the same time a like proportionate dividend for the </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>same or corresponding dividend period, ratably in proportion to the respective annual dividend rates fixed therefor, shall be paid upon, or declared and set apart for, all shares of Cumulative Preferred Stock and $100 Cumulative Preferred Stock of all series then issued and outstanding and entitled to receive such dividend.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>In no event, so long as any shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock shall be outstanding, shall any dividend, whether in cash or property, be paid or declared, nor shall any distribution be made, on the Preference Stock or the Common Stock, nor shall any shares of Preference Stock or Common Stock be purchased, redeemed or otherwise acquired for value by the corporation, unless all dividends on the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock of all series for all past quarterly dividend periods shall have been paid or declared and set apart.  The foregoing provisions of this subparagraph shall not, however, apply to a dividend payable in Preference Stock or Common Stock or to the acquisition of any shares of Preference Stock or Common Stock in exchange for, or through application of the proceeds of the sale of, any
shares of Preference Stock or Common Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Liquidation Rights:</font></b><font size=2>  In the event of any voluntary liquidation, dissolution or winding up of the affairs of the corporation, then, before any distribution or payment shall be made to the holders of the Preference Stock or the Common Stock, the holders of the Cumulative Preferred Stock and the holders of the $100 Cumulative Preferred Stock shall be entitled to be paid in full the liquidation preferences fixed by the Board of Directors for the respective series thereof, together with an amount equal to all accumulated and unpaid dividends thereon to and including the date fixed for such distribution or payment.  In the event of any involuntary liquidation, dissolution or winding up of the affairs of the corporation, then, before any distribution or payment
shall be made to the holders of the Preference Stock or the Common Stock, the holders of the Cumulative Preferred Stock shall be entitled to be paid the sum of twenty-five dollars ($25) per share, and the holders of the $100 Cumulative Preferred Stock shall be entitled to be paid the sum of one hundred dollars ($100) per share, together, in the case of each class, with an amount equal to all accumulated and unpaid dividends thereon to and including the date fixed for such distribution or payment.  If, upon any liquidation, dissolution or winding up of the affairs of the corporation, the amounts so payable are not paid in full to the holders of all outstanding shares of Cumulative Preferred Stock and $100 Cumulative Preferred Stock the holders of all series of Cumulative Preferred Stock and all series of $100 Cumulative Preferred Stock shall share ratably in any distribution of assets to shares of such classes in proportion to the full amounts to which they would otherwise be
respectively entitled.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Voting Rights:</font></b><font size=2>  The Cumulative Preferred Stock, 4.32% Series, 4.08% Series, 4.24% Series and 4.78% Series, shall be entitled to voting rights on the basis of six votes per share. The Cumulative Preferred Stock and the $100 Cumulative Preferred Stock shall also, in addition to such voting rights as may be fixed for any series thereof, be entitled to the following voting rights:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Cumulative Preferred Stock are outstanding, the consent of the holders of at least two-thirds of the Cumulative Preferred Stock at the time outstanding, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any amendment of the Articles of Incorporation which would change any outstanding shares of Cumulative Preferred Stock in any one or more of the following respects:  (1) to authorize the corporation to levy assessments thereon; (2) to reduce the dividend rate thereof; (3) to make noncumulative, in whole or in part, the dividends payable with respect thereto; (4) to reduce the redemption price thereof; (5) to reduce any amount payable thereon upon voluntary or involuntary liquidation; (6) to eliminate, diminish or alter adversely conversion rights pertaining thereto; (7) to diminish or eliminate voting rights pertaining thereto; (8) to rearrange the priority of outstanding shares of Cumulative Preferred Stock so as to make them subject to the preferences of other then outstanding shares as to distributions by way of dividends or otherwise; provided, however, that if such amendment changes in any of the
foregoing respects one or more but not all series of Cumulative Preferred Stock at the time outstanding, only the consent of the holders of at least two-thirds of each series so affected shall be required;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the authorization or creation, or the increase in the authorized amount, of any stock of any class or any security convertible into stock of any class, ranking senior to the Cumulative Preferred Stock; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(iii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2> the consolidation or merger of the corporation; provided, however, that this restriction shall not apply to, nor shall it operate to prevent, a consolidation or merger of the corporation with a subsidiary of the corporation, if none of the voting powers, rights or preferences of the holders of the Cumulative Preferred Stock will be adversely affected thereby, and if none of the property or business theretofore owned or operated by the corporation will thereby become subject to the lien of any mortgage, deed of trust or other encumbrance of such subsidiary, and if the company resulting from or surviving such consolidation or merger will be authorized to carry on the business then being conducted by the corporation and will have authorized and outstanding, after such consolidation or merger, no
stock of any class or other securities ranking senior to or on a parity with the Cumulative Preferred Stock, or securities convertible into any such stock or securities, except the same number of shares of stock and the same amount of other securities with the same voting powers, rights and preferences as the stock and securities of the corporation authorized and outstanding immediately preceding such consolidation or merger, and if each holder of Cumulative Preferred Stock at the time of such consolidation or merger will receive the same number of shares, with the same voting powers, rights and preferences, of the resulting or surviving company as he held of the Cumulative Preferred Stock; and provided, further, that in the event of the amendment of the applicable laws of the State of California so as to permit the consolidation or merger of the corporation upon the vote of the holders of less than two-thirds of the outstanding shares of each class of stock of the corporation, then
the consent of the holders of only such lesser proportion of the Cumulative Preferred Stock at the time outstanding (but in no event of less than a majority thereof) shall be necessary for effecting or validating the consolidation or merger of the  corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>provided, however, that no such consent of the holders of the Cumulative Preferred Stock shall be required if, at or prior to the time when such amendment is to take effect or when the authorization, creation or increase in the authorized amount of any such senior stock or </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>convertible security is to be made, or when such consolidation or merger is to take effect, as the case may be, provision is to be made as provided in the third paragraph of subparagraph (d) of this paragraph 2 for the redemption of all shares of Cumulative Preferred Stock at the time outstanding or, in the case of any such amendment as to which the consent of less than all series of the Cumulative Preferred Stock would otherwise be required, for the redemption of all shares of the series of Cumulative Preferred Stock the consent of which would otherwise be required.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Cumulative Preferred Stock are outstanding, the consent of the holders of at least majority of the Cumulative Preferred Stock at the time outstanding, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(i)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the increase in the authorized amount of the Cumulative Preferred Stock or the $100 Cumulative Preferred Stock or the authorization or creation, or the increase in the authorized amount, of any new class of stock ranking on a parity with the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock or of any security convertible into Cumulative Preferred Stock or $100 Cumulative Preferred Stock or into stock of any class ranking on a parity with the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the sale, lease or conveyance of all or substantially all of the property or business of the corporation, or the parting with control thereof; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(iii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2> the issue of any additional shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock (or the reissue of any shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock) or any shares of stock of any class ranking senior to or on a parity with the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock, unless the consolidated income of the corporation and its subsidiaries (determined as hereinafter provided) for any thirty-six consecutive calendar months within the thirty-nine calendar months immediately preceding the month within which the issuance of such additional shares is authorized by the Board of Directors of the corporation shall have been in the aggregate not less than one and one-half times the sum of the interest requirements for three years
on all of the funded indebtedness and other borrowings of the corporation and its subsidiaries to be outstanding at the date of such proposed issue and the full dividend requirements for three years on all shares of Cumulative Preferred Stock and $100 Cumulative Preferred Stock and all other stock, if any, ranking senior to or on a parity with the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock to be outstanding at the date of such proposed issue, including the shares then proposed to be issued but excluding any such indebtedness and borrowings and any such shares proposed to be retired in connection with such issue.  &#147;Consolidated income&#148; for any period for all purposes of this paragraph 2 shall be computed by adding to the consolidated net income of the corporation and its subsidiaries for said period (determined as hereinafter provided) the amount deducted for interest on funded indebtedness and other borrowings of the corporation and its subsidiaries
in determining such consolidated net income.  &#147;Consolidated net income&#148; for any period for all purposes of this paragraph 2 shall be as determined by independent certified public accountants of </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>national reputation selected by the corporation, and in determining such consolidated net income for any period, there shall be deducted, in addition to other items of expense, the amount charged to income for said period on the books of the corporation and its subsidiaries for taxes and the provisions for depreciation as recorded on such books or the minimum amount required therefor under the provisions of any then existing general indenture of mortgage or deed of trust of the corporation, whichever  is larger; and the Board of Directors of the corporation may, in the exercise of their discretion, make adjustments by way of increase or decrease in such consolidated net income to give effect to changes therein resulting from any acquisition of properties or to any redemption, acquisition, purchase, sale or exchange of securities by the corporation or its subsidiaries either prior to the
issuance of any shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock or stock ranking senior to or on a parity therewith then to be issued or in connection therewith.  The term &#147;subsidiary&#148; shall mean, for all purposes of this paragraph 2, any company of which the corporation, directly or through another subsidiary, owns or controls a majority of the outstanding shares of stock entitling the holders thereof to elect a majority of the directors of such company, either at all times or so long as there is no default in the payment of dividends upon any stock having a preference or priority over such stock;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>provided, however, that no such consent of the holders of the Cumulative Preferred Stock shall be required if, at or prior to the time when the increase in the authorized amount of the Cumulative Preferred Stock or the $100 Cumulative Preferred Stock or the authorization or creation or increase in the authorized amount of any such parity stock or any such convertible security, or any such sale, lease, conveyance, or parting with control, or the issue of any such additional shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock or any such senior or parity stock, as the case may be, is to be made, provision is to be made as provided in the third paragraph of subparagraph (d) of this paragraph 2 for the redemption of all shares of Cumulative Preferred Stock at the time outstanding.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(3)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of $100 Cumulative Preferred Stock are outstanding, the consent of the holders of at least two-thirds of the $100 Cumulative Preferred Stock at the time outstanding, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(i)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any amendment of the Articles of Incorporation which would change any outstanding shares of $100 Cumulative Preferred Stock in any one or more of the following respects: (1) to authorize the corporation to levy assessments thereon; (2) to reduce the dividend rate thereof; (3) to make noncumulative, in whole or in part, the dividends payable with respect thereto; (4) to reduce the redemption price thereof; (5) to reduce any amount payable thereon upon voluntary or involuntary liquidation; (6) to eliminate, diminish or alter adversely conversion rights pertaining thereto; (7) to diminish or eliminate voting rights pertaining thereto; (8) to rearrange the priority of outstanding shares of $100 Cumulative Preferred Stock so as to make them subject to the preferences of other then
outstanding shares as to distributions by way of dividends or otherwise; provided, however, that if such amendment changes in any of the foregoing respects one or more but not all series of $100 Cumulative Preferred Stock at the time outstanding, </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>only the consent of the holders of at least two-thirds of each series so affected shall be required;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the authorization or creation, or the increase in the authorized amount, of any stock of any class or any security convertible into stock of any class, ranking senior to the $100 Cumulative Preferred Stock; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(iii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the consolidation or merger of the corporation; provided, however, that this restriction shall not apply to, nor shall it operate to prevent, a consolidation or merger of the corporation with a subsidiary of the corporation, if none of the voting powers, rights or preferences of the holders of the $100 Cumulative Preferred Stock will be adversely affected thereby, and if none of the property or business theretofore owned or operated by the corporation will thereby become subject to the lien of any mortgage, deed of trust or other encumbrance of such subsidiary, and if the company resulting from or surviving such consolidation or merger will be authorized to carry on the business then being conducted by the corporation and will have  authorized and outstanding, after such consolidation or
merger, no stock of any class or other securities ranking senior to or on a parity with the $100 Cumulative Preferred Stock, or securities convertible into any such stock or securities, except the same number of shares of  stock and the same amount of other securities with the same voting powers, rights and preferences as the stock and securities of the corporation authorized and outstanding immediately preceding such consolidation or merger, and if each holder of $100 Cumulative Preferred Stock at the time of such consolidation or merger will receive the same number of shares, with the same voting powers, rights and preferences, of the resulting or surviving company as he held of the $100 Cumulative Preferred Stock; and provided further, that in the event of the amendment of the applicable laws of the State of California so as to permit the consolidation or merger of the corporation upon the vote of the holders of less than two-thirds of the outstanding shares of each class of stock
of the corporation, then the consent of the holders of only such lesser proportion of the $100 Cumulative Preferred Stock at the time outstanding (but in no event of less than a majority thereof) shall be necessary for effecting or validating the consolidation or merger of the corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>provided, however, that no such consent of the holders of the $100 Cumulative Preferred Stock shall be required if, at or prior to the time when such amendment is to take effect or when the authorization, creation or increase in the authorized amount of any such senior stock or convertible security is to be made, or when such consolidation or merger is to take effect, as the case may be, provision is to be made as provided in the third paragraph of subparagraph (d) of this paragraph 2 for the redemption of all shares of $100 Cumulative Preferred Stock at the time outstanding or, in the case of any such amendment as to which the consent of less than all series of the $100 Cumulative Preferred Stock would otherwise be required, for the redemption of all shares of the series of $100 Cumulative Preferred Stock the consent of which would otherwise be required.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(4)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of $100 Cumulative Preferred Stock are outstanding, the consent of the holders of at least a majority of the $100 Cumulative Preferred Stock at the time outstanding, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(i)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the increase in the authorized amount of the $100 Cumulative Preferred Stock or the Cumulative Preferred Stock or the authorization or creation, or the increase in the authorized amount, of any new class of stock ranking on a parity with the $100 Cumulative Preferred Stock and the Cumulative Preferred Stock or of any security convertible into $100 Cumulative Preferred Stock or Cumulative Preferred Stock or into stock of any class ranking on a parity with the $100 Cumulative Preferred Stock and the Cumulative Preferred Stock;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the sale, lease or conveyance of all or substantially all of the property or business of the corporation, or the parting with control thereof; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>(iii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the issue of any additional shares of $100 Cumulative Preferred Stock or Cumulative Preferred Stock (or the reissue of any shares of $100 Cumulative Preferred Stock or Cumulative Preferred Stock) or any shares of stock of any class ranking senior to or on a parity with the $100 Cumulative Preferred Stock and the Cumulative Preferred Stock, unless the consolidated income of the corporation and its subsidiaries (determined as provided in this paragraph 2) for any thirty-six consecutive calendar months within the thirty-nine calendar months immediately preceding the month within which the issuance of such additional shares is authorized by the Board of Directors of the corporation shall have been in the aggregate not less than one and one-half times the sum of the interest requirements for three
years on all of the funded indebtedness and other borrowings of the corporation and its subsidiaries to be outstanding at the date of such proposed issue and the full dividend requirements for three years on all shares of $100 Cumulative Preferred Stock and Cumulative Preferred Stock and all other stock, if any, ranking senior to or on a parity with the $100 Cumulative Preferred Stock and the Cumulative Preferred Stock to be outstanding at the date of such proposed issue, including the shares then proposed to be issued but excluding any such indebtedness and borrowings and any such shares proposed to be retired in connection with such issue;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>provided, however, that no such consent of the holders of the $100 Cumulative Preferred Stock shall be required if, at or prior to the time when the increase in the authorized amount of the $100 Cumulative Preferred Stock or the Cumulative Preferred Stock or the authorization or creation or increase in the authorized amount of any such parity stock or any such convertible security, or any such sale, lease, conveyance, or parting with control, or the issue of any such additional shares of $100 Cumulative Preferred Stock or Cumulative Preferred Stock or any such senior or parity stock, as the case may be, is to be made, provision is to be made as provided in the third paragraph of subparagraph (d) of this paragraph 2 for the redemption of all shares of $100 Cumulative Preferred Stock at the time outstanding.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Redemption:</font></b><font size=2>  Except as otherwise provided in subparagraph (e) of this paragraph&nbsp;2, the Cumulative Preferred Stock or the $100 Cumulative Preferred Stock of any series may be redeemed, as a whole or in part, at the option of the corporation, by vote of its Board of Directors, at any time or from time to time (subject to any special provisions affecting or limitations on such right to redeem which may be fixed with respect to any particular series of Cumulative Preferred Stock or $100 Cumulative Preferred Stock), at the applicable redemption price fixed for </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>such series which shall include an amount equal to all accumulated and unpaid dividends thereon to and including the date of redemption.  If less than all the outstanding shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock of any series first issued prior to August 14, 1973, are to be redeemed, the shares to be redeemed shall be determined prior to the time of each such partial redemption by lot in such manner as the Board of Directors may prescribe.  If less than all the outstanding shares of the Cumulative Preferred Stock or $100 Cumulative Preferred Stock of any series first issued on or subsequent to August 14, 1973, are to be redeemed, the shares to be redeemed shall be determined prior to the time of each such partial redemption either by lot in such manner as the Board of Directors may prescribe or, in the alternative at the discretion of the Board of Directors,
pro rata to the nearest whole share.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>Notice of every redemption of Cumulative Preferred Stock or $100 Cumulative Preferred Stock shall be given by the corporation by causing a notice thereof to be published in a newspaper printed in the English language and published and of general circulation in the City of Los Angeles, California, and in one such newspaper published and of general circulation in the Borough of Manhattan, the City of New York, New York, in each instance at least once a week for two (2) successive weeks and in each instance on any day of the week, commencing not earlier than sixty (60) nor later than thirty (30) days before the date fixed for redemption.  It shall be the duty of the corporation to mail a copy of such notice, postage prepaid, to each holder of record of the shares to be redeemed as of the record date, addressed to such holder at his address appearing on the books of the
corporation, not earlier than sixty (60) nor later than thirty (30) days before the date fixed for redemption, but the failure to mail such notice as aforesaid shall not invalidate the redemption of such shares.  The publication of notice in accordance with the foregoing procedure may be dispensed with in the discretion of the Board of Directors in any case where it determines that the outstanding shares of any series of Cumulative Preferred Stock or $100 Cumulative Preferred Stock are held by no more than ten (10) holders of record, but in any such case, the copy of such notice of redemption specified above shall be delivered by messenger or mailed by registered or certified mail to the address and within the times specified above.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>If the corporation shall deposit on or prior to any date fixed for redemption of Cumulative Preferred Stock or $100 Cumulative Preferred Stock, with any bank or trust company having a capital, surplus and undivided profits aggregating at least five million dollars ($5,000,000), as a trust fund, a fund sufficient to redeem the shares called for redemption, with irrevocable instructions and authority to such bank or trust company to publish the notice of redemption thereof (or to complete such publication if theretofore commenced) and to pay on and after the date fixed for redemption or such earlier date as the Board of Directors may determine, to the respective holders of such shares, the redemption price thereof upon the surrender of their share certificates, then from and after the date of such deposit (although prior to the date fixed for redemption) such shares so
called shall be deemed to be redeemed and dividends thereon shall cease to accrue after said date fixed for redemption and such deposit shall be deemed to constitute full payment of said shares to the holders thereof and thereafter said shares shall no longer be deemed to be outstanding, and the holders thereof shall cease to be shareholders with respect to such shares, and shall have no rights with respect thereto except only the right to receive from said bank or trust company payment of the redemption price of such shares without interest, upon surrender of their certificates therefor, and the right to exercise, on or before the date fixed for redemption, any right to convert or exchange said shares which may then exist.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>Any moneys deposited by the corporation pursuant to this subparagraph (d) which shall not be required for the redemption because of the exercise of any such right of conversion or exchange subsequent to the date of the deposit shall be repaid to the corporation forthwith.  Any other moneys </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>deposited by the corporation pursuant to this subparagraph (d) and unclaimed at the end of six years from the date fixed for redemption shall be repaid to the corporation upon its request expressed in a resolution of its Board of Directors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Miscellaneous:</font></b><font size=2> If at any time dividends on any of the outstanding shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock, or on any shares of stock of any class ranking on a parity with the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock, shall be in default, thereafter and until all arrears in payment of quarterly dividends on the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock have been paid, or deposited with any bank or trust company having a capital, surplus and undivided profits aggregating at least five million dollars ($5,000,000) in trust for payment on or before the next succeeding dividend payment date, the corporation shall not redeem less than all of the Cumulative Preferred Stock and the
$100 Cumulative Preferred Stock at the time outstanding and shall not purchase or otherwise acquire for value any Cumulative Preferred Stock or $100 Cumulative Preferred Stock except in accordance with offers made to all holders of Cumulative Preferred Stock and $100 Cumulative Preferred Stock, which offers shall bear a reasonably proportional relationship to the par values and market prices per share of the respective classes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>Except when required by law and except as otherwise provided in this Article, or as may be fixed with respect to any particular series, whenever shares of two or more series of the Cumulative Preferred Stock are outstanding, no particular series of the Cumulative Preferred Stock of all series shall be entitled to vote or consent as a separate series on any matter and all shares of Cumulative Preferred Stock of all series shall be deemed to constitute but one class for any purpose for which a vote or consent of the shareholders by classes may now or hereafter be required.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>Except when required by law and except as otherwise provided in this Article, or as may be fixed with respect to any particular series, whenever shares of two or more series of the $100 Cumulative Preferred Stock are outstanding, no particular series of the $100 Cumulative Preferred Stock of all series shall be entitled to vote or consent as a separate series on any matter and all shares of $100 Cumulative Preferred Stock of all series shall be deemed to constitute but one class for any purpose for which a vote or consent of the shareholders by classes may now or hereafter be required.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>Any shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock which are converted, redeemed or retired shall thereafter have the status of authorized but unissued shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock, as the case may be, of the corporation, and may thereafter be reissued by the Board of Directors in the same manner as any other authorized and unissued shares of Cumulative Preferred Stock or $100 Cumulative Preferred Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>Neither the consolidation or merger of the corporation nor the sale or transfer of all or a part of its assets nor the expropriation, condemnation or seizure of all or a part of its assets by any governmental body or authority shall be deemed a liquidation, dissolution or winding up of the affairs of the corporation within the meaning of this paragraph 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>3.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>PREFERENCE STOCK.  Shares of the Preference Stock may be issued from time to time in one or more series.  To the extent not prohibited by law, the Board of Directors is authorized (i) to fix the number of shares of any series of Preference Stock and to determine the designation of any such series, (ii) to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>wholly unissued series of Preference Stock, including but not limited to rights, preferences, privileges and restrictions regarding dividends (including provisions specifying dividends at a floating or variable rate or dividends to be determined by reference to an index, formula, auction, bid or other objectively ascertainable criterion), liquidation, conversion, redemption and voting (including provisions specifying no general voting rights or voting rights of more than one vote per share), and (iii) within the limits and restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any such series subsequent to the issue of shares of that series.  Whenever in this paragraph 3 the Board of Directors is authorized
to &#147;fix,&#148; &#147;determine,&#148; &#147;alter,&#148; &#147;increase&#148; or &#147;decrease&#148; the number of shares, designation, rights, preferences, privileges or restrictions of any series of the Preference Stock, the Board of Directors (including any committee thereof) shall take such action by resolution, but such resolution may specify any of the foregoing matters by reference to indexes, formulas, conversion rates or other objectively ascertainable criteria.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>4.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>COMMON STOCK:  Subject to the preferential rights above provided in this Article, or granted pursuant to this Article, with respect to the Cumulative Preferred Stock, the $100 Cumulative Preferred Stock and the Preference Stock, the Common Stock and/or the holders thereof shall have the following dividend rights, liquidation rights and voting rights:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Dividend Rights:</font></b><font size=2>  The holders of the Common Stock shall be entitled to dividends when and as declared by the Board of Directors out of any funds legally available therefor, in such amounts and at such times as the Board of Directors may from time to time determine.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Liquidation Rights:</font></b><font size=2>  In the event of any liquidation, dissolution or winding up, whether voluntary or involuntary, of the corporation, the remaining assets and funds of the corporation shall be distributed ratably to the holders of the Common Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Voting Rights:</font></b><font size=2>  The Common Stock shall be entitled to voting rights on the basis of one vote per share.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="311" style='border-collapse:collapse'>
    <tr >
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        <td width="263" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Seventh:  BUSINESS COMBINATIONS:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>1.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>In addition to any affirmative vote required by law or these Articles of Incorporation, and except as otherwise expressly provided in paragraph 2 of this Article Seventh, none of the following transactions shall be consummated unless and until such transaction shall have been approved by the affirmative vote of the holders of at least eighty percent (80%) of the voting power of the then outstanding shares of stock of the corporation entitled to vote generally in the election of directors (the &#147;Voting Stock&#148;), voting together as a single class (it being understood that for purposes of this Article Seventh, each share of the Voting Stock shall have the number of votes granted to it pursuant to Article Sixth of these Articles of Incorporation):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any merger or consolidation of the corporation or any Subsidiary (as hereinafter defined) with (i) any Interested Shareholder (as hereinafter defined) or (ii) any other corporation (whether or not itself an Interested Shareholder) which is, or after such merger or consolidation would be, an Affiliate (as hereinafter defined) of an Interested Shareholder; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of related transactions) to or with any Interested Shareholder or any Affiliate of any Interested Shareholder of any assets of the corporation or any Subsidiary having an aggregate </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>Fair Market Value (as hereinafter defined) of more than ten percent (10%) of the total book value of the assets of the corporation and its consolidated subsidiaries as shown on the most recently available quarterly consolidated balance sheet of the corporation; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the issuance or transfer by the corporation or any Subsidiary (in one transaction or a series of related transactions) of any securities of the corporation or any Subsidiary to any Interested Shareholder or any Affiliate of any Interested Shareholder having an aggregate Fair Market Value (as hereinafter defined) of more than ten percent (10%) of the total book value of the assets of the corporation and its consolidated subsidiaries as shown on the most recently available quarterly consolidated balance sheet of the corporation; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the adoption of any plan or proposal for the spin-off, split-off or split-up of the corporation or any material Subsidiary proposed by or on behalf of an Interested Shareholder or any Affiliate of any Interested Shareholder; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any reclassification of any securities of the corporation (including any reverse stock split), any recapitalization of the capital stock of the corporation, any merger or consolidation of the corporation with or into any of its Subsidiaries, or any other transaction (whether or not with or involving any Interested Shareholder), which has the effect, directly or indirectly, of increasing the proportionate share of the outstanding shares of any class of stock or series thereof of the corporation or of any Subsidiary directly or indirectly Beneficially Owned (as hereinafter defined) by any Interested Shareholder or as a result of which the shareholders of the corporation would cease to be shareholders of a corporation incorporated under the laws of the State of California having, as
parts of its articles of incorporation, provisions to the same effect as this Article Seventh; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(f)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any agreement, contract or other arrangement providing for any of the transactions described in the foregoing paragraphs (a) through (e).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>The term &#147;Business Combination&#148; as used in this Article Seventh shall mean any transaction or proposed transaction which is referred to in any one or more of the foregoing subparagraphs (a) through (f) of this paragraph 1.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>2.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The provisions of paragraph 1 of this Article Seventh shall not be applicable to any particular Business Combination, and such Business Combination shall require only such affirmative vote of shareholders, if any, as is required by law and any other provision of any Article hereof, if such Business Combination has been approved by at least a majority of the Disinterested Directors (as hereinafter defined) at the time or if all the conditions specified in the following subparagraphs (a), (b), (c), (d), (e) and (f) are satisfied:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The aggregate amount of the cash and the Fair Market Value as of the date of the consummation of the Business Combination of any consideration other than cash to be received per share by holders of Common Stock in such Business Combination shall be at least equal to the higher of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>(if applicable) the Highest Per Share Price (as hereinafter defined) paid in order to acquire any shares of Common Stock beneficially owned by the Interested Shareholder which were acquired beneficially by such Interested Shareholder (x) within the two-year period immediately prior to the first public announcement of the proposal of the </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="96" valign=top >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Business Combination (the &#147;Announcement Date&#148;) or (y) in the transaction in which it became an Interested Shareholder, whichever is higher; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the Fair Market Value per share of Common Stock on the Announcement Date or on the date on which the Interested Shareholder became an Interested Shareholder (such later date is referred to in this Article Seventh as the &#147;Determination Date&#148;), whichever is higher.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The aggregate amount of the cash and the Fair Market Value as of the date of the consummation of the Business Combination of consideration other than cash to be received per share by holders of shares of any class or series of outstanding Voting Stock other than the Common Stock shall be at least equal to the highest of the following (it being intended that the requirements of this subparagraph (b) shall be required to be met with respect to every such class or series of outstanding Voting Stock, whether or not the Interested Shareholder beneficially owns any shares of a particular class or series of Voting Stock):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>(if applicable) the Highest Per Share Price (as hereinafter defined) paid in order to acquire any shares of such class or series of Voting Stock beneficially owned by the Interested Shareholder which were acquired beneficially by such Interested Shareholder (x) within the two-year period immediately prior to the Announcement Date or (y) in the transaction in which it became an Interested Shareholder, whichever is higher; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>(if applicable) the highest preferential amount per share to which the holders of shares of such class or series of Voting Stock are entitled in the event of any voluntary or involuntary liquidation, dissolution or winding up of the corporation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(3)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the Fair Market Value per share of such class or series of Voting Stock on the Announcement Date or on the Determination Date, whichever is higher.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The consideration to be received by holders of a particular class or series of outstanding Voting Stock (including Common Stock) shall be in cash or in the same form as the Interested Shareholder has previously paid in order to acquire beneficially shares of such class or series of Voting Stock that are beneficially owned by the Interested Shareholder and, if the Interested Shareholder beneficially owns shares of any class or series of Voting Stock that were acquired with varying forms of consideration, the form of consideration to be received by holders of such class or series of Voting Stock shall be either cash or the form used to acquire beneficially the largest number of shares of such class or series of Voting Stock beneficially acquired by it prior to the Announcement Date.
The price determined in accordance with paragraphs 2(a) and 2(b) shall be subject to appropriate adjustment in the event of any stock dividend, stock split, combination of shares or similar event.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>After such Interested Shareholder has become an Interested Shareholder and prior to the consummation of such Business Combination: (i) except as approved by at least a majority of the Disinterested Directors, there shall have been no failure to declare and pay at the regular dates therefor the full amount of any dividends (whether or not cumulative) payable on any class or series of stock having a preference over the Common Stock as to dividends or upon liquidation; (ii) there shall have been (x) no reduction in the annual rate of dividends paid on the Common Stock (except as necessary to reflect any subdivision of the Common Stock), except as approved by at least a majority of the Disinterested Directors, and (y) an increase in such annual rate of dividends (as necessary to prevent
any such reduction) in the event of any reclassification (including any reverse </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>stock split), recapitalization, reorganization or any similar transaction which has the effect of reducing the number of outstanding shares of the Common Stock, unless the failure to increase such annual rate was approved by at least a majority of the Disinterested Directors; and (iii) such Interested Shareholder shall have not become the beneficial owner of any additional shares of Voting Stock except as part of the transaction which results in such Interested Shareholder becoming an Interested Shareholder or as a result of a pro rata stock dividend or stock split.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>After such Interested Shareholder has become an Interested Shareholder, such Interested Shareholder shall not have received the benefit, directly or indirectly (except proportionally as a shareholder), of any loans, advances, guarantees, pledges or other financial assistance or any tax credits or other tax advantages provided by the corporation, whether in anticipation of or in connection with such Business Combination or otherwise.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(f)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>A proxy or information statement describing the proposed Business Combination and complying with the requirements of the Securities Exchange Act of 1934 and the rules and regulations thereunder (or any subsequent provisions replacing such Act, rules or regulations) shall be mailed to public shareholders of the Corporation at least 30 days prior to the consummation of such Business Combination (whether or not such proxy or information statement is required to be mailed pursuant to such Act or subsequent provisions).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="349" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td width="253" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>For the purposes of this Article Seventh:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="573" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td width="429" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>A &#147;person&#148; shall mean any individual, firm, corporation or other entity.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Interested Shareholder&#148; shall mean any person or group (other than this corporation or any Subsidiary or any compensation plan or any benefit plan of this corporation or any Subsidiary or any trustee of, or fiduciary with respect to, any such plan when acting in such capacity, or any corporation formed pursuant to a resolution of the Board of Directors of this corporation which was approved by at least a majority of the Disinterested Directors as defined hereinafter) who or which:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>is the Beneficial Owner, directly or indirectly, of more than ten percent (10%) of the voting power of the outstanding Voting Stock;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>is an Affiliate of the corporation and at any time within the two-year period immediately prior to the date in question was the Beneficial Owner, directly or indirectly, of ten percent (10%) or more of the voting power of the then outstanding Voting Stock; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(3)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>is an assignee of or has otherwise succeeded to any shares of Voting Stock representing more than one percent (1%) of the voting power of the outstanding Voting Stock, which shares were at any time within the two-year period immediately prior to the date in question beneficially owned by any Interested Shareholder, if such assignment or succession shall have occurred in the course of a transaction or series of transactions not involving a public offering within the meaning of the Securities Act of 1933.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="515" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td width="371" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>A person shall be a &#147;Beneficial Owner&#148; of any Voting Stock:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>which such person or any of its Affiliates or Associates (as hereinafter defined) beneficially owns, directly or indirectly; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>which such person or any of its Affiliates or Associates has (i) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise, or (ii) the right to vote or direct the vote pursuant to any agreement, arrangement or understanding; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(3)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>which are beneficially owned, directly or indirectly, by any other person with which such person or any of its Affiliates or Associates has any agreement, arrangement or understanding for the purposes of acquiring, holding, voting or disposing of any shares of Voting Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>For the purposes of determining whether a person is an Interested Shareholder pursuant to subparagraph (b) of paragraph 3 of this Article Seventh, the number of shares of Voting Stock deemed to be outstanding shall include shares deemed owned through application of subparagraph (c) of paragraph 3 of this Article Seventh but shall not include any other shares of Voting Stock which may be issuable pursuant to any agreement, arrangement or understanding or upon exercise of conversion rights, warrants or options, or otherwise.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The term &#147;Affiliate,&#148; used to indicate a relationship to a specified person, means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified person. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(f)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The term &#147;Associate,&#148; used to indicate a relationship with a specified person, means (i) any corporation, partnership or other organization of which such specified person is an officer or partner (ii) any trust or other estate in which such specified person has a substantial beneficial interest or as to which such specified person serves as trustee or in a similar fiduciary capacity, (iii) any relative or spouse of such specified person, or any relative of such spouse, who has the same home as such specified person or who is a director or officer of the Corporation or any of its parents or subsidiaries and (iv) any person who is a director, officer or partner of such specified person or of any corporation (other than the corporation or any wholly-owned Subsidiary of the
corporation), partnership or other entity which is an Affiliate of such specified person.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(g)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Subsidiary&#148; means any corporation of which a majority of any class of equity security is owned, directly or indirectly, by the corporation or by a Subsidiary of the corporation or by the corporation and one or more Subsidiaries; provided, however, that for the purposes of the definition of Interested Shareholder set forth in paragraph (b) of paragraph 3 of this Article Seventh the term &#147;Subsidiary&#148; shall mean only a corporation of which a majority of each class of equity security is owned, directly or indirectly, by the corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(h)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Disinterested Director&#148; means any member of the Board of Directors of the corporation who was a member of the Board of Directors of the corporation on April 16, 1987, or who became a member of the Board of Directors of the corporation subsequent to that time and who is unaffiliated with, and not a nominee or representative of, an Interested Shareholder and who is recommended to succeed a Disinterested Director by at least a majority of Disinterested Directors then on the Board of Directors.  Any reference to &#147;Disinterested Directors&#148; shall refer to a single Disinterested Director if there be but one.  Any reference under this Article Seventh to an approval, designation or determination by &#147;a majority of the Disinterested Directors&#148; of the Board of
Directors shall mean such approval, designation or determination by not less than a majority of the Disinterested Directors then serving on the Board of Directors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>19</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(i)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Fair Market Value&#148; means: (i) in the case of stock, the highest closing sale price during the 30-day period immediately preceding the date in question of a share of such stock on the Composite Tape, for New York Stock Exchange-Listed Stocks, or, if such stock is not quoted on the Composite Tape on the New York Stock Exchange, or, if such stock is not listed on such Exchange, on the principal United States securities exchange registered under the Securities Exchange Act of 1934 on which such stock is listed, or, if such stock is not listed on any such exchange, the highest closing sales price or bid quotation with respect to a share of such stock during the 30-day period preceding the date in question on the National Association of Securities Dealers, Inc. Automated
Quotations Systems or any system then in use, or if no such quotations are available, the fair market value on the date in question of a share of such stock as determined by at least a majority of the Disinterested Directors in good faith, in each case with respect to any class of stock, appropriately adjusted for any dividend or distribution in shares of such stock or any stock split or reclassification of outstanding shares of such stock into a greater number of shares of such stock or any combination or reclassification of outstanding shares of such stock into a smaller number of shares of such stock; and (ii) in the case of stock of any class or series which is not traded on any United States registered securities exchange nor in the over-the-counter market or in the case of property other than cash or stock, the fair market value of such property on the date in question as determined by at least a majority of the Disinterested Directors in good faith; and such determination by
the Disinterested Directors shall be conclusive and binding for all purposes of this Article Seventh.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(j)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>References to &#147;Highest Per Share Price&#148; with respect to any class of stock, means the highest amount of consideration paid for a share of such stock (including, without limitation, any brokerage commissions, transfer taxes and soliciting dealers' fees) and shall reflect an appropriate adjustment for any dividend or distribution in shares of such stock or any stock split or reclassification of outstanding shares of such stock into a greater number of shares of such stock or any combination or reclassification of outstanding shares of such stock into a smaller number of shares of such stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(k)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>In the event of any Business Combination in which the corporation survives, the phrase &#147;consideration other than cash to be received&#148; as used in subparagraphs (a) and (b) of paragraph 2 of this Articles Seventh shall include the shares of Common Stock and/or the shares of any other class of outstanding Voting Stock retained by the holders of such shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>4.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>At least a majority of the Disinterested Directors of the corporation shall have the power and duty to make a good faith determination, on the basis of information known to them, of all facts necessary to determine compliance with this Article Seventh, including without limitation:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="429" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td width="285" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>whether a person is an Interested Shareholder;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="581" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td width="437" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the number of shares of Voting Stock beneficially owned by any person;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="487" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td width="343" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>whether a person is an Affiliate or Associate of another;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>whether the assets which are the subject of any Business Combination, or the securities issued or transferred by the corporation or any Subsidiary in any Business Combination, have an aggregate Fair Market Value of more than ten percent (10%) of the total book value of the assets of the corporation and its consolidated subsidiaries as shown on the most recently available quarterly consolidated balance sheet of the corporation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="621" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td width="477" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>whether the requirements of paragraph 2 of this Article Seventh have been met.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Such determination by a majority of the Disinterested Directors shall be conclusive and binding for all purposes of this Article Seventh.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>5.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Nothing contained in this Article Seventh shall be construed to relieve any Interested Shareholder from any fiduciary obligation imposed by law.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>6.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The fact that a Business Combination complies with the provisions of Section 2 of this Article Seventh shall not be construed to impose any fiduciary duty, obligation or responsibility on the Board of Directors, or any member thereof, to approve such Business Combination or recommend its adoption or approval to the shareholders of the corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>7.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>In addition to any affirmative vote required by law of these Articles of Incorporation, a proposal that the provisions of this Article Seventh be altered, amended or repealed in any respect, or any provision inconsistent therewith be adopted, shall require either (i) the affirmative vote of the holders of at least eighty percent (80%) of the voting power of the then outstanding Voting Stock voting together as a single class or (ii) approval by at least a majority of the Disinterested Directors and the affirmative vote of the holders of at least fifty percent (50%) of the voting power of the then outstanding Voting Stock together as a single class.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Eighth:  LIMITATION ON LIABILITY OF DIRECTORS AND AUTHORITY TO INDEMNIFY AGENTS:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>1.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The liability of directors of the corporation for monetary damages shall be eliminated to the fullest extent permissible under California law.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>2.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The corporation is authorized to provide indemnification of agents (as defined in Section&nbsp;317 of the California Corporations Code) through bylaw provisions, agreements with agents, vote of shareholders or disinterested directors, or otherwise, in excess of the indemnification otherwise permitted by Section 317 of the California Corporations Code, subject only to the applicable limits set forth in Section&nbsp;204 of the California Corporations Code.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Ninth:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE CUMULATIVE PREFERRED STOCK, 4.32% SERIES: The Certificate of Determination of Preferences of the Cumulative Preferred Stock, 4.32% Series, which is attached hereto as Exhibit A is hereby incorporated by reference as Article Ninth of these Articles of Incorporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Tenth:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE CUMULATIVE PREFERRED STOCK, 4.08% SERIES: The Certificate of Determination of Preferences of the Cumulative Preferred Stock, 4.08% Series, which is attached hereto as Exhibit B is hereby incorporated by reference as Article Tenth of these Articles of Incorporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Eleventh:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE CUMULATIVE PREFERRED STOCK, 4.24% SERIES: The Certificate of Determination of Preferences of the Cumulative Preferred, 4.24% Series, which is attached hereto as Exhibit C is hereby incorporated by reference as Article Eleventh of these Articles of Incorporation.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>21</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Twelfth:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE CUMULATIVE PREFERRED STOCK, 4.78% SERIES: The Certificate of Determination of Preferences of the Cumulative Preferred Stock, 4.78% Series, which is attached hereto as Exhibit D is hereby incorporated by reference as Article Twelfth of these Articles of Incorporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Thirteenth:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE SERIES A PREFERENCE STOCK: The Certificate of Determination of Preferences of the Series A Preference Stock, which is attached hereto as Exhibit E is hereby incorporated by reference as Article Thirteenth of these Articles of Incorporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Fourteenth:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE SERIES B PREFERENCE STOCK: The Certificate of Determination of Preferences of the Series B Preference Stock, which is attached hereto as Exhibit F is hereby incorporated by reference as Article Fourteenth of these Articles of Incorporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Fifteenth:  CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE SERIES C PREFERENCE STOCK: The Certificate of Determination of Preferences of the Series C Preference Stock, which is attached hereto as Exhibit G is hereby incorporated by reference as Article Fifteenth of these Articles of Incorporation.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>This Certificate of Restated Articles of Incorporation does not itself alter or amend the Articles of Incorporation of Southern California Edison Company in any respect; provided however, that all of the shares of $100 Cumulative Preferred Stock, 7.23% Series and 6.05% Series, have been reacquired and, pursuant to California Corporations Code Section 510, references to such series have been deleted.  The Board of Directors of Southern California Edison Company has approved this Certificate of Restated Articles of Incorporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>IN WITNESS WHEREOF, the undersigned have executed this certificate on this 1st day of March, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert C. Boada&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="189" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President and Treasurer</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of Southern California Edison Company</font></p> </td>
        <td  width="32">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="288" ></td>

        <td width="28" ></td>

        <td width="32" ></td>

        <td width="189" ></td>

        <td width="31" ></td>

        <td width="32" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="6" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barbara E. Mathews&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President, Associate General Counsel, Chief</font></p> </td>
        <td  width="5">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Governance Officer and Corporate Secretary of</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Southern California Edison Company</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="288" ></td>

        <td width="7" ></td>

        <td width="29" ></td>

        <td width="237" ></td>

        <td width="27" ></td>

        <td width="7" ></td>

        <td width="5" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>DECLARATION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>The undersigned ROBERT C. BOADA and BARBARA E. MATHEWS, the Vice President and Treasurer, and Vice President, Associate General Counsel, Chief Governance Officer and Corporate Secretary, respectively, of Southern California Edison Company, each declares under penalty of perjury under the laws of the State of California that the matters set forth in the foregoing certificate are true and correct of his own knowledge.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="448" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="400" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Executed at Rosemead, California on this 1st day of March, 2006.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert C. Boada&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="189" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President and Treasurer</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of Southern California Edison Company</font></p> </td>
        <td  width="32">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="288" ></td>

        <td width="28" ></td>

        <td width="32" ></td>

        <td width="189" ></td>

        <td width="31" ></td>

        <td width="32" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="6" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barbara E. Mathews&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President, Associate General Counsel, Chief</font></p> </td>
        <td  width="5">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Governance Officer and Corporate Secretary of</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Southern California Edison Company</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="288" ></td>

