Background

In D.01-06-039, the Commission granted Edison's motion to defer its next general rate case (GRC) to a 2003 TY and ordered Edison to tender its NOI to the Commission no later than August 15, 2001. Edison had tendered a limited NOI for its TY 2002 GRC that the Commission concluded was outdated.

Edison requested two extensions of time to submit its NOI. The first request, submitted to the Executive Director on August 1, 2001, requested an extension until October 16, 2001, to tender the NOI due to uncertainty concerning legislation related to Edison's Memorandum of Understanding with the California Department of Water Resources. The Executive Director granted Edison a limited extension until September 4, 2001, to tender its NOI because the Commission staggers major proceedings to facilitate efficient use of Commission resources. On August 23, 2001, Edison submitted the second extension request in conjunction with a petition to modify D.01-06-039 and requested the extension to permit parties the opportunity to comment on and the Commission to act on Edison's petition. On September 4, 2001, the Executive Director granted Edison a second extension, until September 13, 2001, to tender its NOI.

Edison's Petition to Modify D.01-06-039, filed on August 23, 2001, requested that the Commission change the timing for its next GRC and permit Edison to tender its NOI within 75 days after resolution of uncertainties surrounding legislative alternatives to address California's energy crisis and its effect on Edison's financial condition. Edison also proposed that the Commission staff audit's findings be reported in the existing docket for Edison's 1995 GRC.

On September 13, 2001, Edison sent a letter to the Executive Director to inform him that for the reasons stated in Edison's Petition to Modify, Edison was unable to tender its NOI on September 13, 2001. On September 13, 2001, the Executive Director responded to Edison's letter and informed Edison that if it did not submit its NOI at the close of business that day Edison would be out of compliance with D.01-06-039.

Although Edison submitted a letter to the Commission's President on October 26, 2001, stating that Edison intends to submit its NOI to the Office of Ratepayer Advocates no later than December 17, 2001, this does not vitiate Edison's duty to fully comply with Commission orders.

On December 10, 2001, Edison submitted a letter stating that Edison recognizes its failure to comply with D.01-06-039. Edison proposes to mitigate this failure by:

· Offering to submit its NOI on or before December 17, 2001;

· Offering to commit to work with ORA and Commission staff to mitigate the impacts of the delay in filing the NOI; and

· Offering to voluntarily pay a penalty of $47,500 for failing to comply with D.01-06-039.