        <td width="7" ></td>

        <td width="29" ></td>

        <td width="237" ></td>

        <td width="27" ></td>

        <td width="7" ></td>

        <td width="5" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>23</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="632" style='border-collapse:collapse'>
    <tr >
        <td width="540" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>EXHIBIT A</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Certificate of Determination of Preferences of the</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Cumulative Preferred Stock, 4.32% Series</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>We, the undersigned, being the President and the Secretary, respectively, of Southern California Edison Company (hereinafter called the &#147;corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>DO HEREBY CERTIFY:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>First: The Articles of Incorporation of the corporation, as amended, authorize the issue of 6,000,000 shares of Cumulative Preferred Stock: which may be issued from time to time in one or more series, and authorize the Board of Directors, within the limitations and restrictions stated therein, to fix or alter, from time to time, the dividend rate, conversion rights, voting rights (in addition to the voting rights provided in such Articles), redemption price and/or the liquidation preferences of any wholly unissued series of Cumulative Preferred Stock, and to fix the number of shares constituting any unissued series.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>Second: The Board of Directors of the corporation at a meeting duly called and held on May 6, 1947, in the City of Los Angeles, California, at which meeting a quorum was present and acting throughout, did duly adopt the following resolutions authorizing and providing for the creation of a series of said Cumulative Preferred Stock to be known as Cumulative Preferred Stock: 4.32% Series:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.35in;text-align:left;'><font size=2> &#147;Resolved, that 1,653,429 shares of the presently authorized but unissued Cumulative Preferred Stock of the par value of twenty-five dollars ($25) each of the corporation, be and hereby are determined to be and shall be of a series of said Cumulative Preferred Stock hereby designated as the Cumulative Preferred Stock, 4.32% Series; and further</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>Resolved, that the dividend rate, redemption price and voluntary liquidation preferences of shares of such series be and the same are hereby fixed, respectively, as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.35in;text-align:left;'><font size=2> (A) The dividend rate of such series shall be four and thirty-two one-hundredths per centum (4.32%) per annum of the par value of the shares thereof. Dividends on such series, when and as declared, shall be payable quarterly on March 31, June 30, September 30 and December 31.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.35in;text-align:left;'><font size=2> (B) The redemption price from time to time of such series shall be: twenty-nine and 50/100 dollars ($29.50) per share if redeemed on or before May 31, 1952; twenty-nine and 25/100 dollars ($29.25) per share if redeemed thereafter and on or before May 31, 1957; twenty-nine and 00/100 dollars ($29.00) per share if redeemed thereafter and on or before May 31, 1962; and twenty-eight and 75/100 dollars ($28.75) per share if redeemed thereafter; together, in each case, with an amount equal to all accumulated and unpaid dividends to and including the date of redemption.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.35in;text-align:left;'><font size=2> (C) The liquidation preferences payable with respect to such series in the event of voluntary, liquidation, dissolution or winding up of the affairs of the corporation shall be the same as the redemption price for shares of such series current on the date of the commencement of the proceedings for such voluntary liquidation, dissolution or winding up, including an amount equal to all accumulated and unpaid </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>dividends thereon to and including the date of distribution or payment.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>IN WITNESS WHEREOF this certificate is made under the seal of said Southern California Edison Company and signed by, W. C. Mullendore, its President. and O. V. Showers, its Secretary, this 6th day of May, 1947.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="552" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>W. C. MULLENDORE</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>----------------------------------</font></p> </td>
        <td  width="16">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(W. C. Mullendore)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="347" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="9" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>President of Southern California</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="123" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company.</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="347" ></td>

        <td width="16" ></td>

        <td width="8" ></td>

        <td width="11" ></td>

        <td width="7" ></td>

        <td width="123" ></td>

        <td width="4" ></td>

        <td width="13" ></td>

        <td width="8" ></td>

        <td width="16" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="553" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>O. V. SHOWERS</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>----------------------------------</font></p> </td>
        <td  width="17">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(O. V. Showers)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="347" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="9" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Secretary of Southern California</font></p> </td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company.</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="347" ></td>

        <td width="16" ></td>

        <td width="24" ></td>

        <td width="1" ></td>

        <td width="4" ></td>

        <td width="115" ></td>

        <td width="4" ></td>

        <td width="1" ></td>

        <td width="24" ></td>

        <td width="17" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="271" style='border-collapse:collapse'>
    <tr >
        <td width="224" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>STATE OF CALIFORNIA</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  width="21">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="224" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)  ss:</font></p> </td> </tr>
    <tr >
        <td width="224" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>COUNTY OF LOS ANGELES</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  width="21">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.61in;text-align:left;'><font size=2>On this 6th day of May, 1947, before me, Barbara Rowe, a Notary Public in and for said County and State, residing therein, duly commissioned and sworn, personally appeared W. C. MULLENDORE, known to me to be the President and O. V. SHOWERS, known to me to be the Secretary, of SOUTHERN CALIFORNIA EDISON COMPANY, the corporation referred to in the foregoing certificate, and known to me to be the persons who executed said certificate as such officers, respectively, and acknowledged to me that they executed the same.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>WITNESS my hand and official seal.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="543" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>BARBARA ROWE</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>---------------------------------</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td width="356" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notary Public in and for said</font></p> </td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="123" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>County and State.</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="356" ></td>

        <td width="9" ></td>

        <td width="16" ></td>

        <td width="7" ></td>

        <td width="123" ></td>

        <td width="8" ></td>

        <td width="16" ></td>

        <td width="8" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="327" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="244" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>My Commission Expires June 5, 1950.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>EXHIBIT B</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Certificate of Determination of Preferences of the</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Cumulative Preferred Stock, 4.08% Series</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>We, the undersigned, being the President and the Secretary, respectively, of Southern California Edison Company (hereinafter called the &#147;corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="169" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>DO HEREBY CERTIFY:</font></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>FIRST: The Articles of Incorporation of the corporation, as amended, authorize the issue of 6,000,000 shares of Cumulative Preferred Stock which may be issued from time to time in one or more series, and authorize the Board of Directors, within the limitations and restrictions stated therein, to fix or alter, from time to time, the dividend rate, conversion rights, voting rights (in addition to the voting rights provided in such Articles), redemption price and/or the liquidation preferences of any wholly unissued series of Cumulative Preferred Stock, and to fix the number of shares constituting any unissued series.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>SECOND: The Board of Directors of the corporation at a meeting duly called and held an May 16, 1950, in the City of Los Angeles, California, at which meeting a quorum was present and acting throughout, did duly adopt the following resolutions authorizing and providing for the creation of a series of said Cumulative Preferred Stock to be known as Cumulative Preferred Stock, 4.08% Series, consisting of 1,000,000 shares, none of the shares of such series having been issued:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> &#147;RESOLVED, that 1,000,000 shares of the presently authorized but unissued Cumulative Preferred Stock of the par value of twenty-five dollars ($25) each of this corporation be and are hereby determined to be and shall be of a series of said Cumulative Preferred Stock hereby designated as the Cumulative Preferred Stock, 4.08% Series; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> &#147;RESOLVED FURTHER, that the dividend rate, redemption price and voluntary liquidation preferences of shares of such series be and the same are hereby fixed, respectively, as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (A) The dividend rate of such series shall be four and 8/100 per centum (4.08%) per annum of the par value of the shares thereof.  Dividends on such series when and as declared shall be payable quarterly on the last days of February, May, August, and November, respectively,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (B) The redemption price from time to time of such series shall be: $26.25 per share if redeemed on or before May 31, 1955; $26.00 per share if redeemed thereafter and on or before May 31, 1960; $25.75 per share if redeemed thereafter and on or before May 31, 1965; and $25.50 per share if redeemed thereafter; together, in each case, with an amount equal to all accumulated and unpaid dividends to and including the date of redemption.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (C) The liquidation preferences payable with respect to shares of such series in the event of voluntary liquidation, dissolution or winding up of the affairs of this corporation shall be the same as the redemption price for shares of such series current on the date of the commencement of the proceedings for </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=2>such voluntary liquidation, dissolution or winding up, including an amount equal to all accumulated and unpaid dividends thereon to and including the date of distribution or payment.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>IN WITNESS WHEREOF this certificate is made under the seal of said Southern California Edison Company and signed W. C. Mullendore, its President, and T. J. Gamble, its Secretary, this 16th day of May, 1950.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="543" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>W. C. MULLENDORE</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>----------------------------------</font></p> </td>
        <td  width="15">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(W. C. Mullendore)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="337" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="9" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>President of Southern California</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="119" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="337" ></td>

        <td width="17" ></td>

        <td width="7" ></td>

        <td width="12" ></td>

        <td width="8" ></td>

        <td width="119" ></td>

        <td width="7" ></td>

        <td width="12" ></td>

        <td width="9" ></td>

        <td width="15" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(CORPORATE SEAL)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="545" style='border-collapse:collapse'>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>T. J. GAMBLE</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>----------------------------------</font></p> </td>
        <td  width="17">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(T. J. Gamble)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="335" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="9" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Secretary, of Southern California</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="335" ></td>

        <td width="20" ></td>

        <td width="27" ></td>

        <td width="4" ></td>

        <td width="3" ></td>

        <td width="104" ></td>

        <td width="4" ></td>

        <td width="4" ></td>

        <td width="28" ></td>

        <td width="17" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>STATE OF CALIFORNIA</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="233" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>ss.</font></p> </td> </tr>
    <tr >
        <td width="233" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>COUNTY OF LOS ANGELES</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="233" ></td>

        <td width="25" ></td>

        <td width="11" ></td>

        <td width="36" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="608" style='border-collapse:collapse'>
    <tr >
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="563" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>W. C Mullendore and T. J. Gamble, being first duly sworn, each for himself deposes and says:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>That W. C. Mullendore is and was at all of the times mentioned in the foregoing Certificate, the President of Southern California Edison Company, the California corporation therein mentioned, and T. J. Gamble is, and was at all of said times, the Secretary of said corporation; that each has read said Certificate and that the matters set forth therein are true of his own knowledge, and that the signatures purporting to be the signatures of said President and Secretary thereto are the genuine signatures of said President and Secretary, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>W. C. MULLENDORE</font></p> </td>
        <td  width="12">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td width="349" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="133" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(W. C. Mullendore)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="349" ></td>

        <td width="12" ></td>

        <td width="12" ></td>

        <td width="133" ></td>

        <td width="12" ></td>

        <td width="12" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
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        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>T. J. GAMBLE</font></p> </td>
        <td  width="35">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td width="349" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(T. J. Gamble)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="349" ></td>

        <td width="36" ></td>

        <td width="3" ></td>

        <td width="104" ></td>

        <td width="4" ></td>

        <td width="35" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Subscribed and sworn to before me this 16th day of May, 1950.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>BARBARA ROWE</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td  width="23">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notary Public in and for the County</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of Los Angeles, State of California.</font></p> </td> </tr>
    <tr>
        <td width="327" ></td>

        <td width="1" ></td>

        <td width="21" ></td>

        <td width="181" ></td>

        <td width="23" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(NOTARIAL SEAL)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="291" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>MY COMMISSION EXPIRES JUNE 5, 1950.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>EXHIBIT C</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Certificate of Determination of Preference of the</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Cumulative Preferred Stock, 4.24% Series</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>We, the undersigned, being the President and the Secretary, respectively, of Southern California Edison Company (hereinafter called the &#147;corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>DO HEREBY CERTIFY:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>FIRST: The Articles of Incorporation of the corporation, as amended, authorize the issue of 6,000,000 shares of Cumulative Preferred Stock which may be issued from time to time in one or more series, and authorize the Board of Directors, within the limitations and restrictions stated therein, to fix or alter, from time to time, the dividend rate, conversion rights, voting rights (in addition to the voting rights provided in such Articles), redemption price and/or the liquidation preferences of any wholly unissued series of Cumulative Preferred Stock, and to fix the number of shares constituting any unissued series.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>SECOND: The Board of Directors of the corporation at a meeting duly called and held on February&nbsp;4, 1956, in the City of Los Angeles, California, at which meeting a quorum was present and acting throughout, did duly adopt the following resolutions authorizing and providing for the creation of a series of said Cumulative Preferred Stock to be known as Cumulative Preferred Stock, 4.24% Series, consisting of 1,200,000 shares, none of the shares of such series having been issued:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> &#147;RESOLVED, that 1,200,000 shares of the presently authorized but unissued Cumulative Preferred Stock of the par value of twenty-five dollars ($25) each of this corporation be and are hereby determined to be and shall be of a series of said Cumulative Preferred Stock hereby designated as the Cumulative Preferred Stock, 4.24% Series; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> &#147;RESOLVED FURTHER, that the dividend rate, redemption price and voluntary liquidation preferences of shares of such series be and the same are hereby fixed, respectively, as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (A) The dividend rate of such series shall be four and 24/100 per centum (4.24%) per annum of the par value of the shares thereof. Dividends on such series when and as declared shall be payable quarterly on the last days of February, May, August and November, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (B) The redemption price from time to time of such series shall be: $26.60 per share if redeemed on or before May 31, 1961; $26.30 per share if redeemed thereafter and on or before May 31, 1966; $26.05 per share if redeemed thereafter and on or before May 31, 1971; and $25.80 per share if redeemed thereafter: together, in each case, with an amount equal to all accumulated and unpaid dividends to and including the date of redemption.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (C) The liquidation preferences payable with respect to shares of such series in the event of voluntary liquidation, dissolution or winding up of the affairs of this corporation shall be the same as the redemption price for shares of such series current on the date of the commencement of the proceedings for </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=2>such voluntary liquidation, dissolution or winding up, including in amount equal to all accumulated and unpaid dividends thereon to and including the date of distribution or payment.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>IN WITNESS WHEREOF this certificate is made under the seal of said Southern California Edison Company and signed by Harold Quinton, its President, and T. J. Gamble, its Secretary, this 14th day of February, 1956.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="543" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>HAROLD QUINTON</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="6" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td  width="12">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Harold Quinton)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="337" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="8" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>President of Southern California</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="119" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="337" ></td>

        <td width="12" ></td>

        <td width="16" ></td>

        <td width="15" ></td>

        <td width="1" ></td>

        <td width="119" ></td>

        <td width="15" ></td>

        <td width="16" ></td>

        <td width="12" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(CORPORATE SEAL)</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>T.  J. GAMBLE</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td  width="13">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(T. J. Gamble)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="337" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="9" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Secretary of Southern California</font></p> </td> </tr>
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        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="337" ></td>

        <td width="12" ></td>

        <td width="32" ></td>

        <td width="1" ></td>

        <td width="5" ></td>

        <td width="104" ></td>

        <td width="5" ></td>

        <td width="3" ></td>

        <td width="31" ></td>

        <td width="13" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>STATE OF CALIFORNIA</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td width="197" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>ss.</font></p> </td> </tr>
    <tr >
        <td width="197" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>COUNTY OF LOS ANGELES</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="197" ></td>

        <td width="25" ></td>

        <td width="16" ></td>

        <td width="36" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="627" style='border-collapse:collapse'>
    <tr >
        <td width="75" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="552" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Harold Quinton and T. J. Gamble, being first duly sworn, each for himself deposes and says:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.84in;text-align:left;'><font size=2>That Harold Quinton is and was at all of the times mentioned in the foregoing Certificate, the President of Southern California Edison Company, the California corporation therein mentioned, and T. J. Gamble is, and was at all of said times, the Secretary of said corporation; that each has read said Certificate and that the matters set forth therein are true of his own knowledge, and that the signatures purporting to be the signatures of said President and Secretary thereto are the genuine signatures of said President and Secretary, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>HAROLD QUINTON</font></p> </td>
        <td  width="16">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="349" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Harold Quinton)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="349" ></td>

        <td width="16" ></td>

        <td width="15" ></td>

        <td width="120" ></td>

        <td width="15" ></td>

        <td width="16" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>T. J. GAMBLE</font></p> </td>
        <td  width="35">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="349" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(T. J. Gamble)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="349" ></td>

        <td width="36" ></td>

        <td width="3" ></td>

        <td width="104" ></td>

        <td width="4" ></td>

        <td width="35" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Subscribed and sworn to before me this 14th day of February, 1956.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>BARBARA ROWE</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="553" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td  width="23">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="327" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notary Public in and for the County</font></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of Los Angeles, State of California.</font></p> </td> </tr>
    <tr>
        <td width="327" ></td>

        <td width="1" ></td>

        <td width="21" ></td>

        <td width="181" ></td>

        <td width="23" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(NOTARIAL SEAL)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="565" style='border-collapse:collapse'>
    <tr >
        <td width="315" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="251" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>My Commission Expires June 14, 1958.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>EXHIBIT D</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Certificate of Determination of Preferences of the</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Cumulative Preferred Stock, 4.78% Series</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.68in;text-align:left;'><font size=2>We, the undersigned, being the President and the Secretary, respectively, of Southern California Edison Company (hereinafter called the &#147;corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>DO HEREBY CERTIFY:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.68in;text-align:left;'><font size=2>FIRST: The Articles of Incorporation of the corporation, as amended, authorize the issue of 6,000,000 shares of Cumulative Preferred Stock which may be issued from time to time in one or more series, and authorize the Board of Directors, within the limitations and restrictions stated therein, to fix or alter, from time to time, the dividend rate, conversion rights, voting rights (in addition to the voting rights provided in such Articles), redemption price and/or the liquidation preferences of any wholly unissued series of Cumulative Preferred Stock, and to fix the number of shares constituting any unissued series.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.68in;text-align:left;'><font size=2>SECOND: The Board of Directors of the corporation at a meeting duly called and held on February 10, 1958, in the City of Los Angeles, California, at which meeting a quorum was present and acting throughout did duly adopt the following resolutions authorizing and providing for the creation of a series of said Cumulative Preferred Stock to be known as Cumulative Preferred Stock, 4.78% Series, consisting of 1,000,000 shares, none of the shares of such series having been issued:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.72in;text-align:left;'><font size=2> &#147;RESOLVED, that 1,000,000 shares of the presently authorized but unissued Cumulative Preferred Stock of the par value of twenty-five dollars ($25) each of this corporation be and are hereby determined to be and shall be of a series of said Cumulative Preferred Stock hereby designated as the Cumulative Preferred Stock, 4.78% Series; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.72in;text-align:left;'><font size=2> &#147;RESOLVED FURTHER, that the dividend rate, redemption price and voluntary liquidation preferences of shares of such series be and the same are hereby fixed respectively, as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.72in;text-align:left;'><font size=2> (A) The dividend rate of such series shall be four and 78/100 per centum (4.78%) per annum of the par value of the shares thereof. Dividends on such series when and as declared shall be payable quarterly on the last days of February, May, August and November, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.72in;text-align:left;'><font size=2> (B) The redemption price from time to time of such series shall be: $27.30 per share if redeemed on or before February 28, 1963; $26.55 per share if redeemed thereafter and on or before February 29, 1968; $26.05 per share if redeemed thereafter and on or before February 28, 1973; and $25.80 per share if redeemed thereafter; together, in each case, with an amount equal to all accumulated and unpaid dividends to and including the date of redemption.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.72in;text-align:left;'><font size=2> (C) The liquidation preferences payable with respect to shares of such series in the event of voluntary liquidation, dissolution or winding up of the affairs of this corporation shall be the same as the redemption price for shares of such series current on the date of the commencement of the proceedings for </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>such voluntary liquidation, dissolution or winding up, including an amount equal to all accumulated and unpaid dividends thereon to and including the date of distribution or payment.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.68in;text-align:left;'><font size=2>IN WITNESS WHEREOF this certificate is made under the seal of said Southern California Edison Company and signed by Harold Quinton, its President, and T. J. Gamble, its Secretary, this 10th day of February 1958.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="543" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>HAROLD QUINTON</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="6" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td  width="12">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Harold Quinton)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="337" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="8" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>President of Southern California</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="119" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Edison Company</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="337" ></td>

        <td width="12" ></td>

        <td width="16" ></td>

        <td width="15" ></td>

        <td width="1" ></td>

        <td width="119" ></td>

        <td width="15" ></td>

        <td width="16" ></td>

        <td width="12" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="560" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>T. J. GAMBLE</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td  width="29">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(T. J. Gamble)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Secretary of</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="323" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="9" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Southern California Edison Company</font></p> </td> </tr>
    <tr>
        <td width="323" ></td>

        <td width="27" ></td>

        <td width="36" ></td>

        <td width="3" ></td>

        <td width="7" ></td>

        <td width="91" ></td>

        <td width="7" ></td>

        <td width="4" ></td>

        <td width="35" ></td>

        <td width="29" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="259" style='border-collapse:collapse'>
    <tr >
        <td width="189" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>STATE OF CALIFORNIA</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="189" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>ss.</font></p> </td> </tr>
    <tr >
        <td width="189" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>COUNTY OF LOS ANGELES</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="189" ></td>

        <td width="25" ></td>

        <td width="8" ></td>

        <td width="36" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="619" style='border-collapse:collapse'>
    <tr >
        <td width="67" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="552" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Harold Quinton and T. J. Gamble, being first duly sworn, each for himself deposes and says:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.74in;text-align:left;'><font size=2>That Harold Quinton is and was at all of the times mentioned in the foregoing Certificate, the President of Southern California Edison Company, the California corporation therein mentioned, and T. J. Gamble is, and was at all of said times, the Secretary of said corporation; that each has read said Certificate and that the matters set forth therein are true of his own knowledge, and that the signatures purporting to be the signatures of said President and Secretary thereto are the genuine signatures of said President and Secretary, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>HAROLD QUINTON</font></p> </td>
        <td  width="16">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="349" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Harold Quinton)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="349" ></td>

        <td width="16" ></td>

        <td width="15" ></td>

        <td width="120" ></td>

        <td width="15" ></td>

        <td width="16" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>T. J. GAMBLE</font></p> </td>
        <td  width="35">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="349" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(T. J. Gamble)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="349" ></td>

        <td width="36" ></td>

        <td width="3" ></td>

        <td width="104" ></td>

        <td width="4" ></td>

        <td width="35" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Subscribed and sworn to before me this 10th day of February, 1958.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="553" style='border-collapse:collapse'>
    <tr >
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="137" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>BARBARA ROWE</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>------------------------------------</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="327" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="7" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notary Public in and for the County</font></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of Los Angeles, State of California</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="327" ></td>

        <td width="4" ></td>

        <td width="19" ></td>

        <td width="23" ></td>

        <td width="137" ></td>

        <td width="21" ></td>

        <td width="21" ></td>

        <td width="1" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(NOTARIAL SEAL)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="565" style='border-collapse:collapse'>
    <tr >
        <td width="315" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="251" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>My Commission Expires June 14, 1958.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>EXHIBIT E</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SERIES A PREFERENCE STOCK</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>We, the undersigned, being the Vice President and Treasurer and the Assistant Treasurer, respectively, of Southern California Edison Company (the &#147;Corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California, DO HEREBY CERTIFY:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>FIRST:  The Restated Articles of Incorporation, as amended (the &#147;Articles&#148;), authorize the issuance of 50,000,000 shares of Preference Stock which may be issued from time to time in one or more series, and authorize the Board of Directors of the Corporation to (i) fix the number of shares of any series of Preference Stock and to determine the designation of any such series, (ii) to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of Preference Stock, including but not limited to rights, preferences, privileges and restrictions regarding dividends (including provisions specifying dividends at a floating or variable rate or dividends to be determined by reference to an index, formula, auction, bid or other objectively ascertainable criterion), liquidation, conversion, redemption and voting (including
provisions specifying no general voting rights or voting rights of more than one vote per share), and, (iii) within the limits and restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any such series subsequent to the issue of shares of that series.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>SECOND:  Acting pursuant to the authority delegated by the Board of Directors of the Corporation, the Executive Committee of the Board of Directors at a meeting duly held on April 20, 2005, in the City of Rosemead, State of California, at which meeting a quorum was present and acting throughout, did duly adopt the following resolutions authorizing and providing for the creation of a series of said shares of Preference Stock to be known as Series A Preference Stock, consisting of 4,000,000 shares, none of the shares of such series having been issued:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&#147;NOW, THEREFORE, BE IT RESOLVED, that 4,000,000 shares of the presently authorized but unissued Preference Stock, no par value, be and hereby determined to be and shall be of a series of said Preference Stock hereby designated as the &#147;Series A Preference Stock&#148; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>BE IT FURTHER RESOLVED, that the rights, preferences, privileges and restrictions of shares of such series be and the same are hereby fixed, respectively, as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividends</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The holders of record of the Series A Preference Stock (each individually a &#147;Holder,&#148; or collectively the &#147;Holders&#148;) will be entitled to receive, when, as and if declared by the Board of Directors of the Corporation, or a duly authorized committee thereof (the &#147;Board&#148;), in its sole discretion out of funds legally available therefor, non-cumulative quarterly cash dividends which will accrue from and including April 27, 2005 and will be payable on January 31, April 30, July 31 and October 31 of each year (each, a &#147;Dividend Payment Date&#148;), commencing July 31, 2005.  Through April 30, 2010, the annual rate of </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>dividends will be 5.349% of the Liquidation Preference.  After April 30, 2010, the annual rate of dividends will be the Applicable Rate from time to time in effect.  The Applicable Rate per annum for each dividend period beginning after April 30, 2010 is described below in Section 1(b).  If a Dividend Payment Date is not a Business Day (as defined below), the related dividend (if declared) will be paid on the next succeeding Business Day with the same force and effect as though paid on the Dividend Payment Date, without any increase to account for the period from such Dividend Payment Date through the date of actual payment.  Dividends payable on the Series A Preference Stock for the initial dividend period and any period less than a full dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months and the actual number of days elapsed in such period.  The amount of
dividends per share payable on the initial Dividend Payment Date and at redemption will be calculated to the fourth digit after the decimal point.  &#147;Liquidation Preference&#148; means $100 per share of Series A Preference Stock..</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="385" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td width="241" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Determination of the Applicable Rate.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.08in;text-align:left;'><font size=2> (i)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>For each dividend period beginning after April 30, 2010, the Calculation Agent (as defined below) shall calculate the Applicable Rate and the amount of dividends payable on each quarterly Dividend Payment Date. Promptly upon such determination, the Calculation Agent shall notify us of the Applicable Rate for such dividend period. The Applicable Rate determined by the Calculation Agent, absent manifest error, shall be binding and conclusive upon the beneficial owners and Holders of the Series A Preference Stock and us.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (ii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The &#147;Applicable Rate&#148; for any dividend period will be 1.45% plus the highest of the 3-month LIBOR Rate, the 10-year Treasury CMT and the 30-year Treasury CMT (each as defined below and collectively referred to as the &#147;Benchmark Rates&#148;) for such dividend period.  In the event that the Calculation Agent determines in good faith that for any reason:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1.1in;text-align:left;'><font size=2> (1)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any one of the Benchmark Rates cannot be determined for any dividend period, the Applicable Rate for such dividend period will be equal to the higher of whichever two of such rates can be so determined;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1.1in;text-align:left;'><font size=2> (2)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>only one of the Benchmark Rates can be determined for any dividend period, the Applicable Rate for such dividend period will be equal to whichever such rate can be so determined; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1.1in;text-align:left;'><font size=2> (3)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>none of the Benchmark Rates can be determined for any dividend period, the Applicable Rate for the preceding dividend period will be continued for such dividend period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (iii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The &#147;3-month LIBOR Rate&#148; means, for each dividend period, the arithmetic average of the daily quotes for deposits for U.S. Dollars having a term of three months for the preceding two full weeks, as published on each Business Day during the relevant Calendar Period (as defined below) immediately preceding the dividend period for which the Applicable Rate is being determined. Such quotes will be taken from the Bloomberg interest rate page most nearly corresponding to Telerate Page 3750 (or such other page as may replace such page for the purpose of displaying comparable rates) at approximately 11:00&nbsp;a.m. London time on the relevant date. If such rate does not appear on the Bloomberg interest rate page (currently found on page &#147;BBAM&#148;) most nearly corresponding to
Telerate Page 3750 (or such other page as may replace such page for the purpose of displaying comparable rates) on the Dividend Determination Date (as defined below), the 3-month LIBOR Rate will be the arithmetic mean of the rates quoted by each of Citigroup Global Markets Inc., Lehman Brothers Inc. and J.P. </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>Morgan Securities Inc., or their successors, at approximately 11:00&nbsp;a.m., New York City time, on the Dividend Determination Date for loans in U.S. Dollars to leading European banks for a period of three months.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (iv)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The &#147;10-year Treasury CMT&#148; means the rate determined in accordance with the following provisions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(1)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>With respect to any Dividend Determination Date and the dividend period that begins immediately thereafter, the 10-year Treasury CMT means the rate displayed on the Bloomberg interest rate page (currently found on page &#147;H15T10Y Index,&#148; and when calculating the 30-year Treasury CMT, the sum of the rate displayed on the Bloomberg interest rate page currently found on page &#147;H15T20Y Index&#148; and the extrapolation factor found on page &#147;H15TFACT&#148;) most nearly corresponding to Telerate Page 7051 containing the caption &#147;Federal Reserve U.S. H.15 T Note Treasury Constant Maturity&#148; and the column for the Designated CMT Maturity Index (as defined below).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(2)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If such rate is no longer displayed on the page described in (1)&nbsp;above, or is not so displayed by 3:00&nbsp;p.m., New York City time, on the applicable Dividend Determination Date, then the 10-year Treasury CMT for such Dividend Determination Date will be such treasury constant maturity rate for the Designated CMT Maturity Index as is published in H.15(519).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(3)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If such rate is no longer displayed on the page described in (2)&nbsp;above, or if not published by 3:00&nbsp;p.m., New York City time, on the applicable Dividend Determination Date, then the 10-year Treasury CMT for such Dividend Determination Date will be such constant maturity treasury rate for the Designated CMT Maturity Index (or other United States Treasury rate for the Designated CMT Maturity Index) for the applicable Dividend Determination Date with respect to such dividend reset date as may then be published by either the Board of Governors of the Federal Reserve System or the United States Department of the Treasury that the Calculation Agent determines to be comparable to the rate formerly displayed on the Bloomberg interest rate page most nearly corresponding to
the Telerate Page 7051 and published in H.15(519).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(4)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If such information described in (3) above is not provided by 3:00&nbsp;p.m., New York City time, on the applicable Dividend Determination Date, then the 10-year Treasury CMT for such Dividend Determination Date will be calculated by the Calculation Agent and will be a yield to maturity, based on the arithmetic mean of the secondary market offered rates as of approximately 3:30&nbsp;p.m., New York City time, on such Dividend Determination Date reported, according to their written records, by three leading primary United States government securities dealers in The City of New York (each, a &#147;Reference Dealer&#148;) (from Citigroup Global Markets Inc., Lehman Brothers Inc., J.P. Morgan Securities Inc., Credit Suisse First Boston LLC and UBS Securities LLC, or their
successors (provided that if two or more of the foregoing combine by merger or some other means, then the number of Reference Dealers whose quotes will be considered shall be reduced accordingly), and eliminating the highest quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest)), for the most recently issued direct non-callable fixed rate obligations of the United States (&#147;Treasury Debentures&#148;) with an original maturity of </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>approximately the Designated CMT Maturity Index and a remaining term to maturity of not less than such Designated CMT Maturity Index minus one year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(5)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the Calculation Agent is unable to obtain three such Treasury Debentures quotations described in (4) above, then the 10-year Treasury CMT for the applicable Dividend Determination Date will be calculated by the Calculation Agent and will be a yield to maturity based on the arithmetic mean of the secondary market offered rates as of approximately 3:30&nbsp;p.m., New York City time, on the applicable Dividend Determination Date of three Reference Dealers in The City of New York (from Citigroup Global Markets Inc., Lehman Brothers Inc., J.P. Morgan Securities Inc., Credit Suisse First Boston LLC and UBS Securities LLC, or their successors (provided that if two or more of the foregoing combine by merger or some other means, then the number of Reference Dealers whose quotes
will be considered shall be reduced accordingly), and eliminating the highest quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest)), for Treasury Debentures with an original maturity of the number of years that is the next highest to the Designated CMT Maturity Index and a remaining term to maturity closest to the Designated CMT Maturity Index and in an amount of at least $100&nbsp;million.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(6)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If three or four (and not five) of such Reference Dealers are quoting as set forth in (4) and (5) above, then the 10-year Treasury CMT will be based on the arithmetic mean of the offered rates obtained and neither the highest nor lowest of such quotes will be eliminated; provided, however, that if fewer than three Reference Dealers selected by the Calculation Agent are quoting as set forth above, then the 10-year Treasury CMT with respect to the applicable Dividend Determination Date will remain the 10-year Treasury CMT for the immediately preceding dividend period. If two Treasury Debentures with an original maturity as described in the second preceding sentence have remaining terms to maturity equally close to the Designated CMT Maturity Index, then the quotes for the
Treasury Debentures with the shorter remaining term to maturity will be used.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (v)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The &#147;30-year Treasury CMT&#148; has the meaning specified under the definition of 10-year Treasury CMT, except that the Designated CMT Maturity Index for the 30-year Treasury CMT shall be 30&nbsp;years.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (vi)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The 3-month LIBOR Rate, the 10-year Treasury CMT and the 30-year Treasury CMT shall each be rounded to the nearest hundredth of a percent.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (vii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Applicable Rate with respect to each dividend period will be calculated as promptly as practicable by the Calculation Agent according to the appropriate method described above.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1.11in;text-align:left;'><font size=2> (viii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Other Definitions.  As used in this Section 1, the following terms shall have the following meanings:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(1)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Bloomberg&#148; means Bloomberg Financial Markets Commodities News.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(2)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Business Day&#148; means a day other than (i)&nbsp;a Saturday or Sunday; (ii)&nbsp;a day on which banks in New York, New York are authorized or obligated </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>by law or executive order to remain closed; or (iii)&nbsp;a day on which our principal executive office is closed for business.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(3)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Calculation Agent&#148; means Wells Fargo Bank, N.A., or any other firm appointed by us, acting as calculation agent.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(4)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;Calendar Period&#148; means a period of 180 calendar days.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(5)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Designated CMT Maturity Index&#148; means the original period to maturity of the U.S. Treasury securities (10&nbsp;years) with respect to which the 10-year Treasury CMT will be calculated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(6)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Dividend Determination Date&#148; means the second Business Day immediately preceding the first day of the relevant dividend period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(7)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Telerate Page 3750&#148; means the display designated on page 3750 on MoneyLine Telerate (or such other page as may replace the 3750 page on the service or such other service as may be nominated by the British Bankers' Association for the purpose of displaying London interbank offered rates for U.S. Dollars deposits).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:1in;text-align:left;'><font size=2>(8)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&#147;Telerate Page 7051&#148; means the display on MoneyLine Telerate (or any successor service), on such page (or any other page as may replace such page on that service), for the purpose of displaying Treasury Constant Maturities as reported in H.15(519).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Series A Preference Stock shall be outstanding, no dividend (other than dividends or distributions paid in shares of, or options, warrants or rights to subscribe for or purchase shares of, the common stock of the Corporation (the &#147;Common Stock&#148;) or any other stock of the Corporation ranking, as to the payment of dividends and the distribution of assets upon dissolution, liquidation or winding up of the Corporation, junior to the Series A Preference Stock), whether in cash or property, may be paid or declared or set apart, nor may any distribution be made on the Common Stock, nor may any shares of Common Stock be purchased, redeemed or otherwise acquired for value by the Corporation, unless dividends have been declared and paid or set apart on the
Series A Preference Stock for the then-current quarterly dividend period; provided, however, that the foregoing dividend preference shall not be cumulative and shall not in any way create any claim or right in favor of the Holders of Series A Preference Stock in the event that dividends have not been declared or paid or set apart on the Series A Preference Stock in respect of any prior dividend period.  If the full dividend on the Series A Preference Stock is not paid for any quarterly dividend period, the Holders of Series A Preference Stock will have no claim in respect of the unpaid amount so long as no dividend (other than those referred to above) is paid on the Common Stock (or any other stock of the Corporation ranking, as to the payment of dividends, junior to the Series A Preference Stock) for such dividend period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Board may, in its discretion, choose to pay dividends on the Series A Preference Stock without the payment of any dividends on the Common Stock (or any other stock of the Corporation ranking, as to the payment of dividends, junior to the Series A Preference Stock).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No full dividends shall be declared or paid or set apart for payment on any stock of the Corporation ranking, as to the payment of dividends, equally with the Series A Preference Stock for any period unless full dividends have been declared and paid or set apart for payment on the Series A Preference Stock for the then-current quarterly dividend period.  When dividends are not paid in full upon the Series A </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Preference Stock and all other classes or series of stock of the Corporation, if any, ranking, as to the payment of dividends, equally with the Series A Preference Stock, all dividends declared upon shares of Series A Preference Stock and all such other stock of the Corporation will be declared pro rata so that the amount of dividends declared per share of Series A Preference Stock and all such other stock will in all cases bear to each other the same ratio that accrued dividends per share of Series A Preference Stock (but without, in the case of non-cumulative shares, accumulation of unpaid dividends for prior dividend periods) and such other stock bear to each other.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(f)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No dividends may be declared or paid or set apart for payment on any shares of Series A Preference Stock if at the same time any arrears exist or default exists in the payment of dividends on any outstanding class or series of stock of the Corporation ranking, as to the payment of dividends, prior to the Series A Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(g)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Holders of Series A Preference Stock will not be entitled to any dividends, whether payable in cash or property, other than as herein provided and will not be entitled to interest, or any sum in lieu of interest, in respect of any dividend payment.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Liquidation Rights</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Upon any voluntary or involuntary dissolution, liquidation or winding up of the Corporation, after payment or provision for the liabilities of the Corporation and the expenses of such dissolution, liquidation or winding up, the Holders of outstanding shares of the Series A Preference Stock will be entitled to receive out of the assets of the Corporation or proceeds thereof available for distribution to stockholders, before any payment or distribution of assets is made to holders of the Common Stock (or any other stock of the Corporation ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, junior to the Series A Preference Stock), the Liquidation Value per share plus an amount equal to the accrued and unpaid dividend (whether or not
declared) for the then-current quarterly dividend period accrued to but excluding the date of such liquidation payment, but without accumulation of unpaid dividends on the Series A Preference Stock for prior dividend periods.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the assets of the Corporation available for distribution in such event are insufficient to pay in full the aggregate amount payable to Holders of Series A Preference Stock and holders of all other classes or series of stock of the Corporation, if any, ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, on a parity with the Series A Preference Stock, the assets will be distributed to the Holders of Series A Preference Stock and holders of all such other stock pro rata, based on the full respective preferential amounts to which they are entitled (but without, in the case of any non-cumulative preferred stock, accumulation of unpaid dividends for prior dividend periods).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Notwithstanding the foregoing, Holders of Series A Preference Stock will not be entitled to be paid any amount in respect of a dissolution, liquidation or winding up of the Corporation until holders of any classes or series of stock of the Corporation ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, prior to the Series A Preference Stock have been paid all amounts to which such classes or series are entitled.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Neither the sale, lease nor exchange (for cash, shares of stock, securities or other consideration) of all or substantially all of the property and assets of the Corporation, nor the merger, consolidation or combination of the Corporation into or with any other corporation or the merger, consolidation or combination of any other corporation or entity into or with the Corporation, shall be </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>deemed to be a dissolution, liquidation or winding up, voluntary or involuntary, for the purposes of this Section 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>After payment to the Holders of the full amount of the distribution of assets upon dissolution, liquidation or winding up of the Corporation to which they are entitled pursuant to this Section 2, the Holders of Series A Preference Stock will not be entitled to any further participation in any distribution of assets by the Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Voting Rights</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>The Series A Preference Stock shall have no voting rights except as set forth in this Section&nbsp;3 or as otherwise provided by California law:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Series A Preference Stock are outstanding, the consent of the Holders of at least a majority of the Series A Preference Stock at the time outstanding, voting as a single class, or voting as a single class together with the holders of any other series of Preference Stock (i) upon which like voting or consent rights have been conferred and (ii) which are similarly affected by the matter to be voted upon, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>(i)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any amendment of the Corporation&#146;s Restated Articles of Incorporation which would adversely affect the rights, preferences, privileges or restrictions of the Series A Preference Stock; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>(ii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the authorization or creation, or the increase in the authorized amount, of any stock of any class or any security convertible into stock of any class, ranking senior to the Series A Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>provided, however, that no such consent of the Holders of the Series A Preference Stock shall be required if, at or prior to the time when such amendment is to take effect or when the authorization, creation or increase in the authorized amount of any such senior stock or convertible security is to be made, as the case may be, provision is to be made for the redemption of all shares of Series A Preference Stock at the time outstanding.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:left;'><font size=2> (b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>On matters requiring their consent, the Holders of Series A Preference Stock will be entitled to one vote per share.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Redemption</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Series A Preference Stock shall not be redeemable prior to April 30, 2010. On or after that date, subject to the notice provisions set forth in Section 4(b) below and subject to any further limitations which may be imposed by law, the Corporation may redeem the Series A Preference Stock, in whole or in part, at any time or from time to time, out of funds legally available therefor, at a redemption price equal to the Liquidation Preference per share plus an amount equal to the amount of the accrued and unpaid dividend (whether or not declared) from the Dividend Payment Date immediately preceding the redemption date to but excluding the redemption date, but without accumulation of unpaid dividends on the Series A Preference Stock for prior dividend periods; provided, however that any
redemption that would reduce the principal amount of the Series A Preference Stock outstanding to $50 million or less in the aggregate would be restricted to a redemption in whole only. If less than all of the outstanding shares of Series A Preference Stock are to be redeemed, the Corporation will select the </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>shares to be redeemed from the outstanding shares not previously called for redemption by lot or pro rata (as nearly as possible) or by any other method that the Board in its sole discretion deems equitable.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>In the event the Corporation shall redeem any or all of the Series A Preference Stock as aforesaid, the Corporation will give notice of any such redemption to Holders of Series A Preference Stock not more than 60 nor less than 30 days prior to the date fixed by the Board for such redemption. Failure to give notice to any Holder of Series A Preference Stock shall not affect the validity of the proceedings for the redemption of shares of any other Holder of Series A Preference Stock being redeemed.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Notice having been given as herein provided, from and after the redemption date, dividends on the Series A Preference Stock called for redemption shall cease to accrue and such Series A Preference Stock called for redemption will no longer be deemed outstanding, and all rights of the Holders thereof will cease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Series A Preference Stock will not be subject to any mandatory redemption, sinking fund or other similar provisions. In addition, Holders of Series A Preference Stock will have no right to require redemption of any shares of Series A Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Any shares of Series A Preference Stock which are converted, redeemed or retired shall thereafter have the status of authorized but unissued shares of Preference Stock of the Corporation undesignated as to series, and may thereafter be reissued by the Board in the same manner as any other authorized and unissued shares of Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(f)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the Corporation shall deposit on or prior to any date fixed for redemption of Series A Preference Stock, with any bank or trust company having a capital, surplus and undivided profits aggregating at least five million dollars ($5,000,000), as a trust fund, a fund sufficient to redeem the shares called for redemption, with irrevocable instructions and authority to such bank or trust company to pay on and after the date fixed for redemption or such earlier date as the Board may determine, to the respective Holders of such shares, the redemption price thereof, then from and after the date of such deposit (although prior to the date fixed for redemption) such shares so called shall be deemed to be redeemed and dividends thereon shall cease to accrue after said date fixed for
redemption and such deposit shall be deemed to constitute full payment of said shares to the Holders thereof and thereafter said shares shall no longer be deemed to be outstanding, and the Holders thereof shall cease to be shareholders with respect to such shares, and shall have no rights with respect thereto except only the right to receive from said bank or trust company payment of the redemption price of such shares without interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(g)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Any moneys deposited by the Corporation pursuant to Section 4(f) which shall not be required for the redemption because of the exercise of any such right of conversion or exchange subsequent to the date of the deposit shall be repaid to the Corporation forthwith.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rank</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>The Series A Preference Stock shall rank, with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>junior to the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock, and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such securities will rank senior to the Series A Preference Stock with respect to </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>equally with any other shares of Preference Stock and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such shares or other securities will rank equally with the Series A Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>senior to the Common Stock, and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such securities will rank junior to the Series&nbsp;A Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>IN WITNESS WHEREOF, the undersigned have executed this Certificate in Rosemead, California on April 20, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Robert C. Boada</font></u><font size=2>__________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Robert C. Boada</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Vice President and Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Mary C. Simpson</font></u><font size=2>_________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Mary C. Simpson</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Assistant Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>Each of the undersigned declares under penalty of perjury that the matters contained in the foregoing certificate are true of their own knowledge.  Executed in Rosemead, California on April 20, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Robert C. Boada</font></u><font size=2>__________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Robert C. Boada</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Mary C. Simpson</font></u><font size=2>_________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Mary C. Simpson</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>EXHIBIT F</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SERIES B PREFERENCE STOCK</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>We, the undersigned, being the Vice President and Treasurer and the Assistant Treasurer, respectively, of Southern California Edison Company (the &#147;Corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California, DO HEREBY CERTIFY:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>FIRST:  The Restated Articles of Incorporation, as amended (the &#147;Articles&#148;), authorize the issuance of 50,000,000 shares of Preference Stock which may be issued from time to time in one or more series, and authorize the Board of Directors of the Corporation to (i) fix the number of shares of any series of Preference Stock and to determine the designation of any such series, (ii) to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of Preference Stock, including but not limited to rights, preferences, privileges and restrictions regarding dividends (including provisions specifying dividends at a floating or variable rate or dividends to be determined by reference to an index, formula, auction, bid or other objectively ascertainable criterion), liquidation, conversion, redemption and voting (including
provisions specifying no general voting rights or voting rights of more than one vote per share), and, (iii) within the limits and restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any such series subsequent to the issue of shares of that series.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>SECOND:  Acting pursuant to the authority delegated by the Board of Directors of the Corporation, the Executive Committee of the Board of Directors at a meeting duly held on September 14, 2005, in the City of Rosemead, State of California, at which meeting a quorum was present and acting throughout, did duly adopt the following resolutions authorizing and providing for the creation of a series of said shares of Preference Stock to be known as Series B Preference Stock, consisting of 2,000,000 shares, none of the shares of such series having been issued:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&#147;NOW, THEREFORE, BE IT RESOLVED, that 2,000,000 shares of the presently authorized but unissued Preference Stock, no par value, be and hereby determined to be and shall be of a series of said Preference Stock hereby designated as the &#147;Series B Preference Stock&#148; and</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>BE IT FURTHER RESOLVED, that the rights, preferences, privileges and restrictions of shares of such series be and the same are hereby fixed, respectively, as follows:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividends</font></p> </td> </tr></table>


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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The holders of record of the Series B Preference Stock (each individually a &#147;Holder,&#148; or collectively the &#147;Holders&#148;) will be entitled to receive, when, as and if declared by the Board of Directors of the Corporation, or a duly authorized committee thereof (the &#147;Board&#148;), in its sole discretion out of funds legally available therefor, non-cumulative quarterly cash dividends which will accrue from and including September 21, 2005 and will be payable on September 30, December 31, March 31 and June 30 of each year (each, a &#147;Dividend Payment Date&#148;), commencing December 31, 2005, at the annual rate of </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>6.125% of the Liquidation Preference.  If a Dividend Payment Date is not a Business Day (as defined below), the related dividend (if declared) will be paid on the next succeeding Business Day with the same force and effect as though paid on the Dividend Payment Date, without any increase to account for the period from such Dividend Payment Date through the date of actual payment.  Dividends payable on the Series B Preference Stock for the initial dividend period and any period less than a full dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months and the actual number of days elapsed in such period.  &#147;Liquidation Preference&#148; means $100 per share of Series B Preference Stock.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Series B Preference Stock shall be outstanding, no dividend (other than dividends or distributions paid in shares of, or options, warrants or rights to subscribe for or purchase shares of, the common stock of the Corporation (the &#147;Common Stock&#148;) or any other stock of the Corporation ranking, as to the payment of dividends and the distribution of assets upon dissolution, liquidation or winding up of the Corporation, junior to the Series B Preference Stock), whether in cash or property, may be paid or declared or set apart, nor may any distribution be made on the Common Stock, nor may any shares of Common Stock be purchased, redeemed or otherwise acquired for value by the Corporation, unless dividends have been declared and paid or set apart on the
Series B Preference Stock for the then-current quarterly dividend period; provided, however, that the foregoing dividend preference shall not be cumulative and shall not in any way create any claim or right in favor of the Holders of Series B Preference Stock in the event that dividends have not been declared or paid or set apart on the Series B Preference Stock in respect of any prior dividend period.  If the full dividend on the Series B Preference Stock is not paid for any quarterly dividend period, the Holders of Series B Preference Stock will have no claim in respect of the unpaid amount so long as no dividend (other than those referred to above) is paid on the Common Stock (or any other stock of the Corporation ranking, as to the payment of dividends, junior to the Series B Preference Stock) for such dividend period.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Board may, in its discretion, choose to pay dividends on the Series B Preference Stock without the payment of any dividends on the Common Stock (or any other stock of the Corporation ranking, as to the payment of dividends, junior to the Series B Preference Stock).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No full dividends shall be declared or paid or set apart for payment on any stock of the Corporation ranking, as to the payment of dividends, equally with the Series B Preference Stock for any period unless full dividends have been declared and paid or set apart for payment on the Series B Preference Stock for the then-current quarterly dividend period.  When dividends are not paid in full upon the Series B Preference Stock and all other classes or series of stock of the Corporation, if any, ranking, as to the payment of dividends, equally with the Series B Preference Stock, all dividends declared upon shares of Series B Preference Stock and all such other stock of the Corporation will be declared pro rata so that the amount of dividends declared per share of Series B Preference Stock
and all such other stock will in all cases bear to each other the same ratio that accrued dividends per share of Series B Preference Stock (but without, in the case of non-cumulative shares, accumulation of unpaid dividends for prior dividend periods) and such other stock bear to each other.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No dividends may be declared or paid or set apart for payment on any shares of Series B Preference Stock if at the same time any arrears exist or default exists in the payment of dividends on any outstanding class or series of stock of the Corporation ranking, as to the payment of dividends, prior to the Series B Preference Stock.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(f)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Holders of Series B Preference Stock will not be entitled to any dividends, whether payable in cash or property, other than as herein provided and will not be entitled to interest, or any sum in lieu of interest, in respect of any dividend payment.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Liquidation Rights</font></p> </td> </tr></table>


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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Upon any voluntary or involuntary dissolution, liquidation or winding up of the Corporation, after payment or provision for the liabilities of the Corporation and the expenses of such dissolution, liquidation or winding up, the Holders of outstanding shares of the Series B Preference Stock will be entitled to receive out of the assets of the Corporation or proceeds thereof available for distribution to stockholders, before any payment or distribution of assets is made to holders of the Common Stock (or any other stock of the Corporation ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, junior to the Series B Preference Stock), the Liquidation Value per share plus an amount equal to the accrued and unpaid dividend (whether or not
declared) for the then-current quarterly dividend period accrued to but excluding the date of such liquidation payment, but without accumulation of unpaid dividends on the Series B Preference Stock for prior dividend periods.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the assets of the Corporation available for distribution in such event are insufficient to pay in full the aggregate amount payable to Holders of Series B Preference Stock and holders of all other classes or series of stock of the Corporation, if any, ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, on a parity with the Series B Preference Stock, the assets will be distributed to the Holders of Series B Preference Stock and holders of all such other stock pro rata, based on the full respective preferential amounts to which they are entitled (but without, in the case of any non-cumulative preferred stock, accumulation of unpaid dividends for prior dividend periods).</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Notwithstanding the foregoing, Holders of Series B Preference Stock will not be entitled to be paid any amount in respect of a dissolution, liquidation or winding up of the Corporation until holders of any classes or series of stock of the Corporation ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, prior to the Series B Preference Stock have been paid all amounts to which such classes or series are entitled.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Neither the sale, lease nor exchange (for cash, shares of stock, securities or other consideration) of all or substantially all of the property and assets of the Corporation, nor the merger, consolidation or combination of the Corporation into or with any other corporation or the merger, consolidation or combination of any other corporation or entity into or with the Corporation, shall be deemed to be a dissolution, liquidation or winding up, voluntary or involuntary, for the purposes of this Section 2.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>After payment to the Holders of the full amount of the distribution of assets upon dissolution, liquidation or winding up of the Corporation to which they are entitled pursuant to this Section 2, the Holders of Series B Preference Stock will not be entitled to any further participation in any distribution of assets by the Corporation.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Voting Rights</font></p> </td> </tr></table>


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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>The Series B Preference Stock shall have no voting rights except as set forth in this Section&nbsp;3 or as otherwise provided by California law:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Series B Preference Stock are outstanding, the consent of the Holders of at least a majority of the Series B Preference Stock at the time outstanding, voting as a single class, or voting as a single class together with the holders of any other series of Preference Stock (i) upon which like voting or consent rights have been conferred and (ii) which are similarly affected by the matter to </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>be voted upon, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>(i)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any amendment of the Corporation&#146;s Restated Articles of Incorporation which would adversely affect the rights, preferences, privileges or restrictions of the Series B Preference Stock; or</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>(ii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the authorization or creation, or the increase in the authorized amount, of any stock of any class or any security convertible into stock of any class, ranking senior to the Series B Preference Stock.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>provided, however, that no such consent of the Holders of the Series B Preference Stock shall be required if, at or prior to the time when such amendment is to take effect or when the authorization, creation or increase in the authorized amount of any such senior stock or convertible security is to be made, as the case may be, provision is to be made for the redemption of all shares of Series B Preference Stock at the time outstanding.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:left;'><font size=2> (b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>On matters requiring their consent, the Holders of Series B Preference Stock will be entitled to one vote per share.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Redemption</font></p> </td> </tr></table>


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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Series B Preference Stock shall not be redeemable prior to September 30, 2010.  On or after that date, subject to the notice provisions set forth in Section 4(b) below and subject to any further limitations which may be imposed by law, the Corporation may redeem the Series B Preference Stock, in whole or in part, at any time or from time to time, out of funds legally available therefor, at a redemption price equal to the Liquidation Preference per share plus an amount equal to the amount of the accrued and unpaid dividend (whether or not declared) from the Dividend Payment Date immediately preceding the redemption date to but excluding the redemption date, but without accumulation of unpaid dividends on the Series B Preference Stock for prior dividend periods; provided, however that
any redemption that would reduce the principal amount of the Series B Preference Stock outstanding to $50 million or less in the aggregate would be restricted to a redemption in whole only. If less than all of the outstanding shares of Series B Preference Stock are to be redeemed, the Corporation will select the shares to be redeemed from the outstanding shares not previously called for redemption by lot or pro rata (as nearly as possible) or by any other method that the Board in its sole discretion deems equitable.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>In the event the Corporation shall redeem any or all of the Series B Preference Stock as aforesaid, the Corporation will give notice of any such redemption to Holders of Series B Preference Stock not more than 60 nor less than 30 days prior to the date fixed by the Board for such redemption. Failure to give notice to any Holder of Series B Preference Stock shall not affect the validity of the proceedings for the redemption of shares of any other Holder of Series B Preference Stock being redeemed.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Notice having been given as herein provided, from and after the redemption date, dividends on the Series B Preference Stock called for redemption shall cease to accrue and such Series B Preference Stock called for redemption will no longer be deemed outstanding, and all rights of the Holders thereof will cease.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Series B Preference Stock will not be subject to any mandatory redemption, sinking fund or other similar provisions. In addition, Holders of Series B Preference Stock will have no right to require redemption of any shares of Series B Preference Stock.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Any shares of Series B Preference Stock which are converted, redeemed or retired shall thereafter have the status of authorized but unissued shares of Preference Stock of the Corporation undesignated as to series, and may thereafter be reissued by the Board in the same manner as any other authorized and unissued shares of Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(f)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the Corporation shall deposit on or prior to any date fixed for redemption of Series B Preference Stock, with any bank or trust company having a capital, surplus and undivided profits aggregating at least five million dollars ($5,000,000), as a trust fund, a fund sufficient to redeem the shares called for redemption, with irrevocable instructions and authority to such bank or trust company to pay on and after the date fixed for redemption or such earlier date as the Board may determine, to the respective Holders of such shares, the redemption price thereof, then from and after the date of such deposit (although prior to the date fixed for redemption) such shares so called shall be deemed to be redeemed and dividends thereon shall cease to accrue after said date fixed for
redemption and such deposit shall be deemed to constitute full payment of said shares to the Holders thereof and thereafter said shares shall no longer be deemed to be outstanding, and the Holders thereof shall cease to be shareholders with respect to such shares, and shall have no rights with respect thereto except only the right to receive from said bank or trust company payment of the redemption price of such shares without interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(g)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Any moneys deposited by the Corporation pursuant to Section 4(f) which shall not be required for the redemption because of the exercise of any such right of conversion or exchange subsequent to the date of the deposit shall be repaid to the Corporation forthwith.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rank</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>The Series B Preference Stock shall rank, with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>junior to the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock, and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such securities will rank senior to the Series B Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>equally with any other shares of Preference Stock and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such shares or other securities will rank equally with the Series B Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>senior to the Common Stock, and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such securities will rank junior to the Series&nbsp;B Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'>
<font size=2>IN WITNESS WHEREOF, the undersigned have executed this Certificate in Rosemead, California on September 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Thomas M. Noonan</font></u><font size=2>__________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Thomas M. Noonan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Senior Vice President and Chief </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Financial Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Mary C. Simpson</font></u><font size=2>_________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Mary C. Simpson</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Assistant Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>Each of the undersigned declares under penalty of perjury that the matters contained in the foregoing certificate are true of their own knowledge.  Executed in Rosemead, California on September 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Thomas M. Noonan</font></u><font size=2>_______</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Thomas M. Noonan</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Mary C. Simpson</font></u><font size=2>_________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Mary C. Simpson</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font SIZE=2>EXHIBIT G</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATE OF DETERMINATION OF PREFERENCES OF THE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SERIES C PREFERENCE STOCK</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>We, the undersigned, being the Vice President and the Assistant Treasurer, respectively, of Southern California Edison Company (the &#147;Corporation&#148;), a corporation organized and existing under and by virtue of the provisions of the laws of the State of California, DO HEREBY CERTIFY:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>FIRST:  The Restated Articles of Incorporation, as amended (the &#147;Articles&#148;), authorize the issuance of 50,000,000 shares of Preference Stock which may be issued from time to time in one or more series, and authorize the Board of Directors of the Corporation to (i) fix the number of shares of any series of Preference Stock and to determine the designation of any such series, (ii) to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of Preference Stock, including but not limited to rights, preferences, privileges and restrictions regarding dividends (including provisions specifying dividends at a floating or variable rate or dividends to be determined by reference to an index, formula, auction, bid or other objectively ascertainable criterion), liquidation, conversion, redemption and voting (including
provisions specifying no general voting rights or voting rights of more than one vote per share), and, (iii) within the limits and restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any such series subsequent to the issue of shares of that series.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>SECOND:  Acting pursuant to the authority delegated by the Board of Directors of the Corporation, the Pricing Committee of the Board of Directors did duly adopt on January 17, 2005, the following resolutions authorizing and providing for the creation of a series of said shares of Preference Stock to be known as Series C Preference Stock, consisting of 2,000,000 shares, none of the shares of such series having been issued:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&#147;NOW, THEREFORE, BE IT RESOLVED, that 2,000,000 shares of the presently authorized but unissued Preference Stock, no par value, be and hereby determined to be and shall be of a series of said Preference Stock hereby designated as the &#147;Series C Preference Stock&#148; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>BE IT FURTHER RESOLVED, that the rights, preferences, privileges and restrictions of shares of such series be and the same are hereby fixed, respectively, as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividends</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The holders of record of the Series C Preference Stock (each individually a &#147;Holder,&#148; or collectively the &#147;Holders&#148;) will be entitled to receive, when, as and if declared by the Board of Directors of the Corporation, or a duly authorized committee thereof (the &#147;Board&#148;), in its sole discretion out of funds legally available therefor, non-cumulative quarterly cash dividends which will accrue from and including January 24, 2006, and will be payable on January 31, April 30, July 31 and October 31 of each year (each, a &#147;Dividend Payment Date&#148;), commencing April 30, 2006, at the annual rate of 6.00% of the Liquidation Preference.  If a Dividend Payment Date is not a Business Day (as defined below), the related dividend (if declared) will be paid on the
next succeeding Business Day with the same force and effect as </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>though paid on the Dividend Payment Date, without any increase to account for the period from such Dividend Payment Date through the date of actual payment.  Dividends payable on the Series C Preference Stock for the initial dividend period and any period less than a full dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months and the actual number of days elapsed in such period.  &#147;Liquidation Preference&#148; means $100 per share of Series C Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Series C Preference Stock shall be outstanding, no dividend (other than dividends or distributions paid in shares of, or options, warrants or rights to subscribe for or purchase shares of, the common stock of the Corporation (the &#147;Common Stock&#148;) or any other stock of the Corporation ranking, as to the payment of dividends and the distribution of assets upon dissolution, liquidation or winding up of the Corporation, junior to the Series C Preference Stock), whether in cash or property, may be paid or declared or set apart, nor may any distribution be made on the Common Stock, nor may any shares of Common Stock be purchased, redeemed or otherwise acquired for value by the Corporation, unless dividends have been declared and paid or set apart on the
Series C Preference Stock for the then-current quarterly dividend period; provided, however, that the foregoing dividend preference shall not be cumulative and shall not in any way create any claim or right in favor of the Holders of Series C Preference Stock in the event that dividends have not been declared or paid or set apart on the Series C Preference Stock in respect of any prior dividend period.  If the full dividend on the Series C Preference Stock is not paid for any quarterly dividend period, the Holders of Series C Preference Stock will have no claim in respect of the unpaid amount so long as no dividend (other than those referred to above) is paid on the Common Stock (or any other stock of the Corporation ranking, as to the payment of dividends, junior to the Series C Preference Stock) for such dividend period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Board may, in its discretion, choose to pay dividends on the Series C Preference Stock without the payment of any dividends on the Common Stock (or any other stock of the Corporation ranking, as to the payment of dividends, junior to the Series C Preference Stock).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No full dividends shall be declared or paid or set apart for payment on any stock of the Corporation ranking, as to the payment of dividends, equally with the Series C Preference Stock for any period unless full dividends have been declared and paid or set apart for payment on the Series C Preference Stock for the then-current quarterly dividend period.  When dividends are not paid in full upon the Series C Preference Stock and all other classes or series of stock of the Corporation, if any, ranking, as to the payment of dividends, equally with the Series C Preference Stock, all dividends declared upon shares of Series C Preference Stock and all such other stock of the Corporation will be declared pro rata so that the amount of dividends declared per share of Series C Preference Stock
and all such other stock will in all cases bear to each other the same ratio that accrued dividends per share of Series C Preference Stock (but without, in the case of non-cumulative shares, accumulation of unpaid dividends for prior dividend periods) and such other stock bear to each other.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No dividends may be declared or paid or set apart for payment on any shares of Series C Preference Stock if at the same time any arrears exist or default exists in the payment of dividends on any outstanding class or series of stock of the Corporation ranking, as to the payment of dividends, prior to the Series C Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(f)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Holders of Series C Preference Stock will not be entitled to any dividends, whether payable in cash or property, other than as herein provided and will not be entitled to interest, or any sum in lieu of interest, in respect of any dividend payment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'>
</p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Liquidation Rights</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Upon any voluntary or involuntary dissolution, liquidation or winding up of the Corporation, after payment or provision for the liabilities of the Corporation and the expenses of such dissolution, liquidation or winding up, the Holders of outstanding shares of the Series C Preference Stock will be entitled to receive out of the assets of the Corporation or proceeds thereof available for distribution to stockholders, before any payment or distribution of assets is made to holders of the Common Stock (or any other stock of the Corporation ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, junior to the Series C Preference Stock), the Liquidation Value per share plus an amount equal to the accrued and unpaid dividend (whether or not
declared) for the then-current quarterly dividend period accrued to but excluding the date of such liquidation payment, but without accumulation of unpaid dividends on the Series C Preference Stock for prior dividend periods.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the assets of the Corporation available for distribution in such event are insufficient to pay in full the aggregate amount payable to Holders of Series C Preference Stock and holders of all other classes or series of stock of the Corporation, if any, ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, on a parity with the Series C Preference Stock, the assets will be distributed to the Holders of Series C Preference Stock and holders of all such other stock pro rata, based on the full respective preferential amounts to which they are entitled (but without, in the case of any non-cumulative preferred stock, accumulation of unpaid dividends for prior dividend periods).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Notwithstanding the foregoing, Holders of Series C Preference Stock will not be entitled to be paid any amount in respect of a dissolution, liquidation or winding up of the Corporation until holders of any classes or series of stock of the Corporation ranking, as to the distribution of assets upon dissolution, liquidation or winding up of the Corporation, prior to the Series C Preference Stock have been paid all amounts to which such classes or series are entitled.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Neither the sale, lease nor exchange (for cash, shares of stock, securities or other consideration) of all or substantially all of the property and assets of the Corporation, nor the merger, consolidation or combination of the Corporation into or with any other corporation or the merger, consolidation or combination of any other corporation or entity into or with the Corporation, shall be deemed to be a dissolution, liquidation or winding up, voluntary or involuntary, for the purposes of this Section 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>After payment to the Holders of the full amount of the distribution of assets upon dissolution, liquidation or winding up of the Corporation to which they are entitled pursuant to this Section 2, the Holders of Series C Preference Stock will not be entitled to any further participation in any distribution of assets by the Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Voting Rights</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>The Series C Preference Stock shall have no voting rights except as set forth in this Section&nbsp;3 or as otherwise provided by California law:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>So long as any shares of Series C Preference Stock are outstanding, the consent of the Holders of at least a majority of the Series C Preference Stock at the time outstanding, voting as a single class, or voting as a single class together with the holders of any other series of Preference Stock (i) upon </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>which like voting or consent rights have been conferred and (ii) which are similarly affected by the matter to be voted upon, given in person or by proxy, either in writing or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any one or more of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>(i)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>any amendment of the Corporation&#146;s Restated Articles of Incorporation which would adversely affect the rights, preferences, privileges or restrictions of the Series C Preference Stock; or</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:1in;text-align:left;'><font size=2>(ii)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>the authorization or creation, or the increase in the authorized amount, of any stock of any class or any security convertible into stock of any class, ranking senior to the Series C Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>provided, however, that no such consent of the Holders of the Series C Preference Stock shall be required if, at or prior to the time when such amendment is to take effect or when the authorization, creation or increase in the authorized amount of any such senior stock or convertible security is to be made, as the case may be, provision is to be made for the redemption of all shares of Series C Preference Stock at the time outstanding.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:left;'><font size=2> (b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>On matters requiring their consent, the Holders of Series C Preference Stock will be entitled to one vote per share.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Redemption</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Series C Preference Stock shall not be redeemable prior to January 31, 2011. On or after that date, subject to the notice provisions set forth in Section 4(b) below and subject to any further limitations which may be imposed by law, the Corporation may redeem the Series C Preference Stock, in whole or in part, at any time or from time to time, out of funds legally available therefor, at a redemption price equal to the Liquidation Preference per share plus an amount equal to the amount of the accrued and unpaid dividend (whether or not declared) from the Dividend Payment Date immediately preceding the redemption date to but excluding the redemption date, but without accumulation of unpaid dividends on the Series C Preference Stock for prior dividend periods; provided, however that
any redemption that would reduce the principal amount of the Series C Preference Stock outstanding to $50 million or less in the aggregate would be restricted to a redemption in whole only.  If less than all of the outstanding shares of Series C Preference Stock are to be redeemed, the Corporation will select the shares to be redeemed from the outstanding shares not previously called for redemption by lot or pro rata (as nearly as possible) or by any other method that the Board in its sole discretion deems equitable.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>In the event the Corporation shall redeem any or all of the Series C Preference Stock as aforesaid, the Corporation will give notice of any such redemption to Holders of Series C Preference Stock not more than 60 nor less than 30 days prior to the date fixed by the Board for such redemption.  Failure to give notice to any Holder of Series C Preference Stock shall not affect the validity of the proceedings for the redemption of shares of any other Holder of Series C Preference Stock being redeemed.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Notice having been given as herein provided, from and after the redemption date, dividends on the Series C Preference Stock called for redemption shall cease to accrue and such Series C Preference Stock called for redemption will no longer be deemed outstanding, and all rights of the Holders thereof will cease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Series C Preference Stock will not be subject to any mandatory redemption, sinking fund or other similar provisions.  In addition, Holders of Series C Preference Stock will have no right to require redemption of any shares of Series C Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Any shares of Series C Preference Stock which are converted, redeemed or retired shall thereafter have the status of authorized but unissued shares of Preference Stock of the Corporation undesignated as to series, and may thereafter be reissued by the Board in the same manner as any other authorized and unissued shares of Preference Stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(f)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>If the Corporation shall deposit on or prior to any date fixed for redemption of Series C Preference Stock, with any bank or trust company having a capital, surplus and undivided profits aggregating at least five million dollars ($5,000,000), as a trust fund, a fund sufficient to redeem the shares called for redemption, with irrevocable instructions and authority to such bank or trust company to pay on and after the date fixed for redemption or such earlier date as the Board may determine, to the respective Holders of such shares, the redemption price thereof, then from and after the date of such deposit (although prior to the date fixed for redemption) such shares so called shall be deemed to be redeemed and dividends thereon shall cease to accrue after said date fixed for
redemption and such deposit shall be deemed to constitute full payment of said shares to the Holders thereof and thereafter said shares shall no longer be deemed to be outstanding, and the Holders thereof shall cease to be shareholders with respect to such shares, and shall have no rights with respect thereto except only the right to receive from said bank or trust company payment of the redemption price of such shares without interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(g)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Any moneys deposited by the Corporation pursuant to Section 4(f) which shall not be required for the redemption because of the exercise of any such right of conversion or exchange subsequent to the date of the deposit shall be repaid to the Corporation forthwith.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rank</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>The Series C Preference Stock shall rank, with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(a)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>junior to the Cumulative Preferred Stock and the $100 Cumulative Preferred Stock, and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such securities will rank senior to the Series C Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(b)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>equally with any other shares of Preference Stock and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such shares or other securities will rank equally with the Series C Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>senior to the Common Stock, and any other equity securities that the Corporation may later authorize or issue, the terms of which provide that such securities will rank junior to the Series&nbsp;C Preference Stock with respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Corporation.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'>
<font size=2>IN WITNESS WHEREOF, the undersigned have executed this Certificate in Rosemead, California on January 17, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Robert C. Boada</font></u><font size=2>__________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Robert C. Boada</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Vice President </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Mary C. Simpson</font></u><font size=2>_________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Mary C. Simpson</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Assistant Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>Each of the undersigned declares under penalty of perjury that the matters contained in the foregoing certificate are true of their own knowledge.  Executed in Rosemead, California on January&nbsp;17, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Robert C. Boada</font></u><font size=2>__________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Robert C. Boada</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>Mary C. Simpson</font></u><font size=2>_________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Mary C. Simpson</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>LAW-#1270443</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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<TYPE>EX-10.51
<SEQUENCE>3
<FILENAME>ex1051sce10k05.htm
<DESCRIPTION>NEO 2006 BASE SALARIES
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<TITLE>Exhibit 10.51</TITLE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SOUTHERN CALIFORNIA EDISON COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>NAMED EXECUTIVE OFFICER BASE SALARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.68in;text-align:left;'><font size=2>The executive officers listed below are the individuals who will be designated as Southern California Edison Company&#146;s (&#147;SCE&#148;) named executive officers in its proxy statement for the 2006 annual meeting of shareholders and who are currently serving as executive officers of SCE.  The 2006 base salary level for each of the named executive officers is as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='margin-left:41.4pt;border-collapse:collapse;   '>
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        <td width="240" valign=top style='border:solid black 1.0pt;border-color:gray; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Named Executive Officer</font></u></p> </td>
        <td width="204" valign=top style='border:solid black 1.0pt;border-color:gray; border-left:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>2006 Base Salary Level</font></u></p> </td> </tr>
    <tr >
        <td width="240" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>John E. Bryson, Chairman of the Board, President and Chief Executive Officer of Edison International and Chairman of the Board of SCE</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="204" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:35.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,210,000</font><font size=2><sup>(1)</sup></font></p> </td> </tr>
    <tr >
        <td width="240" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Alan J. Fohrer, Chief Executive Officer of SCE</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="204" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$651,040</font><font size=2><sup>(1)</sup></font></p> </td> </tr>
    <tr >
        <td width="240" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>John R. Fielder, President of SCE</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="204" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$407,777</font><font size=2><sup>(1)</sup></font></p> </td> </tr>
    <tr >
        <td width="240" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mahvash Yazdi, Senior Vice President and Chief Information Officer of Edison International and SCE</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="204" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$364,078</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><u><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<sup>&nbsp;</sup>


<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p><font size=1>&nbsp;</font></p></td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup>(1)</sup></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>Messrs. Bryson, Fohrer and Fielder will also be designated as named executive officers by Edison International in its proxy statement for its 2006 annual meeting of shareholders.  The amounts shown for the officers are the aggregate 2006 base salaries for service to Edison International and SCE, and are inclusive of (and not in addition to) any 2006 base salary amounts reported by Edison International.</p> </td> </tr></table>

<sup>&nbsp;</sup>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<TYPE>EX-12
<SEQUENCE>4
<FILENAME>ex12sce10k05.htm
<DESCRIPTION>COMP OF RATIOS TO FIXED CHARGES
<TEXT>
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<TITLE>SCE Ratios of Earnings to Fixed Charges</TITLE>
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<PRE>

                                    SOUTHERN CALIFORNIA EDISON COMPANY AND CONSOLIDATED UTILITY-RELATED SUBSIDIARIES

                                                            RATIOS OF EARNINGS TO FIXED CHARGES

                                                                 (Thousands of Dollars)

                                                                 Year Ended December 31,
                                          ---------------------------------------------------------------------------
                                              2000         2001         2002         2003        2004        2005
                                          -----------   ----------   ----------   ----------  ----------   ----------


EARNINGS BEFORE INCOME TAXES
  AND FIXED CHARGES:

Income before interest expense (1)       $(2,478,036)  $4,850,848   $2,473,121   $1,727,267  $1,767,449   $1,414,472
Add:
  Rentals (2)                                  2,905        2,128        1,240          638         776        1,313
  Allocable portion of interest
      on long-term Contracts for
      the purchase of power (3)                1,699        1,659        1,616        1,568       1,515        1,457
  Amortization of previously capitalized
      fixed charges                            1,390        1,083        1,440        1,638       1,405        1,579
                                          -----------   ----------   ----------  ----------  ----------   ----------
Total earnings before income
  taxes and fixed charges (A)            $(2,472,042)  $4,855,718   $2,477,417   $1,731,111  $1,771,145   $1,418,821
                                          ===========   ==========   ==========  ==========   =========    =========




FIXED CHARGES:
  Interest and amortization              $   571,760   $  784,858   $  584,442   $  451,792  $  399,169   $  370,650
  Rentals (2)                                  2,905        2,128        1,240          638         776        1,313
  Capitalized fixed charges -
      nuclear fuel (4)                         1,538          756          520           97         839        1,075
  Allocable portion of interest on
      long-term contracts for
      the purchase of power (3)                1,699        1,659        1,616        1,568       1,515        1,457
                                          -----------   ----------   ----------  ----------  ----------   ----------
Total fixed charges (B)                  $   577,902   $  789,401   $  587,818   $  454,095  $  402,299   $  374,495
                                          ===========   ==========   ==========  ==========  ==========   ==========


RATIO OF EARNINGS TO
  FIXED CHARGES (A) / (B):                     (4.28)(5)     6.15         4.21         3.81        4.40         3.79
                                          ===========   ==========   ==========  ==========  ==========   ==========






(1)   Includes allowance for funds used during construction and accrual of unbilled revenue.

(2)   Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals.

(3)   Allocable portion of interest included in annual minimum debt service requirement of supplier.

(4)   Includes fixed charges associated with Nuclear Fuel.

(5)   Ratio for 2000 is less than 1.00. In 2000, SCE needed an additional $3,049,944,000 in earnings before income taxes
      and fixed charges to achieve a 1.00 ratio.
</PRE>
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<TYPE>EX-13
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<FILENAME>ex13sce10k05.htm
<DESCRIPTION>SELECTED PORTIONS OF SCE ANNUAL REPORT
<TEXT>
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<TITLE>SCE Exhibit 13</TITLE>
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<PRE>

SOUTHERN CALIFORNIA EDISON COMPANY
LOGO














                                                              2005  Annual Report


Page



_______________________________________________________________________________________________________________
                                                                             Southern California Edison Company

Southern California Edison Company (SCE) is one of the nation's largest investor-owned electric utilities.
Headquartered in Rosemead, California, SCE is a subsidiary of Edison International.

SCE, a 120-year-old electric utility, serves a 50,000-square-mile area of central, coastal and southern
California.



Table of Contents

   1     Management's Discussion and Analysis of Financial Condition and Results of Operations
  36     Report of Independent Registered Public Accounting Firm
  37     Consolidated Statements of Income
  37     Consolidated Statements of Comprehensive Income
  38     Consolidated Balance Sheets
  40     Consolidated Statements of Cash Flows
  41     Consolidated Statements of Changes in Common Shareholder's Equity
  42     Notes to Consolidated Financial Statements
  80     Quarterly Financial Data
  81     Selected Financial and Operating Data:  2001-2005



Page

___________________________________________________________________________________________________________
Management's Discussion and Analysis of Financial Condition and Results of Operations


                                                 INTRODUCTION

This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&amp;A) contains
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect Southern California Edison Company's (SCE) current expectations and
projections about future events based on SCE's knowledge of present facts and circumstances and assumptions
about future events and include any statement that does not directly relate to a historical or current fact.
Other information distributed by SCE that is incorporated in this report, or that refers to or incorporates
this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects,"
"believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could,"
"would," "should," and variations of such words and similar expressions, or discussions of strategy or of
plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and
uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks,
uncertainties and other important factors that could cause results to differ, or that otherwise could impact
SCE, include, but are not limited to:

o   the ability of SCE to recover its costs in a timely manner from its customers through regulated rates;
o   decisions and other actions by the California Public Utilities Commission (CPUC) and other regulatory
    authorities and delays in regulatory actions;
o   market risks affecting SCE's energy procurement activities;
o   access to capital markets and the cost of capital;
o   changes in interest rates and rates of inflation;
o   governmental, statutory, regulatory or administrative changes or initiatives affecting the electricity
    industry, including the market structure rules applicable to each market and environmental regulations
    that could require additional expenditures or otherwise affect the cost and manner of doing business;
o   risks associated with operating nuclear and other power generating facilities, including operating risks,
    nuclear fuel storage, equipment failure, availability, heat rate and output;
o   the availability of labor, equipment and materials;
o   the ability to obtain sufficient insurance, including insurance relating to SCE's nuclear facilities;
o   effects of legal proceedings, changes in or interpretations of tax laws, rates or policies, and changes
    in accounting standards;
o   the cost and availability of coal, natural gas, and fuel oil, nuclear fuel, and associated transportation;
o   the ability to provide sufficient collateral in support of hedging activities and purchased power and fuel;
o   general political, economic and business conditions;
o   weather conditions, natural disasters and other unforeseen events; and
o   changes in the fair value of investments and other assets accounted for using fair value accounting.

Additional information about risks and uncertainties, including more detail about the factors described
above, are discussed throughout this MD&amp;A and the "Risk Factors" section included in Part I, Item IA of SCE's
annual report on Form 10-K. Readers are urged to read this entire annual report, including the information
incorporated by reference, and carefully consider the risks, uncertainties and other factors that affect
SCE's business. Forward-looking statements speak only as of the date they are made and SCE

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_____________________________________________________________________________________________________________
Management's Discussion and Analysis of Financial Condition and Results of Operations


is not obligated to publicly update or revise forward-looking statements. Readers should review future
reports filed by SCE with the Securities and Exchange Commission.

The MD&amp;A is presented in 11 major sections: (1) Management overview; (2) Liquidity; (3) Regulatory Matters;
(4) Other Developments; (5) Market Risk Exposures; (6) Results of Operations and Historical Cash Flow
Analysis; (7) Dispositions and Discontinued Operations; (8) Acquisition; (9) Critical Accounting Estimates;
(10) New Accounting Principles; and (11) Commitments and Indemnities.

MANAGEMENT OVERVIEW

In 2005, SCE's focus was on effective execution of Edison International's strategic plan. That plan,
announced in October of 2004, set forth a balanced approach for growth, dividends and balance sheet strength.
In 2005, SCE met and in some cases exceeded what was set out in the strategic plan as it related to SCE.
Principal objectives achieved in 2005 are summarized below:

o   Managed growth - In 2005, SCE met all transmission and distribution investment targets, as well as key
    milestones on future transmission projects. In addition, SCE continued to focus on ensuring adequate
    generation resources to support customer demand and completed construction of its 1,054 megawatt (MW)
    Mountainview project and obtained a CPUC decision authorizing the San Onofre Nuclear Generating Station
    (San Onofre) steam generator replacement project.

o   Balance sheet strength - In 2005, SCE took steps to rebalance its capital structure. Liquidity was also
    enhanced through strong cash flow generation. In addition, credit ratings improved and credit facilities
    to support hedging and liquidity needs were expanded.

SCE also took significant steps to strengthen the ethics and compliance programs, building a high-priority
program to uphold its commitment to integrity and compliance with all regulatory requirements.

In 2006, SCE's primary focus includes:

o   Implementation of SCE's capital investment plan to ensure system reliability. SCE plans to undertake new
    projects to expand its transmission and distribution systems, increase maintenance activities on its electric
    grid, and begin implementation of a comprehensive, integrated software system to support the majority of
    its critical business processes. The proposed decision in SCE's 2006 General Rate Case (GRC) would authorize
    $4.9 billion of capital expenditures for 2006 - 2008, including $2.2 billion in 2006. See "Liquidity--Capital
    Expenditures" for further discussion of SCE's capital expenditures.

o   Progression toward a set of market rules that permit SCE to procure power efficiently ensuring adequate
    resources are available and creating a downward pressure on customer rates. Beginning in 2006, SCE was required
    to procure sufficient resources to meet its expected customer needs with a 15-17% reserve margin. SCE expects to
    meet this resource adequacy requirement in 2006, but access to long-term power resources is needed. In order to
    provide reliable service SCE continues to focus on securing reasonable long-term procurement rules (see
    "Regulatory Matters--Current Regulatory Developments"), finding a path to continue to operate the Mohave
    Generating Station (Mohave) in 2006 on acceptable financial and commercial terms (see "Regulatory
    Matters--Current Regulatory Developments--Mohave Generating Station and Related Proceedings"), and achieving
    the milestones for the San Onofre steam generator replacement (see "Regulatory Matters--Current Regulatory
    Developments--San Onofre Nuclear Generating Station Steam Generators").

o   Continuing to be effective in advocating sound, stable and consistent regulatory decisions, including SCE's
    2006 GRC application. A proposed decision on SCE's 2006 GRC application was received on January 17, 2006. The
    proposed decision would result in a 2006 base rate revenue requirement of $3.70 billion, an increase of $61
    million over SCE's 2005 base rate revenue. See "Regulatory Matters--Current Regulatory Developments" for
    further discussion of regulatory matters.

Page 2


_______________________________________________________________________________________________________________
                                                                             Southern California Edison Company

In addition, SCE will continue to enhance the effectiveness of SCE's ethics and compliance programs and will
advance company-wide leadership and talent development programs to support its strategic plan objectives.

LIQUIDITY

Overview

As of December 31, 2005, SCE had cash and equivalents of $143 million ($120 million of which was held by
SCE's consolidated Variable Interest Entities (VIEs)). As of December 31, 2005, long-term debt, including
current maturities of long-term debt, was $5.3 billion. In December 2005, SCE replaced its $1.25 billion
credit facility with a $1.7 billion senior secured 5-year revolving credit facility. The security pledged
(first and refunding mortgage bonds) for the new facility can be removed at SCE's discretion. If SCE chooses
to remove the security, the credit facility's rating and pricing will change to an unsecured basis per the
terms of the credit facility agreement. As of December 31, 2005, SCE's credit facility supported $180 million
in letters of credit, leaving $1.52 billion available under the credit facility.

SCE's 2006 estimated cash outflows consist of:

o   Debt maturities of approximately $596 million, including approximately $246 million of rate reduction
    notes that have a separate nonbypassable recovery mechanism approved by state legislation and CPUC decisions;

o   Projected capital expenditures of $2.2 billion primarily to replace and expand distribution and transmission
    infrastructure and construct and replace generation assets, as discussed below;

o   Dividend payments to SCE's parent company. On March 1, 2006, the Board of Directors of SCE declared a
    $60 million dividend to be paid to Edison International;

o   Fuel and procurement-related costs (see "Regulatory Matters--Current Regulatory Developments--Energy Resource
    Recovery Account Proceedings"); and

o   General operating expenses.

SCE expects to meet its continuing obligations, including cash outflows for power-procurement
undercollections (if incurred), through cash and equivalents on hand, operating cash flows and short-term
borrowings, when necessary. Projected capital expenditures are expected to be financed through operating cash
flows and the issuance of long-term debt and preferred equity.

In January 2006, SCE issued two million shares of 6.0% Series C preference stock (non-cumulative,
$100 liquidation value) and received net proceeds of $197 million. In addition, SCE issued $500 million of
first and refunding mortgage bonds. The issuance included $350 million of 5.625% bonds due in 2036 and
$150 million of variable rate bonds due in 2009. The proceeds from the January 2006 issuances of preference
stock and bonds will be used for general corporate purposes, including capital expenditures and debt
maturities.

SCE's liquidity may be affected by, among other things, matters described in "Regulatory Matters."

Capital Expenditures

SCE is experiencing significant growth in actual and planned capital expenditures to replace and expand its
distribution and transmission infrastructure, and to construct and replace generation assets. In April 2005,
the Finance Committee of SCE's Board of Directors approved a $10.1 billion capital budget and forecast for
the period 2005-2009. Pursuant to the approved capital budget and forecast, SCE

Page 3


_____________________________________________________________________________________________________________
Management's Discussion and Analysis of Financial Condition and Results of Operations

expects its capital expenditures to be $2.2 billion in 2006 and $2.1 billion in both 2007 and 2008, including
projected environmental capital expenditures of $482 million, $485 million and $500 million in 2006, 2007 and
2006, respectively (see "Other Developments--Environmental Matters"). Significant investments in 2006 are
expected to include:

o   $1.5 billion related to transmission and distribution projects;

o   $300 million related to generation projects;

o   $200 million related to information technology projects, including the implementation of a comprehensive
    integrated software system to support a majority of SCE's critical business processes; and

o   $200 million related to other customer service and shared services projects.

Credit Ratings

At December 31, 2005, SCE's credit and long-term senior secured issuer ratings from Standard &amp; Poor's and
Moody's Investors Service were BBB+ and A3, respectively. At December 31, 2005, SCE's short-term (commercial
paper) credit ratings from Standard &amp; Poor's and Moody's Investors Service were A-2 and P-2, respectively.

Dividend Restrictions and Debt Covenants

The CPUC regulates SCE's capital structure and limits the dividends it may pay Edison International. In SCE's
most recent cost of capital proceeding, the CPUC set an authorized capital structure for SCE which included a
common equity component of 48%. SCE determines compliance with this capital structure based on a 13-month
weighted-average calculation. At December 31, 2005, SCE's 13-month weighted-average common equity component
of total capitalization was 50%. At December 31, 2005, SCE had the capacity to pay $197 million in additional
dividends based on the 13-month weighted-average method. Based on recorded December 31, 2005 balances, SCE's
common equity to total capitalization ratio, for rate-making purposes, was 50.2%. SCE had the capacity to pay
$212 million of additional dividends to Edison International based on December 31, 2005 recorded balances.

SCE has a debt covenant that requires a debt to total capitalization ratio of less than or equal to 0.65 to 1
to be met. At December 31, 2005, SCE's debt to total capitalization ratio was 0.46 to 1.

Margin and Collateral Deposits

In connection with entering into power-purchase agreements to support SCE's procurement plan approved by the
CPUC and enter into transactions for imbalance energy with the California Independent System Operator (ISO),
SCE has entered into margining agreements for power and gas trading activities to support its risk of
nonperformance. SCE's margin deposit requirements can vary depending upon the level of unsecured credit
extended by counterparties and brokers, the ISO credit requirements, changes in market prices relative to
contractual commitments, and other factors. At December 31, 2005, SCE had a net deposit of $6 million
($158 million recorded in "Margin and collateral deposits" on the balance sheet and $152 million in unrealized
gains recorded in "Counterparty collateral" on the balance sheet) with a broker in support of gas trading
activities. In addition SCE deposited $200 million (comprised of $20 million in cash and $180 million in
letters of credit) with counterparties. Cash deposits with counterparties and brokers earn interest at
various rates.

Margin and collateral deposits in support of power purchase agreements and gas trading activities fluctuate
with changes in market prices. As of February 28, 2006, SCE had a net deposit of $242 million ($109 million
recorded in "Margin and collateral deposits" on the balance sheet and $133 million in


Page 4

_______________________________________________________________________________________________________________
                                                                             Southern California Edison Company

unrealized losses recorded in "Counterparty collateral" on the balance sheet) with a broker. In addition, SCE
has posted $199 million (comprised of $20 million in cash and $179 million in letters of credit) with
counterparties. Future margin and collateral requirements may be higher or lower than the margin collateral
requirements as of December 31, 2005 and February 28, 2006, based on future market prices and volumes of
trading activity.

In addition, as discussed in "Regulatory Matters--Overview of Ratemaking Mechanisms--CDWR-Related Rates," the
CDWR entered into contracts to purchase power for the sale at cost directly to SCE's retail customers during
the California energy crisis. These CDWR procurement contracts contain provisions that would allow the
contracts to be assigned to SCE if certain conditions are satisfied, including having an unsecured credit
rating of BBB/Baa2 or higher. However, because the value of power from these CDWR contracts is subject to
market rates, such an assignment to SCE, if actually undertaken, could require SCE to post significant
amounts of collateral with the contract counterparties, which would strain SCE's liquidity. In addition, the
requirement to take responsibility for these ongoing fixed charges, which the credit rating agencies view as
debt equivalents, could adversely affect SCE's credit rating. SCE opposes any attempt to assign the CDWR
contracts. However, it is possible that attempts may be made to order SCE to take assignment of these
contracts, and that such orders might withstand legal challenges.

Rate Reduction Notes

In December 1997, $2.5 billion of rate reduction notes were issued on behalf of SCE by SCE Funding LLC, a
special purpose entity. These notes were issued to finance the 10% rate reduction mandated by state law
beginning in 1998. The proceeds of the rate reduction notes were used by SCE Funding LLC to purchase from SCE
an enforceable right known as transition property. Transition property is a current property right created by
the restructuring legislation and a financing order of the CPUC and consists generally of the right to be
paid a specified amount from nonbypassable rates charged to residential and small commercial customers. The
rate reduction notes are being repaid over 10 years through these nonbypassable residential and small
commercial customer rates, which constitute the transition property purchased by SCE Funding LLC. The notes
are collateralized by the transition property and are not collateralized by, or payable from, assets of SCE.
SCE used the proceeds from the sale of the transition property to retire debt and equity securities.
Although, as required by accounting principles generally accepted in the United States, SCE Funding LLC is
consolidated with SCE and the rate reduction notes are shown as long-term debt in the consolidated financial
statements, SCE Funding LLC is legally separate from SCE. The assets of SCE Funding LLC are not available to
creditors of SCE and the transition property is legally not an asset of SCE.

REGULATORY MATTERS

Overview of Ratemaking Mechanisms

SCE is an investor-owned utility company providing electricity to retail customers in central, coastal and
southern California. SCE is regulated by the CPUC and the Federal Energy Regulatory Commission (FERC). SCE
bills its customers for the sale of electricity at rates authorized by these two commissions. These rates are
categorized into three groups: base rates, cost-recovery rates, and CDWR-related rates.

Base Rates

Revenue arising from base rates is designed to provide SCE a reasonable opportunity to recover its costs and
earn an authorized return on SCE's net investment in generation, transmission and distribution plant (or rate
base). Base rates provide for recovery of operations and maintenance costs, capital-related carrying costs
(depreciation, taxes and interest) and a return or profit, on a forecast basis.

Page 5

_____________________________________________________________________________________________________________
Management's Discussion and Analysis of Financial Condition and Results of Operations

Base rates related to SCE's generation and distribution functions are authorized by the CPUC through a GRC.
In a GRC proceeding, SCE files an application with the CPUC to update its authorized annual revenue
requirement. After a review process and hearings, the CPUC sets an annual revenue requirement by multiplying
an authorized rate of return, determined in annual cost of capital proceedings (as discussed below), by rate
base, then adding to this amount the adopted operation and maintenance costs and capital-related carrying
costs. Adjustments to the revenue requirement for the remaining years of a typical three-year GRC cycle are
requested from the CPUC based on criteria established in a GRC proceeding for escalation in operation and
maintenance costs, changes in capital-related costs and the expected number of nuclear refueling outages. See
"--Current Regulatory Developments--2006 General Rate Case Proceeding" for SCE's current annual revenue
requirement. Variations in generation and distribution revenue arising from the difference between forecast
and actual electricity sales are recorded in balancing accounts for future recovery or refund, and do not
impact SCE's operating profit, while differences between forecast and actual operating costs, other than
cost-recovery costs (see below), do impact profitability.

Base rate revenue related to SCE's transmission function is authorized by the FERC in periodic proceedings
that are similar to the CPUC's GRC proceeding, except that requested rate changes are generally implemented
when the application is filed, and revenue collected prior to a final FERC decision is subject to refund.

SCE's capital structure, including the authorized rate of return, is regulated by the CPUC and is determined
in an annual cost of capital proceeding. The rate of return is a weighted average of the return on common
equity and cost of long-term debt and preferred equity. In 2005, SCE's rate-making capital structure was 48%
common equity, 43% long-term debt and 9% preferred equity. SCE's authorized cost of long-term debt was 6.96%,
its authorized cost of preferred equity was 6.73% and its authorized return on common equity was 11.40%. If
actual costs of long-term debt or preferred equity are higher or lower than authorized, SCE's earnings are
impacted in the current year and the differences are not subject to refund or recovery in rates. See
"--Current Regulatory Developments--2006 Cost of Capital Proceeding" for discussion of SCE's 2006 cost of
capital proceeding.

SCE is eligible under its CPUC-approved performance-based ratemaking (PBR) mechanism to earn rewards or
penalties based on its performance in comparison to CPUC-approved standards of reliability and employee
safety.

Cost-Recovery Rates

Revenue requirements to recover SCE's costs of fuel, purchased power, demand-side management programs,
nuclear decommissioning, rate reduction debt requirements, and public purpose programs are authorized in
various CPUC proceedings on a cost-recovery basis, with no markup for return or profit. Approximately 52% of
SCE's annual revenue relates to the recovery of these costs. Although the CPUC authorizes balancing account
mechanisms to refund or recover any differences between estimated and actual costs, under- or
over-collections in these balancing accounts can build rapidly due to fluctuating prices (particularly for
purchased power) and can greatly impact cash flows. SCE may request adjustments to recover or refund any
under- or over-collections. The majority of costs eligible for recovery are subject to CPUC reasonableness
reviews, and thus could negatively impact earnings and cash flows if found to be unreasonable and disallowed.

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_____________________________________________________________________________________________________________
                                                                           Southern California Edison Company

CDWR-Related Rates

As a result of the California energy crisis, in 2001 the CDWR entered into contracts to purchase power for
sale at cost directly to SCE's retail customers and issued bonds to finance those power purchases. The CDWR's
total statewide power charge and bond charge revenue requirements are allocated by the CPUC among the
customers of SCE, Pacific Gas and Electric (PG&amp;E) and San Diego Gas &amp; Electric (SDG&amp;E) (collectively, the
investor-owned utilities). SCE bills and collects from its customers the costs of power purchased and sold by
the CDWR, CDWR bond-related charges and direct access exit fees. The CDWR-related charges and a portion of
direct access exit fees (approximately $1.9 billion was collected in 2005) are remitted directly to the CDWR
and are not recognized as revenue by SCE and therefore have no impact on SCE's earnings; however they do
impact customer rates.

Impact of Regulatory Matters on Customer Rates

SCE is concerned about high customer rates, which were a contributing factor that led to the deregulation of
the electric services industry during the mid-1990s. At January 1, 2005, SCE's system average rate for
bundled customers was 12.2(cent)-per-kilowatt-hour. As of December 31, 2005, the system average rate was
12.6(cent)-per-kilowatt-hour. On January 1, 2006, SCE implemented a rate change that resulted in a system average
rate of 13.7(cent)-per-kilowatt-hour. Of the 1.1(cent)rate increase, 1(cent)was due to the implementation of the CDWR's
2006 revenue requirement approved by the CPUC on December 1, 2005.

SCE implemented a rate change on February 4, 2006. As a result, SCE's current system average rate is
14.3(cent)-per-kilowatt-hour. The rate increase was due to a 1.2(cent)increase resulting from the implementation of
SCE's 2006 Energy Resource Recovery Account (ERRA) forecast discussed below, partially offset by a decrease of
0.7(cent)due to spreading of the revenue requirement over a larger customer base resulting from forecast sales
growth. In addition, the rate change includes authorized increases in funding for demand-side management
programs.

Current Regulatory Developments

This section of the MD&amp;A describes significant regulatory issues that may impact SCE's financial condition or
results of operation.

2006 General Rate Case Proceeding

SCE's 2006 GRC application requested a revised 2006 base rate revenue requirement of $3.96 billion, an
increase of $325 million over SCE's 2005 base rate revenue. The requested increase is primarily driven by
capital expenditures needed to accommodate infrastructure replacement and customer and load growth, and by
higher operating and maintenance expenses, particularly in SCE's transmission and distribution business unit.
SCE also requested the CPUC continue SCE's existing post-test year rate-making mechanism, which would result
in further revised base rate revenue increases of $108 million in 2007 and $113 million in 2008.

On January 17, 2006, the assigned administrative law judge issued his proposed decision, which would result
in a 2006 base rate revenue requirement of $3.70 billion, an increase of $61 million over SCE's 2005 base
rate revenue. The proposed draft decision contained an error understating the revised 2006 increase. When
corrected, the 2006 revenue requirement increase would be $85 million. The proposed decision would reject
approximately $121 million of O&amp;M expenses and $143 million of the capital-related revenue requirement that
SCE requested. The proposed decision would also reject SCE's post-test year rate-making method and instead
escalate 2006 gross additions to 2007 and 2008. The proposed decision's changes would result in base rate
revenue increases of $68 million in 2007 and $105 million in 2008. A final CPUC decision is expected by
the end of April 2006. SCE cannot predict with certainty the final outcome of SCE's GRC application.

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On January 12, 2006, the CPUC approved SCE's request for a GRC memorandum account, which makes the revenue
requirement ultimately adopted by the CPUC effective as of that date.

2006 Cost of Capital Proceeding

On December 15, 2005, the CPUC granted SCE's requested rate-making capital structure of 43% long-term debt,
9% preferred equity and 48% common equity for 2006. The CPUC also authorized SCE's 2006 cost of long-term
debt of 6.17%, cost of preferred equity of 6.09% and a return on common equity of 11.60%. The CPUC decision
resulted in a $23 million decrease in SCE's annual revenue requirement due to lower interest costs partially
offset by an increase in return on common equity.

2006 FERC Rate Case

SCE's electric transmission revenue and wholesale and retail transmission rates are subject to authorization
by the FERC. On November 10, 2005, SCE filed proposed revisions to the 2006 base transmission rates, which
would increase SCE's revenue requirement by $65 million, or 23%, over current base transmission rates,
effective on January 10, 2006. On January 9, 2006, FERC accepted the filing, but delayed the rate changes to
become effective June 10, 2006, subject to refund. On February 8, 2006, SCE filed a petition for rehearing of
the order seeking, among other things, reversal of the FERC's effective date. SCE is unable to predict the
revenue requirement that the FERC will ultimately authorize and when the rate changes will become effective.

Energy Resource Recovery Account Proceedings

In 2002, the CPUC established the ERRA as the balancing account mechanism to track and recover SCE's:
(1) fuel costs related to its generating stations; (2) purchased-power costs related to cogeneration and
renewable contracts; (3) purchased-power costs related to existing interutility and bilateral contracts that
were entered into before January 17, 2001; and (4) procurement-related costs incurred on or after January 1,
2003 (the date on which the CPUC transferred back to SCE the responsibility for procuring energy resources
for its customers). As described above, SCE recovers these costs on a cost-recovery basis, with no markup for
return or profit. SCE files annual forecasts of the above-described costs that it expects to incur during the
following year. If the forecast is approved, as these costs are subsequently incurred they are tracked and
recovered in customer rates through the ERRA, but are subject to a reasonableness review in a separate annual
ERRA application. If the ERRA overcollection or undercollection exceeds 5% of SCE's prior year's generation
revenue, the CPUC has established a "trigger" mechanism, whereby SCE can request an emergency rate
adjustment. As of December 31, 2005, the ERRA was undercollected by $42 million, which was 1.28% of SCE's
prior year's generation revenue.

ERRA Forecast

On January 26, 2006, the CPUC approved SCE's 2006 ERRA forecast application, in which it forecasted a power
procurement-related revenue requirement for the 2006 calendar year of $4.3 billion, an increase of
$961 million over SCE's approved 2005 power procurement-related revenue requirement. The increase was mainly
attributable to the substantial increase in natural gas and power prices, load growth and resource adequacy
requirements (see the discussion under "--Resource Adequacy Requirements"), the unavailability of Mohave after
December 31, 2005, and its replacement with higher-cost natural gas generation (see "--Mohave Generating
Station and Related Proceedings"). The increase was implemented in customer rates beginning February 4, 2006.

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ERRA Reasonableness Review

From September 1, 2001 through December 31, 2004, the CPUC found all costs recorded in SCE's ERRA account
reasonable and prudent, except for minor amounts in 2001.

In addition, from September 1, 2001 through June 30, 2003, the CPUC authorized recovery of amounts paid to
Peabody Coal Company for costs associated with the Mohave mine closing, as well as transmission costs related
to serving municipal utilities, and also resolved outstanding issues from 2000 and 2001 related to CDWR
costs. As a result of this decision, SCE recorded a benefit of $118 million in 2004.

Resource Adequacy Requirements

Under the CPUC's resource adequacy framework, all load-serving entities in California have an obligation to
procure sufficient resources to meet their expected customers' needs with a 15-17% reserve level. Effective
February 16, 2006, SCE was required to demonstrate that it had procured sufficient resources to meet 90% of
its June-September 2006 resource adequacy requirement. SCE believes that it has met this requirement.
Effective in May 2006, SCE will be required to demonstrate that it has met 100% of its resource adequacy
requirement one month in advance of expected need. A month-ahead showing demonstrating that SCE has procured
100% of its resource adequacy requirement will be required every month thereafter. The resource adequacy
framework provides for penalties of 150% of the cost of new monthly capacity for failing to meet the resource
adequacy requirements in 2006, and a 300% penalty in 2007 and beyond. SCE believes it has procured sufficient
resources to meet its expected resource adequacy requirements for 2006. In December 2005, the CPUC opened a
new resource adequacy rulemaking to address resource adequacy implementation issues, the implementation of
local resource adequacy requirements, and other issues related to resource adequacy. A decision on local
resource adequacy requirements is expected in June 2006.

Procurement of Renewable Resources

California law requires SCE to increase its procurement of renewable resources by at least 1% of its annual
retail electricity sales per year so that 20% of its annual electricity sales are procured from renewable
resources by no later than December 31, 2017. The Joint Energy Action Plan adopted in 2003 by the CPUC and
the California Energy Commission (CEC) accelerated the deadline to 2010.

SCE entered into a contract with Calpine Energy Services, L.P. (Calpine) to purchase the output of certain
existing geothermal facilities in northern California. On January 30, 2003, the CPUC issued a resolution
approving the contract. SCE interpreted the resolution as authorizing SCE to count all of the output of the
geothermal facilities towards the obligation to increase SCE's procurement from renewable resources and
counted the entire output of the facilities toward its 1% obligation in 2003, 2004 and 2005. On July 21,
2005, the CPUC issued a decision stating that SCE can only count procurement pursuant to the Calpine contract
towards its 1% annual renewable procurement requirement if it is certified as "incremental" by the CEC. On
February 1, 2006, the CEC certified approximately 25% and 17% of SCE's 2003 and 2004 procurement,
respectively, from the Calpine geothermal facilities as "incremental." A similar outcome is anticipated with
respect to the CEC's certification review for 2005.

On August 26, 2005, SCE filed an application for rehearing and a petition for modification of the CPUC's July
21, 2005 decision. On January 26, 2006, the CPUC denied SCE's application for rehearing of the decision. The
CPUC has not yet ruled on SCE's petition for modification. The petition for modification seeks a
clarification that SCE will not be subjected to penalties for relying on the CPUC's 2003 resolution in
submitting compliance reports to the CPUC and planning its subsequent renewable procurement activities. The
petition for modification also seeks an express finding that the decision will



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be applied prospectively only; i.e., that no past procurement deficits will accrue for any prior period based
on the decision.

If SCE is not successful in its attempt to modify the July 21, 2005 CPUC decision and can only count the
output deemed "incremental" by the CEC, SCE could have deficits in meeting its renewable procurement
obligations for 2003 and 2004. However, based on the CPUC's rules for compliance with renewable procurement
targets, SCE believes that it will have until 2007 to make up these deficits before becoming subject to
penalties for those years. The CEC's and the CPUC's treatment of the output from the geothermal facilities
could also result in SCE being deemed to be out of compliance in 2005 and 2006. Under current CPUC decisions,
potential penalties for SCE's failure to achieve its renewable procurement obligations for any year will be
considered by the CPUC in SCE's annual compliance filing.

On December 20, 2005, Calpine and certain of its affiliates initiated Chapter 11 bankruptcy proceedings in
the United States Bankruptcy Court for the Southern District of New York. As part of those proceedings,
Calpine sought to reject its contract with SCE as of the petition filing date. On January 27, 2006, after the
matter had been withdrawn from the Bankruptcy Court's jurisdiction, the United States District Court for the
Southern District of New York denied Calpine's motion to reject the contract and ruled that the FERC has
exclusive jurisdiction to alter the terms of the contract with SCE. Calpine has appealed the District Court's
ruling to the United States Court of Appeals for the Second Circuit. Calpine may also file a petition with
the FERC seeking authorization to reject the contract. The CPUC may take the position that any authorized
rejection of the contract would cause SCE to be out of compliance with its renewable procurement obligations
during any period in which renewable electricity deliveries are reduced or eliminated as a result of the
rejection.

Further, in December 2005, SCE made filings advising the CPUC that the need for transmission upgrades to
interconnect new renewable projects and the time it will take under the current process to license and
construct such transmission upgrades may prevent SCE from meeting its statutory renewables procurement
obligations through 2010 and potentially beyond 2010 depending in part on the results of a pending
solicitation for new renewable resources. SCE has requested that the CPUC take several actions in order to
expedite the licensing process for transmission upgrades. The CPUC may take the position that SCE's failure
to meet the 20% goal by 2010 due to transmission constraints would cause SCE to be out of compliance with its
renewable procurement obligations.

Under the CPUC's current rules, the maximum penalty for failing to achieve renewables procurement targets is
$25 million per year. SCE cannot predict with certainty whether it will be assessed penalties.

Mohave Generating Station and Related Proceedings

Mohave obtained all of its coal supply from the Black Mesa Mine in northeast Arizona, located on lands of the
Navajo Nation and Hopi Tribe (the Tribes). This coal was delivered from the mine to Mohave by means of a coal
slurry pipeline, which requires water from wells located on lands belonging to the Tribes in the mine
vicinity. Uncertainty over a post-2005 coal and water supply has prevented SCE and other Mohave co-owners
from making approximately $1.1 billion in Mohave-related investments (SCE's share is $605 million), including
the installation of enhanced pollution-control equipment that must be put in place in order for Mohave to
continue to operate beyond 2005, pursuant to a 1999 consent decree concerning air quality.

Negotiations, water studies, and other efforts have continued among the relevant parties in an attempt to
resolve Mohave's post-2005 coal and water supply issues. Although progress has been made with respect to
certain issues, no complete resolution has been reached to date, and efforts to resolve these issues
continue. The plant ceased operations, as scheduled, on December 31, 2005, consistent with the provisions of
the 1999 consent decree. SCE remains committed to the environmental objectives


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underlying that decree. SCE is also committed to pursuing all reasonable options to return Mohave to service
pursuant to the existing consent decree provisions or, if interim operation is permitted pending installation
of controls, pursuant to additional legal provisions which provide appropriate protection of the environment.
However, at this time, SCE does not know the length of the shutdown period, and a permanent shutdown remains
possible. The outcome of the efforts to resolve the post-2005 coal and water supply issues did not impact
Mohave's operation through 2005, but the presence or absence of Mohave as an available resource beyond 2005
will impact SCE's long-term resource plan. SCE's 2006 ERRA forecast application assumes Mohave is an
unavailable resource for power for 2006 (see "--Energy Resource Recovery Account Proceedings--ERRA Forecast"
for further discussion). SCE expects to recover Mohave shut-down costs in customer rates.

In light of the issues discussed above, in 2002 SCE concluded that it was probable Mohave would be shut down
at the end of 2005. Because the expected undiscounted cash flows from the plant during the years 2003-2005
were less than the $88 million carrying value of the plant as of December 31, 2002, SCE incurred an
impairment charge of $61 million in 2002. However, in accordance with accounting standards for rate-regulated
enterprises, this incurred charge was deferred and recorded in regulatory assets as a long-term receivable
based on SCE's expectation that the unrecovered book value at the end of 2005 would be recovered in future
rates (together with a reasonable return) through a balancing account mechanism. Subsequent charges related
to capital additions were also deferred and recorded in regulatory assets. As of December 31, 2005 the
regulatory balance related to the Mohave impairment was $81 million.

For additional matters related to Mohave, see "Other Developments--Navajo Nation Litigation."

San Onofre Nuclear Generating Station Steam Generators

On December 15, 2005, the CPUC issued a final decision on SCE's application for replacement of SCE's San
Onofre Units 2 and 3 steam generators. In that decision, the CPUC found that: (1) steam generator replacement
is cost-effective; (2) SCE's estimate of the total cost of steam generator replacement of $680 million
($569 million for replacement steam generator installation and $111 million for removal and disposal of the
original steam generators) is reasonable; (3) SCE will be able to recover all of its incurred costs and the
CPUC does not intend to conduct an after-the-fact reasonableness review if the project is completed at a cost
that does not exceed $680 million as adjusted for inflation and allowance for funds used during construction;
(4) a reasonableness review will be required if the project is completed at a cost between $680 million and
$782 million or the CPUC later finds that it had reason to believe the costs may be unreasonable regardless
of the amount; (5) if the cost of the project exceeds $782 million, no rate recovery will be allowed for
costs above $782 million as adjusted for inflation and allowance for funds used during construction; (6)
traditional cost-of-service ratemaking should govern recovery of future operating and maintenance and capital
expenditures for plant operation; (7) SCE's actions in relation to the issue of potential claims against the
manufacturer of the steam generators or its successors were reasonable; and (8) SDG&amp;E must file an
application with the CPUC concerning the transfer of its ownership share of San Onofre Units 2 and 3 to SCE
by April 14, 2006. SCE must provide written notice of its acceptance of the conditions set forth in the
decision within 85 days. On January 18, 2006, the Utility Reform Network and California Earth Corps filed an
application for rehearing challenging, among other things, the cost benefit analysis, rejection of future
spending caps, the timing for initiation of the analysis, and the portion of the final decision finding that
SCE acted reasonably in pursuing claims against the manufacturer of the steam generators.

SCE's share of the total estimated cost of the steam generator replacement project based on its current
ownership percentage of 75.05% is $510 million. SCE and the city of Anaheim have agreed to an early transfer
of Anaheim's 3.16% share of San Onofre, which would increase SCE's share of the total


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Management's Discussion and Analysis of Financial Condition and Results of Operations

estimated costs to $532 million. By April 14, 2006, SDG&amp;E is expected to apply to the CPUC to transfer all or
a portion of its 20% share of San Onofre to SCE. If SDG&amp;E's entire 20% share is transferred to SCE, it would
increase SCE's share of the total estimated costs to $668 million. Any transfer of SDG&amp;E's ownership in San
Onofre would require the approval of the CPUC and the FERC. Any transfer of Anaheim's share in San Onofre
would require CPUC approval of ratemaking for SCE's acquired share and approval by the FERC.

Palo Verde Steam Generating Station Steam Generators

SCE owns a 15.8% interest in the Palo Verde Nuclear Generating Station (Palo Verde). During 2003, the Palo
Verde Unit 2 steam generators were replaced. During 2005, the Palo Verde Unit 1 steam generators were
replaced. In addition, the Palo Verde owners have approved the manufacture and installation of steam
generators in Unit 3. SCE expects that replacement steam generators will be installed in Unit 3 in 2008.
SCE's share of the costs of manufacturing and installing all the replacement steam generators at Palo Verde is
estimated to be approximately $115 million. The CPUC approved the replacement costs for Unit 2 in the 2003
GRC. The proposed decision in the 2006 GRC proceeding would allow SCE to recover the replacement costs for
Units 1 and 3.

ISO Disputed Charges

On April 20, 2004, the FERC issued an order concerning a dispute between the ISO and the Cities of Anaheim,
Azusa, Banning, Colton and Riverside, California over the proper allocation and characterization of certain
charges. The order reversed an arbitrator's award that had affirmed the ISO's characterization in May 2000 of
the charges as Intra-Zonal Congestion costs and allocation of those charges to scheduling coordinators (SCs)
in the affected zone within the ISO transmission grid. The April 20, 2004 order directed the ISO to shift the
costs from SCs in the affected zone to the responsible participating transmission owner, SCE. The potential
cost to SCE, net of amounts SCE expects to receive through the California Power Exchange (PX), SCE's SC at
the time, is estimated to be approximately $20 million to $25 million, including interest. On April 20, 2005,
the FERC stayed its April 20, 2004 order during the pendency of SCE's appeal filed with the Court of Appeals
for the D.C. Circuit. On February 7, 2006, the FERC advised SCE that the FERC will move the Court of Appeals
for a voluntary remand so that the FERC may amend the order on appeal. A decision is expected in late 2006.
The FERC may require SCE to pay these costs, but SCE does not believe this outcome is probable. If SCE is
required to pay these costs, SCE may seek recovery in its reliability service rates.

Transmission Proceeding

In August and November 2002, the FERC issued opinions affirming a September 1999 administrative law judge
decision to disallow, among other things, recovery by SCE and the other California public utilities of costs
reflected in network transmission rates associated with ancillary services and losses incurred by the
utilities in administering existing wholesale transmission contracts after implementation of the restructured
California electric industry. SCE has incurred approximately $80 million of these unrecovered costs since
1998. In addition, SCE has accrued interest on these unrecovered costs. The three California utilities
appealed the decisions to the Court of Appeals for the D.C. Circuit. On July 12, 2005, the Court of Appeals
for the D.C. Circuit vacated the FERC's August and November 2002 orders, and remanded the case to the FERC
for further proceedings. On December 20, 2005, the FERC authorized SCE and the other California public
utilities to recover the costs through their existing FERC tariffs. As a result, SCE recorded a benefit of
approximately $93 million (including $23 million related to interest which is reflected in the consolidated
statements of income caption "Interest expense - net of amounts capitalized").


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FERC Refund Proceedings

In 2000, the FERC initiated an investigation into the justness and reasonableness of rates charged by sellers
of electricity in the PX and ISO markets. On March 26, 2003, the FERC staff issued a report concluding that
there had been pervasive gaming and market manipulation of both the electric and natural gas markets in
California and on the West Coast during 2000-2001 and describing many of the techniques and effects of that
market manipulation. SCE is participating in several related proceedings seeking recovery of refunds from
sellers of electricity and natural gas who manipulated the electric and natural gas markets. SCE is required
to refund to customers 90% of any refunds actually realized by SCE net of litigation costs, except for the
El Paso Natural Gas Company settlement agreement discussed below, and 10% will be retained by SCE as a
shareholder incentive. A brief summary of the various settlements is below:

o   In June 2004, SCE received its first settlement payment of $76 million resulting from a settlement
    agreement with El Paso Natural Gas Company. Approximately $66 million of this amount was credited to
    purchased-power expense, and was refunded to SCE's ratepayers through the ERRA mechanism over the
    following twelve months, and the remaining $10 million was used to offset SCE's incurred legal costs.
    In May 2005, SCE received its final settlement payment of $66 million, which was also refunded to
    ratepayers through the ERRA mechanism.

o   In August 2004, SCE received its $37 million share of settlement proceeds resulting from a FERC
    approved settlement agreement with The Williams Cos. and Williams Power Company.

o   In November 2004, SCE received its $42 million share of settlement proceeds resulting from a
    FERC-approved settlement agreement with West Coast Power, LLC and its owners, Dynegy Inc. and NRG
    Energy, Inc.

o   In January 2005, SCE received its $45 million share of settlement proceeds resulting from a
    FERC-approved settlement agreement with Duke Energy Corporation and a number of its affiliates.

o   In April 2005, the FERC approved a settlement agreement among SCE, PG&amp;E, SDG&amp;E and several governmental
    entities, and Mirant Corporation and a number of its affiliates (collectively Mirant), all of whom are
    debtors in Chapter 11 bankruptcy proceedings pending in Texas. In April and May 2005, SCE received its
    $68 million share of the cash portion of the settlement proceeds. SCE also received a $33 million share
    of an allowed, unsecured claim in the bankruptcy of one of the Mirant parties which was sold for
    $35 million in December 2005.

o   In November 2005, the FERC approved a settlement agreement among SCE, PG&amp;E, SDG&amp;E and several governmental
    entities, and Enron Corporation and a number of its affiliates (collectively Enron), most of which are
    debtors in Chapter 11 bankruptcy proceedings pending in New York. In January 2006, SCE received cash settlement
    proceeds of $4 million for legal fees and anticipates receiving approximately $5 million in additional
    cash proceeds assuming certain contingencies are satisfied. SCE also received an allowed, unsecured claim
    against one of the Enron debtors in the amount of $241 million. In February 2006, SCE received a partial
    distribution of $10 million of its allowed claim. The remaining amount of the allowed claim that will
    actually be realized will depend on events in Enron's bankruptcy that impacts the value of the relevant
    debtor estate.

o   In December 2005, the FERC approved a settlement agreement among SCE, PG&amp;E, SDG&amp;E, several governmental
    entities and certain other parties, and Reliant Energy, Inc. and a number of its affiliates (collectively
    Reliant). In January 2006, SCE received $65 million of the settlement proceeds. SCE expects to receive
    an additional $66 million in 2006.

During 2005, SCE recognized $23 million in shareholder incentives related to the FERC refunds described above
which is reflected in the consolidated statements of income caption "Other nonoperating income."


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Management's Discussion and Analysis of Financial Condition and Results of Operations

Holding Company Order Instituting Rulemaking

On October 27, 2005, the CPUC issued an order instituting rulemaking (OIR) to allow the CPUC to re-examine
the relationships of the major California energy utilities with their parent holding companies and
non-regulated affiliates. The OIR was issued in part in response to the recent repeal of the Public Utility
Holding Company Act of 1935.

By means of the OIR, the CPUC will consider whether additional rules to supplement existing rules and
requirements governing relationships between the public utilities and their holding companies and
non-regulated affiliates should be adopted. Any additional rules will focus on whether (1) the public
utilities retain enough capital or access to capital to meet their customers' infrastructure needs and (2)
mitigation of potential conflicts between ratepayer interests and the interests of holding companies and
affiliates that could undermine the public utilities' ability to meet their public service obligations at the
lowest cost.

Demand-Side Management and Energy Efficiency Performance Incentive Mechanisms

Under a variety of incentive mechanisms adopted by the CPUC in the past, SCE was entitled to certain
shareholder incentives for its performance achievements in delivering demand-side management and energy
efficiency programs. On June 10, 2005, SCE and the CPUC's Division of Ratepayer Advocates executed a
settlement agreement for SCE's outstanding issues concerning SCE shareholder incentives and performance
achievements resulting from the demand-side management, energy efficiency, and low-income energy efficiency
programs from program years 1994-2004. In addition, the settlement addresses shareholder incentives
anticipated but not yet claimed for performance achievements in program years 1994-1998. The settling parties
agreed that it is reasonable for SCE to recover approximately $42 million of these claims plus interest in
the near future as full recovery of all of SCE's outstanding claims as well as future claims related to SCE's
pre-1998 energy efficiency programs.

On October 27, 2005, the CPUC approved the settlement agreement. As a result of the decision, SCE recognized
a $45 million benefit in 2005 for the claims settled and other related items, reflected in the consolidated
statements of income caption "Other nonoperating income."

Investigations Regarding Performance Incentives Rewards

SCE is eligible under its CPUC-approved PBR mechanism to earn rewards or penalties based on its performance
in comparison to CPUC-approved standards of customer satisfaction, employee injury and illness reporting, and
system reliability.

SCE has been conducting investigations into its performance under these PBR mechanisms and has reported to
the CPUC certain findings of misconduct and misreporting as further discussed below. As a result of the
reported events, the CPUC could institute its own proceedings to determine whether and in what amounts to
order refunds or disallowances of past and potential PBR rewards for customer satisfaction, injury and
illness reporting, and system reliability portions of PBR. The CPUC also may consider whether to impose
additional penalties on SCE. SCE cannot predict with certainty the outcome of these matters or estimate the
potential amount of refunds, disallowances, and penalties that may be required.

Customer Satisfaction

SCE received two letters in 2003 from one or more anonymous employees alleging that personnel in the service
planning group of SCE's transmission and distribution business unit altered or omitted data in


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attempts to influence the outcome of customer satisfaction surveys conducted by an independent survey
organization. The results of these surveys are used, along with other factors, to determine the amounts of
any incentive rewards or penalties to SCE under the PBR provisions for customer satisfaction. SCE recorded
aggregate customer satisfaction rewards of $28 million for the years 1998, 1999 and 2000. Potential customer
satisfaction rewards aggregating $10 million for the years 2001 and 2002 are pending before the CPUC and have
not been recognized in income by SCE. SCE also anticipated that it could be eligible for customer
satisfaction rewards of approximately $10 million for 2003.

Following its internal investigation, SCE proposed to refund to ratepayers $7 million of the PBR rewards
previously received and forgo an additional $5 million of the PBR rewards pending that are both attributable
to the design organization's portion of the customer satisfaction rewards for the entire PBR period
(1997-2003). In addition, SCE also proposed to refund all of the approximately $2 million of customer
satisfaction rewards associated with meter reading. As a result of these findings, SCE accrued a $9 million
charge in the caption "Other nonoperating deductions" on the income statement in 2004 for the potential
refunds of rewards that have been received.

SCE has taken remedial action as to the customer satisfaction survey misconduct by severing the employment of
several supervisory personnel, updating system process and related documentation for survey reporting, and
implementing additional supervisory controls over data collection and processing. Performance incentive
rewards for customer satisfaction expired in 2003 pursuant to the 2003 GRC.

The CPUC has not yet opened a formal investigation into this matter. However, it has submitted several data
requests to SCE and has requested an opportunity to interview a number of SCE employees in the design
organization. SCE has responded to these requests and the CPUC has conducted interviews of approximately 20
employees who were disciplined for misconduct and four senior managers and executives of the transmission and
distribution business unit.

Employee Injury and Illness Reporting

In light of the problems uncovered with the customer satisfaction surveys, SCE conducted an investigation
into the accuracy of SCE's employee injury and illness reporting. The yearly results of employee injury and
illness reporting to the CPUC are used to determine the amount of the incentive reward or penalty to SCE
under the PBR mechanism. Since the inception of PBR in 1997, SCE has received $20 million in employee safety
incentives for 1997 through 2000 and, based on SCE's records, may be entitled to an additional $15 million
for 2001 through 2003.

On October 21, 2004, SCE reported to the CPUC and other appropriate regulatory agencies certain findings
concerning SCE's performance under the PBR incentive mechanism for injury and illness reporting. SCE
disclosed in the investigative findings to the CPUC that SCE failed to implement an effective recordkeeping
system sufficient to capture all required data for first aid incidents.

As a result of these findings, SCE proposed to the CPUC that it not collect any reward under the mechanism
for any year before 2005, and it return to ratepayers the $20 million it has already received. Therefore, SCE
accrued a $20 million charge in the caption "Other nonoperating deductions" on the income statement in 2004
for the potential refund of these rewards. SCE has also proposed to withdraw the pending rewards for the
2001-2003 time frames.

SCE has taken other remedial action to address the issues identified, including revising its organizational
structure and overall program for environmental, health and safety compliance and disciplining employees who
committed wrongdoing. SCE submitted a report on the results of its investigation to the CPUC on December 3,
2004. As with the customer satisfaction matter, the CPUC has not yet opened a formal investigation into this
matter.


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Management's Discussion and Analysis of Financial Condition and Results of Operations

System Reliability

In light of the problems uncovered with the PBR mechanisms discussed above, SCE conducted an investigation
into the third PBR metric, system reliability. On February 28, 2005, SCE provided its final investigatory
report to the CPUC concluding that the reliability reporting system is working as intended.

OTHER DEVELOPMENTS

Navajo Nation Litigation

In June 1999, the Navajo Nation filed a complaint in the United States District Court for the District of
Columbia (D.C. District Court) against Peabody Holding Company (Peabody) and certain of its affiliates, Salt
River Project Agricultural Improvement and Power District, and SCE arising out of the coal supply agreement
for Mohave. The complaint asserts claims for, among other things, violations of the federal Racketeer
Influenced and Corrupt Organizations statute, interference with fiduciary duties and contractual relations,
fraudulent misrepresentation by nondisclosure, and various contract-related claims. The complaint claims that
the defendants' actions prevented the Navajo Nation from obtaining the full value in royalty rates for the
coal supplied to Mohave. The complaint seeks damages of not less than $600 million, trebling of that amount,
and punitive damages of not less than $1 billion, as well as a declaration that Peabody's lease and contract
rights to mine coal on Navajo Nation lands should be terminated. SCE joined Peabody's motion to strike the
Navajo Nation's complaint. In addition, SCE and other defendants filed motions to dismiss. The D.C. District
Court denied these motions for dismissal, except for Salt River Project Agricultural Improvement and Power
District's motion for its separate dismissal from the lawsuit.

Certain issues related to this case were addressed by the United States Supreme Court in a separate legal
proceeding filed by the Navajo Nation in the United States Court of Federal Claims against the United States
Department of Interior. In that action, the Navajo Nation claimed that the Government breached its fiduciary
duty concerning negotiations relating to the coal lease involved in the Navajo Nation's lawsuit against SCE
and Peabody. On March 4, 2003, the Supreme Court concluded, by majority decision, that there was no breach of
a fiduciary duty and that the Navajo Nation did not have a right to relief against the Government. Based on
the Supreme Court's conclusion, SCE and Peabody brought motions to dismiss or for summary judgment in the
D.C. District Court action but the D.C. District Court denied the motions on April 13, 2004.

The Court of Appeals for the Federal Circuit, acting on a suggestion filed by the Navajo Nation on remand
from the Supreme Court's March 4, 2003 decision held, in an October 24, 2003 decision that the Supreme
Court's decision was focused on three specific statutes or regulations and therefore did not address the
question of whether a network of other statutes, treaties and regulations imposed judicially enforceable
fiduciary duties on the United States during the time period in question. On March 16, 2004, the Federal
Circuit issued an order remanding the case against the Government to the Court of Federal Claims, which
considered (1) whether the Navajo Nation previously waived its "network of other laws" argument and, (2) if
not, whether the Navajo Nation can establish that the Government breached any fiduciary duties pursuant to
such "network."  On December 20, 2005, the Court of Federal Claims issued its ruling and found that although
there was no waiver, the Navajo Nation did not establish that a "network of other laws" created a judicially
enforceable trust obligation. The Navajo Nation filed a notice of appeal from this ruling on February 14,
2006.

Pursuant to a joint request of the parties, the D.C. District Court granted a stay of the action in that
court to allow the parties to attempt to resolve, through facilitated negotiations, all issues associated
with Mohave. Negotiations are ongoing and the stay has been continued until further order of the court.


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                                                                             Southern California Edison Company

SCE cannot predict with certainty the outcome of the 1999 Navajo Nation's complaint against SCE, the impact
on the complaint of the Supreme Court's decision and the recent Court of Federal Claims ruling in the Navajo
Nation's suit against the Government, or the impact of the complaint on the possibility of resumed operation
of Mohave following the cessation of operation on December 31, 2005.

Environmental Matters

SCE is subject to numerous environmental laws and regulations, which require it to incur substantial costs to
operate existing facilities, construct and operate new facilities, and mitigate or remove the effect of past
operations on the environment. SCE believes that it is in substantial compliance with existing environmental
regulatory requirements.

SCE's power plants, in particular its coal-fired plants, may be affected by recent developments in federal
and state laws and regulations. These laws and regulations, including those relating to sulfur dioxide and
nitrogen oxide emissions, mercury emissions, ozone and fine particulate matter emissions, regional haze, and
climate change, may require SCE to make significant capital expenditures at its facilities. The developments
in certain of these laws and regulations are discussed in more detail below. These developments will continue
to be monitored by SCE to assess what implications, if any, they will have on the operation of domestic power
plants owned or operated by SCE, or the impact on SCE's results of operations or financial position.

The enactment of more stringent environmental laws and regulations could affect the costs and the manner in
which SCE's business is conducted and could cause substantial additional capital expenditures. There is no
assurance that additional costs would be recovered from customers or that SCE's financial position and
results of operations would not be materially affected.

SCE's projected environmental capital expenditures over the next three years are:  2006 - $482 million; 2007
- - $485 million; and 2008 - $500 million. The projected environmental capital expenditures are mainly for
undergrounding certain transmission and distribution lines.

Air Quality Standards

In 1998, several environmental groups filed suit against the co-owners of the Mohave plant regarding alleged
violations of emissions limits. In order to resolve the lawsuit and accelerate resolution of key
environmental issues regarding the plant, the parties entered into a consent decree, which was approved by
the Nevada federal district court in December 1999. The consent decree required the installation of certain
air pollution control equipment prior to December 31, 2005 if the plant was to operate beyond that date. In
addition, operation beyond 2005 required that agreements be reached with the Navajo Nation and the Hopi Tribe
(Tribes) regarding post-2005 water and coal supply needs.

SCE's share of the costs of complying with the consent decree and taking other actions to allow operation of
the Mohave plant beyond 2005 is estimated to be approximately $605 million. Agreement with the Tribes on
water and coal supplies for Mohave was not reached by December 31, 2005, and it is not currently known
whether such an agreement will be reached. No agreement was reached to amend the terms of the federal court
consent decree. As a result, Mohave shutdown operation on December 31, 2005. For the Mohave plant to restart
operation, it will be necessary for agreements to be reached with the Navajo Nation and the Hopi Tribe on the
water and coal supply issues, and for the terms of the consent decree to be met or modified. See "Regulatory
Matters--Current Regulatory Developments--Mohave Generating Station and Related Proceedings" for further
discussion of the Mohave issues.


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Management's Discussion and Analysis of Financial Condition and Results of Operations

Climate Change

In California, Governor Schwarzenegger issued an executive order on June 1, 2005, setting forth targets for
greenhouse gas reductions. The targets call for a reduction of greenhouse gas emissions to 2000 levels by
2010; a reduction of greenhouse gas emissions to 1990 levels by 2020; and a reduction of greenhouse gas
emissions to 80% below 1990 levels by 2050. The CPUC is addressing climate change related issues in various
regulatory proceedings.

SCE will continue to monitor these developments relating to greenhouse gas emissions to determine their
impacts on SCE's operations. Any legal obligation that would require SCE to reduce substantially its
emissions of carbon dioxide could require extensive mitigation efforts at its Mohave plant if it resumes
operations, and would raise considerable uncertainty about the future viability of fossil fuels, particularly
coal, as an energy source for new and existing electric generating facilities. New regulations could also
increase the cost of purchased power, which is generally borne by SCE's customers. Additional information
regarding purchased power costs appears under the heading "Regulatory Matters."

Environmental Remediation

SCE records its environmental remediation liabilities when site assessments and/or remedial actions are
probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures
the liability quarterly, by assessing a range of reasonably likely costs for each identified site using
currently available information, including existing technology, presently enacted laws and regulations,
experience gained at similar sites, and the probable level of involvement and financial condition of other
potentially responsible parties. These estimates include costs for site investigations, remediation,
operations and maintenance, monitoring and site closure. Unless there is a probable amount, SCE records the
lower end of this reasonably likely range of costs (classified as other long-term liabilities) at
undiscounted amounts.

SCE's recorded estimated minimum liability to remediate its 24 identified sites is $82 million. The ultimate
costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties
inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable
data for identified sites; the varying costs of alternative cleanup methods; developments resulting from
investigatory studies; the possibility of identifying additional sites; and the time periods over which site
remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible
that cleanup costs could exceed its recorded liability by up to $115 million. The upper limit of this range
of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible
outcomes. In addition to its identified sites (sites in which the upper end of the range of costs is at least
$1 million), SCE also had 31 immaterial sites whose total liability ranges from $4 million (the recorded
minimum liability) to $9 million.

The CPUC allows SCE to recover environmental remediation costs at certain sites, representing $30 million of
its recorded liability, through an incentive mechanism (SCE may request to include additional sites). Under
this mechanism, SCE will recover 90% of cleanup costs through customer rates; shareholders fund the remaining
10%, with the opportunity to recover these costs from insurance carriers and other third parties. SCE has
successfully settled insurance claims with all responsible carriers. SCE expects to recover costs incurred at
its remaining sites through customer rates. SCE has recorded a regulatory asset of $56 million for its
estimated minimum environmental-cleanup costs expected to be recovered through customer rates.

SCE's identified sites include several sites for which there is a lack of currently available information,
including the nature and magnitude of contamination and the extent, if any, that SCE may be held


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                                                                             Southern California Edison Company

responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate
of cleanup costs can be made for these sites.

SCE expects to clean up its identified sites over a period of up to 30 years. Remediation costs in each of
the next several years are expected to range from $11 million to $25 million. Recorded costs for 2005 were
$13 million.

Based on currently available information, SCE believes it is unlikely that it will incur amounts in excess of
the upper limit of the estimated range for its identified sites and, based upon the CPUC's regulatory
treatment of environmental remediation costs, SCE believes that costs ultimately recorded will not materially
affect its results of operations or financial position. There can be no assurance, however, that future
developments, including additional information about existing sites or the identification of new sites, will
not require material revisions to such estimates.

Federal Income Taxes

Edison International has reached a settlement with the IRS on tax issues and pending affirmative claims
relating to its 1991-1993 tax years. This settlement, which was signed by Edison International in March 2005
and approved by the United States Congress Joint Committee on Taxation on July 27, 2005, resulted in a third
quarter 2005 net earnings benefit for SCE of approximately $61 million, including interest. This benefit was
reflected in the caption "Income tax" on the consolidated statements of income.

Edison International received Revenue Agent Reports from the IRS in August 2002 and in January 2005 asserting
deficiencies in federal corporate income taxes with respect to audits of its 1994-1996 and 1997-1999 tax
years, respectively. Many of the asserted tax deficiencies are timing differences and, therefore, amounts
ultimately paid (exclusive of penalties), if any, would benefit SCE as future tax deductions.

The IRS Revenue Agent Report for the 1997-1999 audit also asserted deficiencies with respect to a transaction
entered into by an SCE subsidiary which may be considered substantially similar to a listed transaction
described by the IRS as a contingent liability company. While Edison International intends to defend its tax
return position with respect to this transaction, the tax benefits relating to the capital loss deductions
will not be claimed for financial accounting and reporting purposes until and unless these tax losses are
sustained.

In April 2004, Edison International filed California Franchise Tax amended returns for tax years 1997 through
2002 to abate the possible imposition of new California penalty provisions on transactions that may be
considered as listed or substantially similar to listed transactions described in an IRS notice that was
published in 2001. These transactions include the SCE subsidiary contingent liability company transaction
described above. Edison International filed these amended returns under protest retaining its appeal rights.

MARKET RISK EXPOSURES

SCE's primary market risks include fluctuations in interest rates, commodity prices and volumes, and
counterparty credit. Fluctuations in interest rates can affect earnings and cash flows. Fluctuations in
commodity prices and volumes and counterparty credit losses however may temporarily affect cash flows, but
are not expected to affect earnings due to expected recovery through regulatory mechanisms. SCE uses
derivative financial instruments, as appropriate, to manage its market risks.


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Management's Discussion and Analysis of Financial Condition and Results of Operations

Interest Rate Risk

SCE is exposed to changes in interest rates primarily as a result of its borrowing and investing activities
used for liquidity purposes, to fund business operations, and to finance capital expenditures. The nature and
amount of SCE's long-term and short-term debt can be expected to vary as a result of future business
requirements, market conditions and other factors. In addition, SCE's authorized return on common equity
(11.4% for 2005 and 11.6% for 2006), which is established in SCE's annual cost of capital proceeding, is set
on the basis of forecasts of interest rates and other factors.

At December 31, 2005, SCE did not believe that its short-term debt and current portion of long-term debt was
subject to interest rate risk, due to the fair market value being approximately equal to the carrying value.

At December 31, 2005, the fair market value of SCE's long-term debt was $4.8 billion. A 10% increase in
market interest rates would have resulted in a $233 million decrease in the fair market value of SCE's
long-term debt. A 10% decrease in market interest rates would have resulted in a $256 million increase in the
fair market value of SCE's long-term debt.

Commodity Price Risk

SCE forecasts that it will have a net-long position (generation supply exceeds expected load requirements) in
the majority of hours during 2006. SCE's net-long position arises primarily from resource adequacy
requirements set by the CPUC which require SCE to acquire and demonstrate enough generating capacity in its
portfolio for a planning reserve margin of 15-17% above its peak load as forecast for an average year (see
"Regulatory Matters--Current Regulatory Developments--Resource Adequacy Requirements"). SCE has incorporated a
2005 price and volume forecast from expected sales of net-long power in its 2006 revenue forecast used for
setting rates. If actual prices or volumes vary from forecast, SCE's cash flow could be temporarily impacted
due to regulatory recovery delays, but such variations are not expected to affect earnings. For 2006, SCE
forecasts that at certain times it will have a net-short position (expected load requirements exceed
generation supply). SCE's forecast net-short position is expected to increase each year, assuming no new
generation supply is added, existing contracts expire, SCE generating plants retire, and load grows. The
establishment of a sufficient planning reserve margin mitigates, to some extent, several conditions that
could increase SCE's net-short position, including lower utility generation due to expected or unexpected
outages or plant closures, lower deliveries under third-party power contracts, or higher than anticipated
demand for electricity. However, SCE's planning reserve margin may not be sufficient to supply the needs of
all returning direct access customers (customers who choose to purchase power directly from an electric
service provider other than SCE but then decide to return to utility service). Increased procurement costs
resulting from the return of direct access customers could lead to temporary undercollections and the need to
adjust rates.

SCE anticipates purchasing additional capacity and/or ancillary services to meet its peak-energy requirements
in 2006 and beyond if its net-short position is significantly higher than SCE's current forecast. As of
December 31, 2005, SCE entered into energy options and tolling arrangements and forward physical contracts to
mitigate its exposure to energy prices in the spot market. The fair market value of the energy options and
tolling arrangements as of December 31, 2005, was a net asset of $25 million. A 10% increase in energy prices
would have resulted in a $208 million increase in the fair market value. A 10% decrease in energy prices
would have resulted in a $143 million decrease in the fair market value. The fair market value of the forward
physical contracts as of December 31, 2005, was a net liability of $49 million. A 10% increase in energy
prices would have resulted in a $52 million increase in the fair market value. A 10% decrease in energy
prices would have resulted in a $53 million decrease in the fair market value.


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                                                                             Southern California Edison Company

SCE is also exposed to increases in natural gas prices related to its qualifying facilities (QF) contracts,
fuel tolling arrangements, and owned gas-fired generation, including the Mountainview project. SCE purchases
power from QFs under CPUC-mandated contracts. Contract energy prices for most nonrenewable QFs are based in
large part on the monthly southern California border price of natural gas. In addition to the QF contracts,
SCE has power contracts in which SCE has agreed to provide the natural gas needed for generation under those
power contracts, which are known as fuel tolling arrangements. SCE has an active gas fuel hedging program in
place to minimize ratepayer exposure to spot market price spikes. However, movements in gas prices over time
will impact SCE's gas costs and the cost of QF power which is related to natural gas prices.

As of December 31, 2005, SCE entered into gas forward transactions including options, swaps and futures, and
fixed price contracts to mitigate its exposure related to the QF contracts and fuel tolling arrangements. The
fair market value of the forward transactions as of December 31, 2005, was a net asset of $105 million. A 10%
increase in gas prices would have resulted in a $105 million increase in the fair market value. A 10%
decrease in gas prices would have resulted in a $104 million decrease in the fair market value. SCE cannot
predict with certainty whether in the future it will be able to hedge customer risk for other commodities on
favorable terms or that the cost of such hedges will be fully recovered in rates.

SCE's purchased-power costs, as well as its gas expenses and gas hedging costs, are recovered through ERRA.
To the extent SCE conducts its power and gas procurement activities in accordance with its CPUC-authorized
procurement plan, California statute (Assembly Bill 57) establishes that SCE is entitled to full cost
recovery. As a result of these regulatory mechanisms, changes in energy prices may impact SCE's cash flows
but are not expected to affect earnings. Certain SCE activities, such as contract administration, SCE's
duties as the CDWR's limited agent for allocated CDWR contracts, and portfolio dispatch, are reviewed
annually by the CPUC for reasonableness. The CPUC has currently established a maximum disallowance cap of
$37 million for these activities.

In accordance with CPUC decisions, SCE, as the CDWR's limited agent, performs certain services for CDWR
contracts allocated to SCE by the CPUC, including arranging for natural gas supply. Financial and legal
responsibility for the allocated contracts remains with the CDWR. The CDWR, through coordination with SCE,
has hedged a portion of its expected natural gas requirements for the gas tolling contracts allocated to SCE.
Increases in gas prices over time, however, will increase the CDWR's gas costs. California state law permits
the CDWR to recover its actual costs through rates established by the CPUC. This would affect rates charged
to SCE's customers, but would not affect SCE's earnings or cash flows.

Quoted market prices, if available, are used for determining the fair value of contracts, as discussed above.
If quoted market prices are not available, internally maintained standardized or industry accepted models are
used to determine the fair value. The models are updated with spot prices, forward prices, volatilities and
interest rates from regularly published and widely distributed independent sources.

Credit Risk

Credit risk arises primarily due to the chance that a counterparty under various purchase and sale contracts
will not perform as agreed or pay SCE for energy products delivered. SCE uses a variety of strategies to
mitigate its exposure to credit risk. SCE's risk management committee regularly reviews procurement credit
exposure and approves credit limits for transacting with counterparties. Some counterparties are required to
post collateral depending on the creditworthiness of the counterparty and the risk associated with the
transaction. SCE follows the credit limits established in its CPUC-approved procurement plan, and accordingly
believes that any losses which may occur should be fully recoverable from customers, and therefore are not
expected to affect earnings.


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Management's Discussion and Analysis of Financial Condition and Results of Operations

RESULTS OF OPERATIONS AND HISTORICAL CASH FLOW ANALYSIS

The following subsections of "Results of Operations and Historical Cash Flow Analysis" provide a discussion
on the changes in various line items presented on the Consolidated Statements of Income as well as a
discussion of the changes on the Consolidated Statements of Cash Flows.

Results of Operations

Income from Continuing Operations

SCE's income from continuing operations was $749 million in 2005, compared to $921 million in 2004. SCE's
2005 earnings included positive items of $61 million related to a favorable tax settlement (see "Other
Developments--Federal Income Taxes"), $55 million from a favorable FERC decision on a SCE transmission
proceeding (see "Regulatory Matters--Current Regulatory Developments--Transmission Proceeding") and a
$14 million incentive benefit from generator refunds related to the California energy crisis period (see
"Regulatory Matters--Current Regulatory Developments--FERC Refund Proceedings"). SCE's 2004 earnings included
$329 million of positive regulatory and tax items, primarily from implementation of the 2003 GRC decision
that was received in July 2004. Excluding these positive items, earnings were up $27 million due to higher
net revenue, including tax benefits, and lower financing costs, partially offset by the impact of a lower
CPUC-authorized rate of return in 2005.

SCE's income from continuing operations in 2004 was $921 million, compared to $882 million in 2003. The $39
million increase between 2004 and 2003 was mainly due to the resolution of regulatory proceedings and prior
years' tax issues which increased income by $86 million over 2003. The 2004 proceedings included the 2003 GRC
that was resolved in July 2004 and the 2003 ERRA proceeding addressing power procurement reasonableness that
was resolved in the fourth quarter of 2004. Also, in the fourth quarter of 2004, SCE favorably resolved prior
years' tax issues. Excluding these items, income decreased $47 million, primarily from the expiration at
year-end 2003 of the ICIP mechanism at San Onofre partially offset by the increase in revenue authorized by
the 2003 GRC decision. Post-test-year revenue increases for 2004 and 2005, to compensate for customer growth
and increased capital expenditures were authorized in the 2003 GRC decision.

Operating Revenue

SCE's retail sales represented approximately 82%, 85%, and 91% of operating revenue for the years ended
December 31, 2005, 2004, and 2003, respectively. Due to warmer weather during the summer months, operating
revenue during the third quarter of each year is generally significantly higher than other quarters.

The following table sets forth the major changes in operating revenue:

    In millions              Year ended December 31,       2005 vs. 2004         2004 vs. 2003
- -----------------------------------------------------------------------------------------------------------
    Operating revenue
        Rate changes (including unbilled)                     $   517              $  (677)
        Sales volume changes (including unbilled)                 410                 (159)
        Deferred revenue                                         (324)                 (30)
        Sales for resale                                          256                  164
        SCE's variable interest entities                          177                  285
        Other (including intercompany transactions)                16                   11
- -----------------------------------------------------------------------------------------------------------
    Total                                                     $ 1,052              $  (406)
- -----------------------------------------------------------------------------------------------------------


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Total operating revenue increased by $1.1 billion in 2005 (as shown in the table above). The variance in
operating revenue from rate changes reflects the implementation of the 2003 GRC, effective in August 2004. As
a result, generation and distribution rates increased revenue by approximately $166 million and $351 million,
respectively. The increase in operating revenue resulting from sales volume changes was mainly due to an
increase in kilowatt-hour (kWh) sold and SCE providing a greater amount of energy to its customers from its
own sources in 2005, compared to 2004. The change in deferred revenue reflects the deferral of approximately
$93 million of revenue in 2005, resulting from balancing account overcollections, compared to the recognition
of approximately $231 million in 2004. Operating revenue from sales for resale represents the sale of excess
energy. As a result of the CDWR contracts allocated to SCE, excess energy from SCE sources may exist at
certain times, which then is resold in the energy markets. Revenue from sales for resale is refunded to
customers through the ERRA rate-making mechanism and does not impact earnings. SCE's variable interest
entities revenue represents the recognition of revenue resulting from the consolidation of SCE's variable
interest entities on March 31, 2004.

Total operating revenue decreased by $406 million in 2004 (as shown in the table above). The reduction in
operating revenue due to rate changes resulted from the implementation of a CPUC-approved customer rate
reduction plan effective August 1, 2003, additional rate changes effective in 2004 resulting from
implementation of the 2003 GRC (an increase in distribution rates and a further decrease in generation
rates), and an allocation adjustment for the CDWR energy purchases recorded in 2003. The decrease in electric
revenue resulting from sales volume changes was mainly due to the CDWR providing a greater amount of energy
to SCE's customers in 2004, as compared to 2003, partially offset by an increase in kWh sold. Sales for
resale increased due to a greater amount of excess energy in 2004, as compared to 2003. As a result of the
CDWR contracts allocated to SCE, excess energy from SCE sources may exist at certain times, which then is
resold in the energy markets. SCE's variable interest entities revenue represents the recognition of revenue
resulting from the consolidation of SCE's variable interest entities beginning March 31, 2004.

Amounts SCE bills and collects from its customers for electric power purchased and sold by the CDWR to SCE's
customers (beginning January 17, 2001), CDWR bond-related costs (beginning November 15, 2002) and a portion
of direct access exit fees (beginning January 1, 2003) are remitted to the CDWR and are not recognized as
revenue by SCE. These amounts were $1.9 billion, $2.5 billion, and $1.7 billion for the years ended
December 31, 2005, 2004, and 2003, respectively.

Operating Expenses

Fuel Expense

SCE's fuel expense increased $383 million in 2005 and $575 million in 2004 primarily due to the consolidation
of SCE's variable interest entities on March 31, 2004 resulting in the recognition of fuel expense of
$924 million in 2005 and $578 million in 2004.

Purchased-Power Expense

Purchased-power expense increased $290 million in 2005 and decreased $454 million in 2004. The 2005 increase
was mainly due to higher firm energy and QF-related purchases, partially offset by net realized and
unrealized gains on economic hedging transactions and an increase in energy settlement refunds in 2005, as
compared to 2004. Firm energy purchases increased by approximately $670 million resulting from an increase in
the number of bilateral contracts in 2005, as compared to 2004, and QF-related purchases increased by
approximately $170 million in 2005, as compared to 2004 (as discussed below). Net realized and unrealized
gains related to economic hedging transactions reduced purchased-power expense by


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Management's Discussion and Analysis of Financial Condition and Results of Operations

approximately $205 million in 2005, as compared to net realized and unrealized losses of approximately
$25 million which increased purchased-power expense in 2004. Energy settlement refunds received in 2005 and
2004 were approximately $285 million and $190 million, respectively, further decreasing purchased-power
expense in these periods (see "Regulatory Matters--Current Regulatory Developments--FERC Refund Proceedings").
The consolidation of SCE's variable interest entities effective March 31, 2004 resulted in a $935 million and
$669 million reduction in purchased-power expense in 2005 and 2004, respectively. The 2004 decrease was
mainly due to the consolidation of SCE's variable interest entities and energy settlement refunds received
(both discussed above), partially offset by higher expenses of approximately $150 million related to power
purchased by SCE from QFs (as discussed below), higher expenses of approximately $100 million resulting from
an increase in the number of gas bilateral contracts in 2004, as compared to 2003, and higher expenses of
approximately $130 million related to ISO purchases.

Also included in purchased-power expense in 2005 is a $25 million charge related to amounts billed to the Los
Angeles Department of Water &amp; Power (DWP) for scheduling coordinator charges incurred by SCE on the DWP's
behalf. The scheduling coordinator charges are billed to DWP under a FERC tariff that remains subject to
dispute. DWP has paid the amounts billed under protest but requested the FERC declare that SCE was obligated
to serve as the DWP's scheduling coordinator without charge. The FERC accepted SCE's tariff for filing, but
held that the rates charged to DWP have not been shown to be just and reasonable and thus made them subject
to refund and further review at the FERC. As a result, SCE could be required to refund all or part of the
amounts collected from DWP under the tariff. If the FERC ultimately rules that SCE may not collect the
scheduling coordinator charges from DWP and requires the amounts collected to be refunded to DWP, SCE would
attempt to recover the scheduling coordinator charges from all transmission grid customers through another
regulatory mechanism. However, the availability of other recovery mechanisms is uncertain, and ultimate
recovery of the scheduling coordinator charges cannot be assured.

Federal law and CPUC orders required SCE to enter into contracts to purchase power from QFs at CPUC-mandated
prices. Energy payments to gas-fired QFs are generally tied to spot natural gas prices. Effective May 2002,
energy payments for most renewable QFs were converted to a fixed price of 5.37(cent)-per-kWh. Average spot natural
gas prices were higher during 2005 as compared to 2004. The higher expenses related to power purchased from
QFs were mainly due to higher average spot natural gas prices, partially offset by lower kWh purchases.

Provisions for Regulatory Adjustment Clauses - Net

Provisions for regulatory adjustment clauses - net increased $636 million in 2005 and decreased $1.3 billion
in 2004. The 2005 increases mainly result from regulatory adjustments recorded in 2004, net overcollections
related to balancing accounts, higher net unrealized gains on economic hedging transactions and lower
CEMA-related costs. The net regulatory adjustments of $345 million recorded in 2004 related to the
implementation of SCE's 2003 GRC decision and the implementation of an ERRA-related CPUC decision (see
"Regulatory Matters--Current Regulatory Developments--Energy Resource Recovery Account Proceedings"). In
addition to these net regulatory adjustments, the increase reflects higher net overcollections of purchased
power, fuel, and operating and maintenance expenses of approximately $65 million which were deferred in
balancing accounts for future recovery, higher net unrealized gains of approximately $95 million related to
economic hedging transactions (mentioned above in purchased-power expense) that, if realized, would be
refunded to ratepayers, and lower costs incurred and deferred of approximately $95 million associated with
CEMA-related costs (primarily bark beetle infestation related costs). The 2003 GRC regulatory adjustments
primarily related to recognition of revenue from the rate recovery of pension contributions during the time
period that the pension plan was fully funded, resolution over the allocation of costs between transmission
and distribution for 1998 through 2000, partially offset by the deferral of revenue previously collected
during the incremental cost incentive pricing mechanism for dry cask storage, as well as pre-tax gains
related to the 1997-1998 generation-related capital additions. The


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                                                                             Southern California Edison Company

2004 decrease was mainly due to the collection of the Procurement-Related Obligations Account (PROACT)
balance in 2003 and the implementation of the CPUC-authorized rate-reduction plan in the summer of 2003,
resulting in decreases of approximately $700 million. The decrease also reflects a net effect of regulatory
adjustments discussed above and the deferral of costs for future recovery in the amount of approximately
$100 million associated with the bark beetle infestation. The 2004 decrease was partially offset by
approximately $190 million in settlement agreement payments received and refunded to ratepayers and
shareholder incentives (see "Regulatory Matters--Current Regulatory Developments--FERC Refund Proceedings"),
the favorable resolution of certain regulatory cases recorded in the third quarter of 2003, and an allocation
adjustment of approximately $110 million for CDWR energy purchases recorded in 2003.

Other Operation and Maintenance Expense

SCE's other operating and maintenance expense increased $66 million in 2005 and $385 million in 2004. The
2005 increase was mainly due to an increase in reliability costs, demand-side management and energy
efficiency costs, and benefit-related costs, partially offset by lower CEMA-related costs and
generation-related costs. Reliability costs increased approximately $80 million, as compared to 2004, due to
an increase in must-run units to improve the reliability of the California ISO systems operations (which are
recovered through regulatory mechanisms approved by the FERC). Demand-side management and energy efficiency
costs increased approximately $90 million (which are recovered through regulatory mechanisms approved by the
CPUC). Benefit-related costs increased approximately $50 million in 2005, resulting from an increase in heath
care costs and value of performance shares. The 2005 increase was partially offset by lower CEMA-related
costs (primarily bark beetle infestation related costs) of approximately $95 million and a decrease in
generation-related expenses of approximately $90 million, resulting from lower outage and refueling costs (in
2004, there was a scheduled major overhaul at SCE's Four Corners coal facility, as well as a refueling outage
at SCE's San Onofre Unit 2). The 2005 variance also reflects an increase of approximately $35 million
resulting from the consolidation of SCE's variable interest entities effective March 31, 2004. The 2004
increase was mainly due to approximately $130 million of costs incurred in 2004 related to the removal of
trees and vegetation associated with the bark beetle infestation, higher operation and maintenance costs of
approximately $60 million related to the San Onofre refueling outages in 2004, operating and maintenance
expense of $66 million related to the consolidation of SCE's variable interest entities, higher operation and
maintenance costs related to a scheduled major overhaul at SCE's Four Corners coal facility and additional
costs for 2003 incentive compensation due to upward revisions in the computation in 2004. These increases
were partially offset by a decrease in postretirement benefits other than pensions expense, including the
effects of adopting the Medicare Prescription Drug, Improvement and Modernization Act of 2003 in the third
quarter of 2004 and lower worker's compensation claims in 2004.

Depreciation, Decommissioning and Amortization Expense

SCE's depreciation, decommissioning and amortization increased $55 million in 2005 and decreased $22 million
in 2004. The increase in 2005 is mainly due to a change in the Palo Verde rate-making mechanisms resulting
from the implementation of the 2003 GRC and an increase in depreciation expense resulting from additions to
transmission and distribution assets. The 2004 decrease was mainly due to a change in the Palo Verde and San
Onofre rate-making mechanisms in 2003 and 2004, partially offset by an increase in SCE's depreciation
associated with additions to transmission and distribution assets, the consolidation of SCE's variable
interest entities, and an increase in nuclear decommissioning expense.

Other Income and Deductions

Interest and Dividend Income

SCE's interest and dividend income increased $24 million in 2005 and decreased $80 million in 2004. The
undercollections in 2005 as compared to 2004. The 2004 decrease was mainly due to the absence of


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Management's Discussion and Analysis of Financial Condition and Results of Operations

interest income on the PROACT balance. At July 31, 2003, the PROACT balance was overcollected and was
transferred to the ERRA on August 1, 2003.

Other Nonoperating Income

SCE's other nonoperating income increased $43 million in 2005 mainly due to the recognition of approximately
$45 million in incentives related to demand-side management and energy efficiency performance (see
"Regulatory Matters--Current Regulatory Developments--Demand-Side Management and Energy Efficiency Performance
Incentive Mechanisms" for further discussion of this matter) and an increase in shareholder incentives
related to the FERC settlement refunds. SCE recorded shareholder incentives of $23 million in 2005 and
$12 million in 2004 (see "Regulatory Matters--Current Regulatory Developments--FERC Refund Proceedings" for
further discussion). In addition, other nonoperating income includes rewards approved by the CPUC for the
efficient operation of Palo Verde of $10 million in 2005 and $19 million in 2004.

Interest Expense - Net of Amounts Capitalized

SCE's interest expense - net of amounts capitalized decreased $49 million in 2005 and $48 million in 2004.
Effective July 1, 2003, dividend payments on preferred securities subject to mandatory redemption are
included as interest expense based on the adoption of a new accounting standard. The new standard did not
allow for prior period restatements, therefore dividends on preferred securities subject to mandatory
redemption for the first six months of 2003 are not included in interest expense - net of amounts capitalized
in the consolidated statements of income. In addition, the 2005 and 2004 decreases were also due to lower
interest expense on long-term debt resulting from the redemption of high interest rate debt by issuing new
debt with lower interest rates. The 2005 decrease also reflects the reversal of approximately $25 million of
accrued interest expense as a result of a FERC decision allowing recovery of transmission-related costs (see
"Regulatory Matters--Current Regulatory Developments--Transmission Proceeding"), partially offset by interest
expense on balancing account overcollections.

Other Nonoperating Deductions

SCE's other nonoperating deductions in 2005 includes an accrual of $22 million for system reliability
penalties under a performance incentive mechanism. Based on recorded data through December 2005, SCE expects
it will incur a penalty of $22 million under the reliability performance mechanism for 2005. The 2004
increase was mainly due to a $29 million pre-tax charge for the anticipated refund of certain previously
received performance incentive rewards, as well as the accrual of $6 million in system reliability penalties
(see "Regulatory Matters--Current Regulatory Developments--Investigations Regarding Performance Incentive
Rewards").

Minority Interest

Minority interest represents the effects of the adoption of a new accounting pronouncement in second quarter
2004 related to SCE's variable interest entities.

Income Taxes

The composite federal and state statutory income tax rate was approximately 40% for all periods presented.
The lower effective tax rate of 28.1% realized in 2005 was primarily due to settlement of the 1991-1993 IRS
audit cycle as well as adjustments made to the tax reserve to reflect the issuance of new


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IRS regulations and the favorable settlement of other federal and state tax audit issues. The lower effective
tax rate of 32.2% realized in 2004 was primarily due to adjustments to tax liabilities relating to prior
years. The lower effective tax rate of 30.5% realized in 2003 was primarily due to the resolution of a FERC
rate case and recording the benefit of a favorable resolution of tax audit issues.

Income from Discontinued Operations

Earnings from discontinued operations during 2003 include a gain on sale and operating results totaling
$50 million from SCE's pipeline business which was sold in the third quarter of 2003.

Historical Cash Flow Analysis

Cash Flows from Operating Activities

Net cash provided by operating activities was $2.4 billion in 2005, $2.3 billion in 2004 and $2.6 billion in
2003. The 2005 change in cash provided by operating activities from continuing operations was mainly due the
results from the timing of cash receipts and disbursements related to working capital items. The 2004
decrease in cash provided by operating activities from continuing operations was mainly due to SCE's
implementation of a CPUC-approved customer rate reduction plan effective August 1, 2003 and the timing of
cash receipts and disbursements related to working capital items.

Cash Flows from Financing Activities

SCE's short-term debt is normally used to working capital requirements. Long-term debt is used mainly to
finance the utility's rate base. External financings are influenced by market conditions and other factors.

SCE financing activities in 2005 included activities relating to the rebalancing of SCE's capital structure.
SCE's first quarter 2005 financing activity included the issuance of $650 million of first and refunding
mortgage bonds. The issuance included $400 million of 5% bonds due in 2016 and $250 million of 5.55% bonds
due in 2036. The proceeds were used to redeem the remaining $50,000 of its 8% first and refunding mortgage
bonds due February 2007 (Series 2003A) and $650 million of the $966 million 8% first and refunding mortgage
bonds due February 2007 (Series 2003B). SCE's second quarter financing activity included the issuance of
$350 million of its 5.35% first and refunding mortgage bond due in 2035 (Series 2005E). A portion of the
proceeds was used to redeem $316 million of its 8% first and refunding mortgage bonds due in 2007 (Series
2003B). In addition, in April 2005, SCE issued four million shares of Series A preference stock
(non-cumulative, $100 liquidation value) and received net proceeds of approximately $394 million.
Approximately $81 million of the proceeds was used to redeem all the outstanding shares of its $100
cumulative preferred stock, 7.23% Series, and approximately $64 million of the proceeds was used to redeem
all the outstanding shares of its $100 cumulative preferred stock, 6.05% Series. SCE's third quarter 2005
financing activity included the issuance of two million shares of Series B preference stock (non-cumulative,
$100 liquidation value) and received net proceeds of approximately $197 million. Financing activities in 2004
also included dividend payments of $214 million to Edison International.

SCE financing activities in 2004 include the issuance of $300 million of 5% bonds due in 2014, $525 million
of 6% bonds due in 2034 and $150 million of floating rate bonds due in 2006 all issued during the first
quarter of 2004. The proceeds from these issuances were used to call at par $300 million of 7.25% first and
refunding mortgage bonds due March 2026, $225 million of 7.125% first and refunding mortgage bonds due
July 2025, $200 million of 6.9% first and refunding mortgage bonds due October 2018, and $100 million of
junior subordinated deferrable interest debentures due June 2044. In addition, during the first quarter of
2004, SCE paid the $200 million outstanding balance of its credit


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Management's Discussion and Analysis of Financial Condition and Results of Operations

facility, as well as remarketed approximately $550 million of pollution-control bonds with varying maturity
dates ranging from 2008 to 2040. Approximately $354 million of these pollution-control bonds had been held by
SCE since 2001 and the remaining $196 million were purchased and reoffered in 2004. In March 2004, SCE issued
$300 million of 4.65% first and refunding mortgage bonds due in 2015 and $350 million of 5.75% first and
refunding mortgage bonds due in 2035. A portion of the proceeds from the March 2004 first and refunding
mortgage bond issuances were used to fund the acquisition and construction of the Mountainview project.
During the third quarter, SCE paid $125 million of 5.875% bonds due in September 2004. During the fourth
quarter, SCE issued $150 million of floating rate first and refunding mortgage bonds due in 2007. Financing
activities in 2004 also included dividend payments of $750 million to Edison International.

SCE's financing activities during 2003 included an exchange offer of $966 million of 8.95% variable rate
notes due November 2003 for $966 million of new series first and refunding mortgage bonds due February 2007.
In addition, during 2003, SCE repaid $125 million of its 6.25% bonds, the outstanding balance of $300 million
of a $600 million one-year term loan due March 3, 2003, $300 million on its revolving line of credit, and
$700 million of a term loan due March 2005. The $700 million term loan was retired with a cash payment of
$500 million and $200 million drawn on a $700 million credit facility that expires in 2006. SCE's financing
activities also include a dividend payment of $945 million to Edison International.

Cash Flows from Investing Activities

Cash flows from investing activities are affected by additions to property and plant and funding of nuclear
decommissioning trusts.

Investing activities include capital expenditures of $1.8 billion, $1.7 billion and $1.2 billion in 2005,
2004 and 2003, respectively, primarily for transmission and distribution assets, including $166 million
related to the Mountainview project and approximately $59 million and $70 million for nuclear fuel
acquisitions in 2005 and 2004, respectively. In addition, investing activities in 2004 include $285 million
of acquisition costs related to the Mountainview project.

DISPOSITIONS AND DISCONTINUED OPERATIONS

In July 2003, the CPUC approved SCE's sale of certain oil storage and pipeline facilities to Pacific
Terminals LLC for $158 million. In third quarter 2003, SCE recorded a $44 million after-tax gain to
shareholders. In accordance with an accounting standard related to the impairment and disposal of long-lived
assets, this oil storage and pipeline facilities unit's results have been accounted for as a discontinued
operation in the 2003 financial statements. For 2003, revenue from discontinued operations was $20 million
and pre-tax income was $82 million.

ACQUISITION

In March 2004, SCE acquired Mountainview Power Company LLC, which consisted of a power plant in the early
stages of construction in Redlands, California. The Mountainview generating facility is now operating,
providing southern California with additional generating capacity of 1,054 MW. As a result, customers will
receive over the life of the asset, a $58 million net present value benefit from "bonus" tax depreciation. On
January 10, 2006, the FERC accepted the use of the 2005 CPUC-approved rate of return to be applied to the
Mountainview power-purchase agreement.

CRITICAL ACCOUNTING ESTIMATES

The accounting policies described below are viewed by management as critical because their application is the
most relevant and material to SCE's results of operations and financial position and these policies


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                                                                             Southern California Edison Company

require the use of material judgments and estimates. Many of the critical accounting estimates discussed
below generally do not impact SCE's earnings since SCE applies accounting principles for rate-regulated
enterprises. However, these critical accounting estimates may impact amounts reported on the consolidated
balance sheets.

Rate Regulated Enterprises

SCE applies accounting principles for rate-regulated enterprises to the portion of its operations, in which
regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on
capital. Due to timing and other differences in the collection of revenue, these principles allow an incurred
cost that would otherwise be charged to expense by a nonregulated entity to be capitalized as a regulatory
asset if it is probable that the cost is recoverable through future rates and conversely allow creation of a
regulatory liability for probable future costs collected through rates in advance. SCE's management
continually assesses whether the regulatory assets are probable of future recovery by considering factors
such as the current regulatory environment, the issuance of rate orders on recovery of the specific incurred
cost or a similar incurred cost to SCE or other rate-regulated entities in California, and assurances from
the regulator (as well as its primary intervenor groups) that the incurred cost will be treated as an
allowable cost (and not challenged) for rate-making purposes. Because current rates include the recovery of
existing regulatory assets and settlement of regulatory liabilities, and rates in effect are expected to
allow SCE to earn a reasonable rate of return, management believes that existing regulatory assets and
liabilities are probable of recovery. This determination reflects the current political and regulatory
climate in California and is subject to change in the future. If future recovery of costs ceases to be
probable, all or part of the regulatory assets and liabilities would have to be written off against current
period earnings. At December 31, 2005, the consolidated balance sheets included regulatory assets of
$3.5 billion and regulatory liabilities of $3.6 billion. Management continually evaluates the anticipated
recovery of regulatory assets, liabilities, and revenue subject to refund and provides for allowances and/or
reserves as appropriate.

Derivative Financial Instruments and Hedging Activities

SCE follows the accounting standard for derivative instruments and hedging activities, which requires
derivative financial instruments to be recorded at their fair value unless an exception applies. The
accounting standard also requires that changes in a derivative's fair value be recognized currently in
earnings unless specific hedge accounting criteria are met. For derivatives that qualify for hedge
accounting, depending on the nature of the hedge, changes in fair value are either offset by changes in the
fair value of the hedged assets, liabilities or firm commitments through earnings, or recognized in other
comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a
derivative's change in fair value is immediately recognized in earnings.

Derivative assets and liabilities are shown at gross amounts on the balance sheet, except that net
presentation is used when SCE has the legal right of setoff, such as multiple contracts executed with the
same counterparty under master netting arrangements.

SCE enters into contracts for power and gas options, as well as swaps, futures and forward contracts in order
to mitigate its exposure to increases in natural gas and electricity pricing. These transactions are
pre-approved by the CPUC or executed in compliance with CPUC-approved procurement plans. Hedge accounting is
not used for these transactions. Any fair value changes for recorded derivatives are offset through a
regulatory mechanism; therefore, fair value changes do not affect earnings.

Unit-specific contracts (signed or modified after June 30, 2003) in which SCE takes virtually all of the output
of a facility are generally considered to be leases under accounting rules. Leases are not derivatives and are
not recorded on the balance sheet unless they are classified as capital leases.


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Management's Discussion and Analysis of Financial Condition and Results of Operations

Most of SCE's QF contracts are not required to be recorded on its balance sheet. However, SCE purchases power
from certain QFs in which the contract pricing is based on a natural gas index, but the power is not
generated with natural gas. The portion of these contracts that is not eligible for the normal purchases and
sales exception under accounting rules is recorded on the balance sheet at fair value, based on financial
models.

Management's  judgment is required to determine if a transaction  meets the definition of a derivative  and, if
it does, whether the normal sales and purchases  exception applies or whether individual  transactions  qualify
for hedge accounting treatment.

Determining the fair value of SCE's derivatives under this accounting standard is a critical accounting
estimate because the fair value of a derivative is susceptible to significant change resulting from a number
of factors, including volatility of energy prices, credits risks, market liquidity and discount rates. See
"Market Risk Exposures" for a description of risk management activities and sensitivities to change in market
prices.

Income Taxes

SCE and its subsidiaries are included in Edison International's consolidated federal income tax and combined
state franchise tax returns. Under an income tax allocation agreement approved by the CPUC, SCE's tax
liability is computed as if it filed a separate return.

The accounting standard for income taxes requires the asset and liability approach for financial accounting
and reporting for deferred income taxes. SCE uses the asset and liability method of accounting for deferred
income taxes and provides deferred income taxes for all significant income tax temporary differences.

As part of the process of preparing its consolidated financial statements, SCE is required to estimate its
income taxes in each jurisdiction in which it operates. This process involves estimating actual current tax
expense together with assessing temporary differences resulting from differing treatment of items, such as
depreciation, for tax and accounting purposes. These differences result in deferred tax assets and
liabilities, which are included within SCE's consolidated balance sheet. SCE takes certain tax positions it
believes are applied in accordance with tax laws. The application of these positions is subject to
interpretation and audit by the IRS. As further described in "Other Developments--Federal Income Taxes," the
IRS has raised issues in the audit of Edison International's tax returns with respect to certain issues at
SCE.

Management continually evaluates its income tax exposures and provides for allowances and/or reserves as
appropriate.

Asset Impairment

SCE evaluates long-lived assets whenever indicators of potential impairment exist. Accounting standards
require that if the undiscounted expected future cash flow from a company's assets or group of assets
(without interest charges) is less than its carrying value, an asset impairment must be recognized in the
financial statements. The amount of impairment is determined by the difference between the carrying amount
and fair value of the asset.

The assessment of impairment is a critical accounting estimate because significant management judgment is
required to determine:  (1) if an indicator of impairment has occurred, (2) how assets should be


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                                                                             Southern California Edison Company

grouped, (3) the forecast of undiscounted expected future cash flow over the asset's estimated useful life to
determine if an impairment exists, and (4) if an impairment exists, the fair value of the asset or asset
group. Factors that SCE considers important, which could trigger an impairment, include operating losses from
a project, projected future operating losses, the financial condition of counterparties, or significant
negative industry or economic trends.

Nuclear Decommissioning

SCE's legal asset retirement obligations (ARO) related to the decommissioning of its nuclear power facilities
are recorded at fair value. The fair value of decommissioning SCE's nuclear power facilities are based on
site-specific studies performed in 2005 for SCE's San Onofre and Palo Verde nuclear facilities. Changes in
the estimated costs, timing of decommissioning, or the assumptions underlying these estimates could cause
material revisions to the estimated total cost to decommission these facilities. SCE estimates that it will
spend approximately $11.4 billion through 2049 to decommission its active nuclear facilities. This estimate
is based on SCE's decommissioning cost methodology used for rate-making purposes, escalated at rates ranging
from 1.7% to 7.5% (depending on the cost element) annually.

Nuclear decommissioning costs are recovered in utility rates. These costs are expected to be funded from
independent decommissioning trusts that currently receive contributions of approximately $32 million per
year. As of December 31, 2005, the decommissioning trust balance was $2.9 billion. Contributions to the
decommissioning trusts are reviewed every three years by the CPUC. The contributions are determined from an
analysis of estimated decommissioning costs, the current value of trust assets and long-term forecasts of
cost escalation and after-tax return on trust investments. Favorable or unfavorable investment performance in
a period will not change the amount of contributions for that period. However, trust performance for the
three years leading up to a CPUC review proceeding will provide input into future contributions. The CPUC has
set certain restrictions related to the investments of these trusts. If additional funds are needed for
decommissioning, it is probable that the additional funds will be recoverable through customer rates. Trust
funds are recorded on the balance sheet at market value.

Decommissioning of San Onofre Unit 1 is underway. All of SCE's San Onofre Unit 1 decommissioning costs will
be paid from its nuclear decommissioning trust funds, subject to CPUC review. The estimated remaining cost to
decommission San Onofre Unit 1 of $186 million at of December 31, 2005 is recorded as an ARO liability.

Pensions and Postretirement Benefits Other than Pensions

Pension and other postretirement obligations and the related effects on results of operations are calculated
using actuarial models. Two critical assumptions, discount rate and expected return on assets, are important
elements of plan expense and liability measurement. Additionally, health care cost trend rates are critical
assumptions for postretirement heath care plans. These critical assumptions are evaluated at least annually.
Other assumptions, such as retirement, mortality and turnover, are evaluated periodically and updated to
reflect actual experience.

The discount rate enables SCE to state expected future cash flows at a present value on the measurement date.
SCE selects its discount rate by performing a yield curve analysis. This analysis determines the equivalent
discount rate on projected cash flows, matching the timing and amount of expected benefit payments. Three
yield curves were considered: two corporate yield curves (Citigroup and AON) and a curve based on treasury
rates (plus 90 basis points). SCE also compared the yield curve analysis against the Moody's AA Corporate
bond rate. At the December 31, 2005 measurement date, SCE used a discount rate of 5.5% for both pensions and
postretirement benefits other than pensions (PBOP).


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Management's Discussion and Analysis of Financial Condition and Results of Operations

To determine the expected long-term rate of return on pension plan assets, current and expected asset
allocations are considered, as well as historical and expected returns on plan assets. The expected rate of
return on plan assets was 7.5% for pensions and 7.1% for PBOP. A portion of PBOP trusts asset returns are
subject to taxation, so the 7.1% figure above is determined on an after-tax basis. Actual time-weighted,
annualized returns on the pension plan assets were 11.0%, 6.0% and 10.9% for the one-year, five-year and
ten-year periods ended December 31, 2005, respectively. Actual time-weighted, annualized returns on the PBOP
plan assets were 6.3%, 3.3% and 8.3% over these same periods. Accounting principles provide that differences
between expected and actual returns are recognized over the average future service of employees.

SCE records pension expense equal to the amount funded to the trusts, as calculated using an actuarial method
required for rate-making purposes, in which the impact of market volatility on plan assets is recognized in
earnings on a more gradual basis. Any difference between pension expense calculated in accordance with
rate-making methods and pension expense calculated in accordance with accounting standards is accumulated as
a regulatory asset or liability, and will, over time, be recovered from or returned to customers. As of
December 31, 2005, this cumulative difference amounted to a regulatory liability of $88 million, meaning that
the rate-making method has recognized $88 million more in expense than the accounting method since
implementation of the pension accounting standard in 1987.

Under accounting standards, if the accumulated benefit obligation exceeds the market value of plan assets at
the measurement date, the difference may result in a reduction to shareholders' equity through a charge to
other comprehensive income, but would not affect current net income. The reduction to other comprehensive
income would be restored through shareholders' equity in future periods to the extent the market value of
trust assets exceeded the accumulated benefit obligation. This assessment is performed annually.

SCE's pension and PBOP plans are subject to the limits established for federal tax deductibility. SCE funds
its pension and PBOP plans in accordance with amounts allowed by the CPUC. Executive pension plans and
nonutility PBOP plans have no plan assets.

At December 31, 2005, SCE's PBOP plans had a $2.3 billion benefit obligation. Total expense for these plans
was $78 million for 2005. The health care cost trend rate is 10.25% for 2006, gradually declining to 5% for
2011 and beyond. Increasing the health care cost trend rate by one percentage point would increase the
accumulated obligation as of December 31, 2005 by $271 million and annual aggregate service and interest
costs by $19 million. Decreasing the health care cost trend rate by one percentage point would decrease the
accumulated obligation as of December 31, 2005 by $243 million and annual aggregate service and interest
costs by $17 million.

NEW ACCOUNTING PRINCIPLES

In March 2005, the Financial Accounting Standards Board issued an interpretation related to accounting for
conditional ARO. This interpretation clarifies that an entity is required to recognize a liability for the
fair value of a conditional ARO if the fair value can be reasonably estimated even though uncertainty exists
about the timing and/or method of settlement. This interpretation was effective as of December 31, 2005. SCE
identified conditional AROs related to:  treated wood poles, hazardous materials such as mercury and
polychlorinated biphenyls-containing equipment; and asbestos removal costs at buildings. Since SCE follows
accounting principles for rate-regulated enterprises and receives recovery of these costs through rates,
implementation of this interpretation increased SCE's ARO by $14 million, but did not affect SCE's earnings.

A new accounting standard requires companies to use the fair value accounting method for stock-based
compensation. SCE is required to implement the new standard in the first quarter of 2006 and will apply


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                                                                             Southern California Edison Company

the modified prospective transition method. Under the modified prospective method, the new accounting
standard will be applied effective January 1, 2006 to the unvested portion of awards previously granted and
will be applied to all prospective awards. Prior financial statements will not be restated under this method.
The new accounting standard will result in the recognition of expense for all stock-based compensation
awards; previously, SCE used the intrinsic value method of accounting, at times resulting in no recognition of
expense for stock-based compensation.

COMMITMENTS AND INDEMNITIES

SCE's commitments for the years 2006 through 2010 and thereafter are estimated below:

In millions                             2006       2007       2008      2009       2010   Thereafter
- ---------------------------------------------------------------------------------------------------------------

Long-term debt maturities and
  sinking fund requirements(1)         $ 823      $ 622      $ 596     $ 210      $ 442    $ 7,044
Fuel supply contract payments            126         64         64        40         47        252
Purchased-power capacity payments        842        775        528       417        393      2,681
Unconditional purchase obligations         5          5          5         5          6         36
Operating lease obligations              192        301        271       213        208          5
Capital lease obligations                  3          4          4         4          4         --
Employee benefit plans contributions(2)  128         --         --        --         --         --
- ---------------------------------------------------------------------------------------------------------------

______________
(1) Amount includes scheduled principal payments for debt outstanding as of December 31, 2005, assuming
    long-term debt is held to maturity, and related forecast interest payments over the applicable period of
    the debt.

(2) Amount includes estimated contributions to the pension plans and postretirement benefits other than
    pensions. The estimated contributions beyond 2006 are not available.

Fuel Supply Contracts

SCE has fuel supply contracts which require payment only if the fuel is made available for purchase. SCE has
a coal fuel contract that requires payment of certain fixed charges whether or not coal is delivered.

Power Purchase Contracts

SCE has power-purchase contracts with certain QFs (cogenerators and small power producers) and other power
producers. These contracts provide for capacity payments if a facility meets certain performance obligations
and energy payments based on actual power supplied to SCE (the energy payments are not included in the table
above). There are no requirements to make debt-service payments. In an effort to replace higher-cost contract
payments with lower-cost replacement power, SCE has entered into purchased-power settlements to end its
contract obligations with certain QFs. The settlements are reported as power-purchase contracts on the
consolidated balance sheets.

Unconditional Purchase Obligations

SCE has an unconditional purchase obligation for firm transmission service from another utility. Minimum
payments are based, in part, on the debt-service requirements of the transmission service provider, whether
or not the transmission line is operable. The contract requires minimum payments of $62 million through 2016
(approximately $6 million per year).


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Management's Discussion and Analysis of Financial Condition and Results of Operations

Operating and Capital Leases

SCE has operating leases, primarily for vehicles (with varying terms, provisions and expiration dates).
Unit-specific contracts (signed or modified after June 30, 2003) in which SCE takes virtually all of the
output of a facility are generally considered to be leases under accounting rules. At December 31, 2005, SCE
had six power contracts that were classified as operating leases and one power contract that was classified
as a capital lease (executed in late 2005).

Indemnity Provided as Part of the Acquisition of Mountainview

In connection with the acquisition of Mountainview, SCE agreed to indemnify the seller with respect to
specific environmental claims related to SCE's previously owned San Bernardino Generating Station, divested
by SCE in 1998 and reacquired as part of the Mountainview acquisition. The generating station has not
operated since early 2001, and SCE retained certain responsibilities with respect to environmental claims as
part of the original divestiture of the station. The aggregate liability for either party to the purchase
agreement for damages and other amounts is a maximum of $60 million. This indemnification for environmental
liabilities expires on or before March 12, 2033. SCE has not recorded a liability related to this indemnity.

Other SCE Indemnities

SCE provides other indemnifications through contracts entered into in the normal course of business. These
are primarily indemnifications against adverse litigation outcomes in connection with underwriting
agreements, and specified environmental indemnities and income taxes with respect to assets sold. SCE's
obligations under these agreements may be limited in terms of time and/or amount, and in some instances SCE
may have recourse against third parties for certain indemnities. The obligated amounts of these
indemnifications often are not explicitly stated, and the overall maximum amount of the obligation under
these indemnifications cannot be reasonably estimated. SCE has not recorded a liability related to these
indemnities.





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___________________________________________________________________________________________________________

Report of Independent Registered Public Accounting Firm





To the Board of Directors and
Shareholder of Southern California Edison Company


In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of
income, comprehensive income, cash flows and common shareholder's equity present fairly, in all material
respects, the financial position of Southern California Edison Company and its subsidiaries at December 31,
2005 and 2004, and the results of their operations and their cash flows for each of the three years in the
period ended December 31, 2005 in conformity with accounting principles generally accepted in the United
States of America.  These financial statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial statements based on our audits.  We conducted our
audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board
(United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.  An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it
accounts for financial instruments with characteristics of both debt and equity as of July 1, 2003, variable
interest entities as of March 31, 2004, and asset retirement costs as of December 31, 2005.



/s/ PricewaterhouseCoopers LLC

Los Angeles, California
March 6, 2006







Page 36



___________________________________________________________________________________________________________
Consolidated Statements of Income                                        Southern California Edison Company

In millions             Year ended December 31,          2005           2004            2003
- -----------------------------------------------------------------------------------------------------------
Operating revenue                                     $  9,500        $  8,448       $ 8,854
- -----------------------------------------------------------------------------------------------------------

Fuel                                                     1,193            810            235
Purchased power                                          2,622          2,332          2,786
Provisions for regulatory adjustment clauses - net         435           (201)         1,138
Other operation and maintenance                          2,523          2,457          2,072
Depreciation, decommissioning and amortization             915            860            882
Property and other taxes                                   193            177            168
Net gain on sale of utility property and plant             (10)            --             (5)
- -----------------------------------------------------------------------------------------------------------

Total operating expenses                                 7,871          6,435          7,276
- -----------------------------------------------------------------------------------------------------------

Operating income                                         1,629          2,013          1,578
Interest and dividend income                                44             20            100
Other nonoperating income                                  127             84             72
Interest expense - net of amounts capitalized             (360)          (409)          (457)
Other nonoperating deductions                              (65)           (69)           (23)
- -----------------------------------------------------------------------------------------------------------

Income from continuing operations before tax
   and minority interest                                 1,375          1,639          1,270
Income tax                                                 292            438            388
Minority interest                                          334            280             --
- -----------------------------------------------------------------------------------------------------------

Income from continuing operations                          749            921            882
Income from discontinued operations - net of tax            --             --             50
- -----------------------------------------------------------------------------------------------------------

Net income                                                 749            921            932
Dividends on preferred stock
   subject to mandatory redemption                          --             --              5
Dividends on preferred stock
   not subject to mandatory redemption                      24              6              5
- -----------------------------------------------------------------------------------------------------------

Net income available for common stock                 $    725        $   915        $   922
- -----------------------------------------------------------------------------------------------------------




Consolidated Statements of Comprehensive Income

In millions             Year ended December 31,          2005           2004            2003
- -----------------------------------------------------------------------------------------------------------

Net income                                            $    749        $   921        $   932
Other comprehensive income (loss), net of tax:
  Minimum pension liability adjustment                      (1)            (1)            (4)
  Amortization of cash flow hedges                           2              3              1
- -----------------------------------------------------------------------------------------------------------

Comprehensive income                                  $    750        $   923        $   929
- -----------------------------------------------------------------------------------------------------------




                  The accompanying notes are an integral part of these financial statements.


Page 37


___________________________________________________________________________________________________________
Consolidated Balance Sheets

In millions                                 December 31,                2005            2004
- -----------------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------------

Cash and equivalents                                                $    143        $    122
Restricted cash                                                           57              61
Margin and collateral deposits                                           178              66
Receivables, less allowances of $33 and $31
  for uncollectible accounts at respective dates                         849             618
Accrued unbilled revenue                                                 291             320
Inventory                                                                220             196
Accumulated deferred income taxes - net                                   --             134
Trading and price risk management asset                                  237              26
Regulatory assets                                                        536             553
Prepayments and other current assets                                      92              46
- -----------------------------------------------------------------------------------------------------------
Total current assets                                                   2,603           2,142
- -----------------------------------------------------------------------------------------------------------
Nonutility property - less accumulated provision
  for depreciation of $569 and $554 at respective dates                1,086             960
Nuclear decommissioning trusts                                         2,907           2,757
Other investments                                                         80             104
- -----------------------------------------------------------------------------------------------------------
Total investments and other assets                                     4,073           3,821
- -----------------------------------------------------------------------------------------------------------
Utility plant, at original cost:
  Transmission and distribution                                       16,760          15,685
  Generation                                                           1,370           1,356
Accumulated provision for depreciation                                (4,763)         (4,506)
Construction work in progress                                            956             789
Nuclear fuel, at amortized cost                                          146             151
- -----------------------------------------------------------------------------------------------------------
Total utility plant                                                   14,469          13,475
- -----------------------------------------------------------------------------------------------------------
Regulatory assets                                                      3,013           3,285
Other long-term assets                                                   545             567
- -----------------------------------------------------------------------------------------------------------
Total regulatory assets and other long-term assets                     3,558           3,852
===========================================================================================================





- -----------------------------------------------------------------------------------------------------------
Total assets                                                        $ 24,703        $  23,290
===========================================================================================================



                  The accompanying notes are an integral part of these financial statements.



Page 38


___________________________________________________________________________________________________________
Consolidated Balance Sheets                                              Southern California Edison Company

In millions, except share amounts           December 31,                  2005            2004
- -----------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
- -----------------------------------------------------------------------------------------------------------
Short-term debt                                                       $     --        $     88
Long-term debt due within one year                                         596             246
Preferred stock to be redeemed within one year                              --               9
Accounts payable                                                           898             700
Accrued taxes                                                              242             357
Accrued interest                                                           106             115
Counterparty collateral                                                    183              --
Customer deposits                                                          183             168
Book overdrafts                                                            257             232
Accumulated deferred income taxes - net                                      5              --
Regulatory liabilities                                                     681             490
Other current liabilities                                                  810             643
- -----------------------------------------------------------------------------------------------------------
Total current liabilities                                                3,961           3,048
- -----------------------------------------------------------------------------------------------------------
Long-term debt                                                           4,669           5,225
- -----------------------------------------------------------------------------------------------------------
Accumulated deferred income taxes - net                                  2,815           2,865
Accumulated deferred investment tax credits                                119             126
Customer advances and other deferred credits                               550             510
Power-purchase contracts                                                   165             130
Preferred stock subject to mandatory redemption                             --             139
Accumulated provision for pensions and benefits                            500             417
Asset retirement obligations                                             2,621           2,183
Regulatory liabilities                                                   2,962           3,356
Other long-term liabilities                                                284             232
- -----------------------------------------------------------------------------------------------------------
Total deferred credits and other liabilities                            10,016           9,958
- -----------------------------------------------------------------------------------------------------------
Total liabilities                                                       18,646          18,231
- -----------------------------------------------------------------------------------------------------------
Commitments and contingencies (Notes 8 and 9)

Minority interest                                                          398             409
- -----------------------------------------------------------------------------------------------------------
Common stock, no par value (434,888,104 shares outstanding at each date) 2,168           2,168
Additional paid-in capital                                                 361             350
Accumulated other comprehensive loss                                       (16)            (17)
Retained earnings                                                        2,417           2,020
- -----------------------------------------------------------------------------------------------------------
Total common shareholder's equity                                        4,930           4,521
- -----------------------------------------------------------------------------------------------------------
Preferred and preference stock
   not subject to mandatory redemption                                     729             129
- -----------------------------------------------------------------------------------------------------------
Total shareholders' equity                                               5,659           4,650
- -----------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity                            $ 24,703        $ 23,290
===========================================================================================================




                  The accompanying notes are an integral part of these financial statements.


Page 39



___________________________________________________________________________________________________________
Consolidated Statements of Cash Flows
                                                                                           2003
In millions             Year ended December 31,             2005            2004        Revised(1)
- -----------------------------------------------------------------------------------------------------------
Cash flows from operating activities:
- -----------------------------------------------------------------------------------------------------------
Net income                                               $    749      $      921    $      932
- -----------------------------------------------------------------------------------------------------------
Less:  income from discontinued operations                     --              --           (50)
- -----------------------------------------------------------------------------------------------------------
Income from continuing operations                             749             921           882
- -----------------------------------------------------------------------------------------------------------

Adjustments to reconcile to net cash provided
    by operating activities:
  Depreciation, decommissioning and amortization              915             860           882
  Other amortization                                           96              90           101
  Minority interest                                           334             280            --
  Deferred income taxes and investment tax credits             34             514          (104)
  Regulatory assets - long-term                               387             442           535
  Regulatory liabilities - long-term                         (168)            (69)          (48)
  Other assets                                                 46             (44)          117
  Other liabilities                                            72              18          (364)
  Margin and collateral deposits - net of
    collateral received                                        70             (33)            5
  Receivables and accrued unbilled revenue                   (202)             (9)          185
  Trading and price risk management assets                   (211)            (23)          113
  Inventory, prepayments and other current assets             (66)             13           (35)
  Regulatory assets - short-term                               17            (254)       13,268
  Regulatory liabilities - short-term                         192            (169)      (12,486)
  Accrued interest and taxes                                 (126)           (111)         (223)
  Accounts payable and other current liabilities              251            (152)         (181)
Operating cash flows from discontinued operations              --              --           (34)
- -----------------------------------------------------------------------------------------------------------
Net cash provided by operating activities                   2,390           2,274         2,613
- -----------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Long-term debt issued and issuance costs                      980           1,747           (11)
Long-term debt repaid                                      (1,040)           (966)       (1,263)
Bonds remarketed - net                                         --             350            --
Issuance of preference stock                                  591              --            --
Redemption of preferred stock                                (148)             (2)           (6)
Rate reduction notes repaid                                  (246)           (246)         (246)
Short-term debt financing - net                               (88)           (112)           (4)
Change in book overdrafts                                      25              43            65
Shares purchased for stock-based compensation                (115)            (60)          (13)
Proceeds from stock option exercises                           53              29             3
Minority interest                                            (345)           (290)           --
Dividends paid                                               (234)           (756)         (955)
- -----------------------------------------------------------------------------------------------------------
Net cash used by financing activities                        (567)           (263)       (2,430)
- -----------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Capital expenditures                                       (1,808)         (1,678)       (1,153)
Acquisition costs related to nonutility generation plant       --            (285)           --
Proceeds from sale of discontinued operations                  --              --           146
Proceeds from nuclear decommissioning trust sales           2,067           2,416         2,200
Purchases of nuclear decommissioning trust investments     (2,159)         (2,525)       (2,286)
Customer advances for construction and other investments       98               9            13
- -----------------------------------------------------------------------------------------------------------
Net cash used by investing activities                      (1,802)         (2,063)       (1,080)
- -----------------------------------------------------------------------------------------------------------
Effect of consolidation of variable interest entities          --              79            --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and equivalents                21              27          (897)
Cash and equivalents, beginning of year                       122              95           992
- -----------------------------------------------------------------------------------------------------------
Cash and equivalents, end of year-continuing operations    $  143         $   122       $    95
- -----------------------------------------------------------------------------------------------------------

(1)  See "Revisions" in Note 1 for further explanation.

                   The accompanying notes are an integral part of these financial statements.


Page 40


___________________________________________________________________________________________________________
Consolidated Statements of Changes in Common                     Southern California Edison Company
Shareholder's Equity

                                                                 Accumulated                  Total
                                                    Additional      Other                    Common
                                          Common      Paid-in   Comprehensive   Retained   Shareholder's
In millions                                Stock      Capital   Income (Loss)   Earnings      Equity
- -----------------------------------------------------------------------------------------------------------
Balance at December 31, 2002             $ 2,168      $ 340       $  (16)       $ 1,892      $ 4,384
- -----------------------------------------------------------------------------------------------------------
Net income                                                                          932          932
Minimum pension liability adjustment                                  (7)                         (7)
  Tax effect                                                           3                           3
Amortization of cash flow hedges                                       2                           2
  Tax effect                                                          (1)                         (1)
Dividends declared on common stock                                                 (945)        (945)
Dividends declared on preferred stock
  subject to mandatory redemption                                                    (5)          (5)
Dividends declared on preferred stock
  not subject to mandatory redemption                                                (5)          (5)
Shares purchased for stock-based
  compensation                                           (9)                         (4)         (13)
Proceeds from stock option exercises                                                  3            3
Non-cash stock-based compensation                         5                                        5
Capital stock expense and other                           2                                        2
- -----------------------------------------------------------------------------------------------------------
Balance at December 31, 2003             $ 2,168      $ 338       $  (19)       $ 1,868      $ 4,355
- -----------------------------------------------------------------------------------------------------------
Net income                                                                          921          921
Minimum pension liability adjustment                                  (1)                         (1)
Amortization of cash flow hedges                                       5                           5
  Tax effect                                                          (2)                         (2)
Dividends declared on common stock                                                 (750)        (750)
Dividends declared on preferred stock
  not subject to mandatory redemption                                                (6)          (6)
Shares purchased for stock-based
  compensation                                          (17)                        (43)         (60)
Proceeds from stock option exercises                                                 29           29
Non-cash stock-based compensation                        30                                       30
Capital stock expense and other                          (1)                          1           --
- -----------------------------------------------------------------------------------------------------------
Balance at December 31, 2004             $ 2,168      $ 350       $  (17)       $ 2,020      $ 4,521
- -----------------------------------------------------------------------------------------------------------
Net income                                                                          749          749
Minimum pension liability adjustment                                  (2)                         (2)
  Tax effect                                                           1                           1
Amortization of cash flow hedges                                       4                           4
  Tax effect                                                          (2)                         (2)
Dividends declared on common stock                                                 (285)        (285)
Dividends declared on preferred and
  preference stock not subject to mandatory redemption                              (24)         (24)
Shares purchased for stock-based compensation            (19)                       (95)        (114)
Proceeds from stock option exercises                                                 53           53
Non-cash stock-based compensation                         11                                      11
Tax benefit related to stock-based awards                 29                                      29
Capital stock expense and other                          (10)                        (1)         (11)
- -----------------------------------------------------------------------------------------------------------
Balance at December 31, 2005             $ 2,168       $ 361        $ (16)      $ 2,417      $ 4,930
- -----------------------------------------------------------------------------------------------------------

Authorized common stock is 560 million shares. The outstanding common stock is 434,888,104 shares for all years
reported.
                  The accompanying notes are an integral part of these financial statements.


Page 41


___________________________________________________________________________________________________________
Notes to Consolidated Financial Statements

Significant accounting policies are discussed in Note 1, unless discussed in the respective Notes for
specific topics.

Note 1.  Summary of Significant Accounting Policies

Southern California Edison Company (SCE) is a rate-regulated electric utility that supplies electric energy
to a 50,000 square-mile area of central, coastal and southern California.

Basis of Presentation

The consolidated financial statements include SCE, its subsidiaries and variable interest entities (VIEs) for
which SCE is the primary beneficiary. Effective March 31, 2004, SCE began consolidating four cogeneration
projects for which SCE typically purchases 100% of the energy produced under long-term power-purchase
agreements, in accordance with a new accounting standard for the consolidation of variable interest entities.
Intercompany transactions have been eliminated.

SCE's accounting policies conform to accounting principles generally accepted in the United States, including
the accounting principles for rate-regulated enterprises, which reflect the rate-making policies of the
California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC).

Certain prior-year amounts were reclassified to conform to the December 31, 2005 financial statement
presentation.

Financial statements prepared in compliance with accounting principles generally accepted in the United
States require management to make estimates and assumptions that affect the amounts reported in the financial
statements and Notes. Actual results could differ from those estimates. Certain significant estimates related
to financial instruments, income taxes, pensions and postretirement benefits other than pensions,
decommissioning and contingencies are further discussed in Notes 2, 5, 6, 8 and 9 to the Consolidated
Financial Statements, respectively.

SCE's outstanding common stock is owned entirely by its parent company, Edison International.

Cash Equivalents

Cash equivalents include original maturities of three months or less. Cash equivalents include other
investments of $16 million at December 31, 2005. There were no cash equivalents at December 31, 2004. In
addition, at December 31, 2005 and 2004, the VIE segment had $120 million and $90 million of cash and
equivalents, respectively. For a discussion of restricted cash, see "Restricted Cash".

Debt and Equity Investments

SCE has debt and equity investments for the nuclear decommissioning trust funds. Unrealized gains and losses
on decommissioning trust funds increase or decrease the related regulatory asset or liability. All
investments are classified as available-for-sale.

Dividend Restriction

The CPUC regulates SCE's capital structure and limits the dividends it may pay Edison International. SCE's
authorized capital structure includes a common equity component of 48%. SCE determines compliance with this
capital structure based on a 13-month weighted-average calculation. At


Page 42


___________________________________________________________________________________________________________
                                                                         Southern California Edison Company

December 31, 2005, SCE's 13-month weighted-average common equity component of total capitalization was 50%.
At December 31, 2005, SCE had the capacity to pay $197 million in additional dividends based on the 13-month
weighted-average method. Based on recorded December 31, 2005 balances, SCE's common equity to total
capitalization ratio was 50.2% for ratemaking purposes. SCE had the capacity to pay $212 million of
additional dividends to Edison International based on December 31, 2005 recorded balances.

Inventory

Inventory is stated at the lower of cost or market, cost being determined by the first in, first out method
for fuel and the average cost method for materials and supplies.

Margin and Collateral Deposits

Margin and collateral deposits include margin requirements and cash deposited with counterparties and brokers
as credit support under margining agreements for power and gas price risk management activities. The amount
of margin and collateral deposits varies based on changes in the value of the agreements. Deposits with
counterparties and brokers earn interest at various rates.

New Accounting Pronouncements

In March 2005, the Financial Accounting Standards Board issued an interpretation related to accounting for
conditional asset retirement obligations (ARO). This interpretation clarifies that an entity is required to
recognize a liability for the fair value of a conditional ARO if the fair value can be reasonably estimated
even though uncertainty exists about the timing and/or method of settlement. This interpretation was
effective as of December 31, 2005. SCE identified conditional AROs related to:  treated wood poles, hazardous
materials such as mercury and polychlorinated biphenyls-containing equipment; and asbestos removal costs at
buildings. Since SCE follows accounting principles for rate-regulated enterprises and receives recovery of
these costs through rates, implementation of this interpretation at SCE did not affect earnings.

A new accounting standard requires companies to use the fair value accounting method for stock-based
compensation. SCE is required to implement the new standard in the first quarter of 2006 and will apply the
modified prospective transition method. Under the modified prospective method, the new accounting standard
will be applied effective January 1, 2006 to the unvested portion of awards previously granted and will be
applied to all prospective awards. Prior financial statements will not be restated under this method. The new
accounting standard will result in the recognition of expense for all stock-based compensation awards;
previously, SCE used the intrinsic value method of accounting, at times resulting in no recognition of
expense for stock-based compensation.


Page 43


___________________________________________________________________________________________________________
Notes to Consolidated Financial Statements

Other Nonoperating Income and Deductions

Other nonoperating income and deductions are as follows:

        In millions   Year ended December 31,             2005        2004        2003
- --------------------------------------------------------------------------------------------------------
        Allowance for funds used during construction    $   25        $ 35       $  27
        Performance-based incentive awards                  33          31          21
        Demand-side management and
             energy efficiency performance incentives       45          --          --
        Other                                               24          18          24
- --------------------------------------------------------------------------------------------------------
        Total other nonoperating income                 $  127        $ 84       $  72
- --------------------------------------------------------------------------------------------------------
        Various penalties                               $   27        $ 35       $  --
        Other                                               38          34          23
- --------------------------------------------------------------------------------------------------------
        Total other nonoperating deductions             $   65        $ 69       $  23
- --------------------------------------------------------------------------------------------------------


Planned Major Maintenance

Certain plant facilities require major maintenance on a periodic basis. All such costs are expensed as
incurred.

Property and Plant

Utility Plant

Utility plant additions, including replacements and betterments, are capitalized. Such costs include direct
material and labor, construction overhead, a portion of administrative and general costs capitalized at a
rate authorized by the CPUC, and an allowance for funds used during construction (AFUDC). AFUDC represents
the estimated cost of debt and equity funds that finance utility-plant construction. Currently, AFUDC debt
and equity is capitalized during plant construction and reported in interest expense and other nonoperating
income, respectively. AFUDC is recovered in rates through depreciation expense over the useful life of the
related asset. Depreciation of utility plant is computed on a straight-line, remaining-life basis.

Depreciation expense stated as a percent of average original cost of depreciable utility plant was 3.9% for
2005, 3.9% for 2004 and 4.3% for 2003.

AFUDC - equity was $25 million in 2005, $23 million in 2004 and $21 million in 2003. AFUDC - debt was $14
million in 2005, $12 million in 2004 and $6 million in 2003.

Replaced or retired property costs are charged to the accumulated provision for depreciation. Cash payments
for removal costs less salvage reduce the liability for AROs.

Effective January 1, 2004, San Onofre Nuclear Generating Station (San Onofre) Units 2 and 3 returned to
traditional cost-of-service ratemaking. The July 8, 2004 CPUC decision on SCE's 2003 general rate case
returned Palo Verde Nuclear Generating Station (Palo Verde) to traditional cost-of-service ratemaking
retroactive to May 22, 2003 (the date a final CPUC decision was originally scheduled to be issued). As
authorized by the CPUC, SCE had been recovering its investments in San Onofre and Palo Verde on an
accelerated basis; these units also had incentive rate-making plans.


Page 44

___________________________________________________________________________________________________________
                                                                         Southern California Edison Company

SCE's nuclear plant investments made prior to the return to cost-of-service ratemaking are recorded as
regulatory assets on its consolidated balance sheets. Since the return to cost-of-service ratemaking, capital
additions are recorded in utility plant. These classifications do not affect the rate-making treatment for
these assets.

Estimated useful lives of SCE's property, plant and equipment, as authorized by the CPUC, are as follows:

- -----------------------------------------------------------------------------------------
         Generation plant                           38 years to 81 years
         Distribution plant                         24 years to 53 years
         Transmission plant                         40 years to 60 years
         Other plant                                 5 years to 40 years
- -----------------------------------------------------------------------------------------

Nuclear fuel is recorded as utility plant in accordance with CPUC rate-making procedures.

Nonutility Property

Nonutility property, including construction in progress, is capitalized at cost, including interest accrued
on borrowed funds that finance construction. Capitalized interest was $16 million in 2005, $9 million in
2004, and zero in 2003. The Mountainview power plant is included in nonutility property in accordance with
the rate-making treatment.

Depreciation and amortization is primarily computed on a straight-line basis over the estimated useful lives
of nonutility properties and over the lease term for leasehold improvements. Depreciation expense stated as a
percent of average original cost of depreciable nonutility property was, on a composite basis, 3.6% for 2005.
The composite rate for 2004 and 2003 is not disclosed due to the non-comparability of this property in 2003.
The VIEs (commenced consolidation in March 31, 2004) compose a majority of nonutility property.

Nonutility property included in the consolidated balance sheets is comprised of:

    In millions              December 31,                            2005           2004
- -----------------------------------------------------------------------------------------------------------
    Furniture and equipment                                      $     3         $      1
    Building, plant and equipment                                  1,347            1,012
    Land (including easements)                                        34               31
    Construction in progress                                         271              470
- -----------------------------------------------------------------------------------------------------------

                                                                   1,655            1,514
    Accumulated provision for depreciation                          (569)            (554)
- -----------------------------------------------------------------------------------------------------------
    Nonutility property - net                                    $ 1,086         $    960
- -----------------------------------------------------------------------------------------------------------


Estimated useful lives for nonutility property are as follows:

- -----------------------------------------------------------------------------------------
         Furniture and equipment                     3 years to 20 years
         Building, plant and equipment               3 years to 40 years
         Land easements                                  60 years
- -----------------------------------------------------------------------------------------




Page 45


___________________________________________________________________________________________________________
Notes to Consolidated Financial Statements

Asset Retirement Obligations

As a result of an accounting standard adopted in 2003, SCE recorded the fair value of its liability for legal
AROs, which was primarily related to the decommissioning of its nuclear power facilities. In addition, SCE
capitalized the initial costs of the ARO into a nuclear-related ARO regulatory asset, and also recorded an
ARO regulatory liability as a result of timing differences between the recognition of costs recorded in
accordance with the standard and the recovery of the related asset retirement costs through the rate-making
process. SCE has collected in rates amounts for the future costs of removal of its nuclear assets, and has
placed those amounts in independent trusts.

A reconciliation of the changes in the ARO liability is as follows:

    In millions
- -------------------------------------------------------------------------------------------
    ARO liability as of December 31, 2003                        $  2,084
    Accretion expense                                                 132
    Liabilities settled                                               (33)
- -------------------------------------------------------------------------------------------
    ARO liability as of December 31, 2004                           2,183
    Revisions                                                         117
    Liabilities added                                                  14
    Accretion expense                                                 366
    Liabilities settled                                               (59)
- -------------------------------------------------------------------------------------------
    ARO liability as of December 31, 2005                        $  2,621
- -------------------------------------------------------------------------------------------
    Fair value of nuclear decommissioning trusts                 $  2,907
- -------------------------------------------------------------------------------------------


Since SCE follows accounting principles for rate-regulated enterprises and receives recovery of these costs
through rates; therefore implementation of this new standard and the subsequent interpretation did not affect
SCE's earnings. The pro forma disclosures for conditional AROs are not shown due to the immaterial impact on
SCE's consolidated balance sheet. See "New Accounting Pronouncements" above.

Purchased Power

From January 17, 2001 to December 31, 2002, the California Department of Water Resources (CDWR) purchased
power on behalf of SCE's customers for SCE's residual net short power position (the amount of energy needed
to serve SCE's customers in excess of SCE's own generation and purchased power contracts). Additionally, the
CDWR signed long-term contracts that provide power for SCE's customers. Effective January 1, 2003, SCE
resumed power procurement responsibilities for its residual net short position. SCE acts as a billing agent
for the CDWR power, and any power purchased by the CDWR for delivery to SCE's customers is not considered a
cost to SCE.

Receivables

SCE records an allowance for uncollectible accounts, as determined by the average percentage of amounts
written-off in prior accounting periods. SCE assesses its customers a late fee of 0.9% per month, beginning
19 days after the bill is prepared. Inactive accounts are written off after 180 days.


Page 46


___________________________________________________________________________________________________________
                                                                         Southern California Edison Company

Regulatory Assets and Liabilities

In accordance with accounting principles for rate-regulated enterprises, SCE records regulatory assets, which
represent probable future recovery of certain costs from customers through the rate-making process, and
regulatory liabilities, which represent probable future credits to customers through the rate-making process.

Included in these regulatory assets and liabilities are SCE's regulatory balancing accounts. Sales balancing
accounts accumulate differences between recorded revenue and revenue SCE is authorized to collect through
rates. Cost balancing accounts accumulate differences between recorded costs and costs SCE is authorized to
recover through rates. Undercollections are recorded as regulatory balancing account assets. Overcollections
are recorded as regulatory balancing account liabilities. SCE's regulatory balancing accounts accumulate
balances until they are refunded to or received from SCE's customers through authorized rate adjustments.
Primarily all of SCE's balancing accounts can be classified as one of the following types: generation-revenue
related, distribution-revenue related, generation-cost related, distribution-cost related, transmission-cost
related or public purpose and other cost related.

Balancing account undercollections and overcollections accrue interest based on a three-month commercial
paper rate published by the Federal Reserve. Income tax effects on all balancing account changes are deferred.

Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to
the applicable income statement accounts, except for regulatory balancing accounts, which are offset through
the provisions for regulatory adjustment clauses.

Page 47


____________________________________________________________________________________________
Notes to Consolidated Financial Statements



Regulatory Assets

Regulatory assets included in the consolidated balance sheets are:


    In millions              December 31,                      2005                 2004
- --------------------------------------------------------------------------------------------
    Current:
      Regulatory balancing accounts                         $   355             $   371
      Direct access procurement charges                         113                 109
      Purchased-power settlements                                53                  62
      Other                                                      15                  11
- --------------------------------------------------------------------------------------------
                                                                536                 553
- --------------------------------------------------------------------------------------------
    Long-term:
      Flow-through taxes - net                                1,066               1,018
      Rate reduction notes - transition cost deferral           465                 739
      Unamortized nuclear investment - net                      487                 526
      Nuclear-related ARO investment - net                      292                 272
      Unamortized coal plant investment - net                    97                  78
      Unamortized loss on reacquired debt                       323                 250
      Direct access procurement charges                          40                 141
      Environmental remediation                                  56                  55
      Purchased-power settlements                                39                  91
      Other                                                     148                 115
- --------------------------------------------------------------------------------------------
                                                              3,013               3,285
- --------------------------------------------------------------------------------------------
    Total Regulatory Assets                                 $ 3,549             $ 3,838
- --------------------------------------------------------------------------------------------

SCE's regulatory assets related to direct access procurement charges are for amounts direct
access customers owe bundled service customers for the period May 1, 2000 through August 31,
2001, and are offset by corresponding regulatory liabilities to the bundled service
customers. These amounts will be collected by mid-2007. SCE's regulatory assets related to
purchased-power settlements will be recovered through 2008. Based on current regulatory
ratemaking and income tax laws, SCE expects to recover its net regulatory assets related to
flow-through taxes over the life of the assets that give rise to the accumulated deferred
income taxes. SCE's regulatory asset related to the rate reduction bonds is amortized
simultaneously with the amortization of the rate reduction bonds liability, and is expected
to be recovered by the end of 2007. SCE's nuclear-related regulatory assets are expected to
be recovered by the end of the remaining useful lives of the nuclear facilities. SCE has
requested a four-year recovery period for the net regulatory asset related to its
unamortized coal plant investment. CPUC approval is pending. SCE's regulatory asset related
to its unamortized loss on reacquired debt will be recovered over the remaining original
amortization period of the reacquired debt over periods ranging from one year to 30 years.
SCE's regulatory asset related to environmental remediation represents the portion of SCE's
environmental liability recognized at the end of the period in excess of the amount that has
been recovered through rates charged to customers. This amount will be recovered in future
rates as expenditures are made.

SCE earns a return on three of the regulatory assets listed above: unamortized nuclear
investment - net, unamortized coal plant investment - net and unamortized loss on reacquired
debt.

Page 48


______________________________________________________________________________________________
                                                            Southern California Edison Company

Regulatory Liabilities

Regulatory liabilities included in the consolidated balance sheets are:


    In millions              December 31,                      2005                 2004
- --------------------------------------------------------------------------------------------
    Current:
      Regulatory balancing accounts                         $   370             $   357
      Direct access procurement charges                         113                 109
      Energy derivatives                                        136                  --
      Other                                                      62                  24
- --------------------------------------------------------------------------------------------
                                                                681                 490
- --------------------------------------------------------------------------------------------
    Long-term:
      ARO                                                       584                 819
      Costs of removal                                        2,110               2,112
      Direct access procurement charges                          39                 141
      Employee benefits plans                                   229                 200
      Other                                                      --                  84
- --------------------------------------------------------------------------------------------
                                                              2,962               3,356
- --------------------------------------------------------------------------------------------
    Total Regulatory Liabilities                            $ 3,643             $ 3,846
- --------------------------------------------------------------------------------------------


SCE's regulatory liability related to the ARO represents timing differences between the
recognition of AROs in accordance with generally accepted accounting principles and the
amounts recognized for rate-making purposes. SCE's regulatory liabilities related to costs
of removal represent revenue collected for asset removal costs that SCE expects to incur in
the future. SCE's regulatory liabilities related to direct access procurement charges are a
liability to its bundled service customers and are offset by regulatory assets from direct
access customers. SCE's regulatory liabilities related to energy derivatives are an offset
to unrealized gains on recorded derivatives. SCE's regulatory liabilities related to
employee benefit plan expenses represent pension and postretirement benefits other than
pensions costs recovered through rates charged to customers in excess of the amounts
recognized as expense. These balances will be returned to ratepayers in some future
rate-making proceeding, be charged against expense to the extent that future expenses exceed
amounts recoverable through the rate-making process, or applied as otherwise directed by the
CPUC.

Related Party Transactions

Four Edison Mission Energy (EME) subsidiaries have 49% to 50% ownership in partnerships that
sell electricity generated by their project facilities to SCE under long-term power purchase
agreements with terms and pricing approved by the CPUC. Beginning March 31, 2004, SCE
consolidates these projects (see "Variable Interest Entities").

SCE holds $153 million in notes receivable from affiliates, due in June 2007. The notes were
issued by Edison International in second quarter 1997, and assigned to SCE in fourth quarter
1997. A $78 million note receivable from EME with an interest rate of LIBOR plus 0.275%; and
a 4.4%, $75 million note receivable from Edison Capital. The amounts are in long-term assets
on the consolidated balance sheet.

Restricted Cash

SCE's restricted cash represents amounts used exclusively to make scheduled payments on the
current maturities of rate reduction notes issued on behalf of SCE by a special purpose
entity.



Page 49

____________________________________________________________________________________________
Notes to Consolidated Financial Statements

Revenue

Operating revenue is recognized as electricity is delivered and includes amounts for
services rendered but unbilled at the end of each year. Amounts charged for services
rendered are based on CPUC-authorized rates and FERC-approved rates. Revenue related to
SCE's transmission function is authorized by the FERC in periodic proceedings that are
similar to the CPUC's proceedings, except that requested rate changes are generally
implemented when the application is filed, and revenue collected prior to a final FERC
decision is subject to refund. Rates include amounts for current period costs, plus the
recovery of certain previously incurred costs. However, in accordance with accounting
standards for rate-regulated enterprises, amounts currently authorized in rates for recovery
of costs to be incurred in the future are not recognized as revenue until the associated
costs are incurred. Instead, these amounts are recorded as regulatory liabilities. For costs
recovered through CPUC-authorized general rate case rates, costs incurred in excess of
revenue billed are deferred in a balancing account, and recovered in future rates.

Since January 17, 2001, power purchased by the CDWR or through the California Independent
System Operator (ISO) for SCE's customers is not considered a cost to SCE, because SCE is
acting as an agent for these transactions. Further, amounts billed to ($1.9 billion in 2005,
$2.5 billion in 2004 and $1.7 billion in 2003) and collected from SCE's customers for these
power purchases, CDWR bond-related costs (effective November 15, 2002) and a portion of
direct access exit fees (effective January 1, 2003) are being remitted to the CDWR and are
not recognized as revenue by SCE.

Revisions

SCE revised its consolidated statements of cash flows for the year ended December 31, 2003
to separately disclose the operating portion of the cash flows attributable to discontinued
operations. SCE has previously reported this amount as a net change in cash of discounted
operations.

Stock-Based Compensation

SCE has stock-based compensation plans, which are described more fully in Note 6. SCE
accounts for those plans using the intrinsic value method. Upon grant, no stock-based
compensation cost is reflected in net income, as all options granted under those plans had
an exercise price equal to the market value of the underlying common stock on the date of
grant. The following table illustrates the effect on net income if SCE had used the
fair-value accounting method.

 In millions     Year ended December 31,         2005         2004         2003
- ---------------------------------------------------------------------------------------
 Net income available
     for common stock, as reported             $  725       $ 915         $ 922
 Add:  stock-based compensation expense using
   the intrinsic value accounting method -
   net of tax                                      26          28             7

 Less:  stock-based compensation expense using
   the fair-value accounting method - net of tax   24          32             9
- ---------------------------------------------------------------------------------------
 Pro forma net income
   available for common stock                  $  727       $ 911         $ 920
- ---------------------------------------------------------------------------------------



Page 50


______________________________________________________________________________________________
                                                            Southern California Edison Company


Supplemental Accumulated Other Comprehensive Loss Information

Supplemental information regarding SCE's accumulated other comprehensive loss is:

    In millions                December 31,             2005         2004
- -------------------------------------------------------------------------------------

    Minimum pension liability - net of tax            $  (11)      $ (10)
    Unrealized losses on cash flow hedges - net of tax    (5)         (7)
- -------------------------------------------------------------------------------------

    Accumulated other comprehensive loss              $  (16)      $ (17)
- -------------------------------------------------------------------------------------


The minimum pension liability is discussed in Note 6, "Compensation and Benefit Plans."

Unrealized losses on cash flow hedges relate to SCE's interest rate swap (the swap
terminated on January 5, 2001, but the related debt matures in 2008). The unamortized loss
of $5 million (as of December 31, 2005, net of tax) on the interest rate swap will be
amortized over a period ending in 2008. Approximately $2 million, after tax, of the
unamortized loss on this swap will be reclassified into earnings during 2006.

Supplemental Cash Flows Information

SCE supplemental cash flows information is:

    In millions           Year ended December 31,                  2005      2004     2003
- --------------------------------------------------------------------------------------------

    Cash payments for interest and taxes:
    Interest - net of amounts capitalized                       $   330    $  342   $  390
    Tax payments                                                    410        29      585

    Non-cash investing and financing activities:
    Details of debt exchange:
      Pollution-control bonds redeemed                          $  (452)       --       --
      Pollution-control bonds issued                                452        --       --

    Details of obligation under capital lease:
      Capital lease purchased                                   $   (15)       --       --
      Capital lease obligation issued                                15        --       --

    Dividends declared but not paid                             $    81        --       --

    Details of consolidation of variable interest entities:
      Assets                                                         --    $  458       --
      Liabilities                                                    --      (537)      --

    Reoffering of pollution-control bonds                            --    $  196       --

    Details of pollution-control bonds redemption:
      Release of funds held in trust                                 --    $   20       --
      Pollution-control bonds redeemed                               --       (20)      --

    Details of debt exchange:
      Retirement of senior secured credit facility                   --        --  $  (700)
      Short-term credit facility utilized                            --        --      200
- --------------------------------------------------------------------------------------------
      Cash paid                                                      --        --     (500)
- --------------------------------------------------------------------------------------------

    Details of long-term debt exchange offer:
      Variable rate notes redeemed                                   --        --  $  (966)
      First and refunding mortgage bonds issued                      --        --      966

    Obligation to fund investment in acquisition                     --        --  $     8
- --------------------------------------------------------------------------------------------


Page 51

____________________________________________________________________________________________
Notes to Consolidated Financial Statements

Variable Interest Entities

SCE has variable interests in contracts with certain qualifying facilities (QFs) that
contain variable contract pricing provisions based on the price of natural gas. Four of
these contracts are with entities that are partnerships owned in part by a related party,
EME. These four contracts had 20-year terms at inception. The QFs sell electricity to SCE and
steam to nonrelated parties. Under a new accounting standard, SCE consolidated these four
projects effective March 31, 2004. Prior periods have not been restated.

    Project              Capacity          Termination Date       EME Ownership
    Kern River            300 MW              August 2010              50%
    Midway-Sunset         225 MW               May 2009                50%
    Sycamore              300 MW             December 2007             50%
    Watson                385 MW             December 2007             49%

SCE has no investment in, nor obligation to provide support to, these entities other than
its requirement to make contract payments. Any profit or loss generated by these entities
will not effect SCE's income statement, except that SCE would be required to recognize
losses if these projects have negative equity in the future. These losses, if any, would not
affect SCE's liquidity. Any liabilities of these projects are non-recourse to SCE.

Effective April 1, 2004, the variable interest entities' operating costs are shown in SCE's
consolidated statements of income. Prior to that date, purchases under these qualifying
facility contracts were reported as purchased-power expense. Further, SCE's operating
revenue beginning April 1, 2004, includes revenue from the sale of steam by these four
projects. The effect that these variable interest entities have on SCE's consolidated
financial statements is shown in Note 10.

SCE also has eight other contracts with QFs that contain variable pricing provisions based
on the price of natural gas and are potential VIEs. SCE might be considered to be the
consolidating entity under the new accounting standard. However, these entities are not
legally obligated to provide the financial information to SCE that is necessary to determine
whether SCE must consolidate these entities. These eight entities have declined to provide
SCE with the necessary financial information. SCE is continuing to attempt to obtain
information for these projects in order to determine whether they should be consolidated by
SCE. The aggregate capacity dedicated to SCE for these projects is 267 MW. SCE paid $198
million in 2005, $166 million in 2004 and $147 million in 2003 to these projects. These
amounts are recoverable in utility customer rates. SCE has no exposure to loss as a result
of its involvement with these projects.

Note 2.  Derivative Instruments and Hedging Activities

SCE's uses derivative financial instruments to manage financial exposure on its investments
and fluctuations in commodity prices and interest rates.

SCE is exposed to credit loss in the event of nonperformance by counterparties. To mitigate
credit risk from counterparties, master netting agreements are used whenever possible and
counterparties may be required to pledge collateral depending on the creditworthiness of
each counterparty and the risk associated with the transaction.

SCE records its derivative instruments on its consolidated balance sheets at fair value
unless they meet the definition of a normal purchase or sale. The normal purchases and sales
exception requires, among other things, physical delivery in quantities expected to be used
or sold over a reasonable period in the normal course of business SCE enters into contracts
for power and gas options, as well as swaps and futures, in order to mitigate its exposure
to increase in natural gas and electricity pricing. These


Page 52

____________________________________________________________________________________________
                                                          Southern California Edison Company


transactions are pre-approved by the CPUC or executed in compliance with CPUC-approved
procurement plans. Hedge accounting is not used for these transactions. Any fair value
changes for recorded derivatives are recorded in purchased- power expense and offset through
the provision for regulatory adjustment clauses; therefore, fair value changes do not affect
earnings.

Unit-specific contracts (signed or modified after June 30, 2003) in which SCE takes
virtually all of the output of a facility are generally considered to be leases under
accounting rules. Leases are not derivatives and are not recorded on the consolidated
balance sheets unless they are classified as capital leases.

Most of SCE's QF contracts are not required to be recorded on the consolidated balance
sheets. For further discussion see "Variable interest entities" in Note 1. However, SCE
purchases power from certain QFs in which the contract pricing is based on a natural gas
index, but the power is not generated with natural gas. The portion of these contracts that
is not eligible for the normal purchases and sales exception is recorded on the consolidated
balances sheet at fair value.

Derivative assets and liabilities are shown on the consolidated balance sheets, except that
net presentation is used when SCE has the legal right of setoff, such as multiple contracts
executed with the same counterparty under master netting arrangements.

The carrying amounts and fair values of financial instruments are:

                                                                  December 31,
                                                  -----------------------------------------
                                                            2005                 2004
                                                  -----------------------------------------
                                                  Carrying       Fair     Carrying     Fair
    In millions                                    Amount        Value     Amount      Value
- -------------------------------------------------------------------------------------------
    Derivatives:
      Interest rate hedges                         $  --       $   --     $    3     $   3
      Commodity price assets                         239          239         14        14
      Commodity price liabilities                    (87)         (87)       (12)      (12)

    Other:
      Decommissioning trusts                       2,907        2,907      2,757     2,757
      DOE decommissioning and decontamination fees    (7)          (7)       (13)      (13)
      QF power contracts assets                       23           23         --        --
      QF power contracts liabilities                 (94)         (94)       (12)      (12)
      Long-term debt                              (4,669)      (4,812)    (5,225)   (5,551)
      Long-term debt due within one year            (596)        (604)      (246)     (254)
      Preferred stock to be redeemed within one year  --           --         (9)       (9)
      Preferred stock subject to mandatory redemption --           --       (139)     (140)
- -------------------------------------------------------------------------------------------


Fair values are based on: brokers' quotes for interest rate hedges, long-term debt and
preferred stock; financial models for commodity price derivatives and QF power contracts;
quoted market prices for decommissioning trusts; and discounted future cash flows for United
States Department of Energy (DOE) decommissioning and decontamination fees.

Due to their short maturities, amounts reported for short-term debt and cash equivalents
approximate fair value.

Page 53


_____________________________________________________________________________________________
Notes to Consolidated Financial Statements

Note 3.  Liabilities and Lines of Credit

Almost all SCE properties are subject to a trust indenture lien. SCE has pledged first and
refunding mortgage bonds as security for borrowed funds obtained from pollution-control
bonds issued by government agencies. SCE used these proceeds to finance construction of
pollution-control facilities. SCE has a debt covenant that requires a debt to total
capitalization ratio be met. At December 31, 2005, SCE was in compliance with this debt
covenant. Bondholders have limited discretion in redeeming certain pollution-control bonds,
and SCE has arranged with securities dealers to remarket or purchase them if necessary.

Debt premium, discount and issuance expenses are deferred and amortized (on a straight-line
basis) through interest expense over the life of each issue. Under CPUC rate-making
procedures, debt reacquisition expenses are amortized (on a straight-line basis) over the
remaining life of the reacquired debt or, if refinanced, the life of the new debt.
California law prohibits SCE from incurring or guaranteeing debt for its nonutility
affiliates.

In December 1997, $2.5 billion of rate reduction notes were issued on behalf of SCE by SCE
Funding LLC, a special purpose entity. These notes were issued to finance the 10% rate
reduction mandated by state law. The proceeds of the rate reduction notes were used by SCE
Funding LLC to purchase from SCE an enforceable right known as transition property.
Transition property is a current property right created by the restructuring legislation and
a financing order of the CPUC and consists generally of the right to be paid a specified
amount from nonbypassable rates charged to residential and small commercial customers. The
rate reduction notes are being repaid over 10 years through these nonbypassable residential
and small commercial customer rates, which constitute the transition property purchased by
SCE Funding LLC. The notes are collateralized by the transition property and are not
collateralized by, or payable from, assets of SCE or Edison International. SCE used the
proceeds from the sale of the transition property to retire debt and equity securities.
Although, as required by accounting principles generally accepted in the United States, SCE
Funding LLC is consolidated with SCE and the rate reduction notes are shown as long-term
debt in the consolidated financial statements, SCE Funding LLC is legally separate from SCE.
The assets of SCE Funding LLC are not available to creditors of SCE or Edison International
and the transition property is legally not an asset of SCE or Edison International.

Long-term debt is:

    In millions                     December 31,            2005               2004
- -----------------------------------------------------------------------------------

    First and refunding mortgage bonds:
      2006 - 2036 (4.65% to 6.00% and variable)         $ 2,775             $ 2,741
    Rate reduction notes:
      2006 - 2007 (6.38% to 6.42%)                          493                 739
    Pollution-control bonds:
      2008 - 2035 (2.00% to 5.55% and variable)           1,196               1,196
    Debentures and notes:
      2006 - 2053 (5.00% to 7.625%)                         810                 812
    Long-term debt due within one year                     (596)               (246)
    Unamortized debt discount - net                          (9)                (17)
- -----------------------------------------------------------------------------------
    Total                                               $ 4,669             $ 5,225
- -----------------------------------------------------------------------------------

    Note:  Rates and terms as of December 31, 2005

Long-term debt maturities and sinking-fund requirements for the next five years are:  2006 -
$596 million; 2007 - $396 million; 2008 - $385 million; 2009 - zero; and 2010 - $250 million.

Page 54


______________________________________________________________________________________________
                                                            Southern California Edison Company

At December 31, 2005 and 2004 SCE had a credit line with a limit of $1.7 billion and $700
million, respectively. At December 31, 2005, SCE had $1.52 billion in available credit under
its credit line. At December 31, 2004, SCE had $602 million in available credit under its
credit line. There was no outstanding short-term debt at December 31, 2005. At December 31,
2004 the outstanding short-term debt and weighted-average interest rate was $88 million at
2.48%.

In January 2006, SCE issued $500 million of first and refunding mortgage bonds. The issuance
included $350 million of 5.625% bonds due in 2036 and $150 million of variable rate bonds
due in 2009.

SCE has 12 million authorized shares of preferred stock. These shares can be issued with or
without mandatory redemption requirements - see Note 4. Shares of SCE's preferred stock have
liquidation and dividend preferences over shares of SCE's common stock and preference stock.
Mandatorily redeemable preferred stock is subject to sinking-fund provisions. When preferred
shares are redeemed, the premiums paid, if any, are charged to expense.

At December 31, 2005, SCE had no preferred stock subject to mandatory redemption. At
December 31, 2004, SCE's $100 par value cumulative preferred stock subject to mandatory
redemption consisted of:  $58 million (net of $9 million of preferred stock to be redeemed
within one year) of preferred stock for Series 6.05% and $81 million for Series 7.23%.

The 6.05% Series preferred stock had mandatory sinking funds, requiring SCE to redeem at
least 37,500 shares per year from 2003 through 2007, and 562,500 shares in 2008. SCE was
allowed to credit previously repurchased shares against the mandatory sinking-fund
provisions. In 2005, SCE redeemed 673,800 shares of 6.05% Series cumulative preferred stock,
which included 36,300 shares redeemed to satisfy the mandatory sinking-fund requirement. In
2004, SCE repurchased 20,000 shares of 6.05% Series preferred stock.. In 2003, SCE
repurchased 56,200 shares of 6.05% Series preferred stock. At December 31, 2004, SCE had
1,200 previously repurchased, but not retired, shares available to credit against the
mandatory sinking-fund provisions.

The 7.23% Series preferred stock also has mandatory sinking funds, requiring SCE to redeem
at least 50,000 shares per year from 2002 through 2006, and 750,000 shares in 2007. However,
SCE was allowed to credit previously repurchased shares against the mandatory sinking-fund
provisions. In 2005, SCE redeemed the remaining 807,000 shares of 7.23% Series cumulative
preferred stock. Since SCE had previously repurchased 193,000 shares of this series, no
shares were redeemed in 2004 or 2003. At December 31, 2004, SCE had 43,000 previously
repurchased, but not retired, shares available to credit against the mandatory sinking-fund
provisions.

Note 4.  Preferred and Preference Stock Not Subject to Mandatory Redemption

SCE's authorized shares are: $100 cumulative preferred - 12 million, $25 cumulative
preferred - 24 million and preference - 50 million. There are no dividends in arrears for
the preferred stock or preference shares. Shares of SCE's preferred stock have liquidation
and dividend preferences over shares of SCE's common stock and preference stock. All
cumulative preferred stock is redeemable. When preferred shares are redeemed, the premiums
paid, if any, are charged to common equity. No preferred stock not subject to mandatory
redemption was issued or redeemed in the last three years. There is no sinking fund
redemption or repurchase of the preferred stock.

Shares of SCE's preference stock rank junior to all of the preferred stock and senior to all
common stock. Shares of SCE's preference stock are not convertible into shares of any other
class or series of SCE's capital stock or any other security. The preference shares are
non-cumulative and have a $100 liquidation value. There is no sinking fund for the
redemption or repurchase of the preference shares.



Page 55


_______________________________________________________________________________________________
Notes to Consolidated Financial Statements

Preferred stock and preference stock not subject to mandatory redemption is:

Dollars in millions, except per-share amounts  December 31,              2005         2004
- --------------------------------------------------------------------------------------------
                                     December 31, 2005
                               ---------------------------
                                 Shares         Redemption
                               Outstanding         Price
                               ---------------------------

Cumulative preferred stock:
$25 par value:
4.08% Series                    1,000,000       $ 25.50              $  25       $   25
4.24                            1,200,000         25.80                 30           30
4.32                            1,653,429         28.75                 41           41
4.78                            1,296,769         25.80                 33           33

Preference stock:
No par value:
5.349% Series A                 4,000,000        100.00                400           --
6.125% Series B                 2,000,000        100.00                200           --
- --------------------------------------------------------------------------------------------
Total                                                                $ 729       $  129
- --------------------------------------------------------------------------------------------


The Series A preference stock may not be redeemed prior to April 30, 2010. After April 30,
2010, SCE may, at its option, redeem the shares in whole or in part and the dividend rate
may be adjusted. The Series B preference stock may not be redeemed prior to September 30,
2010. After September 30, 2010, SCE may, at its option, redeem the shares in whole or in
part.

In January 2006, SCE issued two million shares of 6.0% Series C preference stock
(non-cumulative, $100 liquidation value). The Series C preference stock may not be redeemed
prior to January 31, 2011. After January 31, 2011, SCE may, at its option, redeem the shares
in whole or in part. The Series C preference stock has the same general characteristics as
the Series A and B preference stock mentioned above.

Note 5.  Income Taxes

SCE and its subsidiaries are included in Edison International's consolidated federal income
tax and combined state franchise tax returns. Under an income tax allocation agreement
approved by the CPUC, SCE's tax liability is computed as if it filed a separate return.

Income tax expense includes the current tax liability from operations and the change in
deferred income taxes during the year. Investment tax credits are amortized over the lives
of the related properties.

Page 56


______________________________________________________________________________________________
                                                            Southern California Edison Company

The components of income tax expense from continuing operations by location of taxing
jurisdiction are:

    In millions          Year ended December 31,        2005          2004            2003
- --------------------------------------------------------------------------------------------
    Current:
    Federal                                           $  255        $  (88)        $   408
    State                                                 84            46             174
- --------------------------------------------------------------------------------------------
                                                         339           (42)            582
- --------------------------------------------------------------------------------------------
    Deferred:
    Federal                                              (18)          425            (134)
    State                                                (29)           55             (60)
- --------------------------------------------------------------------------------------------
                                                         (47)          480            (194)
- --------------------------------------------------------------------------------------------
    Total                                             $  292        $  438         $   388
- --------------------------------------------------------------------------------------------


The components of the net accumulated deferred income tax liability are:

    In millions                       December 31,                   2005             2004
- --------------------------------------------------------------------------------------------
    Deferred tax assets:
    Accrued charges                                               $   117         $    200
    Investment tax credits                                             72               64
    Property-related                                                  352              196
    Regulatory balancing accounts                                     301              321
    Unrealized gains and losses                                       321              392
    Decommissioning                                                   163               84
    Pensions and postretirement benefits other than pensions          182              125
    Other                                                             409              120
- --------------------------------------------------------------------------------------------
    Total                                                         $ 1,917         $  1,502
- --------------------------------------------------------------------------------------------
    Deferred tax liabilities:
    Property-related                                              $ 3,184         $  2,915
    Capitalized software costs                                        173              164
    Regulatory balancing accounts                                     607              710
    Unrealized gains and losses                                       321              289
    Decommissioning                                                   125               31
    Other                                                             327              124
- --------------------------------------------------------------------------------------------
    Total                                                         $ 4,737         $  4,233
- --------------------------------------------------------------------------------------------
    Accumulated deferred income taxes - net                       $ 2,820         $  2,731
- --------------------------------------------------------------------------------------------
    Classification of accumulated deferred income taxes:
    Included in deferred credits                                  $ 2,815         $  2,865
    Included in current assets                                         --              134
    Included in current liabilities                                     5               --



Page 57


______________________________________________________________________________________________
Notes to Consolidated Financial Statements

The federal statutory income tax rate is reconciled to the effective tax rate from
continuing operations as follows:

- ------------------------------------------------------------------------------------------
    Year ended December 31,                             2005          2004           2003
    Federal statutory rate                              35.0%         35.0%          35.0%
    Tax reserve adjustments                             (2.1)         (7.3)          (2.8)
    Resolution of 1991-1993 audit cycle                 (5.8)           --             --
    Resolution of FERC rate case                          --            --           (5.9)
    Property-related                                    (0.5)          0.4            0.1
    State tax - net of federal deduction                 3.2           4.8            6.0
    Other                                               (1.7)         (0.7)          (1.9)
- ------------------------------------------------------------------------------------------
    Effective tax rate                                  28.1%         32.2%          30.5%
- ------------------------------------------------------------------------------------------


The composite federal and state statutory income tax rate was approximately 40% for all
periods presented. The lower effective tax rate of 28.1% realized in 2005 was primarily due
to settlement of the 1991-1993 Internal Revenue Service (IRS) audit cycle as well as
adjustments made to the tax reserve to reflect the issuance of new IRS regulations and the
favorable settlement of other federal and state tax audit issues. The lower effective tax
rate of 32.2% realized in 2004 was primarily due to adjustments to tax liabilities relating
to prior years. The lower effective tax rate of 30.5% realized in 2003 was primarily due to
the resolution of a FERC rate case and recording the benefit of a favorable resolution of
tax audit issues.

As a matter of course, SCE is regularly audited by federal and state taxing authorities. For
further discussion of this matter, see "Federal Income Taxes" in Note 9.

Note 6.  Compensation and Benefit Plans

Employee Savings Plan

SCE has a 401(k) defined contribution savings plan designed to supplement employees'
retirement income. The plan received employer contributions of $51 million in 2005, $37
million in 2004 and $33 million in 2003.

Pension Plans and Postretirement Benefits Other Than Pensions

Pension Plans

Defined benefit pension plans (some with cash balance features) cover employees meeting
minimum service requirements. SCE recognizes pension expense for its nonexecutive plan as
calculated by the actuarial method used for ratemaking.

At December 31, 2005 and December 31, 2004, the accumulated benefit obligations of the
executive pension plans exceeded the related plan assets at the measurement dates. In
accordance with accounting standards, SCE's consolidated balance sheets include an
additional minimum liability, with corresponding charges to intangible assets and
shareholder's equity (through a charge to accumulated other comprehensive income). The charge
to accumulated other comprehensive income would be restored through shareholder's equity in
future periods to the extent the fair value of the plan assets exceed the accumulated
benefit obligation.

Page 58


______________________________________________________________________________________________
                                                            Southern California Edison Company

The expected contributions (all by the employer) are approximately $51 million for the year
ended December 31, 2006. This amount is subject to change based on, among other things, the
limits established for federal tax deductibility.

SCE uses a December 31 measurement date for all of its plans. The fair value of plan assets
is determined by market value.

Information on plan assets and benefit obligations is shown below:

In millions                    Year ended December 31,                  2005           2004
- ------------------------------------------------------------------------------------------
Change in projected benefit obligation
Projected benefit obligation at beginning of year                    $ 3,033       $ 2,809
Service cost                                                              99            86
Interest cost                                                            166           162
Amendments                                                                 2            22
Actuarial loss                                                           103           106
Benefits paid                                                           (181)         (152)
- ------------------------------------------------------------------------------------------
Projected benefit obligation at end of year                          $ 3,222       $ 3,033
- ------------------------------------------------------------------------------------------
Accumulated benefit obligation at end of year                        $ 2,791       $ 2,627
- ------------------------------------------------------------------------------------------
Change in plan assets
Fair value of plan assets at beginning of year                       $ 2,981       $ 2,779
Actual return on plan assets                                             297           316
Employer contributions                                                     6            38
Benefits paid                                                           (181)         (152)
- ------------------------------------------------------------------------------------------
Fair value of plan assets at end of year                             $ 3,103       $ 2,981
- ------------------------------------------------------------------------------------------
Funded status                                                        $  (119)      $   (52)
Unrecognized net loss                                                    113           105
Unrecognized transition obligation                                        --             1
Unrecognized prior service cost                                           76            91
- ------------------------------------------------------------------------------------------
Recorded asset                                                       $    70       $   145
- ------------------------------------------------------------------------------------------
Additional detail of amounts recognized in balance sheets:
Intangible asset                                                     $     2       $     2
Accumulated other comprehensive income                                   (19)          (16)
Pension plans with an accumulated benefit obligation
   in excess of plan assets:
Projected benefit obligation                                         $   101       $    77
Accumulated benefit obligation                                            85            61
Fair value of plan assets                                                 --            --
Weighted-average assumptions at end of year:
Discount rate                                                           5.5%          5.5%
Rate of compensation increase                                           5.0%          5.0%



Page 59


_____________________________________________________________________________________________
Notes to Consolidated Financial Statements

Expense components are:

In millions              Year ended December 31,           2005         2004           2003
- ----------------------------------------------------------------------------------------------
Service cost                                             $   99        $  86         $  79
Interest cost                                               166          162           162
Expected return on plan assets                             (215)        (201)         (187)
Special termination benefits                                 --           --             3
Net amortization and deferral                                21           22            34
- ----------------------------------------------------------------------------------------------
Expense under accounting standards                           71           69            91
Regulatory adjustment - deferred                            (26)         (26)          (44)
- ----------------------------------------------------------------------------------------------
Total expense recognized                                 $   45        $  43         $  47
- ----------------------------------------------------------------------------------------------
Change in accumulated other comprehensive income         $   (3)       $  --            (7)

Weighted-average assumptions:
Discount rate                                              5.5%         6.0%          6.5%
Rate of compensation increase                              5.0%         5.0%          5.0%
Expected return on plan assets                             7.5%         7.5%          8.5%


The following benefit payments, which reflect expected future service, are expected to be
paid:

    In millions       Year ended December 31,
- ----------------------------------------------------------------------------
        2006                                                         $   237
        2007                                                             251
        2008                                                             264
        2009                                                             274
        2010                                                             285
        2011-2015                                                      1,532
- ----------------------------------------------------------------------------


Asset allocations are:
                                                     Target for           December 31,
                                                        2006            2005       2004
- -----------------------------------------------------------------------------------------
    United States equity                                 45%             47%        47%
    Non-United States equity                             25              26         25
    Private equity                                        4               2          2
    Fixed income                                         26              25         26
- -----------------------------------------------------------------------------------------


Postretirement Benefits Other Than Pensions

Employees retiring at or after age 55 with at least 10 years of service are eligible for
postretirement health and dental care, life insurance and other benefits.

On December 8, 2003, President Bush signed the Medicare Prescription Drug, Improvement and
Modernization Act of 2003. The Act authorized a federal subsidy to be provided to plan
sponsors for certain prescription drug benefits under Medicare. SCE adopted a new accounting
pronouncement for the effects of the Act, effective July 1, 2004, which reduced SCE's
accumulated benefits obligation by $116 million upon adoption.

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                                                            Southern California Edison Company

The expected contributions (all by the employer) to the postretirement benefits other than
pensions trust are $77 million for the year ended December 31, 2006. This amount is subject
to change based on, among other things, the limits established for federal tax deductibility.

SCE uses a December 31 measurement date. The fair value of plan assets is determined by
market value.

Information on plan assets and benefit obligations is shown below:

    In millions          Year ended December 31,                        2005           2004
- --------------------------------------------------------------------------------------------
    Change in benefit obligation
    Benefit obligation at beginning of year                          $ 2,146       $ 2,137
    Service cost                                                          44            40
    Interest cost                                                        118           123
    Amendments                                                           (15)           28
    Actuarial loss (gain)                                                 38           (88)
    Benefits paid                                                        (56)          (94)
- --------------------------------------------------------------------------------------------
    Benefit obligation at end of year                                $ 2,275       $ 2,146
- --------------------------------------------------------------------------------------------
    Change in plan assets
    Fair value of plan assets at beginning of year                   $ 1,465       $ 1,389
    Actual return on plan assets                                          92           145
    Employer contributions                                                72            25
    Benefits paid                                                        (56)          (94)
- --------------------------------------------------------------------------------------------
    Fair value of plan assets at end of year                         $ 1,573       $ 1,465
- --------------------------------------------------------------------------------------------
    Funded status                                                    $  (702)      $  (681)
    Unrecognized net loss                                                842           841
    Unrecognized prior service cost                                     (271)         (285)
- --------------------------------------------------------------------------------------------
    Recorded liability                                               $  (131)      $  (125)
- --------------------------------------------------------------------------------------------
    Assumed health care cost trend rates:
    Rate assumed for following year                                     10.25%         10.0%
    Ultimate rate                                                         5.0%          5.0%
    Year ultimate rate reached                                           2011          2010
    Weighted-average assumptions at end of year:
    Discount rate                                                         5.5%         5.75%



Page 61


_____________________________________________________________________________________________
Notes to Consolidated Financial Statements


Expense components are:

In millions              Year ended December 31,           2005         2004           2003
- --------------------------------------------------------------------------------------------
Service cost                                            $    44       $   40        $   42
Interest cost                                               118          123           122
Expected return on plan assets                             (101)         (96)          (89)
Special termination benefits                                 --           --             1
Amortization of unrecognized prior service costs            (28)         (29)          (20)
Amortization of unrecognized loss                            45           49            52
Amortization of unrecognized transition obligation           --           --             9
- --------------------------------------------------------------------------------------------
Total expense                                           $    78       $   87        $  117
- --------------------------------------------------------------------------------------------
Assumed health care cost trend rates:
Current year                                               10.0%         12.0%         9.75%
Ultimate rate                                               5.0%          5.0%          5.0%
Year ultimate rate reached                                 2010          2010          2008
Weighted-average assumptions:
Discount rate                                              5.75%         6.25%          6.4%
Expected return on plan assets                              7.1%          7.1%          8.2%


Increasing the health care cost trend rate by one percentage point would increase the
accumulated obligation as of December 31, 2005 by $271 million and annual aggregate service
and interest costs by $19 million. Decreasing the health care cost trend rate by one
percentage point would decrease the accumulated obligation as of December 31, 2005 by
$243 million and annual aggregate service and interest costs by $17 million.

The following benefit payments are expected to be paid:
                                                                  Before
    In millions           Year ended December 31,          Subsidy       Net
- ------------------------------------------------------------------------------
        2006                                             $  104        $  99
        2007                                                113          107
        2008                                                118          111
        2009                                                127          120
        2010                                                135          127
        2011-2015                                           760          711
- ------------------------------------------------------------------------------


Asset allocations are:
                                                          Target for       December 31,
                                                             2006        2005        2004
- -----------------------------------------------------------------------------------------

    United States equity                                     64%          65%          64%
    Non-United States equity                                 16           14           14
    Fixed income                                             20           21           22
- -----------------------------------------------------------------------------------------


Description of Pension and Postretirement Benefits Other Than Pensions Investment Strategies

The investment of plan assets is overseen by a fiduciary investment committee. Plan assets
are invested using a combination of asset classes, and may have active and passive
investment strategies within asset classes. SCE employs multiple investment management
firms. Investment managers within each asset

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                                                            Southern California Edison Company

class cover a range of investment styles and approaches. Risk is controlled through
diversification among multiple asset classes, managers, styles and securities. Plan, asset
class and individual manager performance is measured against targets. SCE also monitors the
stability of its investments managers' organizations.

Allowable investment types include:

United States Equity:  Common and preferred stock of large, medium, and small companies
which are predominantly United States-based.

Non-United States Equity:  Equity securities issued by companies domiciled outside the
United States and in depository receipts which represent ownership of securities of
non-United States companies.

Private Equity:  Limited partnerships that invest in non-publicly traded entities.

Fixed Income:  Fixed income securities issued or guaranteed by the United States government,
non United States governments, government agencies and instrumentalities, mortgage backed
securities and corporate debt obligations. A small portion of the fixed income position may
be held in debt securities that are below investment grade.

Permitted ranges around asset class portfolio weights are plus or minus 5%. Where approved
by the fiduciary investment committee, futures contracts are used for portfolio rebalancing
and to approach fully invested portfolio positions. Where authorized, a few of the plan's
investment managers employ limited use of derivatives, including futures contracts, options,
options on futures and interest rate swaps in place of direct investment in securities to
gain efficient exposure to markets. Derivatives are not used to leverage the plans or any
portfolios.

Determination of the Expected Long-Term Rate of Return on Assets for United States Plans

The overall expected long term rate of return on assets assumption is based on the target
asset allocation for plan assets, capital markets return forecasts for asset classes
employed, and active management excess return expectations. A portion of postretirement
benefits other than pensions trust asset returns are subject to taxation, so the expected
long-term rate of return for these assets is determined on an after-tax basis.

Capital Markets Return Forecasts

The estimated total return for fixed income is based on an equilibrium yield for
intermediate United States government bonds plus a premium for exposure to non-government
bonds in the broad fixed income market. The equilibrium yield is based on analysis of
historic data and is consistent with experience over various economic environments. The
premium of the broad market over United States government bonds is a historic average
premium. The estimated rate of return for equity is estimated to be a 3% premium over the
estimated total return of intermediate United States government bonds. This value is
determined by combining estimates of real earnings growth, dividend yields and inflation,
each of which was determined using historical analysis. The rate of return for private
equity is estimated to be a 5% premium over public equity, reflecting a premium for higher
volatility and illiquidity.

Active Management Excess Return Expectations

For asset classes that are actively managed, an excess return premium is added to the
capital market return forecasts discussed above.


Page 63

_____________________________________________________________________________________________
Notes to Consolidated Financial Statements


Stock-Based Compensation

Under various plans, SCE may grant stock options at exercise prices equal to the market
price at the grant date and other awards based on Edison International common stock to
directors and certain employees. Options generally expire 10 years after the grant date and
vest over a period of up to five years, with expense accruing evenly over the vesting
period. Edison International has approximately 12.5 million shares remaining for future
issuance under equity compensation plans.

Most Edison International stock options issued prior to 2000 accrue dividend equivalents,
subject to certain performance criteria. The 2003, 2004, and 2005 options accrue dividend
equivalents for the first five years of the option term. Unless deferred, dividend
equivalents accumulate without interest.

The fair value for each option granted, reflecting the basis for the pro forma disclosures
in Note 1, was determined as of the grant date using the Black-Scholes option-pricing model.
The following assumptions were used in determining fair value through the model:

    December 31,                         2005             2004             2003
- -----------------------------------------------------------------------------------
    Expected years until exercise        9 - 10          9 - 10              10
    Risk-free interest rate           4.1% - 4.3%      4.0% - 4.3%      3.8% - 4.5%
    Expected dividend yield           2.1% - 3.1%     2.7% - 3.7%          1.8%
    Expected volatility                15% - 20%        19% - 22%        44% - 53%
- -----------------------------------------------------------------------------------


A summary of the status of Edison International stock options is as follows:

                                                                Weighted-Average
                                                             --------------------
                                          Share              Exercise  Fair Value
                                         Options               Price    At Grant
- ---------------------------------------------------------------------------------
    Outstanding, Dec. 31, 2002        6,810,798              $ 22.37
    Granted                           2,076,070                12.41     $ 7.34
    Expired                            (115,612)               22.98
    Forfeited                           (59,473)               15.34
    Exercised                          (156,697)               18.71
- ---------------------------------------------------------------------------------
    Outstanding, Dec. 31, 2003        8,555,086              $ 20.06
    Granted                           2,476,820                21.98     $ 6.61
    Expired                                (509)               16.23
    Forfeited                           (79,536)               16.83
    Exercised                        (1,589,948)               18.20
- ---------------------------------------------------------------------------------
    Outstanding, Dec. 31, 2004        9,361,913              $ 20.91
    Granted                           1,848,039                32.26     $ 9.40
    Expired                               --                     --
    Forfeited                          (162,606)               21.02
    Exercised                        (2,460,098)               21.67
- ---------------------------------------------------------------------------------
      Outstanding, Dec. 31, 2005      8,587,248              $ 23.22
- ---------------------------------------------------------------------------------



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______________________________________________________________________________________________
                                                            Southern California Edison Company

A summary of stock options outstanding at December 31, 2005 is as follows:

                                   Outstanding                             Exercisable
- ---------------------------------------------------------------------------------------------
                                    Weighted
                                     Average      Weighted                           Weighted
                                    Remaining      Average                            Average
Range of             Number         Years of      Exercise          Number           Exercise
Exercise Prices    of Options   Contractual Life    Price         of Options           Price
- ----------------------------------------------------------------------------------------------
$ 8.90-$13.99     1,539,416              7        $ 12.22          717,388           $ 12.16
$14.00-$20.99     1,174,081              6        $ 18.55          811,701           $ 18.52
$21.00-$31.49     4,016,320              6        $ 24.62        2,262,774           $ 26.66
$31.50-$46.87     1,857,431              9        $ 32.26           51,206           $ 31.94
- ----------------------------------------------------------------------------------------------
Total             8,587,248              7        $ 23.22        3,843,069           $ 22.31
- ----------------------------------------------------------------------------------------------


The number of options exercisable and their weighted-average exercise prices at December 31,
2004 and 2003 were 4,546,711 at $23.69 and 4,845,967 at $24.06, respectively.

Performance shares were awarded to executives in January 2003, January 2004 and January 2005
and vest at the end of December 2005, 2006 and 2007, respectively. The number of common
shares paid out from the performance share awards depends on the performance of Edison
International common stock relative to the stock performance of a specified group of
companies. Performance share values are accrued ratably over the vesting period based on the
value of the underlying Edison International common stock. The number of performance shares
granted and their weighted-average grant-date value for 2005, 2004 and 2003 were
132,655 at $32.07, 178,684 at $21.94, and 293,497 at $12.33, respectively. In the pro forma
disclosure reflected in Note 1, the portions of these performance shares settled in stock,
which were half of the total shares outstanding, were treated as equity awards. The
weighted-average grant-date fair values of these performance shares were $46.09, $33.62 and
$21.42, for 2005, 2004 and 2003, respectively.

See Note 1 for SCE's accounting policy and expenses related to stock-based compensation.

Note 7.  Jointly Owned Utility Projects

SCE owns interests in several generating stations and transmission systems for which each
participant provides its own financing. SCE's share of expenses for each project is included
in the consolidated statements of income.

SCE's investment in each project as of December 31, 2005 is:

                                        Investment       Accumulated
                                            in        Depreciation and    Ownership
    In millions                          Facility       Amortization      Interest
- ------------------------------------------------------------------------------------
    Transmission systems:
      Eldorado                          $    60          $     9             60%
      Pacific Intertie                      306               80             50
    Generating stations:
      Four Corners Units 4 and 5 (coal)     499              407             48
      Mohave (coal)                         350              269             56
      Palo Verde (nuclear)                1,710            1,468             16
      San Onofre (nuclear)                4,522            3,956             75
- ------------------------------------------------------------------------------------
    Total                               $ 7,447          $ 6,189
- ------------------------------------------------------------------------------------



Page 65


______________________________________________________________________________________________
Notes to Consolidated Financial Statements

All of Mohave Generating Station and a portion of San Onofre and Palo Verde is
included in regulatory assets on the consolidated balance sheets. See Note 1.
Mohave ceased operations on December 31, 2005. At this time, SCE does not know the
length of the shutdown period, and a permanent shutdown remains possible.

Note 8.  Commitments

Leases

Unit-specific contracts (signed or modified after June 30, 2003) in which SCE takes
virtually all of the output of a facility are generally considered to be leases under
accounting rules. At December 31, 2005, SCE had six power contracts that were classified as
operating leases and one capital lease (executed in late 2005). Operating lease expense for
power purchases was $68 million in 2005 and zero for all other periods presented. Other
operating lease expense, primarily for vehicle leases, was $20 million in 2005, $17 million
in 2004, and $15 million in 2003. The leases have varying terms, provisions and expiration
dates. The capital lease (net commitment of $15 million) is reported as a long-term
obligation on the consolidated balance sheet under the caption, other long-term liabilities.

Estimated remaining commitments for noncancelable operating leases at December 31, 2005 are:

                                                       Power Contracts      Other
                                                          Operating       Operating
    In millions      Year ended December 31,               Leases          Leases
- ------------------------------------------------------------------------------------
        2006                                             $   177         $   15
        2007                                                 288             13
        2008                                                 260             11
        2009                                                 205              8
        2010                                                 204              4
        Thereafter                                            --              5
- ------------------------------------------------------------------------------------
    Total                                                $ 1,134         $   56
- ------------------------------------------------------------------------------------


Nuclear Decommissioning

As a result of an accounting standard adopted in 2003, SCE recorded the fair value of its
liability for AROs, primarily related to the decommissioning of its nuclear power facilities.
At that time, SCE adjusted its nuclear decommissioning obligation, capitalized the initial
costs of the ARO into a nuclear-related ARO regulatory asset, and also recorded an ARO
regulatory liability as a result of timing differences between the recognition of costs
recorded in accordance with the standard and the recovery of the related asset retirement
costs through the rate-making process. SCE has collected in rates amounts for the future
costs of removal of its nuclear assets, and has placed those amounts in independent trusts.
The fair value of decommissioning SCE's nuclear power facilities is $2.6 billion as of
December 31, 2005, based on site-specific studies performed in 2005 for San Onofre and Palo
Verde. Changes in the estimated costs, timing of decommissioning, or the assumptions
underlying these estimates could cause material revisions to the estimated total cost to
decommission. SCE estimates that it will spend approximately $11.4 billion through 2049 to
decommission its active nuclear facilities. This estimate is based on SCE's decommissioning
cost methodology used for rate-making purposes, escalated at rates ranging from 1.7% to 7.5%
(depending on the cost element) annually. These costs are expected to be funded from
independent decommissioning trusts, which effective October 2003 receive contributions of
approximately $32 million per year. SCE estimates annual after-tax earnings on the
decommissioning funds of 4.5% to 5.6%. If the assumed return on trust assets is not earned,
additional funds needed for decommissioning will be recoverable through rates.


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______________________________________________________________________________________________
                                                            Southern California Edison Company

Decommissioning of San Onofre Unit 1 is underway and will be completed in three phases:
(1) decontamination and dismantling of all structures and some foundations; (2) spent fuel
storage monitoring; and (3) fuel storage facility dismantling, removal of remaining
foundations, and site restoration. Phase one is scheduled to continue through 2008. Phase
two is expected to continue until 2026. Phase three will be conducted concurrently with the
San Onofre Units 2 and 3 decommissioning projects. In February 2004, SCE announced that it
discontinued plans to ship the San Onofre Unit 1 reactor pressure vessel to a disposal site
until such time as appropriate arrangements are made for its permanent disposal. It will
continue to be stored at its current location at San Onofre Unit 1. This action results in
placing the disposal of the reactor pressure vessel in Phase three of the San Onofre Unit 1
decommissioning project.

All of SCE's San Onofre Unit 1 decommissioning costs will be paid from its nuclear
decommissioning trust funds and are subject to CPUC review. The estimated remaining cost to
decommission San Onofre Unit 1 is recorded as an ARO liability ($186 million at December 31,
2005). Total expenditures for the decommissioning of San Onofre Unit 1 were $414 million
from the beginning of the project in 1998 through December 31, 2005.

SCE plans to decommission its nuclear generating facilities by a prompt removal method
authorized by the Nuclear Regulatory Commission. Decommissioning is expected to begin after
the plants' operating licenses expire. The operating licenses currently expire in 2022 for
San Onofre Units 2 and 3, and in 2025, 2026 and 2027 for the Palo Verde units.
Decommissioning costs, which are recovered through nonbypassable customer rates over the
term of each nuclear facility's operating license, are recorded as a component of
depreciation expense, with a corresponding credit to the ARO regulatory liability. The
earnings impact of amortization of the ARO asset included within the unamortized nuclear
investment and accretion of the ARO liability, both created under this new standard, are
deferred as increases to the ARO regulatory liability account, with no impact on earnings.

SCE has collected in rates amounts for the future costs of removal of its nuclear assets.
The cost of removal amounts, in excess of fair value collected for assets not legally
required to be removed, are classified as regulatory liabilities.

Decommissioning expense under the rate-making method was $118 million in 2005, $125 million
in 2004 and $118 million in 2003. The ARO for decommissioning SCE's active nuclear
facilities was $2.4 billion at December 31, 2005 and $2.0 billion at December 31, 2004.

Decommissioning funds collected in rates are placed in independent trusts, which, together
with accumulated earnings, will be utilized solely for decommissioning.

Trust investments (at fair value) include:

    In millions                      Maturity Dates     December 31,      2005       2004
- --------------------------------------------------------------------------------------------
    Municipal bonds                     2006 - 2039                    $   863    $   784
    Stock                                    -                           1,451      1,403
    United States government issues     2006 - 2035                        479        485
    Corporate bonds                     2006 - 2045                         42         41
    Short-term                             2006                             72         44
- --------------------------------------------------------------------------------------------
    Total                                                              $ 2,907    $ 2,757
- --------------------------------------------------------------------------------------------

    Note:  Maturity dates as of December 31, 2005.


Page 67


______________________________________________________________________________________________
Notes to Consolidated Financial Statements


Trust fund earnings (based on specific identification) increase the trust fund balance and
the ARO regulatory liability. Net earnings (loss) were $87 million in 2005, $91 million in
2004, and $93 million in 2003. Proceeds from sales of securities (which are reinvested) were
$2.0 billion in 2005, $2.5 billion in 2004, and $2.2 billion in 2003. Net unrealized holding
gains were $852 million and $796 million at December 31, 2005 and 2004, respectively.
Approximately 91% of the cumulative trust fund contributions were tax-deductible.

Other Commitments

SCE has fuel supply contracts which require payment only if the fuel is made available for
purchase. SCE has a coal fuel contract that requires payment of certain fixed charges
whether or not coal is delivered.

SCE has power-purchase contracts with certain QFs (cogenerators and small power producers)
and other power producers. These contracts provide for capacity payments if a facility meets
certain performance obligations and energy payments based on actual power supplied to SCE
(the energy payments are not included in the table below). There are no requirements to make
debt-service payments. In an effort to replace higher-cost contract payments with lower-cost
replacement power, SCE has entered into purchased-power settlements to end its contract
obligations with certain QFs. The settlements are reported as power purchase contracts on
the consolidated balance sheets.

Certain commitments for the years 2006 through 2010 are estimated below:

    In millions                                   2006     2007     2008     2009     2010
- ------------------------------------------------------------------------------------------
    Fuel supply                                   $126     $ 64     $ 64     $ 40     $ 47
    Purchased power                                842      775      528      417      393
- ------------------------------------------------------------------------------------------


SCE has an unconditional purchase obligation for firm transmission service from another
utility. Minimum payments are based, in part, on the debt-service requirements of the
transmission service provider, whether or not the transmission line is operable. The
contract requires minimum payments of $62 million through 2016 (approximately $6 million per
year).

Indemnities

In connection with the acquisition of Mountainview, SCE agreed to indemnify the seller with
respect to specific environmental claims related to SCE's previously owned San Bernardino
Generating Station, divested by SCE in 1998 and reacquired as part of the Mountainview
acquisition. The generating station has not operated since 2001. SCE retained certain
responsibilities with respect to environmental claims as part of the original divestiture of
the station. The aggregate liability for either party to the purchase agreement for damages
and other amounts is a maximum of $60 million. This indemnification for environmental
liabilities expires on or before March 12, 2033. SCE has not recorded a liability related to
this indemnity.

SCE provides other indemnifications through contracts entered into in the normal course of
business. These are primarily indemnifications against adverse litigation outcomes in
connection with underwriting agreements, and specified environmental indemnities and income
taxes with respect to assets sold. SCE's obligations under these agreements may be limited
in terms of time and/or amount, and in some instances SCE may have recourse against third
parties for certain indemnities. The obligated amounts of these indemnifications often are
not explicitly stated, and the overall maximum amount of the obligation under these
indemnifications cannot be reasonably estimated. SCE has not recorded a liability related to
these indemnities.

Page 68


______________________________________________________________________________________________
                                                            Southern California Edison Company

Note 9.  Contingencies

In addition to the matters disclosed in these Notes, SCE is involved in other legal, tax and
regulatory proceedings before various courts and governmental agencies regarding matters
arising in the ordinary course of business. SCE believes the outcome of these other
proceedings will not materially affect its results of operations or liquidity.

Environmental Remediation

SCE is subject to numerous environmental laws and regulations, which require it to incur
substantial costs to operate existing facilities, construct and operate new facilities, and
mitigate or remove the effect of past operations on the environment.

SCE records its environmental remediation liabilities when site assessments and/or remedial
actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE
reviews its sites and measures the liability quarterly, by assessing a range of reasonably
likely costs for each identified site using currently available information, including
existing technology, presently enacted laws and regulations, experience gained at similar
sites, and the probable level of involvement and financial condition of other potentially
responsible parties. These estimates include costs for site investigations, remediation,
operations and maintenance, monitoring and site closure. Unless there is a probable amount,
SCE records the lower end of this reasonably likely range of costs (classified as other
long-term liabilities) at undiscounted amounts.

SCE's recorded estimated minimum liability to remediate its 24 identified sites is $82
million. The ultimate costs to clean up SCE's identified sites may vary from its recorded
liability due to numerous uncertainties inherent in the estimation process, such as: the
extent and nature of contamination; the scarcity of reliable data for identified sites; the
varying costs of alternative cleanup methods; developments resulting from investigatory
studies; the possibility of identifying additional sites; and the time periods over which
site remediation is expected to occur. SCE believes that, due to these uncertainties, it is
reasonably possible that cleanup costs could exceed its recorded liability by up to
$115 million. The upper limit of this range of costs was estimated using assumptions least
favorable to SCE among a range of reasonably possible outcomes. In addition to its
identified sites (sites in which the upper end of the range of costs is at least
$1 million), SCE also had 31 immaterial sites whose total liability ranges from $4 million
(the recorded minimum liability) to $9 million.

The CPUC allows SCE to recover environmental remediation costs at certain sites,
representing $30 million of its recorded liability, through an incentive mechanism (SCE may
request to include additional sites). Under this mechanism, SCE will recover 90% of cleanup
costs through customer rates; shareholders fund the remaining 10%, with the opportunity to
recover these costs from insurance carriers and other third parties. SCE has successfully
settled insurance claims with all responsible carriers. SCE expects to recover costs
incurred at its remaining sites through customer rates. SCE has recorded a regulatory asset
of $56 million for its estimated minimum environmental-cleanup costs expected to be
recovered through customer rates.

SCE's identified sites include several sites for which there is a lack of currently
available information, including the nature and magnitude of contamination and the extent,
if any, that SCE may be held responsible for contributing to any costs incurred for
remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these
sites.

Page 69


______________________________________________________________________________________________
Notes to Consolidated Financial Statements

SCE expects to clean up its identified sites over a period of up to 30 years. Remediation
costs in each of the next several years are expected to range from $11 million to
$25 million. Recorded costs for 2005 were $13 million.

Based on currently available information, SCE believes it is unlikely that it will incur
amounts in excess of the upper limit of the estimated range for its identified sites and,
based upon the CPUC's regulatory treatment of environmental remediation costs, SCE believes
that costs ultimately recorded will not materially affect its results of operations or
financial position. There can be no assurance, however, that future developments, including
additional information about existing sites or the identification of new sites, will not
require material revisions to such estimates.

Federal Income Taxes

Edison International has reached a settlement with the IRS on tax issues and pending
affirmative claims relating to its 1991-1993 tax years. This settlement, which was signed by
Edison International in March 2005 and approved by the United States Congress Joint
Committee on Taxation on July 27, 2005, resulted in a third quarter 2005 net earnings
benefit for SCE of approximately $61 million, including interest. This benefit was reflected
in the caption "Income tax" on the consolidated statements of income.

Edison International received Revenue Agent Reports from the IRS in August 2002 and in
January 2005 asserting deficiencies in federal corporate income taxes with respect to audits
of its 1994-1996 and 1997-1999 tax years, respectively. Many of the asserted tax
deficiencies are timing differences and, therefore, amounts ultimately paid (exclusive of
penalties), if any, would benefit SCE as future tax deductions.

The IRS Revenue Agent Report for the 1997-1999 audit also asserted deficiencies with respect
to a transaction entered into by an SCE subsidiary which may be considered substantially
similar to a listed transaction described by the IRS as a contingent liability company.
While Edison International intends to defend its tax return position with respect to this
transaction, the tax benefits relating to the capital loss deductions will not be claimed
for financial accounting and reporting purposes until and unless these tax losses are
sustained.

In April 2004, Edison International filed California Franchise Tax amended returns for tax
years 1997 through 2002 to abate the possible imposition of new California penalty
provisions on transactions that may be considered as listed or substantially similar to
listed transactions described in an IRS notice that was published in 2001. These
transactions include the SCE subsidiary contingent liability company transaction described
above. Edison International filed these amended returns under protest retaining its appeal
rights.

FERC Refund Proceedings

In 2000, the FERC initiated an investigation into the justness and reasonableness of rates
charged by sellers of electricity in the California Power Exchange (PX) and ISO markets. On
March 26, 2003, the FERC staff issued a report concluding that there had been pervasive
gaming and market manipulation of both the electric and natural gas markets in California
and on the West Coast during 2000-2001 and describing many of the techniques and effects of
that market manipulation. SCE is participating in several related proceedings seeking
recovery of refunds from sellers of electricity and natural gas who manipulated the electric
and natural gas markets. SCE is required to refund to customers 90% of any refunds actually
realized by SCE net of litigation costs, except for the El Paso Natural Gas Company
settlement agreement discussed below, and 10% will be retained by SCE as a shareholder
incentive. A brief summary of the various settlements is below:

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                                                            Southern California Edison Company

o   In June 2004, SCE received its first settlement payment of $76 million resulting from a
    settlement agreement with El Palo Natural Gas Company. Approximately $66 million of this
    amount was credited to purchased-power expense, and was refunded to SCE's ratepayers
    through the energy resource recovery account (ERRA) mechanism over the following twelve
    months, and the remaining $10 million was used to offset SCE's incurred legal costs. In
    May 2005, SCE received its final settlement payment of $66 million, which was also
    refunded to ratepayers through the ERRA mechanism.

o   In August 2004, SCE received its $37 million share of settlement proceeds resulting from a
    FERC-approved settlement agreement with The Williams Cos. and Williams Power Company.

o   In November 2004, SCE received its $42 million share of settlement proceeds resulting from a
    FERC-approved settlement agreement with West Coast Power, LLC and its owners, Dynegy Inc.
    and NRG Energy, Inc.

o   In January 2005, SCE received its $45 million share of settlement proceeds resulting from a
    FERC-approved settlement agreement with Duke Energy Corporation and a number of its
    affiliates.

o   In April 2005, the FERC approved a settlement agreement among SCE, Pacific Gas and Electric
    (PG&amp;E), San Diego Gas &amp; Electric (SDG&amp;E) and several governmental entities, and Mirant
    Corporation and a number of its affiliates (collectively Mirant), all of whom are debtors
    in Chapter 11 bankruptcy proceedings pending in Texas. In April and May 2005, SCE
    received its $68 million share of the cash portion of the settlement proceeds. SCE also
    received a $33 million share of an allowed, unsecured claim in the bankruptcy of one of
    the Mirant parties which was sold for $35 million in December 2005.

o   In November 2005, the FERC approved a settlement agreement among SCE, PG&amp;E, SDG&amp;E and
    several governmental entities, and Enron Corporation and a number of its affiliates
    (collectively Enron), most of which are debtors in Chapter 11 bankruptcy proceedings
    pending in New York. In January 2006, SCE received cash settlement proceeds of $4 million
    and anticipates receiving approximately $5 million in additional cash proceeds assuming
    certain contingencies are satisfied. SCE also received an allowed, unsecured claim
    against one of the Enron debtors in the amount of $241 million. In February 2006, SCE
    received a partial distribution of $10 million of its allowed claim. The remaining amount
    of the allowed claim that will actually be realized will depend on events in Enron's
    bankruptcy that impact the value of the relevant debtor estate.

o   In December 2005, the FERC approved a settlement agreement among SCE, PG&amp;E, SDG&amp;E, several
    governmental entities and certain other parties, and Reliant Energy, Inc. and a number of
    its affiliates (collectively Reliant). In January 2006, SCE received its $65 million
    share of the settlement proceeds. SCE expects to receive an additional $66 million in the
    first quarter of 2006.

On November 19, 2004, the CPUC issued a resolution authorizing SCE to establish an energy
settlement memorandum account (ESMA) for the purpose of recording the foregoing settlement
proceeds (excluding the El Paso settlement) from energy providers and allocating them in
accordance with a settlement agreement. The resolution provides a mechanism whereby portions
of the settlement proceeds recorded in the ESMA are allocated to recovery of SCE's
litigation costs and expenses in the FERC refund proceedings described above and the 10%
shareholder incentive. Remaining amounts for each settlement are to be refunded to
ratepayers through the ERRA mechanism. During 2005, SCE recognized $23 million in
shareholder incentives related to the FERC refunds described above.

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Notes to Consolidated Financial Statements

Investigations Regarding Performance Incentives Rewards

SCE is eligible under its CPUC-approved performance-based ratemaking (PBR) mechanism to earn
rewards or penalties based on its performance in comparison to CPUC-approved standards
of customer satisfaction, employee injury and illness reporting, and system reliability.

SCE has been conducting investigations into its performance under these PBR mechanisms and
has reported to the CPUC certain findings of misconduct and misreporting as further
discussed below. As a result of the reported events, the CPUC could institute its own
proceedings to determine whether and in what amounts to order refunds or disallowances of
past and potential PBR rewards for customer satisfaction, injury and illness reporting, and
system reliability portions of PBR. The CPUC also may consider whether to impose additional
penalties on SCE. SCE cannot predict with certainty the outcome of these matters or estimate
the potential amount of refunds, disallowances, and penalties that may be required.

Customer Satisfaction

SCE received two letters in 2003 from one or more anonymous employees alleging that
personnel in the service planning group of SCE's transmission and distribution business unit
altered or omitted data in attempts to influence the outcome of customer satisfaction
surveys conducted by an independent survey organization. The results of these surveys are
used, along with other factors, to determine the amounts of any incentive rewards or
penalties to SCE under the PBR provisions for customer satisfaction. SCE recorded aggregate
customer satisfaction rewards of $28 million for the years 1998, 1999 and 2000. Potential
customer satisfaction rewards aggregating $10 million for the years 2001 and 2002 are
pending before the CPUC and have not been recognized in income by SCE. SCE also anticipated
that it could be eligible for customer satisfaction rewards of approximately $10 million for
2003.

Following its internal investigation, SCE proposed to refund to ratepayers $7 million of the
PBR rewards previously received and forgo an additional $5 million of the PBR rewards
pending that are both attributable to the design organization's portion of the customer
satisfaction rewards for the entire PBR period (1997-2003). In addition, SCE also proposed
to refund all of the approximately $2 million of customer satisfaction rewards associated
with meter reading. As a result of these findings, SCE accrued a $9 million charge in 2004
for the potential refunds of rewards that have been received.

SCE has taken remedial action as to the customer satisfaction survey misconduct by severing
the employment of several supervisory personnel, updating system process and related
documentation for survey reporting, and implementing additional supervisory controls over
data collection and processing. Performance incentive rewards for customer satisfaction
expired in 2003 pursuant to the 2003 general rate case.

The CPUC has not yet opened a formal investigation into this matter. However, it has
submitted several data requests to SCE and has requested an opportunity to interview a
number of SCE employees in the design organization. SCE has responded to these requests and
the CPUC has conducted interviews of approximately 20 employees who were disciplined for
misconduct and four senior managers and executives of the transmission and distribution
business unit.

Employee Injury and Illness Reporting

In light of the problems uncovered with the customer satisfaction surveys, SCE conducted an
investigation into the accuracy of SCE's employee injury and illness reporting. The yearly
results of employee injury and illness reporting to the CPUC are used to determine the
amount of the incentive

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                                                            Southern California Edison Company

reward or penalty to SCE under the PBR mechanism. Since the inception of PBR in 1997, SCE
has received $20 million in employee safety incentives for 1997 through 2000 and, based on
SCE's records, may be entitled to an additional $15 million for 2001 through 2003.

On October 21, 2004, SCE reported to the CPUC and other appropriate regulatory agencies
certain findings concerning SCE's performance under the PBR incentive mechanism for injury
and illness reporting. SCE disclosed in the investigative findings to the CPUC that SCE
failed to implement an effective recordkeeping system sufficient to capture all required
data for first aid incidents.

As a result of these findings, SCE proposed to the CPUC that it not collect any reward under
the mechanism for any year before 2005, and it return to ratepayers the $20 million it has
already received. Therefore, SCE accrued a $20 million charge in 2004 for the potential
refund of these rewards. SCE has also proposed to withdraw the pending rewards for the
2001-2003 time frames.

SCE has taken other remedial action to address the issues identified, including revising its
organizational structure and overall program for environmental, health and safety compliance
and disciplining employees who committed wrongdoing. SCE submitted a report on the results
of its investigation to the CPUC on December 3, 2004. As with the customer satisfaction
matter, the CPUC has not yet opened a formal investigation into this matter.

ISO Disputed Charges

On April 20, 2004, the FERC issued an order concerning a dispute between the ISO and the
Cities of Anaheim, Azusa, Banning, Colton and Riverside, California over the proper
allocation and characterization of certain charges. The order reversed an arbitrator's award
that had affirmed the ISO's characterization in May 2000 of the charges as Intra-Zonal
Congestion costs and allocation of those charges to scheduling coordinators (SCs) in the
affected zone within the ISO transmission grid. The April 20, 2004 order directed the ISO to
shift the costs from SCs in the affected zone to the responsible participating transmission
owner, SCE. The potential cost to SCE, net of amounts SCE expects to receive through the PX,
SCE's SC at the time, is estimated to be approximately $20 million to $25 million, including
interest. On April 20, 2005, the FERC stayed its April 20, 2004 order during the pendency of
SCE's appeal filed with the Court of Appeals for the D.C. Circuit. On February 7, 2006, the
FERC advised SCE that the FERC will move the Court of Appeals for a voluntary remand so that
the FERC may amend the order on appeal. A decision is expected in late 2006. The FERC may
require SCE to pay these costs, but SCE does not believe this outcome is probable. If SCE is
required to pay these costs, SCE may seek recovery in its reliability service rates.

Navajo Nation Litigation

In June 1999, the Navajo Nation filed a complaint in the United States District Court for
the District of Columbia (D.C. District Court) against Peabody Holding Company (Peabody) and
certain of its affiliates, Salt River Project Agricultural Improvement and Power District,
and SCE arising out of the coal supply agreement for Mohave. The complaint asserts claims
for, among other things, violations of the federal Racketeer Influenced and Corrupt
Organizations statute, interference with fiduciary duties and contractual relations,
fraudulent misrepresentation by nondisclosure, and various contract-related claims. The
complaint claims that the defendants' actions prevented the Navajo Nation from obtaining the
full value in royalty rates for the coal supplied to Mohave. The complaint seeks damages of
not less than $600 million, trebling of that amount, and punitive damages of not less than
$1 billion, as well as a declaration that Peabody's lease and contract rights to mine coal on
Navajo Nation lands should be terminated. SCE joined Peabody's motion to strike the Navajo
Nation's complaint. In addition, SCE and other defendants filed motions to dismiss. The D.C.
District Court denied these motions for dismissal, except for Salt River Project
Agricultural Improvement and Power District's motion for its separate dismissal from the
lawsuit.


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Notes to Consolidated Financial Statements

Certain issues related to this case were addressed by the United States Supreme Court in a
separate legal proceeding filed by the Navajo Nation in the United States Court of Federal
Claims against the United States Department of Interior. In that action, the Navajo Nation
claimed that the Government breached its fiduciary duty concerning negotiations relating to
the coal lease involved in the Navajo Nation's lawsuit against SCE and Peabody. On March 4,
2003, the Supreme Court concluded, by majority decision, that there was no breach of a
fiduciary duty and that the Navajo Nation did not have a right to relief against the
Government. Based on the Supreme Court's conclusion, SCE and Peabody brought motions to
dismiss or for summary judgment in the D.C. District Court action but the D.C. District
Court denied the motions on April 13, 2004.

The Court of Appeals for the Federal Circuit, acting on a suggestion filed by the Navajo
Nation on remand from the Supreme Court's March 4, 2003 decision held in an October 24, 2003
decision that the Supreme Court's decision was focused on three specific statutes or
regulations and therefore did not address the question of whether a network of other
statutes, treaties and regulations imposed judicially enforceable fiduciary duties on the
United States during the time period in question. On March 16, 2004, the Federal Circuit
issued an order remanding the case against the Government to the Court of Federal Claims,
which considered (1) whether the Navajo Nation previously waived its "network of other laws"
argument and, (2) if not, whether the Navajo Nation can establish that the Government
breached any fiduciary duties pursuant to such "network."  On December 20, 2005, the Court
of Federal Claims issued its ruling and found that although there was no waiver, the Navajo
Nation did not establish that a "network of other laws" created a judicially enforceable
trust obligation. The Navajo Nation filed a notice of appeal from this ruling on
February 14, 2006.

Pursuant to a joint request of the parties, the D.C. District Court granted a stay of the
action in that court to allow the parties to attempt to resolve, through facilitated
negotiations, all issues associated with Mohave. Negotiations are ongoing and the stay has
been continued until further order of the court.

SCE cannot predict with certainty the outcome of the 1999 Navajo Nation's complaint against
SCE, the impact on the complaint of the Supreme Court's decision and the recent Court of
Federal Claims ruling in the Navajo Nation's suit against the Government, or the impact of
the complaint on the possibility of resumed operation of Mohave following the cessation of
operation on December 31, 2005.

Nuclear Insurance

Federal law limits public liability claims from a nuclear incident to $10.8 billion. SCE and
other owners of San Onofre and Palo Verde have purchased the maximum private primary
insurance available ($300 million). The balance is covered by the industry's retrospective
rating plan that uses deferred premium charges to every reactor licensee if a nuclear
incident at any licensed reactor in the United States results in claims and/or costs which
exceed the primary insurance at that plant site. Federal regulations require this secondary
level of financial protection. The Nuclear Regulatory Commission exempted San Onofre Unit 1
from this secondary level, effective June 1994. The current maximum deferred premium for
each nuclear incident is $101 million per reactor, but not more than $15 million per reactor
may be charged in any one year for each incident. The maximum deferred premium per reactor
and the yearly assessment per reactor for each nuclear incident will be adjusted for
inflation on a 5-year schedule. The next inflation adjustment will occur on August 31, 2008.
Based on its ownership interests, SCE could be required to pay a maximum of $199 million per
nuclear incident. However, it would have to pay no more than $30 million per incident in any
one year. Such amounts include a 5% surcharge if additional funds are needed to satisfy
public liability claims and are subject to adjustment for inflation. If

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                                                            Southern California Edison Company

the public liability limit above is insufficient, federal regulations may impose further
revenue-raising measures to pay claims, including a possible additional assessment on all
licensed reactor operators.

Property damage insurance covers losses up to $500 million, including decontamination costs,
at San Onofre and Palo Verde. Decontamination liability and property damage coverage
exceeding the primary $500 million also has been purchased in amounts greater than federal
requirements. Additional insurance covers part of replacement power expenses during an
accident-related nuclear unit outage. A mutual insurance company owned by utilities with
nuclear facilities issues these policies. If losses at any nuclear facility covered by the
arrangement were to exceed the accumulated funds for these insurance programs, SCE could be
assessed retrospective premium adjustments of up to $44 million per year. Insurance premiums
are charged to operating expense.

Procurement of Renewable Resources

California law requires SCE to increase its procurement of renewable resources by at least
1% of its annual retail electricity sales per year so that 20% of its annual electricity
sales are procured from renewable resources by no later than December 31, 2017. The Joint
Energy Action Plan adopted in 2003 by the CPUC and the California Energy Commission (CEC)
accelerated the deadline to 2010.

SCE entered into a contract with Calpine Energy Services, L.P. (Calpine) to purchase the
output of certain existing geothermal facilities in northern California. In January 2003,
the CPUC issued a resolution approving the contract. SCE interpreted the resolution as
authorizing SCE to count all of the output of the geothermal facilities towards the
obligation to increase SCE's procurement from renewable resources and counted the entire
output of the facilities toward its 1% obligation in 2003, 2004 and 2005. On July 21, 2005,
the CPUC issued a decision stating that SCE can only count procurement pursuant to the
Calpine contract towards its 1% annual renewable procurement requirement if it is certified
as "incremental" by the CEC. On February 1, 2006, the CEC certified approximately 25% and
17% of SCE's 2003 and 2004 procurement, respectively, from the Calpine geothermal facilities
as "incremental."  A similar outcome is anticipated with respect to the CEC's certification
review for 2005.

On August 26, 2005, SCE filed an application for rehearing and a petition for modification
of the CPUC's July 21, 2005 decision. On January 26, 2006, the CPUC denied SCE's application
for rehearing of the decision. The CPUC has not yet ruled on SCE's petition for
modification. The petition for modification seeks a clarification that SCE will not be
subjected to penalties for relying on the CPUC's 2003 resolution in submitting compliance
reports to the CPUC and planning its subsequent renewable procurement activities. The
petition for modification also seeks an express finding that the decision will be applied
prospectively only; i.e., that no past procurement deficits will accrue for any prior period
based on the decision.

If SCE is not successful in its attempt to modify the July 21, 2005 CPUC decision and can
only count the output deemed "incremental" by the CEC, SCE could have deficits in meeting
its renewable procurement obligations for 2003 and 2004. However, based on the CPUC's rules
for compliance with renewable procurement targets, SCE believes that it will have until 2007
to make up these deficits before becoming subject to penalties for those years. The CEC's
and the CPUC's treatment of the output from the geothermal facilities could also result in
SCE being deemed to be out of compliance in 2005 and 2006. Under current CPUC decisions,
potential penalties for SCE's failure to achieve its renewable procurement obligations for
any year will be considered by the CPUC in SCE's annual compliance filing.

On December 20, 2005, Calpine and certain of its affiliates initiated Chapter 11 bankruptcy
proceedings in the United States Bankruptcy Court for the Southern District of New York. As
part of those proceedings, Calpine sought to reject its contract with SCE as of the petition
filing date. On

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Notes to Consolidated Financial Statements


January 27, 2006, after the matter had been withdrawn from the Bankruptcy Court's jurisdiction, the
United States District Court for the Southern District of New York denied Calpine's motion
to reject the contract and ruled that the FERC has exclusive jurisdiction to alter the terms
of the contract with SCE. Calpine has appealed the District Court's ruling to the United
States Court of Appeals for the Second Circuit. Calpine may also file a petition with the
FERC seeking authorization to reject the contract. The CPUC may take the position that any
authorized rejection of the contract would cause SCE to be out of compliance with its
renewable procurement obligations during any period in which renewable electricity
deliveries are reduced or eliminated as a result of the rejection.

Further, in December 2005, SCE made filings advising the CPUC that the need for transmission
upgrades to interconnect new renewable projects and the time it will take under the current
process to license and construct such transmission upgrades may prevent SCE from meeting its
statutory renewables procurement obligations through 2010 and potentially beyond 2010
depending in part on the results of a pending solicitation for new renewable resources. SCE
has requested that the CPUC take several actions in order to expedite the licensing process
for transmission upgrades. The CPUC may take the position that SCE's failure to meet the 20%
goal by 2010 due to transmission constraints would cause SCE to be out of compliance with
its renewable procurement obligations.

Under the CPUC's current rules, the maximum penalty for failing to achieve renewables
procurement targets is $25 million per year. SCE cannot predict with certainty whether it
will be assessed penalties.

Schedule Coordinator Tariff Dispute

SCE serves as a schedule coordinator for Los Angeles Department of Water &amp; Power (DWP) over
the ISO-controlled grid. In late 2003, SCE began charging DWP under a tariff subject to
refund for FERC-authorized charges incurred by SCE on the DWP's behalf. The scheduling
coordinator charges are billed to DWP under a FERC tariff that remains subject to dispute.
DWP has paid the amounts billed under protest but requested the FERC declare that SCE was
obligated to serve as the DWP's scheduling coordinator without charge. The FERC accepted
SCE's tariff for filing, but held that the rates charged to DWP have not been shown to be
just and reasonable and thus made them subject to refund and further review at the FERC. As
a result, SCE could be required to refund all or part of the amounts collected from DWP
under the tariff. During the fourth quarter of 2005 SCE accrued a $25 million charge to
earnings for the potential refunds, reflected in the consolidated statements of income
caption "Purchased power". If the FERC ultimately rules that SCE may not collect the
scheduling coordinator charges from DWP and requires the amounts collected to be refunded to
DWP, SCE would attempt to recover the scheduling coordinator charges from all transmission
grid customers through another regulatory mechanism. However, the availability of other
recovery mechanisms is uncertain, and ultimate recovery of the scheduling coordinator
charges cannot be assured.

Spent Nuclear Fuel

Under federal law, the United States Department of Energy (DOE) is responsible for the
selection and construction of a facility for the permanent disposal of spent nuclear fuel
and high-level radioactive waste. The DOE did not meet its obligation to begin acceptance of
spent nuclear fuel not later than January 31, 1998. It is not certain when the DOE will
begin accepting spent nuclear fuel from San Onofre or other nuclear power plants. Extended
delays by the DOE have led to the construction of costly alternatives and associated siting
and environmental issues. SCE has paid the DOE the required one-time fee applicable to
nuclear generation at San Onofre through April 6, 1983 (approximately $24 million, plus
interest). SCE is also paying the required quarterly fee equal to 0.1(cent)-per-kWh of
nuclear-generated electricity sold after April 6, 1983. On January 29, 2004, SCE, as
operating agent, filed a complaint against the DOE in the United States Court of Federal
Claims seeking damages for DOE's failure to meet

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                                                            Southern California Edison Company

its obligation to begin accepting spent nuclear fuel from San Onofre. The case is currently
stayed until March 31, 2006, when SCE will seek to lift the stay and go forward with the
litigation.

SCE has primary responsibility for the interim storage of spent nuclear fuel generated at
San Onofre. Spent nuclear fuel is stored in the San Onofre Units 2 and 3 spent fuel pools
and the San Onofre independent spent fuel storage installation where all of Unit 1's spent
fuel located at San Onofre is stored. There is now sufficient space in the Unit 2 and 3
spent fuel pools to meet plant requirements through mid-2007 and mid-2008, respectively. In
order to maintain a full core off-load capability, SCE is planning to begin moving Unit 2
and 3 spent fuel into the independent spent fuel storage installation by early 2007.

In order to increase on-site storage capacity and maintain core off-load capability, Palo
Verde has constructed a dry cask storage facility. Arizona Public Service, as operating
agent, plans to continually load casks on a schedule to maintain full core off-load
capability for all three units.

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Notes to Consolidated Financial Statements

Note 10.  Business Segments

SCE's reportable business segments include the rate-regulated electric utility segment and
the VIE segment. The VIEs were consolidated as of March 31, 2004. The VIEs are gas-fired
power plants that sell both electricity and steam. The VIE segment consists of
non-rate-regulated entities. SCE's management has no control over the resources allocated to
the VIE segment and does not make decisions about its performance. Additional details on the
VIE segment are shown under the heading "Variable Interest Entities" in Note 1.

SCE's business segment information including all line items with VIE activities is:

                                              Electric
In millions                                    Utility       VIEs     Eliminations      SCE
- ----------------------------------------------------------------------------------------------
Balance Sheet Items as of December 31, 2005:
Cash                                           $   23       $ 120      $    --       $   143
Accounts receivable-net                           794         174         (119)          849
Inventory                                         202          18           --           220
Prepayments and other current assets               88           4           --            92
Nonutility property-net of depreciation           741         345           --         1,086
Other long-term assets                            535          10           --           545
Total assets                                   24,151         671         (119)       24,703
Accounts payable                                  813         204         (119)          898
Other current liabilities                         808           2           --           810
Long-term debt                                  4,615          54           --         4,669
Asset retirement obligations                    2,608          13           --         2,621
Minority interest                                  --         398           --           398
Total liabilities and shareholder's equity     24,151         671         (119)       24,703

Balance Sheet Items as of December 31, 2004:
Cash and equivalents                           $   32       $  90       $   --       $   122
Accounts receivable-net                           569         153         (104)          618
Inventory                                         181          15           --           196
Prepayments and other current assets               43           3           --            46
Nonutility property-net of depreciation           583         377           --           960
Other long-term assets                            562           5           --           567
Total assets                                   22,751         643         (104)       23,290
Accounts payable                                  638         166         (104)          700
Other current liabilities                         641           2           --           643
Long-term debt                                  5,171          54           --         5,225
Customer advances and other deferred credits      498          12           --           510
Minority interest                                  --         409           --           409
Total liabilities and shareholder's equity     22,751         643         (104)       23,290
- ----------------------------------------------------------------------------------------------



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                                                            Southern California Edison Company

                                              Electric
In millions                                    Utility       VIEs     Eliminations*     SCE
- ----------------------------------------------------------------------------------------------
Income Statement Items for the
  Year-Ended December 31, 2005:
Operating revenue                             $ 9,038      $1,397       $   (935)    $ 9,500
Fuel                                              269         924             --       1,193
Purchased power                                 3,557          --           (935)      2,622
Other operation and maintenance                 2,421         102             --       2,523
Depreciation, decommissioning and amortization    878          37             --         915
Total operating expenses                        7,743       1,063           (935)      7,871
Operating income                                1,295         334             --       1,629
Minority interest                                  --         334             --         334
Net income                                        749          --             --         749

Income Statement Items for the
  Year-Ended December 31, 2004:
Operating revenue                             $ 8,163       $ 954       $   (669)    $ 8,448
Fuel                                              232         578             --         810
Purchased power                                 3,001          --           (669)      2,332
Other operation and maintenance                 2,389          68             --       2,457
Depreciation, decommissioning and amortization    832          28             --         860
Total operating expenses                        6,430         674           (669)      6,435
Operating income                                1,733         280             --       2,013
Minority interest                                  --         280             --         280
Net income                                        921          --             --         921
- ----------------------------------------------------------------------------------------------

*  VIE segment revenue includes sales to the electric utility segment, which is eliminated
   in revenue and purchased power in the consolidated statements of income.

Note 11.  Discontinued Operations

In July 2003, the CPUC approved SCE's sale of certain oil storage and pipeline facilities to
Pacific Terminals LLC for $158 million. In third quarter 2003, SCE recorded a $44 million
after-tax gain to shareholders. In accordance with an accounting standard related to the
impairment and disposal of long-lived assets, this oil storage and pipeline facilities
unit's results have been accounted for as a discontinued operation in the 2003 financial
statements. For 2003, revenue from discontinued operations was $20 million and pre-tax
income was $82 million.

Note 12.  Acquisition

In March 2004, SCE acquired Mountainview Power Company LLC, which consisted of a power plant
in early stages of construction in Redlands, California. SCE recommenced full construction
of the approximately $600 million project. The Mountainview project is fully operational.

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Quarterly Financial Data (Unaudited)                        Southern California Edison Company


                                      2005                                 2004
In millions            Total  Fourth  Third  Second   First  Total Fourth  Third Second  First
- ----------------------------------------------------------------------------------------------

Operating revenue    $9,500   $2,306 $3,084  $2,203 $1,908 $8,448 $1,920  $2,655 $2,176   $1,696
Operating income      1,629      345    568     388    328  2,013    499     682    587      245
Net income              749      163    287     166    132    921    317     260    243      101
Net income available
  for common stock      725      153    280     161    131    915    315     259    242      100
Common dividends
  declared              285       71    143      71     --    750    155     150    145      300
- ----------------------------------------------------------------------------------------------

Totals may not add precisely due to rounding.



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Selected Financial and Operating Data:  2001 - 2005           Southern California Edison Company

Dollars in millions                            2005       2004      2003       2002      2001
- --------------------------------------------------------------------------------------------------
Income statement data:

Operating revenue                            $ 9,500   $ 8,448   $ 8,854    $ 8,706    $ 8,126
Operating expenses                             7,871     6,435     7,276      6,588      3,509
Purchased-power expenses                       2,622     2,332     2,786      2,016      3,770
Income tax                                       292       438       388        642      1,658
Provisions for regulatory
  adjustment clauses - net                       435      (201)    1,138      1,502     (3,028)
Interest expense - net of amounts capitalized    360       409       457        584        785
Net income from continuing operations            749       921       882      1,247      2,408
Net income                                       749       921       932      1,247      2,408
Net income available for common stock            725       915       922      1,228      2,386
Ratio of earnings to fixed charges              3.79      4.40      3.81       4.21       6.15
- ------------------------------------------------------------------------------------------------
Balance sheet data:

Assets                                      $ 24,703  $ 23,290  $ 21,771   $ 36,058   $ 22,453
Gross utility plant                           19,232    17,981    16,991     16,232     15,982
Accumulated provision for depreciation
  and decommissioning                          4,763     4,506     4,386      4,057      7,969
Short-term debt                                   --        88       200         --      2,127
Common shareholder's equity                    4,930     4,521     4,355      4,384      3,146
Preferred and preference stock:
  Not subject to mandatory redemption            729       129       129        129        129
  Subject to mandatory redemption                 --       139       141        147        151
Long-term debt                                 4,669     5,225     4,121      4,525      4,739
Capital structure:
  Common shareholder's equity                   47.7%     45.1%      49.8%     47.7%      38.5%
  Preferred stock:
    Not subject to mandatory redemption          7.1%      1.3%       1.5%      1.4%       1.6%
    Subject to mandatory redemption               --       1.4%       1.6%      1.6%       1.9%
  Long-term debt                                45.2%     52.2%      47.1%     49.3%      58.0%
- ------------------------------------------------------------------------------------------------
Operating data:

Peak demand in megawatts (MW)                 21,934    20,762    20,136     18,821     17,890
Generation capacity at peak (MW)              10,536    10,207     9,861      9,767      9,802
Kilowatt-hour deliveries (in millions)       100,992    97,273    92,763     79,693     78,524
Total energy requirement (kWh) (in millions)  78,772    78,738    77,158     71,663     83,495
Energy mix:
  Thermal                                       37.0%     33.7%      37.9%     40.2%      32.5%
  Hydro                                          6.5%      4.5%       5.2%      5.0%       3.6%
  Purchased power and other sources             56.5%     61.8%      56.9%     54.8%      63.9%
Customers (in millions)                         4.74      4.67       4.60      4.53        4.47
Full-time employees                           14,041    13,454     12,698    12,113      11,663


Page 81









                          SOUTHERN CALIFORNIA EDISON COMPANY LOGO
                     2244 Walnut Grove Avenue, Rosemead, California 91770
                                         626.302.1212
                                        www.edison.com





</pre>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>6
<FILENAME>ex23sce10k05.htm
<DESCRIPTION>CONSENT OF IND REG PUBLIC ACCTG FIRM
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 23</TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>



<p style=' margin-bottom:30pt; margin-top:0pt;text-align:center;'><b><font size=2>Consent of Independent Registered Public Accounting Firm</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (No. 333-123683) of Southern California Edison Company of our report dated March 6, 2006 relating to the financial statements, which appears in the Annual Report, which is incorporated in this Annual Report on Form 10-K. We also consent to the incorporation by reference of our report dated March 6, 2006 relating to the financial statement schedule, which appears in this Form 10-K.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>/s/ PricewaterhouseCoopers LLC</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Los Angeles, California</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>March 6, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24.1
<SEQUENCE>7
<FILENAME>ex2410610k.htm
<DESCRIPTION>POWER OF ATTORNEY
<TEXT>
<HTML>
<HEAD>
<TITLE>SCE Power of Attorney</TITLE>
</HEAD>
<BODY>
<PRE>
                   SOUTHERN CALIFORNIA EDISON COMPANY

                            POWER OF ATTORNEY

            The undersigned, SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation,
and certain of its officers and/or directors do each hereby constitute and appoint,
STEPHEN E. PICKETT, THOMAS M. NOONAN, POLLY L. GAULT, BARBARA E. MATHEWS, KENNETH S.
STEWART, LINDA G. SULLIVAN, ROBERT C. BOADA, MARY C. SIMPSON, PAIGE W. R. WHITE, MICHAEL A.
HENRY, JEFFREY C. SHIEH, LOWELL B. REINSTEIN, LYLE G. GEIGER, DARLA F. FORTE,
EILEEN B. GUERRERO, BONITA J. SMITH, MARGA ROSSO, and SARAH C. PEREZ or any of them, to act
as attorney-in-fact, for and in their respective names, places, and steads, to execute,
sign, and file or cause to be filed an Annual Report on Form 10-K for the fiscal year ended
December 31, 2005, Quarterly Reports on Form 10-Q for each of the first three quarters of
fiscal year 2006, any Current Reports on Form 8-K from time to time during 2006 and through
December 14, 2006, or in the event this Board of Directors does not meet on December 14,
2006, through the next succeeding date on which this Board holds a regular meeting, and any
and all supplements and amendments thereto, to be filed by Southern California Edison
Company with the Securities and Exchange Commission, under the Securities Exchange Act of
1934 as amended, (the "Act"), for the purpose of complying with Sections 13 or 15(d) of the
Act, granting unto said attorneys-in-fact, and each of them, full power and authority to do
and perform all and every act and thing whatsoever requisite, necessary and appropriate to
be done in and about the premises as fully and to all intents and purposes as the
undersigned or any of them might or could do if personally present, hereby ratifying and
approving the acts of each of said attorneys-in-fact.

            Executed at Rosemead, California, as of this 15th day of December, 2005.

                                 SOUTHERN CALIFORNIA EDISON COMPANY


                                 By:   /s/ John E. Bryson
                                       ----------------------------
                                       John E. Bryson
                                       Chairman of the Board


Attest:


/s/ Barbara E. Mathews
- ------------------------------------------
BARBARA E. MATHEWS
Vice President, Associate General Counsel,
Chief Governance Officer, and Secretary


Page



                          2006 Southern California Edison Company
                           10-K, 10-Q, and 8-K Power of Attorney


Principal Executive Officer:

/s/ John E. Bryson
- ----------------------------
John E. Bryson                              Chairman of the Board
                                            and Director


Principal Financial Officer:

/s/ Thomas M. Noonan
- ----------------------------
Thomas M. Noonan                            Senior Vice President and
                                            Chief Financial Officer


Controller and Principal Accounting Officer:

/s/ Linda G. Sullivan
- ----------------------------
Linda G. Sullivan                           Vice President and Controller


Additional Directors:


/s/ Alan J. Fohrer        Director        /s/ Ronald L. Olson             Director
- --------------------------                -------------------------
Alan J. Fohrer                            Ronald L. Olson


/s/ France A. Cordova     Director        /s/ James M. Rosser             Director
- --------------------------                -------------------------
France A. Cordova                         James M. Rosser


/s/ Bradford M. Freeman   Director        /s/ Robert H. Smith             Director
- --------------------------                -------------------------
Bradford M. Freeman                       Robert H. Smith


/s/ Bruce Karatz          Director        /s/ Richard T. Schlosberg, III  Director
- --------------------------                -----------------------------
Bruce Karatz                              Richard  T.  Schlosberg,
                                          III

/s/ Luis G. Nogales       Director        /s/ Thomas C. Sutton            Director
- --------------------------                -------------------------
Luis G. Nogales                           Thomas C. Sutton







</PRE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24.2
<SEQUENCE>8
<FILENAME>ex2420610k.htm
<DESCRIPTION>CERTIFIED COPY OF BOARD RESOLUTION
<TEXT>
<HTML>
<HEAD>
<TITLE>SCE Board Resolution re Forms 10-K, 10-Q, 8-K</TITLE>
</HEAD>
<BODY>
<PRE>



                                                 CERTIFICATION

               I, BONITA J. SMITH, Assistant Secretary of SOUTHERN CALIFORNIA EDISON COMPANY, certify that the
attached is an accurate and complete copy of a resolution of the Board of Directors of the corporation, duly
adopted at a meeting of its Board of Directors held on December 15, 2005.

Dated:  February 24, 2006



                                                      /s/ Bonita J. Smith
                                              ----------------------------------
                                                      Assistant Secretary
                                              SOUTHERN CALIFORNIA EDISON COMPANY

[CORPORATE SEAL]




Page



                                    RESOLUTION OF THE BOARD OF DIRECTORS OF
                                      SOUTHERN CALIFORNIA EDISON COMPANY
                                          Adopted: December 15, 2005
                                         RE: FORMS 10-K, 10-Q, AND 8-K

               WHEREAS, the Securities Exchange Act of 1934, as amended, and regulations thereunder, require
that Annual, Quarterly, and Current Reports be filed with the Securities and Exchange Commission
("Commission"), and it is desirable to effect such filings over the signatures of attorneys-in-fact;

               NOW, THEREFORE, BE IT RESOLVED, that each of the officers of this corporation is hereby
authorized to file or cause to be filed with the Commission the Annual Report on Form 10-K of this
corporation for the fiscal year ended December 31, 2005, Quarterly Reports on Form 10-Q for each of the first
three quarters of fiscal year 2006, Current Reports on Form 8-K from time to time during 2006 through
December 14, 2006, or in the event this Board of Directors does not meet on December 14, 2006, through the
next succeeding date on which this Board holds a regular meeting, and any required or appropriate supplements
or amendments to such reports, all in such forms as the officer acting or counsel for this corporation
considers appropriate.

               BE IT FURTHER RESOLVED, that each of the officers of this corporation is hereby authorized to
execute and deliver on behalf of this corporation a power or powers of attorney appointing Stephen E.
Pickett, Thomas M. Noonan, Polly L. Gault, Barbara E. Mathews, Kenneth S. Stewart, Linda G. Sullivan, Robert
C. Boada, Mary C. Simpson, Paige W. R. White, Michael A. Henry, Jeffrey C. Shieh, Lowell B. Reinstein, Lyle
G. Geiger, Darla F. Forte, Eileen B. Guerrero, Bonita J. Smith, Marga Rosso, and Sarah C. Perez, and each of
them, to act severally as attorney-in-fact in their respective names, places and steads, and on behalf of
this corporation, for the purpose of executing and filing with the Commission the above-described reports and
any amendments and supplements thereto.

APPROVED:



/s/ John E. Bryson
- -----------------------------------------
Chairman of the Board


/s/ Stephen E. Pickett
- -----------------------------------------
Senior Vice President and General Counsel



</PRE>
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>9
<FILENAME>ex311sce10k05.htm
<DESCRIPTION>CEO CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE>CEO Certification </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>




<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, ALAN J. FOHRER, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K for the year ended December 31,&nbsp;2005, of Southern California Edison Company;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (c)&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date:  March 7, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ ALAN J. FOHRER</font></p> </td> </tr>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>-------------------------------------------</font></p> </td> </tr>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>ALAN J. FOHRER</font></p> </td> </tr>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>10
<FILENAME>ex312sce10k05.htm
<DESCRIPTION>CFO CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE>Senior Vice President and Chief Financial Officer </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>




<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, THOMAS M. NOONAN, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K for the year ended December 31,&nbsp;2005, of Southern California Edison Company;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (c)&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.3in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date:  March 7, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ THOMAS M. NOONAN</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>-----------------------------------------------------</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>THOMAS M. NOONAN</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior Vice President and Chief Financial Officer</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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<TYPE>EX-32
<SEQUENCE>11
<FILENAME>ex32sce10k05.htm
<DESCRIPTION>STMT PURSUANT TO 18 USC SEC 1350
<TEXT>
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<TITLE> Statement Pursuant to 18 U.S.C. Section 1350</TITLE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>STATEMENT PURSUANT TO 18 U.S.C. SECTION 1350, AS </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>In connection with the accompanying Annual Report on Form 10-K for the year ended December 31,&nbsp;2005 (the &#147;Annual Report&#148;), of Southern California Edison Company (the &#147;Company&#148;), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his knowledge, that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Annual Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>March 7, 2006</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ Alan J. Fohrer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>----------------------------------------------</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Alan J. Fohrer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Southern California Edison Company</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ Thomas M. Noonan</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>----------------------------------------------</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Thomas M. Noonan</font></p> </td> </tr>
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        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Financial Officer</font></p> </td> </tr>
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        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Southern California Edison Company</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>This statement accompanies the Annual Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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